Altigen Communs Inc

Greetings. Welcome to the Altogen Technologies fourth quarter and fiscal year 2024 results conference call. At this time, all participants are in a listen-only mode. A 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. You may begin.

Thank you, John. Thank you, John. Good afternoon, everyone, and welcome to Altogen Technologies' earnings call for the fourth quarter fiscal 2024. Joining me on the call today is Jerry Fleming, President and Chief Executive Officer, Jill Hamlin, Chief Digital and Transformation Officer, and I'm Carolyn David, Vice President of Finance. Earlier today, we issued an earnings release reporting financial results for the period ended September 30th, 2024. This release can be found on our IR website at www.altigen.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 OTCQP over-the-counter market. specifically the company's audited 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 projection 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 financial measures. These non-GAAP measures are not superior to or replacement for the comparable GAAP measures. However, 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. With that, I'll turn the call over to Jerry Fleming for opening remarks. Jerry?

Thank you, Carolyn, and good afternoon, everyone. We appreciate you joining us for today's call. Today, we're pleased to share our financial results as well as provide updates on our progress across key areas of the business. Following my remarks, Joe Hamblin, our Chief Digital and Transformation Officer, will discuss our strategic execution and operational initiatives, followed by Carolyn, who will provide a detailed review of our financial results. Earlier today, we announced our fiscal Q4 and full-year 2024 financial results. While the full-year revenue remained relatively flat compared to the prior year, our fiscal Q4 revenue of $3.7 million marked a 14% increase over the prior quarter and a 7% increase year-over-year. Notably, this was our highest quarterly revenue in over a decade. Fiscal 2024 net income was approximately $1.6 million, which included a one-time accounting adjustment of $1.8 million related to accrued tax liabilities. And while we incurred gap losses earlier in the year, in Q4, we generated operating income of approximately $223,000 representing our second consecutive profitable quarter. While we recognize there's still significant work ahead, we are pleased with the direction the business is heading. Let me now provide an update on our key business transformation initiatives. Beginning with our legacy MaxCS PBX business, we continue to focus on migrating our legacy on-premises and hosted PBX customers to our cloud unified communications or UCaaS platform. To date, we've transitioned approximately 30 customers to this platform with plans to migrate the remaining 400 or so legacy PBX customers over the next 18 to 24 months. We're also planning for a major upgrade to our UCaaS platform, which is scheduled for release in fiscal Q2 2025. This new version will offer significantly enhanced functionality and allowing us to accelerate migrations and reverse declining revenues in our legacy business, and ultimately driving moderate growth in our UCAS division. Transitioning to Fiserv, in a similar fashion to our PBX migration plans, we're working closely with Fiserv to accelerate the migration of their legacy MaxCS PBX customers to the cloud, as well as to increase the adoption of our UCAS platform across their 5,000 customer base. Additionally, we're making advances in Altogen's new contact center solution, CoreEngage, which is offered under the Fiserv brand. The new contact center enhancements include streamlined call center agent and supervisor desktop applications, full omni-channel support, and by that I mean phone calls, web chats, SMS, emails, and social media all processed on the same platform, And we also will offer this along with aggressive new price points. We're in the planning phase with Fiserv now regarding the rollout of CoreEngage with more details to follow on subsequent quarterly calls. Finally, we're continuing to collaborate with Fiserv on the development and launch of our new AI-based conversational IVR solution, which will be offered by Fiserv as their standard IVR solution. For the 1,500 current IVR customers, the new IVR will be offered as a fee-based upgrade. Originally scheduled for release in October, the launch date has been moved to this coming April, but the good news is that Fiserv is marshalling their resources to launch the product in a big way. Collectively, these initiatives have the potential to drive tens of millions of dollars in new incremental revenue for Altagen, course, based on achieving our customer adoption targets. We will continue to provide updates on a quarterly basis going forward. Moving to our solutions for Microsoft Teams, our Microsoft Teams line of business was relatively flat in FY24, primarily as a result of delays in the delivery of our planned Teams contact center solution. We addressed that issue in fiscal Q3 and paving the way for the Q4 launch of our new contact center platform for Teams, CoreEngage. The early customer adoption is promising, with five customers now live on the CoreEngage platform, with a number of additional opportunities in our business pipeline. We're also pleased to announce our approval as a vendor for British Telecom, now known simply as BT, CoreEngage has been selected by BT as part of their solutions portfolio for Microsoft Teams. Additionally, BT has chosen to include CoreEngage in the BT Customer Experience Center, a location in which they demonstrate how leading-edge technology solutions can drive digital transformation for their customers. BT has just deployed their first CoreEngage customer and has plans to roll out the solution to their enterprise sales team in calendar Q1. Shifting to AI, artificial intelligence is one of the hottest topics in enterprise IT today. To address this opportunity, we've had a key focus on developing a comprehensive AI platform designed to deliver an end-to-end trusted AI solution for the B2B market. Our new Ensembl AI Platform is a scalable multi-tenant solution enabling our customers to manage and utilize data securely, access multiple AI backend engines, and deliver insights tailored to the unique needs of that customer. The first iteration of Ensembl AI is our new Core Engage AI chatbot, which provides 24-7 web-based customer self-service. We're also integrating core AI capabilities into our Fiserv IVR solution to deliver actionable insights for financial institution executives, aiming to enhance customer experiences and drive incremental revenues. Our future plan is to integrate core Engage AI directly with our AI IVR solution, which will enable seamless customer interactions across digital and voice channels, all without the need for live customer service agents. Regarding our consulting services division, under the leadership of Sharik Shaikh, Altagen Consulting Services, or ACS as we call it, has demonstrated consistent growth. Much of our current success stems from the expanded business partnership with the Connecticut Department of Transportation. We're now in the position of gearing up to go after new customer logos focused on our AI and digital transformation consulting services. We're also leveraging synergies between our consulting services and software engineering teams to provide customers with AI solutions tailored to their unique business needs, while also building recurring revenues through a managed service delivery model. To summarize, we've made meaningful progress in transforming the Altigen business, achieving our second consecutive profitable quarter, and laying the groundwork for sustainable growth across our lines of business. I'll now turn the call over to Joe Hamblin, who will provide additional insights into our business progress. Joe?