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Altigen Communs Inc
8/11/2026
Greetings. Welcome to the Altogen Technologies third quarter and fiscal year 2026 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, Corey, our AI agent. you may begin.
Good afternoon and welcome to the Altogen Technologies fiscal third quarter 2026 earnings call. My name is Cori and I am Altogen's AI developed communications agent, built on the same core interact AI platform that powers Altogen's customer engagement solutions. I am a fitting demonstration of what we're building. Before we get started, let me cover a few housekeeping items. This call is being recorded and will be available for replay on the investor relations section of Altogen's website at altogen.com. A copy of today's prepared remarks will be made available following the conclusion of this call. This replay will be available one hour after this call's completion and remain in effect for 90 days. At this time, I'd like to read Altogen's safe harbor statement. Certain statements made during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding Altogen's business strategy, expected financial performance, product roadmap, customer pipeline, and market opportunities. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to, dependence on a limited number of customers and partners, rapid technological change in the communications and AI markets, competition from companies with significantly greater resources, Altogen's ability to develop, market, and deliver new and enhanced products and services, the company's reliance on third-party vendors and platform partners, and general economic conditions. Altogen cautions that these factors are not exhaustive. Additional risks and uncertainties are described in Altagen's most recent filings with the OTCQB, including its annual report on Form 10-K for the fiscal year ended September 30, 2025. 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 gain a more complete understanding of our results. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Altagen undertakes no obligation to update any forward-looking statements to reflect new information, future events, or otherwise. Thank you. Joining us today is Jerry Fleming, Chief Executive Officer, Joe Hamblin, President, and Chief Operating Officer and Gary Stone. Chief Financial Officer. With that, I'll turn the call over to Jerry.
Thank you, Cori, and good afternoon, everyone. Thanks for joining us for today's call. Earlier today, Altogen reported third quarter fiscal 2026 revenue of $3 million, our ninth consecutive profitable quarter, which demonstrates the financial discipline we've maintained while transforming our business. Today, I'll discuss our strategic direction are expanding solutions portfolio and business growth opportunities. Joe will follow with a business and operational update. Then Gary will come on with a detailed review of our financial results. So let me begin with the quarter's most important development. Newly contracted cloud revenue exceeded the cloud revenue lost through our legacy customer churn. This is a critical inflection point for Altogen. During the company's transformation initiatives, churn from our legacy business outpaced revenue gains from our new cloud solutions. That equation is now beginning to change. We believe most of the legacy churn is behind us, positioning Altogen to move from managing a revenue transition to generating sustainable revenue growth. Our new solutions are gaining traction. Our average revenue per customer continues to grow. and our revenue mix is increasingly shifting toward larger strategic opportunities. In short, our transformation efforts are now beginning to yield results. The key strategic element of our business transformation has been our focus on building all new cloud native AI powered customer engagement solutions. These solutions which target mid-sized enterprise organizations combine AI first customer service AI-enabled contact center, and AI-driven customer analytics into an integrated customer engagement suite. Core Interact is our AI-first virtual agent customer service platform. As the enterprise digital front door, Core Interact engages customers 24 hours a day across voice and digital channels, resolving the majority of issues without ever needing to engage a live agent. Our objective is not to simply create a better chatbot. It's to provide a first contact resolution solution for our customers, any customer, any communications channel, any time of day. In some circumstances, human assistance is inevitable. In these instances, Core Interact seamlessly transfers the customer along with the full context of the conversation to Core Engage, our Microsoft Teams-based contact center solution. CoreEngage picks up where Core Interact leaves off, allowing live agents to efficiently and cost-effectively manage voice and digital customer interactions within their familiar Microsoft Teams environment, resulting in higher employer productivity, increased leverage of an organization's investment in Microsoft technologies, and lower operating costs. The third and final component to Altogen's new Customer Engagement Suite is Core Insights, which analyzes customer interaction and transactional data to create a complete 360 degree view of the customer. Core Insights further applies AI to identify trends, detect issues, and recommend actions, turning customer interactions into intelligence executives can use to make better informed decisions to improve business outcomes. Together, these solutions create a complete customer engagement platform Powered by AI, with CoreNRECT utilizing AI to resolve customer issues, CoreEngage empowering live agents with AI customer assistance, and CoreInsights transforming every customer interaction into actionable business intelligence. The new platform designed for mid-market and enterprise organizations enables us to secure customers that have larger contract values, longer retention periods, and significantly greater expansion potential than our historical small business customer base. These dynamics are changing the economics of Altogen's business, resulting in a stronger cloud business model, improved operating leverage and more sustainable long-term growth. AI is also creating opportunities for Altogen's Consulting Services Division, ACS. Midsize and enterprise organizations are increasingly evaluating AI to automate processes, improve customer engagement, and reduce costs, but they often lack the in-house expertise or internal resources to deploy a successful AI project. ACS assists those customers in identifying AI projects having the highest ROI potential, then designs, deploys, and manages the AI solution for that customer. Many of these AI projects are done in conjunction with our customer engagement solutions. enabling Altogen to deliver real-world AI solutions that most of our competitors are simply not equipped to provide. Today, Altogen is fundamentally different from the company we were several years ago. We have moved beyond our legacy identity as a communications technology provider. We are building an integrated AI-powered customer engagement company that helps organizations serve customers more effectively, automate complex transactions, unlock customer intelligence, and operate more efficiently. We've also remained consistently profitable while investing in that future, which we see as very bright. With that, I'll turn the call over to Joe for his business and operational update. Joe?
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