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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q/A**

| **ý****QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934**                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **FOR                THE QUARTERLY PERIOD ENDED DECEMBER 31, 2005**                                                                                                                                                                                                                                                                        |
| **OR**                                                                                                                                                                                                                                                                                                                                     |   |
| **o****TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934**                                                                                                                                                                                                                           |
| **FOR                THE TRANSITION PERIOD                FROM                      TO                      ** |
|                                                                                                                                                                                                                                                                                                                                       |
| **Commission                File Number 000-27427**                                                                                                                                                                                                                                                                                        |

**ALTIGEN      COMMUNICATIONS, INC.**

| **DELAWARE**                                                                                               |   | **94-3204299**                                                       |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization)                |   | (I.R.S.                EmployerIdentification                Number) |
|                                                                                                       |   |                                                                 |
| **4555                Cushing Parkway****Fremont,                CA**                                      |   | **94538**                                                            |
| (Address                of principal executive offices)                                                    |   | (Zip                Code)                                            |
|                                                                                                       |   |                                                                 |
| Registrant’s                telephone number, including area code: **(510)                252-9712** |

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**Explanatory      Note**

|                                                            |         |                                   |   |   |                                            |         |                                                         |   |
|-----------------------------------------------------------------|--------------|----------------------------------------|--------|--------|-------------------------------------------------|--------------|--------------------------------------------------------------|--------|
|                                                            |    | **Number                of****Shares** |   |   | **Weighted-****average****Exercise Price** |    | **Weighted-****average****Remaining****Contractual****Term** |
| Outstanding                at October 1, 2005                   |    | 4,084,490                              |   |   | $                                               | 3.75         |                                                    |   |
| Granted                                                         |    | 8,000                                  |   |   |                                            | 1.93         |                                                    |   |
| Exercised                                                       |    | (141,809                               | )      |   |                                            | 0.81         |                                                    |   |
| Forfeitures                and cancellations                    |    | (169,365                               | )      |   |                                            | 5.36         |                                                    |   |
| Outstanding                at December 31, 2005                 |    | 3,781,316                              |   |   | $                                               | 3.77         |                                                    | 6.23   |
|                                                            |    |                                   |        |   |                                            |         |                                                    |   |
| Vested                and expected to vest at December 31, 2005 |    | 2,910,105                              |   |   | $                                               | 4.06         |                                                    |   |
|                                                            |    |                                   |   |   |                                            |         |                                                    |   |
| Exercisable                at December 31, 2005                 |    | 2,910,105                              |   |   | $                                               | 4.06         |                                                    |   |
|                                                            |    |                                   |   |   |                                            |         |                                                    |   |

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**SIGNATURE**

|                                   | ALTIGEN                COMMUNICATIONS, INC.                 |
|----------------------------------------|-------------------------------------------------------------|
|                                   |                                                        |
|                                   |                                                        |
| Date:                February 17, 2006 | By:                                                         | /s/                Philip M. McDermott |   |
|                                   | Philip                M. McDermott,                         |
|                                   | Chief                Financial Officer                      |
|                                   | (Principal                Financial and Accounting Officer) |

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