/EINPresswire.com/ -- SAN JOSE, CA -- (Marketwired) -- 12/02/15 -- AltiGen Communications, Inc. (OTCQX: ATGN), a leading provider of premise and cloud-based IP-PBX and Contact Center solutions, announced today its financial results for the fourth quarter and fiscal year ended September 30, 2015.

Fourth Quarter Fiscal 2015 Highlights

• Net income increased 43% to $209,000
• Gross margin increased 20 points to 81.5%
• Operating expenses remain flat at $1.7 million

Fiscal 2015 Highlights

• Net income was $644,000, compared to a net loss of $270,000 a year ago
• Revenue increased 2% to $9.8 million
• Gross margin increased 11 points to 80.3%
• Stockholders' equity increased 505% to $1.5 million
• Cash increased 21% to $4.6 million

"2015 reflected the results of our efforts to transition from hardware and one-time license revenues to Software as a Service and annual recurring revenues, which delivered increased profitably and capital returns to our shareholders," said Jeremiah J. Fleming, Chairman, President and Chief Executive Officer of AltiGen. "We will continue to focus on driving the business in this direction in 2016 and beyond."

Fourth Quarter Financial Results from Continuing Operations
Revenue for the fourth quarter of fiscal year 2015 was $2.4 million, in comparison to $2.5 million in the same quarter last year. Gross margin rates improved substantially in the fourth quarter of fiscal year 2015, rising to 81.5% compared to 61.6% for the fourth quarter last year. The increase in gross margin was primarily attributable to (i) increased sales of higher margin products, such as software and service related product lines and (ii) in the fourth quarter of fiscal year 2014, a one-time adjustment of $284,000 was recorded for excess inventory related to the iFusion SmartStations, which negatively impacted our gross margin by approximately 8.4 points.

Net income for the fourth quarter of fiscal year 2015 was $209,000, or $0.01 per diluted share, compared with net income of $146,000, or $0.01 per diluted share in the fourth quarter one year ago. Operating expenses were $1.7 million for both fourth quarter of fiscal year 2015 and fourth quarter of fiscal year 2014.

Full Year Fiscal 2015 Financial Results from Continuing Operations
For the twelve months ended September 30, 2015, revenue was $9.8 million, compared to $9.6 million for fiscal 2014, an increase of 2% on a year-over-year basis. Gross margin increased 11.3 points to 80.3% for the twelve-month period of fiscal 2015, compared to 69.0% in the comparable period last year. The increase in gross margin for 2015 was primarily the result of the aforementioned increased sales of higher margin products.

Net income for fiscal year 2015 was $644,000, or $0.03 per diluted share, compared to a net loss of $270,000, or $0.04 per share, in the year-ago period. The increase was driven by (i) a modest increase in revenue and (ii) a decrease of 35% in cost of goods sold, which was primarily driven by the positive impact of stronger software and service related product lines. Our product mix favors software and service, and we continue to see improved margins as we experience a favorable revenue shift in these product lines. Operating expenses totaled $7.2 million for both fiscal year 2015 and 2014.

The Company had total cash and cash equivalents of $4.6 million from its continuing operations as of September 30, 2015, compared to $3.8 million in the comparable period last year.

Conference Call
AltiGen will be discussing its financial results and outlook on a conference call today at 2:00 p.m. Pacific Time (5:00 p.m. ET). The conference call can be accessed by dialing (877) 407-8031 (domestic) or (201) 689-8031 (international). A live webcast will also be made available at http://www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #13624988. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About AltiGen Communications
AltiGen Communications, Inc. (OTCQX: ATGN) is a leading provider of premise and cloud-based IP-PBX and Contact Center solutions headquartered in Silicon Valley, California. With thousands of customers around the world, AltiGen solutions are designed for high reliability, ease of use, seamless integration to Microsoft infrastructure technologies, and are built on a scalable, open standards platform. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.com.

Safe Harbor Statement
The Forward-looking statements contained in this press release are based upon the Company's current expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties including, but not limited to our ability to continue to maintain profitability and increase shareholder value from our ongoing efforts in transitioning from hardware and one-time license revenues to Software as a Service and annual recurring revenues. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

The forward-looking statements contained in this press release are also subject to unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of AltiGen's performance, please refer to AltiGen's audited Annual Report filed with the OTCQX over-the-counter market for the fiscal year ended September 30, 2014. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake any obligation to update any forward-looking statements.

                        AltiGen Communications, Inc.
              Condensed Consolidated Statements of Operations
               (Amounts in thousands, except per share data)

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                                 Fourth Quarter Ended   Twelve Months Ended
                                     September 30,         September 30,
                                 --------------------  ---------------------
                                  FY 2015    FY 2014    FY 2015    FY 2014
                                 ---------  ---------  ---------  ----------
Continuing operations:
Net Revenue                      $   2,389  $   2,473  $   9,800  $   9,576
Gross profit                         1,946      1,524      7,871      6,604

Research and development               702        691      2,954      2,874
Selling, general &
 administrative                      1,033      1,022      4,263      4,325
                                 ---------  ---------  ---------  ----------

Operating income (loss) from
 continuing operations                 211       (189)       654       (595)
Interest and other income, net          (2)       335         (9)       326
                                 ---------  ---------  ---------  ----------
Net income (loss) before income
 taxes                                 209        146        645       (269)
Provision for income taxes               -          -         (1)        (1)
                                 ---------  ---------  ---------  ----------
Operating income (loss) from
 continuing operations after
 taxes                                 209        146        644       (270)
                                 ---------  ---------  ---------  ----------

Discontinued Operations:
Operating loss from discontinued
 operations                              -          -          -       (361)
Write-down of investment from
 discontinued operations                 -          -          -       (259)
                                 ---------  ---------  ---------  ----------
Total operating loss from
 discontinued operations                 -          -          -       (620)
                                 ---------  ---------  ---------  ----------

                                 ---------  ---------  ---------  ----------
Net income (loss)                $     209  $     146  $     644  $    (890)
                                 =========  =========  =========  ==========
Basic and diluted net income
 (loss) per share                $    0.01  $    0.01  $    0.03  $   (0.04)
                                 =========  =========  =========  ==========
Weighted average shares
 outstanding - basic                22,799     22,799     22,799     22,799
                                 =========  =========  =========  ==========
Weighted average shares
 outstanding - diluted              24,140     22,081     23,869     22,799
                                 =========  =========  =========  ==========

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                        AltiGen Communications, Inc.
                    Condensed Consolidated Balance Sheets
                           (Amounts in thousands)

----------------------------------------------------------------------------
                                                 September 30, September 30,
                                                      2015          2014
                                                 ------------- -------------
Cash and cash equivalents                        $       4,560 $       3,814
Accounts receivable, net                                   403           472
Inventories                                                341           476
Other current assets                                        54            68
Net property and equipment                                 126           145
Other long-term assets                                      31            36
                                                 ------------- -------------
Total Assets                                     $       5,515 $       5,011
                                                 ============= =============

Current liabilities                              $       3,803 $       4,573
Long-term liabilities                                      200           188
Stockholders' equity                                     1,512           250
                                                 ------------- -------------
Total Liabilities and Stockholders' Equity       $       5,515 $       5,011
                                                 ============= =============

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