LOD, Israel, April 28, 2015 /PRNewswire/ -- AudioCodes
(NasdaqGS: AUDC) Press Release
AudioCodes, a leading provider of converged voice solutions
that enable enterprises and service providers to transition to
all-IP voice networks, today announced financial results for the
first quarter ended March 31,
2015.
First Quarter Highlights:
- Quarterly revenues increased 4.3% year-over-year to
$37.5 million
- Quarterly networking product and service revenues increased
7.3% year-over-year to $33.1
million
- Quarterly service revenues increased 20.2% year-over-year to
$8.9 million from $7.4 million
- Quarterly Non-GAAP gross margin improved to 59.7% from 59.5% in
the prior year period
- Quarterly Non-GAAP operating income increased to $2.1 million from $1.1
million in the prior year period
- Quarterly Non-GAAP net income was $2.0
million, or $0.05 per diluted
share, compared to $1.1 million, or
$0.03 per diluted share, in the prior
year period
- Share repurchase program-Company acquired 1.04 million of its
ordinary shares at a cost of $5.2
million during the quarter ended March 31, 2015.
Revenues for the first quarter of 2015 were $37.5 million compared to $36.0 million for the first quarter of 2014. Net
loss for the quarter was $378,000, or
($0.01) per share, compared to a net
loss of $278,000, or ($0.01) per share, for the first quarter of
2014.
On a Non-GAAP basis, quarterly net income was $2.0 million, or $0.05 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in the first quarter
last year.
Non-GAAP net income (loss) excludes: (i) stock-based
compensation expenses; (ii) amortization expenses related to
intangible assets; and (iii) non-cash deferred tax benefit or
expenses. A reconciliation of net income (loss) 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 first quarter
of 2015 totaled $4.7 million. Cash
and cash equivalents, bank deposits and marketable securities were
$84.1 million as of March 31, 2015 compared to $94.0 million as of March
31, 2014. The decrease in cash and cash equivalents, bank
deposits and marketable securities was the result of the use of
cash to repurchase the Company's ordinary shares pursuant to its
share repurchase program.
"I am pleased to report continued strength in our Networking
Business in the first quarter of 2015, our eleventh consecutive
quarter of improved performance," said Shabtai Adlersberg, President and Chief
Executive Officer of AudioCodes. "Our top line revenue was lower
than expected due to lower sales in the EMEA region, mainly as a
result of the weaker Euro/U.S. Dollar exchange rate. On a positive
note and more importantly, sales of our networking line grew 7.3%
over the year ago quarter. Our strategy and continued focus on the
enterprise unified communications market proved beneficial. In
addition, our comprehensive end-to-end voice solutions and services
portfolio resulted in more customer wins and demand in the market
served by our global application partners. This focus is expected
to support our long-term success in the market. Working closely
with our global partners over the past few years continued to
contribute to our growth and leadership in the enterprise voice
business," Mr. Adlersberg added.
"In the first quarter of 2015, we introduced a number of
products and solutions that are intended to impact our long-term
goals for business expansion. We introduced a Managed IP Phones
solution that is designed to deliver unprecedented efficient,
reliable and high quality voice network management experience for
highly distributed enterprise voice networks. We have introduced
new One Box 365 family appliances
supporting larger enterprise deployments and demonstrated new
Enterprise SBC integrated capabilities for WebRTC voice calls
connectivity to Microsoft Lync," concluded Mr. Adlersberg.
Share Buy Back Program
In August, 2014, AudioCodes announced that its Board of
Directors had approved a program to repurchase up to $3.0 million of its Ordinary Shares. In November,
2014, AudioCodes received court approval to repurchase up to an
additional $15 million of its
Ordinary Shares. During the three months ended March 31, 2015, AudioCodes acquired 1.04 million
shares under this program for a total consideration of
approximately $5.2 million. As of
March 31, 2015, AudioCodes had
acquired an aggregate of 2.09 million shares under this program for
an aggregate consideration of approximately $10.5 million. In March
2015, the Company's Board of Directors approved the
repurchase of up to an additional $15
million of the Company's Ordinary Shares subject to the
receipt of court approval in Israel. An application for approval has been
submitted to the Court.
New Chief Accounting Officer
The Company announced that it has appointed Niran Baruch as its new Chief Accounting Officer
and Vice President of Finance, effective May
1st, 2015. Mr. Baruch joined AudioCodes in 2005 initially as
Director of Finance and then as Vice President of Finance,
responsible for the management of the finance department. Mr.
Baruch has over 15 years of experience in Nasdaq traded public
companies, and is a Certified Public Accountant (CPA) with a BA in
Business Management and Accounting.
Ofer Segev, AudioCodes' Vice
President of Finance and CFO, will be leaving AudioCodes at the end
of the month to pursue new challenges. Shabtai Adlersberg, President, and Chief
Executive Officer of AudioCodes, together with Niran Baruch, Vice President of Finance and
Chief Accounting Officer, will assume executive management of
AudioCodes' finance department.
"I have decided to change course and explore new personal
challenges," said Ofer Segev, Vice
President of Finance and CFO of AudioCodes. "I enjoyed being
part of AudioCodes, a company I have known for many years. I am
confident that there will not be any issues in transition," he
added.
"Ofer Segev is leaving us after
approximately six months at the Company," said Shabtai Adlersberg. "We have the good fortune of
possessing a strong and capable finance team and I am confident
that a smooth transition will occur. AudioCodes' management and
Board of Directors wish Ofer good luck in his future endeavors,"
Shabtai Adlersberg added.
2015 Full Year Outlook update
AudioCodes is updating its full year guidance, mainly to account
for the recent change in the Euro/U.S. Dollar exchange rate. The
Company's outlook is based on current indications for its business,
which are subject to change.
We now expect revenues for 2015 to be in the range of
$158 million to $162 million compared
with the prior forecast of a range of $162
million to $167 million. We are now forecasting
non-GAAP net income per diluted share to be in the range of
$0.24 to $0.28 compared with the
prior forecast of $0.26 to $0.30.
AudioCodes management believes that Non-GAAP financial guidance
provides the best comparative basis for investors to understand the
Company's on-going operations and prospects for the future.
Non-GAAP net income per diluted share should be evaluated in light
of the Company's financial results prepared in accordance with U.S.
GAAP.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:00 A.M., Eastern Time today to discuss the
Company's first 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 corporate website at www.audiocodes.com.
About AudioCodes
AudioCodes Ltd. (NasdaqGS, 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 Media Gateways, Multi-Service Business Routers,
Session Border Controllers (SBC), Residential Gateways, IP Phones,
Media Servers, Value Added Applications and Professional Services.
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 http://www.audiocodes.com.
To download the AudioCodes investor relations app, which offers
access to its SEC filings, press releases, videos, audiocasts and
more, please visit Apple's App Store for the iPhone and iPad or
Google Play for Android mobile devices.
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.
©2015 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD
VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, OSN,
SmartTAP, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX
and One Box 365 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.
Summary financial data follows
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 16,506
|
|
$ 14,797
|
Short-term and
restricted bank deposits
|
4,354
|
|
7,630
|
Short-term marketable
securities and accrued interest
|
1,630
|
|
543
|
Trade receivables,
net
|
30,912
|
|
31,056
|
Other receivables and
prepaid expenses
|
8,842
|
|
9,564
|
Inventories
|
14,604
|
|
14,736
|
Total current
assets
|
76,848
|
|
78,326
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
3,610
|
|
4,066
|
Long-term marketable
securities
|
58,029
|
|
58,684
|
Deferred tax
assets
|
253
|
|
872
|
Severance pay
funds
|
17,559
|
|
17,835
|
Total long-term
assets
|
79,451
|
|
81,457
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
4,218
|
|
3,856
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
36,401
|
|
36,745
|
|
|
|
|
Total
assets
|
$ 196,918
|
|
$ 200,384
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term bank loans
|
$ 4,686
|
|
$ 4,686
|
Trade
payables
|
7,587
|
|
10,111
|
Senior convertible
notes
|
-
|
|
-
|
Other payables and
accrued expenses
|
16,284
|
|
15,758
|
Deferred
revenues
|
13,098
|
|
10,233
|
Total current
liabilities
|
41,655
|
|
40,788
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
17,793
|
|
17,908
|
Long-term bank
loans
|
4,129
|
|
5,105
|
Deferred revenues and
other liabilities
|
4,185
|
|
2,862
|
Total long-term
liabilities
|
26,107
|
|
25,875
|
|
|
|
|
Total
equity
|
129,156
|
|
133,721
|
Total liabilities and
equity
|
$ 196,918
|
|
$ 200,384
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except per share data
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Products
|
|
28,584
|
|
28,549
|
Services
|
|
8,896
|
|
7,402
|
|
|
|
|
|
Total
Revenues
|
|
$ 37,480
|
|
$ 35,951
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Products
|
|
13,143
|
|
12,917
|
Services
|
|
2,246
|
|
1,925
|
|
|
|
|
|
Total Cost of
revenues
|
|
15,389
|
|
14,842
|
|
|
|
|
|
Gross
profit
|
|
22,091
|
|
21,109
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development, net
|
|
7,579
|
|
7,812
|
Selling and
marketing
|
|
11,297
|
|
11,226
|
General and
administrative
|
|
2,162
|
|
1,914
|
|
|
|
|
|
Total operating
expenses
|
|
21,038
|
|
20,952
|
|
|
|
|
|
Operating
income
|
|
1,053
|
|
157
|
Financial income,
net
|
|
65
|
|
87
|
|
|
|
|
|
Income before taxes
on income
|
|
1,118
|
|
244
|
Taxes on income,
net
|
|
1,496
|
|
522
|
|
|
|
|
|
Net loss
|
|
$ (378)
|
|
$ (278)
|
|
|
|
|
|
Basic net loss per
share
|
|
$ (0.01)
|
|
$ (0.01)
|
|
|
|
|
|
Diluted net loss per
share
|
|
$ (0.01)
|
|
$ (0.01)
|
|
|
|
|
|
Weighted average
number of shares used in computing basic net loss per share (in
thousands)
|
|
41,968
|
|
39,969
|
|
|
|
|
|
Weighted average
number of shares used in computing diluted net loss per share (in
thousands)
|
|
41,968
|
|
39,969
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
NON-GAAP PROFORMA STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except per share data
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Products
|
|
28,584
|
|
28,549
|
Services
|
|
8,896
|
|
7,402
|
|
|
|
|
|
Total
Revenues
|
|
$ 37,480
|
|
$ 35,951
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Products
|
|
12,938
|
|
12,699
|
Services
|
|
2,180
|
|
1,869
|
|
|
|
|
|
Total Cost of
revenues (1) (2)
|
|
15,118
|
|
14,568
|
|
|
|
|
|
Gross
profit
|
|
22,362
|
|
21,383
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development, net (1)
|
|
7,458
|
|
7,669
|
Selling and marketing
(1) (2)
|
|
10,914
|
|
10,889
|
General and
administrative (1)
|
|
1,937
|
|
1,708
|
|
|
|
|
|
Total operating
expenses
|
|
20,309
|
|
20,266
|
|
|
|
|
|
Operating
income
|
|
2,053
|
|
1,117
|
Financial income,
net
|
|
65
|
|
87
|
|
|
|
|
|
Income before taxes
on income
|
|
2,118
|
|
1,204
|
Taxes on income, net
(3)
|
|
168
|
|
142
|
|
|
|
|
|
Net income
|
|
$ 1,950
|
|
$ 1,062
|
|
|
|
|
|
Diluted net income
per share
|
|
$ 0.05
|
|
$ 0.03
|
|
|
|
|
|
Weighted average
number of shares used in computing diluted net income per share (in
thousands)
|
|
42,891
|
|
41,734
|
(1) Excluding 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 Nuera, Netrake
and Mailvision assets.
(3) Excluding 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 internally this non-GAAP information
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 RECONCILIATION OF GAAP NET LOSS TO
NON-GAAP NET INCOME
|
U.S. dollars in
thousands, except per share data
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
GAAP net
loss
|
|
$(378)
|
|
$(278)
|
GAAP net loss per
share
|
|
$(0.01)
|
|
$(0.01)
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Stock-based
compensation (1)
|
|
23
|
|
26
|
Amortization expenses
(2)
|
|
248
|
|
248
|
|
|
271
|
|
274
|
Research and
development, net:
|
|
|
|
|
Stock-based
compensation (1)
|
|
121
|
|
143
|
|
|
|
|
|
Selling and
marketing:
|
|
|
|
|
Stock-based
compensation (1)
|
|
292
|
|
246
|
Amortization expenses
(2)
|
|
91
|
|
91
|
|
|
383
|
|
337
|
General and
administrative:
|
|
|
|
|
Stock-based
compensation (1)
|
|
225
|
|
206
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
Deferred tax
(3)
|
|
1,328
|
|
380
|
|
|
|
|
|
Non-GAAP net
income
|
|
$ 1,950
|
|
$ 1,062
|
Non-GAAP diluted net
income per share
|
|
$ 0.05
|
|
$ 0.03
|
|
|
(1) Stock-based compensation
expenses related to options and restricted stock units granted to
employees and others.
(2) Amortization of intangible
assets related to the acquisitions of Nuera, Netrake and Mailvision
assets.
(3) 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 internally this non-GAAP information
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
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(
Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$ (378)
|
|
$ (278)
|
Adjustments required
to reconcile net income or losses to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
824
|
|
856
|
Amortization of
marketable securities premiums and accretion of discounts,
net
|
|
313
|
|
39
|
Increase (decrease)
in accrued severance pay, net
|
|
161
|
|
(212)
|
Stock-based
compensation expenses
|
|
661
|
|
621
|
Increase (decrease)
in accrued interest on marketable securities, bank deposits and
structured notes
|
|
(148)
|
|
163
|
Decrease in long-term
deferred tax assets, net
|
|
619
|
|
471
|
Decrease (increase)
in trade receivables, net
|
|
144
|
|
(612)
|
Decrease (increase)
in other receivables and prepaid expenses
|
|
291
|
|
(2,139)
|
Decrease in
inventories
|
|
132
|
|
43
|
Increase (decrease)
in trade payables
|
|
(2,524)
|
|
2,061
|
Increase in deferred
revenues
|
|
4,222
|
|
3,256
|
Increase
(decrease) in other payables and accrued
expenses
|
|
396
|
|
(2,322)
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
4,713
|
|
1,947
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Decrease in
short-term deposits, net
|
|
3,276
|
|
1,000
|
Proceeds from
redemption of long-term bank deposits
|
|
515
|
|
530
|
Purchase of property
and equipment
|
|
(842)
|
|
(411)
|
Proceeds from
redemption of marketable securities upon maturity
|
|
-
|
|
11,390
|
Net cash provided by
investing activities
|
|
2,949
|
|
12,509
|
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Continued)
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(
Unaudited)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Purchase of treasury
stock
|
|
|
(5,249)
|
|
-
|
Repayment of senior
convertible notes
|
|
|
-
|
|
(285)
|
Repayment of
long-term bank loans
|
|
|
(976)
|
|
(976)
|
Proceeds from
issuance of shares upon exercise of options and warrants
|
|
|
272
|
|
1,724
|
Proceeds from
issuance of shares, net
|
|
|
-
|
|
29,855
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
(5,953)
|
|
30,318
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
|
1,709
|
|
44,774
|
Cash and cash
equivalents at the beginning of the period
|
|
|
14,797
|
|
30,763
|
Cash and cash
equivalents at the end of the period
|
|
|
$ 16,506
|
|
$ 75,537
|
Company Contacts
|
|
IR Agency Contact
|
Ofer Segev,
|
Shirley Nakar,
|
Philip Carlson/Chris Harrison
|
VP Finance & CFO
|
Director, Investor Relations
|
KCSA Strategic
|
AudioCodes
|
AudioCodes
|
Communications
|
Tel: +972-3-976-4000
|
Tel: +972-3-976-4000
|
Tel: +1-212-896-1233
|
ofer.segev@audiocodes.com
|
shirley@audiocodes.com
|
audc@kcsa.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/audiocodes-reports-first-quarter-2015-results-300073096.html
SOURCE AudioCodes