(MENAFNEditorial) LOD, Israel, July 26, 2017 /PRNewswire/ --
Second Quarter Highlights:
Quarterly revenues increased by 8.0% year-over-year to $38.7 million; Quarterly service revenues increased by 13.8% year-over-year to $11.8 million; Quarterly UC-SIP revenues increased more than 15% year-over-year; Quarterly GAAP gross margin was 61.4%, quarterly Non-GAAP gross margin was 61.9%; Quarterly GAAP operating margin was 4.8%, Quarterly Non-GAAP operating margin was 6.9%; Quarterly cash flow from operating activities was $2.4 million; Quarterly GAAP net income was $1.0 million, or $0.03 per diluted share, compared to $721,000, or 0.02 per diluted share, in the prior year period; Quarterly Non-GAAP net income was $2.5 million, or $0.08 per diluted share, compared to $2.4 million, or $0.06 per diluted share, in the prior year period; and AudioCodes repurchased 438,000 of its ordinary shares during the quarter at an aggregate cost of $2.9 million. Details:
AudioCodes (Nasdaq: AUDC), a leading provider of voice networking solutions that enable enterprises and service providers to transition to all-IP voice networks, today announced financial results for the second quarter ended June 30, 2017.
Revenues for the second quarter of 2017 were $38.7 million, compared to $37.4 million for the first quarter of 2017 and $35.9 million for the second quarter of 2016.
Net income was $1.0 million, or $0.03 per diluted share, for the second quarter of 2017, compared to $721,000, or $0.02 per diluted share, for the second quarter of 2016.
On a Non-GAAP basis, the Company reported quarterly net income of $2.5 million, or $0.08 per diluted share, compared to $2.4 million, or $0.06 per diluted share, in the second quarter of 2016.
Non-GAAP net income excludes: (i) stock-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Active Communications Europe and (iv) non-cash deferred tax benefit or expenses. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities for the second quarter of 2017 totaled $2.4 million. Cash and cash equivalents, long- and short-term bank deposits and long- and short-term marketable securities were $61.2 million as of June 30, 2017, compared to $78.1 million as of June 30, 2016. The decrease in cash and cash equivalents, long and short-term bank deposits and long and short-term marketable securities was the result of the use of cash for the continued repurchasing of the Company's ordinary shares pursuant to its share repurchase programs.
"We are pleased to report solid financial results for the second quarter of 2017 as we continued to deliver steady growth, and further executed on our strategic plan to grow our UC-SIP business," said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. "UC-SIP revenues increased in the first half of 2017 more than 15% compared to the same period in 2016. Strength in this area of the business is driven primarily by collaborating with our application and system integration partners worldwide and through winning enterprise voice deployments on a global basis."
"As expected, All-IP network transformation project activity maintained its momentum, contributing again to improved gateway revenues this quarter. We remain focused on strengthening our strategic partnerships with industry leaders in the Microsoft Skype for business, the UCaaS, contact centers and business services markets. As a reflection of our confidence in our business, in May, we obtained authorization to purchase up to an additional $15 million of our ordinary shares pursuant to our repurchase program," concluded Mr. Adlersberg.
Share Buy Back Program
During the quarter ended June 30, 2017, AudioCodes acquired 438,000 of its ordinary shares under its share repurchase program for a total consideration of approximately $2.9 million. As of June 30, 2017, AudioCodes had acquired an aggregate of 13.6 million of its ordinary shares since August 2014 for an aggregate consideration of approximately $64.4 million.
In May 2017, AudioCodes received court approval in Israel to purchase up to an aggregate of $15 million of additional ordinary shares pursuant to its share repurchase program. As of June 30, 2017, $12.1 million remained available to the Company for repurchasing shares under this court approval. The current court approval for share repurchases will expire on November 15, 2017.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:00 A.M., Eastern Time today to discuss the Company's second quarter operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:
United States Participants: +1 (877) 407-0778
International Participants: +1 (201) 689-8565
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at .
Follow AudioCodes'social media channels:
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To download AudioCodes' investor relations app, which offers access to its SEC filings, press releases, videos, audiocasts and more, please visit Apple's for the iPhone and iPad or for Android mobile devices.
About AudioCodes
AudioCodes Ltd. (NASDAQ, TASE: AUDC) designs, develops and sells advanced Voice-over-IP (VoIP) and converged VoIP and Data networking products and applications to Service Providers and Enterprises. AudioCodes is a VoIP technology market leader, focused on converged VoIP and data communications, and its products are deployed globally in Broadband, Mobile, Enterprise networks and Cable. The Company provides a range of innovative, cost-effective products including , , , , , , and . AudioCodes' underlying technology, VoIPerfectHD™, relies on AudioCodes' leadership in DSP, voice coding and voice processing technologies. AudioCodes' High Definition (HD) VoIP technologies and products provide enhanced intelligibility and a better end user communication experience in Voice communications. For more information on AudioCodes, visit .
Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company's loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; and other factors detailed in AudioCodes' filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.
©2017 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice and CloudBond are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 30,
December 31,
2017
2016
(Unaudited)
(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 18,120
$ 24,344
Short-term and restricted bank deposits
3,066
3,401
Short-term marketable securities and accrued interest
7,590
6,778
Trade receivables, net
25,557
25,448
Other receivables and prepaid expenses
7,983
3,377
Inventories
15,943
16,333
Total current assets
78,259
79,681
LONG-TERM ASSETS:
Long-term and restricted bank deposits
$ 4,813
$ 5,407
Long-term marketable securities
27,636
29,540
Deferred tax assets
10,431
11,607
Severance pay funds
20,169
17,820
Total long-term assets
63,049
64,374
PROPERTY AND EQUIPMENT, NET
3,671
3,867
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET
38,636
39,054
Total assets
$ 183,615
$ 186,976
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term bank loans
$ 2,806
$ 3,451
Trade payables
5,009
7,710
Other payables and accrued expenses
20,531
18,618
Deferred revenues
17,131
14,951
Total current liabilities
45,477
44,730
LONG-TERM LIABILITIES:
Accrued severance pay
$ 21,238
$ 18,941
Long-term bank loans
7,410
8,493
Deferred revenues and other liabilities
5,503
6,153
Total long-term liabilities
34,151
33,587
Total equity
103,987
108,659
Total liabilities and equity
$ 183,615
$ 186,976
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Six months ended
Three months ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
Revenues:
Products
$ 52,928
$ 50,016
$ 26,920
$ 25,482
Services
23,185
20,609
11,816
10,383
Total Revenues
$ 76,113
70,625
$ 38,736
35,865
Cost of revenues:
Products
23,332
22,854
12,173
11,574
Services
5,667
5,114
2,765
2,600
Total Cost of revenues
28,999
27,968
14,938
14,174
Gross profit
47,114
42,657
23,798
21,691
Operating expenses:
Research and development, net
14,536
14,161
7,382
7,296
Selling and marketing
24,398
22,197
12,363
11,063
General and administrative
4,361
4,100
2,200
1,995
Total operating expenses
43,295
40,458
21,945
20,354
Operating income
3,819
2,199
1,853
1,337
Financial income (expenses), net
(103)
(26)
(34)
96
Income before taxes on income
3,716
2,173
1,819
1,433
Income tax expense, net
(1,407)
(1,674)
(805)
(712)
Net income
$ 2,309
$ 499
$ 1,014
$ 721
Basic net earnings per share
$ 0.07
$ 0.01
$ 0.03
$ 0.02
Diluted net earnings per share
$ 0.07
$ 0.01
$ 0.03
$ 0.02
Weighted average number of shares used in
computing basic net earnings per share
(in thousands)
31,791
36,882
31,596
36,490
Weighted average number of shares used in
computing diluted net earnings per share
(in thousands)
32,822
37,321
32,608
36,927
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
U.S. dollars in thousands, except share and per share data
Six months ended
Three months ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
GAAP net income
$ 2,309
$ 499
$ 1,014
$ 721
GAAP net earnings per share
$ 0.07
$ 0.01
$ 0.03
$ 0.02
Cost of revenues:
Stock-based compensation (1)
42
55
17
30
Amortization expenses (2)
348
632
174
316
390
687
191
346
Research and development, net:
Stock-based compensation (1)
181
228
86
117
Deferred payments expenses (3)
74
376
63
188
255
604
149
305
Selling and marketing:
Stock-based compensation (1)
540
559
277
282
Amortization expenses (2)
60
60
30
30
600
619
307
312
General and administrative:
Stock-based compensation (1)
346
360
191
183
Income taxes:
Deferred tax (4)
1,064
1,176
634
518
Non-GAAP net income
$ 4,964
$ 3,945
$ 2,486
$2,385
Non-GAAP diluted net earnings per share
$ 0.15
$ 0.10
$ 0.08
$ 0.06
(1) Stock-based compensation expenses related to options and restricted stock units granted to employees and others.
(2) Excluding amortization of intangible assets related to the acquisitions of Netrake, Mailvision and Active Communications Europe assets.
(3) Excluding expenses related to deferred payments in connection with the acquisition of Active Communications Europe.
(4) Non-cash deferred tax expenses.
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses this non-GAAP information internally to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Six months ended
Three months ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$ 2,309
$ 499
$ 1,014
$ 721
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
1,260
1,550
605
781
Amortization of marketable securities premiums and accretion of discounts, net
329
490
168
221
Increase (decrease) in accrued severance pay, net
(52)
480
(248)
12
Stock-based compensation expenses
1,109
1,202
571
612
Decrease in accrued interest and exchange rate effect of loans, marketable securities and bank deposits
215
230
218
201
Decrease in long- term deferred tax assets
1,022
1,218
613
539
Decrease (increase) in trade receivables, net
(109)
3,403
(1,165)
496
Decrease (increase) in other receivables and prepaid expenses
(4,187)
(59)
(729)
2,570
Increase in inventories
390
1,753
497
1,855
Decrease in trade payables
(2,701)
(2,181)
(137)
(2,941)
Increase in other payables and accrued expenses
1,657
265
1,711
942
Increase (decrease) in deferred revenues
1,969
(633)
(761)
(508)
Net cash provided by operating activities
3,211
8,217
2,357
5,501
Cash flows from investing activities:
Proceeds from sale of marketable securities
-
12,429
-
12,429
Decrease (increase) in short-term deposits, net
335
(11,779)
621
(12,207)
Decrease in long-term bank deposits
600
327
300
150
Proceeds from redemption of marketable securities
850
900
850
-
Purchase of property and equipment
(646)
(822)
(183)
(361)
Net cash provided by investing activities
1,139
1,055
1,588
11
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Six months ended
Three months ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
Cash flows from financing activities:
Purchase of treasury stock
(10,182)
(6,726)
(2,850)
(1,805)
Repayment of bank loans
(1,925)
(2,979)
(940)
(1,687)
Consideration related to payment for acquisition of Mailvision
-
(233)
-
(233)
Proceeds from issuance of shares upon exercise of options and warrants
1,533
219
247
96
Net cash used in financing activities
(10,574)
(9,719)
(3,543)
(3,629)
Increase (decrease) in cash and cash equivalents
(6,224)
(447)
402
1,883
Cash and cash equivalents at the beginning of the period
24,344
18,908
17,718
16,578
Cash and cash equivalents at the end of the period
$ 18,120
$ 18,461
$ 18,120
$ 18,461
Company Contacts
IR Agency Contact
Niran Baruch
Shirley Nakar
Philip Carlson
VP Finance & Chief Financial Officer
Director, Investor Relations
KCSA Strategic Communications
AudioCodes
AudioCodes
Tel: +1-212-896-1233
Tel: +972-3-976-4000
Tel: +972-3-976-4000
View original content:
SOURCE AudioCodes Ltd.
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