Altigen Communications, Inc. (ATGN) has seen its shares rise by 14.4% over the past three months, significantly outperforming the communication components industry, which experienced a 2.1% decline. Competitors such as Viavi Solutions Inc. (VIAV) and Actelis Networks, Inc. (ASNS) reported gains of 3.4% and a drop of 28.5%, respectively. Key factors driving Altigen’s growth include adoption of AI-powered Customer Experience as a Service (CXaaS), expanding AI revenues, and improved operational efficiency.
Altigen specializes in cloud-based Unified Communications as a Service (UCaaS) and has been focusing on medium and enterprise customers across various sectors like financial services and healthcare. The company aimed to address approximately $29 billion in serviceable markets, primarily through AI-driven analytics and strategic partnerships that target high-value contracts.
Despite these advancements, Altigen faces challenges with ongoing customer churn from legacy platforms and revenue pressures during the cloud migration process. Nonetheless, the company’s strong fundamentals and undervaluation, with ATGN trading at 0.7X trailing 12-month EV/sales compared to an industry average of 9.77X, suggest a potential growth opportunity as it transitions to AI-powered solutions.
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