Altigen Communs Inc

Good day and welcome to the Altogen Technologies second quarter fiscal year 2024 results conference call. At this time all participants are on a listen only mode and the question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Carolyn David. Mom, the floor is yours.

Thank you, Ali. Good morning, everyone, and welcome to Autogen Technologies' earnings call for the second quarter fiscal 2024. Joining me on the call today is Jerry Fleming, President and Chief Executive Officer, Joe Hamlin, Chief Digital and Transformation Officer, and I'm Carolyn David, Vice President of Finance. Earlier this morning, we issued an earnings release reporting financial results for the period ended March 31st, 2024. This release can be found on our IR website at www.altogen.com. We have also arranged a 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. Before we begin our formal remarks, we need to remind everyone that 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 annual report for the fiscal year ended September 30, 2023, 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. Altogen assumes no obligation to revise any forward-looking information contained in today's call. In addition, during today's call, we will also be referring to certain non-GAAP 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. And now let me turn the call over to Jerry Fleming for opening remarks. Jerry?

Thank you, Carolyn. Hello, everyone. Thanks for joining us this morning for the call. I'll begin with a review of our second quarter results, followed by a brief business update. I'll then hand the call to Joe Hamblin, our Chief Digital and Transformation Officer, for a deeper discussion of our business execution strategies. Subsequent to Joe's discussion, Carolyn will provide a detailed review of our second quarter 2024 financials. Earlier this morning, we reported fiscal 2024 Q2 revenue of $3.4 million with a gap net loss of $236,000 and a non-gap net loss of $72,000. Compared to fiscal 2024 Q1, second quarter revenues increased by 4%, gap net loss decreased by 32%, and non-gap net loss decreased by 54%. Our second quarter results are a direct reflection of the improvements we've been making in our business. While we have work to do, we are progressing toward our primary objective of growing revenues and returning to profitability by the end of this fiscal year. I'll now turn to a brief update on the state of the business. Starting with our legacy on-premises PBX business, revenues were essentially flat quarter over quarter. That being said, we do expect to see gradual declines in this business given our focus on our new cloud-based UCaaS Unified Communications as a Service and CCaaS Contact Center as a Service solutions going forward. Regarding those new UCaaS and CCaaS solutions, revenues are growing quarter over quarter. However, those revenues are not yet to the point at which they can replace the declining revenue from our legacy products. We are expecting that situation to improve over the course of the next several quarters as we continue to deploy more customers on the new platforms. Moving to Fiserv, fiscal Q2 revenues increased by 3% compared to fiscal Q1. And next month, after a lengthy planning process, Fiserv will begin migrating their legacy hosted PBX and contact center customers to our new UCaaS and CCaaS solutions. As those customers adopt the new digital media capabilities in the front-stage CCaaS platform, we will begin to see incremental revenue contributions. Following this, in our fiscal fourth quarter, Pfizer will commence a soft launch of the new conversational AI IVR solution. A full product launch is planned for October of this year. Regarding our team's solutions, quarter-over-quarter revenues declined by just over 10%. This was primarily a function of migrating customers from Core Interact, which we are no longer selling as a voice platform, to the new Front Stage Core UCaaS platform. This resulted in the cessation of billing for Core Interact customers while billing for Front Stage Core had not yet commenced, simply because the majority of those customers migrating from Core Interact are still in the evaluation phase for Front Stage Core. However, Now that Front Stage Core is available for Microsoft Teams, that issue is largely behind us, and we do expect to see Front Stage Core revenue begin to build. Transitioning to our Consulting Services business unit, we saw a quarter-over-quarter revenue increase of approximately 15%, principally due to continued expansion of our business with Connecticut Department of Transportation, or CTDOT. We are anticipating continued growth in our services business fueled by CTDOT, new custom development projects, and ultimately via our planned AI managed services offerings. Overall, we made solid progress on a number of fronts. The foundation is solidly in place. It's now time for execution and monetization. This concludes my review of the quarter. At this time, I'll turn the floor over to Joe for additional commentary. Joe?