Consecutive Profitability Maintained
GAAP net income of $101,000 for Q1 FY2026, marking the company's seventh consecutive profitable quarter; GAAP EPS roughly $0.00 ($0.005 technically) and adjusted EBITDA of $257,000, demonstrating ongoing profitability and positive operating performance.
Strong Gross Margin and Expense Reductions
Maintained gross margins above 60% (62% in Q1 vs 63% prior-year period) while reducing GAAP operating expenses by 9% year-over-year (from $2.1M to $1.9M), creating operating leverage as the business scales.
Debt-Free Balance Sheet and Liquidity
Company remains debt-free with $2.55 million in cash and cash equivalents at quarter end and working capital of $2.9 million, supporting continued investment in product development and go-to-market initiatives.
Progress on AI-Driven Product Roadmap
Near-completion of two internally developed AI platforms (AI-powered 24/7 customer self-service and Core Insights analytics) with customer preview releases expected within ~90 days and revenue contribution targeted later in fiscal 2026, expanding addressable market and potential high-margin recurring revenue.
Strategic Partnerships and Channel Wins
Secured significant commercial relationships: Fiserv approved CoreEngage as its preferred Teams Contact Center and will recommend Microsoft Teams Phone (including marketing and sales enablement to ~200 account managers); announced licensing/collaboration agreement with Crescendo to streamline cloud communications delivery, enhancing distribution and credibility.
Consulting Business Momentum (ACS)
Altigen Consulting Services (ACS) delivered a strong run rate (~$1.47M in Q1, down modestly from a $1.55M Q4 peak due to timing) and signed a new commercial power customer with an initial $150,000 project plus potential follow-on work; multiple AI-related ACS opportunities in discovery.
Cloud Migration Pipeline and Deployment Traction
Max Cloud UC has 100+ active/billing customers representing ~4,000 seats and 40 contracted customers (~1,700 seats) fully configured to go live within ~4 months; CoreEngage (Teams CCaaS) has 6 active billing customers (>200 users), contracted deployments (~500 users expected by end of Q3), and an advanced pipeline of ~500 additional seats.