AltiGen Communications, Inc. Reports First Quarter Fiscal 2012 Financial Results

SAN JOSE, CA — AltiGen Communications, Inc., the leading provider of integrated Microsoft-based Unified Communications solutions, announced today its first quarter ended December 30, 2011 financial results.

Jeremiah Fleming, AltiGen's President and Chief Executive Officer, stated, "We are pleased with the progress we made this quarter, both in terms of growing the top line and in substantially reducing our losses. The increase in revenue over last quarter was largely accomplished by sustaining our legacy business along with contributions from our new products. As a result, FYQ1 was second highest first quarter revenue in the history of the company."

The first quarter of fiscal 2012

Revenue for the first quarter of fiscal 2012 was $4.8 million, compared to $4.3 million in the preceding quarter, and compared to $4.6 million while the same period in fiscal 2011. Gross margin in the first quarter of fiscal 2012 was 69.5%, compared to 64.2% in the preceding quarter, and compared to 67.6% while the first quarter of fiscal 2011. Operating expenses totaled $3.3 million, compared to $3.7 million in the preceding quarter, and $3.5 million while the same period in fiscal 2011.

About AltiGen Communications AltiGen Communications, Inc. is a leading provider of 100% Microsoft-based VoIP (Voice over Internet Protocol) business phone systems and Unified Communications solutions. Having more than 10,000 clients around the world, AltiGen solutions are designed for high reliability, ease of use, seamless integration to Microsoft infrastructure technologies, and are built on a scalable, open standards platform. AltiGen's worldwide headquarters is in Silicon Valley, California, with international operations based in Shanghai, China. Local sales, service and support are provided by AltiGen's worldwide network of over 300 certified partners. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.com.

Safe Harbor Statement The forward-looking statements contained in this press release are based upon the Company's current expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties including, however not limited to: statements regarding the continued market acceptance of our 100 percent Microsoft-based business phone systems, call center solutions and our ability to sustain our financial performance. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.