UPDATING ORIGINAL RELEASE: Altigen Communications, Inc. Reports Fourth Quarter and Full-Year Fiscal 2022 Results

This version of the press release replaces inaccurate information given in the bulleted sections

Fourth Quarter Cloud and Professional Services Revenue Increases 47%

MILPITAS, CA / ACCESSWIRE / December 16, 2022 / Altigen Communications, Inc. (OTCQB:ATGN), a Silicon Valley-based cloud solutions provider for the Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS) and our Customer Engagement as a Service (CEaaS) markets, announced today its financial results for the fourth quarter and year ended September 30, 2022.

"Fiscal 2022 was a critical year for Altigen, marking the transition to our new Customer Experience Cloud Solutions portfolio," said Jerry Fleming, chairman and CEO of Altigen. "During the year we made significant enhancements to our CoreInteract Customer Engagement as a Service (CEaaS) platform, established a beachhead base of CoreInteract customers, launched the new FrontStage Contact Center as a Service (CCaaS) solution for our FinTech Customers, and deployed our new geo-redundant MaxCloud Unified Communications as a Service (UCaaS) platform to over 30 customers.

"In addition, we also acquired ZAACT Consulting, a leading Microsoft solutions partner, which added valuable Microsoft technical expertise required by our enterprise customers. All in all, I believe the steps taken during fiscal 2022 mark a key catalyst in our evolution that will enable Altigen to take advantage of today's Digital Transformation market opportunities within the Microsoft Teams platform, Fiserv's significant customer base and our third-party channel."

Fourth Quarter Highlights (Fiscal 2022 versus Fiscal 2021)

• Net Revenue increased 28% to $3.6 million;
• Cloud services revenue decreased 1.0% to $1.9 million;
• Professional services and other revenue increased 706% to $1.2 million;
• Service support and software revenue decreased 31% to $0.5 million;
• Gross margin decreased to 63.8%, compared with 71.4%;
• GAAP net loss was $0.8 million and diluted EPS of ($0.03);
• Non-GAAP¹ net income and non-GAAP diluted EPS of $0.2 million and $0.01, respectively, compared to $0.4 million and $0.01, respectively. Non-GAAP net income excluded approximately $0.6 million of one-time, acquisition-related expenses.

Full Year Highlights (Fiscal 2022 versus Fiscal 2021)

• Net Revenue increased 8% to $11.9 million;
• Cloud services revenue was $7.6 million, relatively flat to the prior year;
• Professional services and other revenue increased 295% to $1.9 million;
• Service support and software revenue decreased 20% to $2.3 million;
• Gross margin decreased to 68.1%, compared with 72.0%;
• GAAP net loss was $0.7 million and diluted EPS of ($0.03);
• Non-GAAP¹ net income and non-GAAP diluted EPS of $1.1 million and $0.04, respectively, compared to $1.3 million and $0.05, respectively. Non-GAAP net income excluded approximately $0.6 million of one-time, acquisition-related expenses.

¹Throughout this release, the use of non-GAAP financial measures is intended to provide useful information that supplements Altigen's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release

nm = not measurable/meaningful; *may not add up due to rounding

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 (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #948950. A live webcast will also be made available at www.altigen.com. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #47302. 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. (OTCQB: ATGN), based in Silicon Valley, is a leading Microsoft Cloud Solutions provider, delivering fully managed Cloud-based Unified Communications services based on the Microsoft platform. Our SIP trunk services, enterprise customer engagement and innovative cloud contact center solutions seamlessly integrate with Microsoft Teams to enhance and extend the business communications capabilities for our customers. Altigen's solutions are designed for high reliability, ease of use, seamless integration into Microsoft technologies, all delivered as fully managed cloud services. Our solutions are available through our global network of certified resellers. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.

Safe Harbor Statement
This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties including, but not limited to, statements regarding our ability to successfully integrate acquired businesses and technologies, our ability to accelerate business opportunities and to achieve increased market acceptance for our service offerings, and our ability to penetrate new markets. There can be no assurances that the Company will achieve expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.

Please refer to the Company's most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.

Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com

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1. During the third quarter of fiscal 2021, the Company recorded a non-cash gain on debt extinguishment of $804,200 related to the forgiveness of the Company's PPP loan which originated during the third quarter of fiscal 2020.
2. The Company's fourth quarter fiscal year 2022 and 2021 results include a non-cash tax expense of approximately $105,000 and $1.3 million, respectively, related to the Company's income tax rate which differs from its statutory rate primarily due to expired net operating losses.

Non-GAAP Financial Measures

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.

SOURCE: Altigen Communications, Inc.