Altigen Technologies, a prominent provider of Microsoft Cloud Communications solutions based in Silicon Valley, has released its financial outcomes for the third quarter of fiscal 2026, which concluded on June 30. The company reported a non-GAAP net income of $190,000, a decrease from $350,000 during the same quarter last year.
The company's net revenue saw a significant decline of 14%, amounting to $3.0 million. In terms of GAAP metrics, net income was recorded at only $15,000, down from $110,000 the previous year. Despite these setbacks in revenue, Altigen achieved profitability for the ninth consecutive quarter.
Jeremiah Fleming, CEO of Altigen Technologies, pointed to a crucial turning point in the business. For the first time in several years, new recurring revenue from cloud contracts exceeded losses due to customer churn. This trend, he indicated, lays the groundwork for potential revenue growth moving forward.
While the company celebrates its profitability streak, the ongoing decline in revenue raises questions about its long-term growth trajectory. Altigen has signaled that challenges remain, as evidenced by their acknowledgment of risks in forthcoming forecasts, which may affect future operational performance.
Altigen Technologies will further discuss these financial results and outlook during a conference call scheduled for today at 1:00 PM Pacific Time. Interested parties can join by calling the designated numbers provided in the company's announcement.
Altigen Technologies reported a non-GAAP net income of $190 thousand for the third quarter ended June 30, 2026, down from $350 thousand in the same quarter last year. Net revenue decreased by 14% to $3.0 million, and GAAP net income fell to $15 thousand from $110 thousand. The report indicates a decline in certain financial metrics, despite the company achieving its ninth consecutive quarter of profitability.
Non-GAAP net income for Altigen Technologies in the third quarter was $190 thousand, whereas GAAP net income was significantly lower at $15 thousand. The non-GAAP figures exclude various elements like stock-based compensation and amortisation of intangible assets, which may give a different perspective on operational performance compared to GAAP figures.
Altigen Technologies attributed the 14% decrease in net revenue to a loss in revenue from customer churn. However, it noted that for the first time in several years, new contracted cloud recurring revenue exceeded revenue lost to churn, presenting a potentially positive trend for future growth.
The company acknowledges that its forward-looking statements are subject to known and unknown risks and uncertainties. These include potential discrepancies between actual results and management's expectations regarding operational improvements and financial performance.
Altigen Technologies employs non-GAAP financial measures to assess its core operating performance, excluding elements such as stock-based compensation, amortisation of intangible assets, and other non-recurring costs. The company argues that these measures help present a clearer picture of ongoing business trends.
Altigen Technologies' achievement of nine consecutive quarters of profitability suggests a level of operational stability and could point toward consistent performance metrics. However, it is also important to note that profitability does not guarantee future success, especially in the context of declining revenue reported in the recent financial results.
Altigen Technologies is listed on the OTCQB under the ticker symbol ATGN.
During the conference call scheduled for today, Altigen Technologies will discuss its financial results and future outlook. This includes details on its recent performance and strategic direction, though specific topics beyond the general financial overview may not be disclosed.