Altigen Communs Inc

Greetings. Welcome to Altogen Technologies' second quarter and fiscal year 2025 results conference call. At this time, all participants have been placed on 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, Gary Stone, CFO at Altogen. Gary, you may begin.

Thank you. Good afternoon, everyone, and welcome to the Altogen Technologies earnings call for the second quarter fiscal 2025. Joining me on the call today is Jerry Fleming, our President and Chief Executive Officer, Joe Hamblin, our Chief Digital and Transformational Officer, and I am Gary Stone, Chief Financial Officer. Earlier today, we issued an earnings release reporting financial results for the period ended March 31, 2025. This release can be found on our IR website at www.altigen.com. We've 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 the 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 30th, 2024, and the unaudited quarterly report for the quarter ending December 31, 2024, 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. Altagen 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 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. With that, I'll turn the call over to Jerry for opening remarks. Jerry?

Thank you, Gary, and hello, everyone. Thank you for joining today's call. I'll begin by providing a brief summary of our second quarter 2025 results, after which I'll provide an update on the state of the business. I'll then turn the call over to Joe Hamblin, our Chief Digital and Transformation Officer, to discuss our operational performance. Gary Stone will come back on, our Chief Financial Officer, to present the detailed numbers behind our second quarter results. As Gary mentioned earlier today, we announced our fiscal second quarter financial results. Revenue for the quarter was $3.5 million, representing an increase of approximately 3.5% compared to our fiscal first quarter. Net income for the second quarter was $287,000, versus $87,000 in the prior quarter, an increase of 230% compared to our first quarter. This quarter marks our fourth consecutive profitable quarter, which is directly attributable to our business transformation objectives and achievements. As a Santa railroad business, we are on the right track. I'll spend the next few minutes reviewing the current state of our business and our progress. Starting with solutions and services, as I discussed last quarter, we had to make the tough decision to completely overhaul our legacy technology platforms. The solutions that we had simply weren't sufficient to take our business to the next level. As a result, over the course of the past six months, we replaced our legacy platforms with all new UCaaS, or Unified Communications as a Service, and CCaaS, or Contact Center as a Service, solutions. Our new UCaaS platform, which we call MaxCloud v2, offers small to mid-sized companies a complete, cost-effective business communication solution, which includes phone calls, SMS, instant messaging, web conferencing, and integrated mobile application. Although MaxCloud has been available for only a few months, we've already migrated approximately 30 customers to the new platform, with the objective of migrating all of our legacy cloud and on-premise customers to MaxCloud v2 in the next 18 months. We're also revamping our go-to-market strategy with MaxCloud. While we will continue with our historical model of working with our reseller partners to acquire new customers, we're in the process of launching a new program targeting managed service providers, or MSPs. MSPs provide outsourced IT services such as Microsoft 365, security, cloud hosting, and other related cloud services to their customers. Those we're targeting have hundreds of customers and thousands of endpoint devices under management, and most of them do not offer a UCaaS solution today. With our new White Glove MSP program, this enables MSPs to offer UCaaS to their customers on a platform that's fully managed by Altogen. MSPs benefit from a new revenue stream and high margins without the need to have phone system expertise or the need to hire additional technical resources, as that's the white glove service that's provided by Altogen. From the Altogen perspective, these MSPs are the trusted supplier to their customer base. As such, they're in the ideal position to recommend MaxCloud. In this model, each MSP that we onboard brings the potential to add thousands of UCaaS subscribers on the AltaGen Max Cloud platform. Turning to CCaaS, our new CoreEngage solutions targets Microsoft Teams customers and partners with one of the few native Teams contact center solutions on the market. We do distribute primarily through Microsoft partners, and we deliver CoreEngage as a fully managed service. This enables partners with or without telephony or contact expertise to sell CoreEngage to their customers with Altogen providing all of the technical expertise and after-the-sale support on behalf of our partners. Moving to Fiserv, I've been discussing this opportunity for quite some time. It's important to note, however, that Fiserv is a $20 billion organization, and unfortunately, it takes time, and in some cases, a lot of time, to work through the technical complexities associated with installing solutions in Pfizer's data centers, as well as to gain the required approvals from multiple sources in such a large organization. As a result, many of the new business initiatives that I've been discussing have not materialized quite as quickly as we planned. But rest assured, these initiatives are continuing to move forward, and once we get there, the potential payoff is huge. That being said, We also continue to work with Fiserv to bring several new solutions to market. This includes our secure SIP fraud prevention solution, which in itself has provided quite a few technical challenges that are also now on the brink of resolution. For the past year, we've been building a new conversational AI front end to the Altagen IVR, for which Fiserv has 1,500 customers today. A fee-based offering Conversational AI replaces the traditional bank-by-phone, touch-tone telephone user interface with true natural language conversation capabilities. This enables financial institutions to both improve customer service and reduce costs. We're also developing a new AI-based customer engagement analytics solution, which we plan to preview at the end of this month. Called Core Insights, it uniquely combines customer transaction details with customer demographic data. This not only allows bank and credit union executives to personalize the experiences for their customers, it also allows them to better target their customers for new products and services. Finally, we're in the process now of getting Fiserv set up with our new UCaaS and CCaaS solutions. As a Microsoft partner and Teams customer themselves, Fiserv plans to lead with CoreEngage and our Teams direct routing SIP trunk service for the majority of their customers. For the smaller customers, MaxCloud will be the product of choice. It's difficult to predict the actual launch date for these products since we're in the midst of the approval and certification processes as we speak, but we will keep you posted regarding our progress. Transitioning to AI, as most everyone knows, there's a tremendous amount of interest from business executives across all industries to leverage AI in their organizations. But with so many different AI technologies being advocated by so many vendors, it's nearly impossible for the executives to determine which AI technology best suits their business requirements. Altogen's approach is different. We don't make the underlying AI technology engines. Instead, we add capabilities to those engines to make them work for each customer's specific needs. We're doing this by first developing a trusted AI platform, which is both robust and flexible enough to adapt to a variety of customer use cases. We've been prototyping this platform, which we call Ensemble AI, for more than a year. I'm pleased to report that we've recently begun formal development of the Ensembl AI platform. As I discussed last quarter, one of the key elements of flexibility with the platform that Ensembl AI generates is the ability for Altogen to use any AI engine to deliver a solution. So rather than being locked into a particular AI technology, we are able to take a best-of-breed approach depending on a customer's specific business requirements. Out of the gates, we'll be launching Ensemble AI based on Microsoft's Azure OpenAI platform as our AI engine of choice. Down the road, if a customer prefers to use Google, Amazon, IBM, or others, we can just as easily utilize those AI models. Last quarter, I discussed in some details the areas in which we'll see the greatest opportunity for AI to add value for our customers and revenue to our top line. I'll briefly summarize those solutions that we're working on. First is AI enablement of our core engaged contact center, adding several new capabilities, including language translation, automatic conversation summary, customer sentiment analysis, and AI chatbot. Next is Core Insights, which is built on the Altogen IVR, and that provides KPI dashboards integrated with predictive AI analytics. The final piece, is Ensemble Advisors, built on the Ensemble AI platform, which utilizes AI technology to provide a team of subject matter expert bots that have a deep understanding of specific content, such as HR policies, legal and compliance data, et cetera. These bots work together to analyze the data and provide accurate results and insightful recommendations to business executives. All these solutions are being built on the Ensemble AI platform, enabling Altogen to deliver everything from simple out-of-the-box AI applications to fully custom sophisticated AI solutions. Now, regarding our customer service and consulting business, our number one customer continues to be the Connecticut Department of Transportation, or CTDOT. We're continuing to grow our partnership with CTDOT, particularly in the area of AI. Leveraging our successes with CTDOT We're also ramping our sales and marketing efforts in our consulting services division. While we have the expertise to offer a broad range of technology consulting services, our focus is clearly on our AI and digital transformation services. We feel that this approach will give us the best opportunity to secure new revenue and new customers. Turning to business transformation, as Joe Hamlin has been reporting for the past year, we've been working toward our goal of achieving operational excellence. Toward that end, we've made a number of operational improvements, including business systems automation, streamlining internal processes, vendor consolidation, eliminating non-compulsory expenses, and implementing many organizational enhancements. Not only have these improvements made us a stronger organization, They have also now resulted in a net reduction of approximately $1.5 million in annualized expense savings. With that, I'll turn the call over to Joe to provide additional details.