ATGN chief touts financial results...
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Tuesday November 2, 4:16 pm Eastern Time
(Company Press Release)
AltiGen Reports Revenue Growth of 75% for the Fourth Quarter of 1999
Leading Telecom Server Manufacturer Builds Market Share in Small- to Medium-Sized Business Environments
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 2, 1999--AltiGen Communications, Inc. (NASDAQ:ATGN - news), a leading provider of next generation telecom servers today reported results for the fourth quarter and twelve month period ended September 30, 1999.
For the fourth quarter of fiscal 1999, the Company reported revenues of $2.3 million, an increase of 75% from $1.3 million reported in the fourth quarter of fiscal 1998, and an increase of 22% sequentially. Net loss for the quarter was $1.7 million, or $1.14 per basic share, compared to a net loss of $1.1 million, or $1.28 per basic share, reported in the fourth quarter of fiscal 1998, and a net loss of $1.7 million, or $1.32 per basic share, reported in the third quarter of fiscal 1999.
For the full fiscal year 1999, the Company reported revenues of $6.6 million, a 70% increase over $3.9 million reported in fiscal year 1998. Net loss for fiscal year 1999 was $6.9 million, or $5.76 per basic share, as compared to a loss of $3.9 million, or $4.75 per basic share, reported in fiscal 1998.
''We are pleased to be able to report such strong revenue growth this quarter and are encouraged by how well received our products have been in the marketplace. We believe that we will see additional market acceleration in the near future, as small- to medium-sized businesses begin to learn about the benefits of VoIP and the capabilities of AltiGen's products,'' commented Gilbert Hu, chief executive officer. ''We are excited to begin our journey as a public company and would like to thank our employees for their tremendous efforts as well as our customers and our investors for allowing us to share our vision.''
''This is our first time reporting financial results as a public company, and we are obviously delighted with the progress we have made to date,'' stated Phil McDermott, chief financial officer. ''We are just beginning to reap some of the benefits of being the first-mover in the telecom server market. Our gross margins increased to 51.5% for the fourth quarter of 1999 from 50.6% for the previous quarter. Our average gross margins have steadily increased to 50% this year from 35% last year. As we enter a new fiscal year, we are confident that we answer an important need for our customers, a time tested next generation telecommunication solution that allows businesses to migrate from circuit to packet switching at their own pace.''
Highlights for the quarter include:
-- Compaq has teamed with AltiGen in targeting Compaq's top tier
Value Added Resellers to create new sales opportunities in the
telecommunications market. Compaq's distributors and resellers
have begun incorporating AltiGen's Quantum and Triton VoIP
circuit boards, along with the AltiServ system software, into
ProLiant and ProSignia servers.
-- AltiGen has Partnered with Hall-Mark Integrated Solutions,
part of Avnet, which now creates an additional national
distribution channel for AltiGen's products. The relationship
with Avnet, one of the world's largest distributors of electronic
components and computer products, creates the first complete ISO
9000 certified telecom server integration and distribution
program serving North America.
-- Aggressively filling out our sales and marketing staff.
AltiGen's current phase of its sales and marketing build-out is
now basically complete. A new team structure is in place to serve
designated territories with a strong emphasis on reseller
training and sales support. This comprehensive team structure is
a testament to AltiGen's commitment to provide unequaled sales
and technical resources for their Value Added Reseller channel.
The Company plans to further its investment in these areas over
the next several periods.
-- Product thrust continues to deliver convergence of multiple
forms of communication on a single telecommunications platform
including important enhancements in digital trunk support.
AltiGen's standards based VoIP solution delivers small- to
mid-sized branch offices an unparalleled feature set including
centralized operator, networked voice mail and single point
administration, without the need to deploy expensive proprietary
phones. AltiGen has introduced multi-site Voice over IP
installations into key vertical markets such health care, public
utilities, and internet service providers. AltiGen is leveraging
its leadership in multimedia (including voice) over Internet
Protocol solutions to rapidly expand into new areas where
AltiGen's advanced features will ensure first-mover advantages.
-- We have completed IPO at $10 per share that was effective
Oct 4.
About AltiGen
AltiGen Communications, Inc., designs, manufactures and markets
next-generation telecom servers that give small- to mid-sized
businesses integrated communications systems for streamlined
operations and enhanced productivity. AltiGen's telecom server uses
both the Internet and traditional phone lines interchangeably and
allows businesses to integrate their phones, databases and PC's into
one powerful Web enabled communications network.
AltiGen products are fully Y2K compliant, are available from
authorized resellers and come with a one-year warranty. AltiGen's
AltiServ has been recognized for excellence with more than two dozen
industry awards in two years, including a 1999 Editor's Choice Award
from PC Magazine and a 1998 Analyst's Choice Award from PC Week
Magazine. For more information, call 1-888-ALTIGEN or visit the
website at altigen.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding AltiGen leveraging its leadership in multimedia (including voice) over Internet protocol solutions to rapidly expand into new product areas. These statements reflect management's current expectations. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to
AltiGen's limited operating history. For a more detailed description
of these and other risks and uncertainties affecting AltiGen's
performance, please refer to the information set forth under the
caption "Risk Factors" in the final prospectus dated October 4, 1999
related to AltiGen's initial public offering, a copy of which can be
obtained from CIBC World Markets, Oppenheimer Tower, World Financial
Center, New York, New York; telephone number 212/667-7000.
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AltiGen Communications, Inc.
Statement of Operations
Dollars in thousands except for per share data
Fourth Quarter Ended Fiscal Year Ended
September 30 September 30
1999 1998 1999 1998
---- ---- ---- Net revenues $ 2,335 $ 1,331 $ 6,599 $ 3,889 Gross profit 1,202 559 3,299 1,370
Research &
development 653 580 3,658 1,927
SG&A 2,103 1,117 6,126 3,445 Deferred stock
compensation 193 81 770 164
Operating loss (1,747) (1,219) (7,255) (4,166)
Interest &
other income 86 108 360 246
------- ------- -------
Net loss $(1,661) $(1,111) $(6,895) $(3,920)
======= ======= ======= =======
Net loss
per share
- basic $ (1.14) $ (1.28) $ (5.76) $ (4.75)
Weighted
average shares
outstanding 1,463 870 1,197 825
Net loss
per share
pro forma
basic $ (0.17) $ (0.13) $ (0.76) $ (0.50)
Pro forma
average shares
outstanding 9,609 8,261 9,053 7,827
Balance Sheet Summary
Sept. 30, Sept. 30,
1999 1998
---- Cash & cash equivalents $ 5,934 $ 7,004 Short term investments -- 1,053 Accounts receivable, net 1,684 1,023 Inventories 2,201 1,294 Other current assets 1,954 175 Net property & equipment 914 553
------- Total Assets $12,687 $11,102
======= =======
Current liabilities $ 3,346 $ 1,851 Stockholders' equity 9,341 9,251
======= ======= Total Liabilities &
Stockholders' Equity $12,687 $11,102
======= =======
Contact:
AltiGen Communications
Phil McDermott, 510/252-7912 (CFO)
pmcdermott@altigen.com
or
Morgen-Walke Associates
Erica Abrams/Jason Golz, 415/296-7383 (IR)
eabrams@mwa-sf.com
jgolz@mwa.sf.com |
