Altigen Technologies Reports First Quarter Fiscal 2026 Results

News > Technology News

Audio By Carbonatix

3:00 PM on Tuesday, February 3

The Associated Press

NEWARK, CALIFORNIA / ACCESS Newswire / February 3, 2026 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the first quarter ended December 31, 2025.

"Our fiscal first quarter represented our 7th consecutive quarter of profitability," said Jeremiah Fleming, Altigen Chairman & CEO. "This demonstrates our commitment to maintaining profitability through short term revenue declines driven by our transition to new technology platforms. We believe the majority of this impact is now behind us and are well positioned for growth in the second half of fiscal 2026."

Key Financial Highlights (1Q 2026 versus 1Q 2025)

Net Revenue decreased 6% to $3.2 million
Gross margin declined slightly to 62%, compared with 63%
Operating expenses decreased 9% to $1.9M
GAAP net income was $101 thousand, compared with $87 thousand.
EPS per share was $0.00 vs $0.00

Trended Financial Information

(in thousands, except for EPS and percentages)


	Fiscal			Fiscal			Fiscal		Fiscal		Fiscal
	1Q26			4Q25			3Q25		2Q25		1Q25
Total Revenue	$	3,173			$	3,472		$	3,517		$	3,500		$	3,378
Cloud Services		1,429				1,635			1,666			1,856			1,720
Services and Other		1,493				1,602			1,596			1,362			1,366
Legacy Products		252				235			256			282			292
Software Assurance		221				213			242			268			278
Perpetual Software License		31				22			14			14			14
GAAP Operating (Loss) / Income	$	88			$	198		$	125		$	283		$	75
Operating Margin		3	%			6	%		4	%		8	%		2	%
GAAP Net Income/(Loss)		101			$	254		$	110		$	287		$	87
Adjusted EBITDA (1)		257				356			645			314			291

Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:00 p.m. Pacific Time (4:00 p.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #363285. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #53480. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About Altigen Technologies

Altigen Technologies (OTCQB: ATGN) is focused on driving digital transformation in today's modern workplace.  Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in the Bay area with operations strategically located in five countries spanning three continents. 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 the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the 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:

Altigen Communications, Inc.
Investor Relations - [email protected]

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except shares and per share data)

	December 31,			September 30,
	2025			2025
				(1)

ASSETS
Current assets:
Cash and cash equivalents	$	2,552			$	2,750
Accounts receivable, net		2,241				2,428
Other current assets		271				183
Total current assets		5,064				5,361

Operating lease right-of-use assets		35				40
Goodwill		2,725				2,725
Property, plant, and equipment, net		51				57
Intangible assets, net		1,035				1,074
Capitalized software development cost, net		1,755				1,621
Deferred tax asset		5,362				5,347
Other long-term assets		12				20
Total assets		16,039				16,245

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	197			$	608
Accrued compensation and benefits		556				625
Accrued expenses		248				221
Deferred consideration		372				372
Operating lease liabilities - current		25				24
Deferred revenue - current		725				563
Total current liabilities		2,124				2,413
Operating lease liabilities - long-term		19				25
Deferred revenue - long-term		58				77
Total liabilities		2,200				2,515

Stockholders' equity:
Common stock		25				25
Treasury stock		(1,579	)			(1,579	)
Additional paid-in capital		73,247				73,240
Accumulated deficit		(57,854	)			(57,956	)
Total stockholders' equity		13,839				13,730
Total liabilities and stockholders' equity	$	16,039			$	16,245

(1) The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2025

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended
	December 31,
	2025			2024
Net revenue	$	3,173			$	3,378

Gross profit		1,954				2,130
Operating expenses:
Research and development		296				251
Sales, general & administrative		1,569				1,804
Operating income (loss)		88				75
Interest and other income		14				-
Interest expense and other expense		(2	)			12
Net income (loss) before income taxes		101				87
Benefit (provision) for income taxes (1)		-				-
Net income (loss)	$	101			$	87

Net income (loss) per share
Basic	$	0.00			$	0.01
Diluted	$	0.00			$	0.01
Weighted average shares used in computing net income (loss) per share
Basic		25,860				24,919
Diluted		25,939				25,347

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Three Months Ended
	December 31,
	2025			2024
Cash flows from operating activities:
Net income (loss)	$	101			$	87

Adjustments to reconcile net income (loss) to net cash from operating activities:
Impairment of capitalized software		88				-
Deferred income tax expense		(15	)
Amortization of intangible assets		46				47
Amortization of capitalized software		42				35
Stock-based compensation		7				18
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable		187				(440	)
Prepaid expenses and other current assets		(88	)			(110	)
Other long-term assets		7				-
Accounts payable		(410	)			455
Accrued expenses		(41	)			(281	)
Deferred revenue		143				94
Lease Liability		(1	)			-
Net cash provided by operating activities		66				(95	)

Cash flows from investing activities:
Capitalized software development costs		(264	)			(231	)
Net cash used in investing activities		(264	)			(231	)

Cash flows from financing activities:
Repurchase of common stock		-				(14	)
Net cash used in financing activities		-				(14	)
Net increase (decrease) in cash and cash equivalents		(198	)			(340	)
Cash and cash equivalents, beginning of year		2,750				2,575
Cash and cash equivalents, end of year	$	2,552			$	2,235