Altigen Communs Inc

Good afternoon, ladies and gentlemen, and welcome to the Altogen Communications fourth quarter and fiscal year 2021 results. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Carolyn David. Ma'am, the floor is yours.

Thank you, Operator. Hello, everyone, and welcome to Altogen Communications earnings call for the fourth quarter and full year fiscal 2021. Joining me on the call today is Jerry Fleming, President and Chief Executive Officer, Mark Allen, our Chief Technology Officer, and I'm Carolyn David, Vice President of Finance. Earlier this afternoon, we issued an earnings release reporting financial results for the period ended September 30th, 2021. This release can be found on our IR website at www.altogen.com. We have also arranged a tape replay of this call, which may be accessed by phone. This replay will be available approximately one hour after the call's completion and remain in effect for 90 days. The call can also be accessed from the investor relations section of our website. As a reminder, Today's call may contain forward looking information regarding future events and future financial performance of the company. We wish to caution you that such statements are just predictions and actual results may differ materially due to certain risks and uncertainties that pertain to our business. We refer you to the financial disclosures filed periodically by the company with the OTCQB over the counter market Specifically, the company's audited annual report for the fiscal year ended September 30, 2020, as well as the safe harbor statement in the press release the company issued today. These documents contain important risk factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. Autogen assumes no obligation to revise any forward-looking information contained in today's call. During this call, we will also be referring to certain non-GAAP financial measures. These non-GAAP measures are not superior to or a replacement for the comparable GAAP measures, but we believe these measures help investors gain a more complete understanding of results. A reconciliation of GAAP to non-GAAP measures and additional disclosures regarding these measures are included in today's press release. Now, it's my pleasure to turn the call over to Jerry Fleming, President and CEO of Altogen, for opening remarks. Jerry?

Thank you, Carolyn, and good afternoon, everyone. Thanks for joining us for today's call. So, I'm going to begin the call today with an overview of our results, focusing on the numbers for the full fiscal year. Carolyn will then present a more detailed review of both our quarterly and annual results. After Carolyn's discussion, I've asked Mark Allen, Altogen's CTO, to address the current state of various new solutions, along with their associated delivery timelines. I'll then come back with closing remarks prior to opening up the call for a Q&A session. So for our fiscal 2021 year, we reported revenue of $11 million compared to $11.8 million for fiscal 2020 year. We reported a gap net loss of $500,000 in FY21 compared to gap net income of $1.4 million in FY2020. So I'm just going to cut right to the chase here. These results are simply not acceptable. In the past several years, I think we did a fairly good job of saying what we're going to do and then doing what we said. In FY21, we did not do a good job of this. This is going to change. I want to reiterate our commitment and expectation that we will double our revenues in the next three years. And by the way, that clock started ticking on October 1st. But that being said, these are the results we delivered, and I do need to spend a few minutes discussing the reasons for our performance. In order to provide more color, I'll review our results by revenue category. So product revenue for the year. was down by approximately 300,000 versus last year, while software assurance declined by about 400K compared to the same period last year. As we discussed, these revenue streams are related to sales and support of on-premises systems, which we are no longer promoting for obvious reasons. Professional services revenue is approximately 100K lower than last year as a direct result of fewer new on-premises systems to deploy. So all of the year-over-year revenue declines are directly related to our legacy on-premises business. And in fact, those were expected as they are an inevitable byproduct of our cloud transformation strategy. Our cloud services revenue was essentially the same as we posted last fiscal year. For those of you who are class half full people, flat cloud revenues can be viewed as a positive as it demonstrates that we are maintaining our legacy base of cloud customers. However, we all know that's not good enough. The core issue is evident to everyone. Our cloud business needs to grow. Shortly, Mark and I will be discussing how we're going to do that and when we expect to start seeing contributions from our new cloud solutions. But I can assure you we're not standing still. But before we get to those details, I'm going to hand the call back to Carolyn so she can review the financials in more detail. Carolyn?