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ALTIGEN REPORTS RECORD THIRD QUARTER 2000 REVENUE GROWTH OF 112%
July 20, 2000
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Telecom Server Supplier Continues to March Toward Profitability;
Aggressively Penetrating New Markets
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Fremont, Calif. - July 20, 2000 -AltiGen Communications, Inc. (Nasdaq: ATGN), a
leading provider of next generation telecom servers today reported its results for the
third quarter and nine month period ended June 30, 2000.
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Net revenues for the third quarter of fiscal 2000 were $4.05 million,
representing an increase of 28% sequentially from the $3.17 million reported for the
second quarter of fiscal 2000, and an increase of 112% from the $1.91 million reported for
the third quarter of fiscal 1999. Net loss for the quarter was $2.05 million, or $0.15 per
share, an improvement sequentially from a net loss of $2.47 million or $0.18 per share
reported for the second quarter 2000, and compared to a net loss of $1.66 million or $1.32
per share reported for the third quarter of 1999.
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For the first nine-month period of fiscal 2000, the Company posted revenues of
$9.7 million, a 128% increase over the $4.3 million from the same period last year. Net
loss for the first nine months of 2000 was $6.2 million, or $0.47 per share, as compared
to a net loss of $5.2 million or $4.73 per share from the same period last year.
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"We are pleased to again report strong financial results this quarter,"
stated Gilbert Hu, chief executive officer of AltiGen Communications. "AltiGen's
products are benefiting from increased awareness both domestically and abroad. In
particular, I am very excited about our progress toward profitability. We have
successfully narrowed the loss per share from last quarter and are on track to achieve
profitability in 2001. This quarter is important as it demonstrates our ability to grow
the top line while holding the expenses steady. During this quarter we also announced a
partnership with Beijing Bell. We believe this partnership is momentous. With the help of
this strategic partner, we can now bring our products to market in which we previously had
no presence. We see tremendous opportunities in China as thousands of small businesses are
being created on a daily basis."
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"Additionally, the China Railway development project we have started this
past quarter with Beijing Bell is our first large project in China. We believe this will
be the catalyst to grow our business in Asia. Leveraging this opportunity across
industries may lead to significant growth for AltiGen," concluded Hu.
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"In the domestic market, we continue to see strong and growing demand for
our VoIP products. The number of VoIP boards now represents almost 10% of our total board
shipments, and our VoIP product is now being deployed in over 50% of our new end user
installations. In addition, we are happy that we ranked 38th among the 150 fastest growing
public companies in the Silicon Valley. We are confident that this rapid growth will
continue as we continue to execute and seeing our product gaining wider acceptance.
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"We are pleased to continue building solid financial fundamentals,"
commented Phil McDermott," chief financial officer of AltiGen Communications.
"Our key metrics continue to strengthen. Gross margins at 55% for the third quarter
of fiscal 2000 held constant with the previous quarter. Equally important, the quality of
our partners continues to improve as indicated by our accounts receivable measurement with
DSOs declining to 56 days from 65 days for the previous quarter."
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About AltiGen
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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. For more information, call 1-888-ALTIGEN or visit the website at
http://www.altigen.com.
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Safe Harbor Statement
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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's leveraging of its leadership in multimedia (including
voice) over Internet protocol solutions to rapidly expand into new product areas; the
Company's international business including China and the Asian market; and AltiGen's
progress toward its long term financial model and profitability model. 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
Company's recent 10-K and10-Q filed with the SEC on January 5, 2000 and May 15, 2000,
respectively. AltiGen assumes no obligation to update the forward-looking information
contained in this press release.
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