Altigen Communications (ATGN) AI Stock Analysis

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Altigen Communications

(OTC:ATGN)

65Neutral

Altigen Communications exhibits a solid financial foundation with improved profitability and a strong balance sheet. The positive sentiment from the recent earnings call, highlighting revenue growth and cost reductions, supports the overall score. Nevertheless, technical indicators show a bearish trend, and operational challenges persist, affecting the overall outlook. The stock appears undervalued, providing potential growth opportunities.

Altigen Communications (ATGN) vs. S&P 500 (SPY)

Market Cap

$6.59M

Dividend YieldN/A

Average Volume (3M)57.82K

Price to Earnings (P/E)5.1

Beta (1Y)0.85

Revenue Growth2.20%

EPS GrowthN/A

CountryUS

Employees51

SectorCommunication Services

Sector Strength78

IndustryCommunication Equipment

Share Statistics

EPS (TTM)<0.01

Shares Outstanding16,732,000

10 Day Avg. Volume78,000

30 Day Avg. Volume57,817

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.04

Price to Cash Flow (P/CF)-19.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Altigen Communications Business Overview & Revenue Model

Company DescriptionAltigen Communications, Inc. (ATGN) is a provider of cloud-based unified communications solutions for businesses. The company specializes in delivering Voice over Internet Protocol (VoIP) communication services, contact center solutions, and integrated Microsoft Teams services. Altigen's offerings are designed to enhance business productivity by streamlining communication processes and improving customer interactions.

How the Company Makes MoneyAltigen Communications generates revenue through the sale of its cloud-based communication solutions and related services. The company's primary revenue streams include subscription fees for its software-as-a-service (SaaS) offerings, licensing fees from its VoIP and call center solutions, and professional services for system implementation and support. Significant partnerships, particularly with Microsoft, play a critical role in Altigen's revenue generation by integrating their services with Microsoft Teams, thus expanding their market reach and customer base. Additionally, Altigen may earn revenue from hardware sales related to its communication systems, although this is typically a smaller portion of their overall income.

Altigen Communications Financial Statement Overview

Summary

Altigen Communications exhibits strong financial health with consistent revenue, improved profitability, and a solid balance sheet with minimal debt. However, challenges remain in operational efficiency as indicated by negative EBIT and EBITDA margins. Cash flow has improved, yet historical volatility suggests the need for continued monitoring.

Income Statement

Positive

Altigen Communications has shown stable revenue figures with a slight decline from $13.68M in 2023 to $13.62M in 2024. The gross profit margin remains strong at approximately 61.6% for 2024. However, the net profit margin improved significantly from a negative in 2023 to 11.4% in 2024, indicating improved profitability. The EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

Positive

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.012, which is favorable. Stockholders' equity increased, resulting in an equity ratio of 82.8%, indicating a strong financial position. Return on equity improved significantly due to a positive net income in 2024. The company is well-positioned with minimal leverage, reducing financial risk.

Cash Flow

Positive

Altigen Communications has demonstrated a positive shift in free cash flow from negative in 2023 to positive $510K in 2024. The operating cash flow to net income ratio is robust at 0.33, showing some alignment between profits and cash generation. However, historical volatility in free cash flow growth points to potential fluctuations.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
13.62M	13.68M	11.89M	10.99M	11.77M
	Gross Profit
8.39M	8.65M	8.09M	7.92M	9.07M
	EBIT
-306.00K	-436.00K	-579.00K	293.00K	2.05M
	EBITDA
-119.00K	340.00K	400.00K	1.14M	2.61M
	Net Income Common Stockholders
1.56M	-3.32M	-698.00K	-491.00K	1.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.58M	2.64M	3.23M	6.80M	6.66M
	Total Assets
15.65M	13.92M	17.70M	17.14M	18.50M
	Total Debt
153.00K	324.00K	616.00K	881.00K	1.74M
	Net Debt
-2.42M	-2.32M	-2.62M	-5.92M	-4.92M
	Total Liabilities
2.69M	2.58M	3.50M	2.67M	3.84M
	Stockholders Equity
12.96M	11.34M	14.20M	14.47M	14.65M
Cash Flow		Free Cash Flow
510.00K	-409.00K	-612.00K	-25.00K	1.47M
	Operating Cash Flow
510.00K	62.00K	-18.00K	589.00K	2.82M
	Investing Cash Flow
-576.00K	-471.00K	-3.58M	-614.00K	-1.35M
	Financing Cash Flow
0.00	-182.00K	35.00K	165.00K	828.00K

Altigen Communications Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.40

Price Trends

50DMA

0.56

Negative

100DMA

0.61

Negative

200DMA

0.62

Negative

Market Momentum

MACD

-0.05

Positive

RSI

33.11

Neutral

STOCH

38.74

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATGN, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.56, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 38.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATGN.

Altigen Communications Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	75 Outperform	$124.72M	77.60	3.49%	―	14.36%	―
RDCM	73 Outperform	$179.53M	26.10	7.82%	―	18.23%	81.31%
ATGN	65 Neutral	$6.59M	5.14	16.56%	―	2.20%	―
SIFY	65 Neutral	$301.89M	―	0.20%	―	12.76%	―
OOMA	64 Neutral	$336.17M	―	-8.45%	―	8.50%	-743.51%
Sector *	59 Neutral	$13.83B	7.37	-0.59%	3.89%	2.56%	-39.63%
RBBN	53 Neutral	$617.53M	―	-12.65%	―	0.91%	19.89%

* Communication Services Sector Average

Performance Comparison

ATGN

Altigen Communications

0.40

-0.36

-47.37%

CXDO

Crexendo

4.68

0.39

9.09%

RDCM

Radcom

11.21

1.74

18.37%

SIFY

Sify Technologies

4.23

-3.21

-43.15%

RBBN

Ribbon Communications

3.62

1.01

38.70%

OOMA

Ooma

12.44

5.38

76.20%

Altigen Communications Earnings Call Summary

Earnings Call Date: Dec 9, 2025 | % Change Since: -38.46% | Next Earnings Date: Jan 28, 2026

Earnings Call Sentiment Positive

The earnings call reflected a positive sentiment overall, with significant improvements in net income, consulting services revenue, and operational cost reductions. Notable product advancements and AI initiatives also contributed positively. However, there were some challenges, including a decline in cloud services revenue and decreased cash reserves. Talent acquisition remains a concern.

Highlights

Revenue Growth

Fiscal Q1 revenue of $3.4 million represented a 4% increase compared to the same period a year ago.

Net Income Improvement

Net income for the first quarter was approximately $87,000 versus a loss of $346,000 in the year-ago quarter.

Consulting Services Revenue Increase

Consulting services revenue increased 37% to $1.4 million from $1 million in the prior year's quarter.

Operational Cost Reductions

Achieved $800,000 of annualized savings year-over-year from operational cost reductions.

Product and Service Enhancements

Introduction of the new MaxCloud UC solution and the new CoreEngage contact center platform for Microsoft Teams.

AI Initiatives

Introduction of Ensemble AI platform with applications across key business areas, including language translation and sentiment analysis in CoreEngage.

Lowlights

Cloud Services Revenue Decline

Total cloud services revenue for Q1 was approximately $1.7 million, down 9% from the $1.9 million in the same period last year.

Cash and Cash Equivalents Decrease

Closed the quarter with $2.2 million in cash and cash equivalents, down 15% compared to the $2.6 million in the prior quarter.

Talent Acquisition Challenges

Facing challenges in finding the right talent, particularly in sales, AI development, and customer integrations.

Company Guidance

During the Altigen Technologies first quarter fiscal year 2025 earnings call, several metrics were highlighted to demonstrate the company's performance and strategic direction. The fiscal Q1 revenue amounted to $3.4 million, marking a 4% increase from the same period in the previous year. Net income was reported at approximately $87,000, a significant turnaround from the $346,000 loss recorded in the year-ago quarter. Cloud services revenue experienced a 9% decline to $1.7 million, although it showed a sequential increase of 2.5%. In contrast, consulting services revenue surged by 37% to $1.4 million. The company's gross margin improved to 63%, up from 60% in the previous year. Operating expenses decreased by 9% to $2.1 million. Additionally, Altigen closed the quarter with $2.2 million in cash and cash equivalents, while working capital was at $1.9 million, reflecting a 10% decrease. The company emphasized its strategic initiatives, including migrating legacy PBX customers to its new MaxCloud UC solution within the next 15 months and focusing on partnerships to drive growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.