posted
ATGN $1.75....EARNINGS NOV. 16, expecting record earnings. Getting attention last few days and should run hard into earnings on wednesday after bell.
copied from another board for DD I found: ATGN, an undervalued VoIP play, will report a likely record quarter and a will provide a bullish outlook when it reports its 4Q and FY 2005 earnings results next Wednesday. What else could you ask for on a $1.75/share stock that was trading close to $5 early this year?? What about 70c/share cash and ZERO long term Debt?
Tomorrow's (11/14/2005) Barron's article regarding an uptick in technology spending worldwide, particularly in VoIP-related technologies will provide a boost for the entire sector and validate the momentum that ATGN has seen in recent months.
ATGN's chart is shows that the downtrend that started after the company reported a weak 2Q 2005 is reversing over the last week and ahead of earnings.
During the 3Q 2005 conference call held on July 27, CEO Gilbert Hu estimated 4Q 2005 revenues ranging from $4.3 to $4.8M to meet a 5% - 8% revenue increase over 2004. This very significant considering that it includes the 2Q 2005 aberration of $2.8M in revenues compared to over $4M in 1Q and 3Q 2005.
Assuming that ATGN reports on the lower end of its 4Q 2005 guidance ($4.3M), it would beat the prior year quarter by about 10% and sequentially by about 5% compared to a strong 3Q 2005. It would also match the all-time revenue record set in Q1 2005!
Imagine the market reaction if ATGN approaches, meets, or exceeds the upper end of the guidance. That would be a new all-time revenue record for the company.
Last November ATGN jumped $1.4 when it reported 4Q revenues of $4.1M and 1c/share net income. Wednesday's results will be a lot better in comparison.
With the current cost structure, ATGN will likely report net income ranging from 1 to 3c/share depending on revenues.
Mr Hu also said that he expects 2006 revenue growth rate to be significantly higher than the 5 - 8% growth from 2004 to 2005. Regarding profitability in 2006, Mr. Hu said that it won't be a question of "whether or not each quarter would be profitable, but rather how profitable it would be"
ATGN will likely provide a bullish guidance for 2006 based on the traction gained in 3Q and 4Q 2005 in all products lines specially the highly profitable ACM solution. And also the effect of the launching of the new IP 710 advanced VoIP business phone early in 1Q 2006 (October 4, 2005).
Regarding the IP 710, "Our new VoIP phone is a milestone for AltiGen," remarked AltiGen CEO Gilbert Hu. "The IP 710 was designed and engineered based upon input from our customers and partners over the past several years. We have supported VoIP telephones since 1998, but this phone completes the gap between advanced business features on the telephone and IP telephony."
ATGN has been under the radar lately and has been trading near its 52-week low. ATGN traded as high as $4.8 earlier this year. The poor 2Q 2005 started the gradual pps slide and the recent lack of interest in the stock. I believe that ATGN will start a big bounce towards the $4 - $5 range starting next week because results and guidance will be stellar.
ABOUT ATGN:
AltiGen Communications (NASDAQ: ATGN) , with nearly 40 percent market share, is the leading manufacturer of VoIP telecom servers for small to mid sized businesses. Remote or branch offices can be linked via AltiGen's IP Gateway to save on long distance toll charges. AltiGen's AltiServ is a complete telecommunications server with.... PBX, auto attendant, e-mail, voice mail, Automatic Call Distribution, One Number Find Me, Web based call management, virtual extensions and the industry's leading telecommuting features. AltiGens AltiServ technology has been recognized for excellence with more than 40 industry awards. AltiGen is a certified Microsoft® Gold ISV.
Always Do your Own DD
Posts: 249 | Registered: Aug 2005
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posted
Anyone paying attention. Tomorrow and wednesday should be great :-) imo, I would get in as early as possible tomorrow.
Posts: 249 | Registered: Aug 2005
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