Altigen Communs Inc

Greetings and welcome to the Altogen Technologies first quarter fiscal 26 results conference call. At this time all participants are placed on a listen-only mode and 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. And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Gary Stone, Chief Financial Officer for Altogen. Sir, you may begin.

Thank you. Good afternoon, everyone, and welcome to Altogen Technologies earnings call for the first quarter fiscal 2026. Joining me on the call today is Jerry Fleming, Chairman and Chief Executive Officer, Joe Hamblin, President and COO, and I am Gary Stone, Chief Financial Officer. Earlier today, we issued an earnings release reporting financial results for the period ended December 31, 2025. This release can be found on our IR website at www.altagen.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 expectations and or beliefs 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, 2025, as well as the safe harbor statement in the press release the company issued earlier 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 financial measures, such as adjusted EBITDA. 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 our results. With that, I'll turn the call over to Altagen's CEO, Jerry Fleming, for opening remarks. Jerry?

Thank you, Gary, and hello, everyone. As Gary mentioned, earlier today we reported our fiscal 2026 first quarter results. We delivered $3.2 million in revenue and $100,000 in net income, marking our seventh consecutive profitable quarter. Revenue declined sequentially from Q4, which is typical for our first fiscal quarter due to customer holiday schedules. We also experienced elevated churn tied to customers migrating off of our legacy platforms. This, however, was anticipated as part of our transition to our new technology platforms. We believe the majority of that churn is now behind us with only a modest residual tail remaining. I'll note here that we are evolving how we communicate with investors to provide greater clarity around our business strategy and execution. I'll be focusing on strategic direction and priorities. Gary will provide details on our financial performance and and Joe will update you on our operational performance and business progress. As it relates to our business strategy, we've completely transformed our business over the course of the past two years, repositioning the company from a PBX provider serving the SMB market to a cloud-based customer experience solutions and services company targeting mid-market and larger enterprise customers. Just 24 months ago, we did not have the infrastructure in place to scale our business. We did not have any of the solutions that now comprise our customer experience suite. And we did not have the technical expertise to deliver AI solutions and services. Today, those elements are all largely in place. To level set, our first priority in our business transformation was to build a scalable operating foundation. Over the past two years, we've modernized our internal business systems across ordering, provisioning, billing, accounting, and service management, and realigned the organization around a cloud-first business model. As a result, we reduced annual operating expenses by 9% year-over-year, we maintained gross margins of over 60%, we increased our investments in AI development, and we remained debt-free. This has created meaningful operating leverage as our business scales. With the operational foundation in place, we turned our focus to our product strategy in support of our positioning as a leading provider of cloud-based customer experience and service solutions and services built on the Microsoft platform. To accomplish this objective, we determined that we needed to replace every Altogen legacy solution in our portfolio, PBX, Contact Center, and IVR with new modern cloud solutions. This also meant that we must contemplate a clear build versus buy strategy. What we decided was that for commoditized markets, such as UCaaS and CCaaS, white labeling best-in-class platforms was the best choice as they provide superior time to market and operating efficiency. On the other hand, where we see opportunities for uniquely differentiated solutions, particularly through AI, will build. This build versus buy approach enabled us to not only balance time to market and financial performance, but also to continue to deliver 60% plus gross margins, consistent profitability, and a debt-free balance sheet. Regarding our buy strategy, approximately 18 months ago, we selected a white-label CCaaS platform that powers CoreEngage, our native Teams contact center solution. In addition, just over a year ago, We selected Crescendo's NetSapiens white label UCaaS platform, which we market as MaxCloud UC. For both solutions, we wrap around products and services to make them uniquely Altogen. On the build side, our investment focus is on AI-driven solutions that expand our addressable market, increase average deal sizes, and improve customer retention. As such, we are nearing completion on two internally developed platforms. First, an AI-powered 24-7 customer self-service solution, and second, Core Insights, an AI-driven customer engagement analytics platform. Both are designed to labor across our UCaaS and CCaaS deployments, creating incremental, high-margin recurring revenue opportunities. We expect to release customer preview versions of both platforms within the next 90 days, with revenue contribution expected to begin later in fiscal 2026. Regarding our strategic product roadmap, our goal is to deliver an integrated Microsoft-centric, cloud-based customer experience platform that supports the entire customer journey. This includes four key solutions, AI-powered customer self-service, UCaaS, or Microsoft Teams Phone. Core Engage, our native Teams CCaaS solution, and finally Core Insights, which delivers closed-loop customer interaction analytics. On the consulting side, Altagene Consulting Services, or ACS, is also gaining traction as it relates to custom AI services. Historically, this group has been focused on developing custom business applications based on the Microsoft technology stack, which will continue to perform. But the core growth opportunity for ACS is applying agentic AI to solve real-world business problems. We're currently involved in several AI projects with a number of companies, including CTDOT, the first of which is a good example of the practical application of AI along with the benefits it can deliver. For CTDOT, using agentic AI, we are automating a high volume of IT support tickets, significantly reducing the manual workload on their technical support teams. In this instance, an AI agent monitors all incoming tickets submitted through their JIRA trouble ticketing system and independently resolves issues using its accumulated knowledge, all without human intervention. When an issue falls outside of the AI agent's current capabilities, it automatically escalates the ticket to a human technician, captures the resolution, and incorporates that into its knowledge base so it can autonomously handle similar issues in the future. The result is faster resolution times, reduced support costs, and the ability for technical staff to focus on higher value work while the AI system itself continuously improves over time. There are many other AI capabilities we can deliver, but this example should serve to demonstrate the power of AI to solve problems and improve business processes. In summary, we've completed the most difficult phase of our business transformation. We now have scalable infrastructure, a lower-cost business operating structure, strong margins, and a compelling AI-powered customer experience solutions portfolio. Our focus moving forward is disciplined execution, accelerating revenue growth, and progressing towards sustained profitable business growth. With that, I'll now turn the call back to Gary to provide additional details on our financial results.