LOD, Israel, May 3, 2016 /PRNewswire/ --
First Quarter Highlights:
- Revenues for the first quarter of 2016 were $34.8 million, compared to $37.5 million in the first quarter of 2015;
- Revenues related to UC-SIP business increased 20% compared to
the first quarter of 2015;
- Service revenues were $10.2
million, compared to $8.9
million in the first quarter of 2015;
- Non-GAAP gross margin was a record 61.3%, compared to 59.7% in
the first quarter of 2015;
- Non-GAAP operating expenses were $19.3
million compared to $20.3
million in the first quarter of 2015;
- Quarterly Non-GAAP net income was $1.6
million, or $0.04 per diluted
share, compared to $1.9 million, or
$0.05 per diluted share, in the first
quarter of 2015;
- Quarterly cash flow from operating activities was $2.7 million; and
- AudioCodes repurchased 1.1 million shares of its ordinary
shares at an aggregate cost of $4.9
million during the quarter.
Details:
AudioCodes (Nasdaq: AUDC), 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, 2016.
Revenues for the first quarter of 2016 were $34.8 million, compared to $35.6 million for the fourth quarter of 2015 and
$37.5 million for the first quarter
of 2015.
Net loss was $222,000, or
($0.01) per diluted share, for the
first quarter of 2016, compared to $378,000, or ($0.01) per diluted share, for the first quarter
of 2015.
On a Non-GAAP basis, net income was $1.6
million, or $0.04 per diluted
share, in the first quarter of 2016 compared to $1.9 million, or $0.05 per diluted share, in the first quarter of
2015.
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
(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 2016 totaled $2.7 million. Cash
and cash equivalents, bank deposits and marketable securities were
$76.9 million as of March 31, 2016, compared to $80.4 million as of December 31, 2015. The decrease in cash and cash
equivalents, bank deposits and marketable securities was primarily
the result of the use of cash for the continued repurchasing of the
Company's ordinary shares pursuant to its share repurchase
program.
"We are pleased to report good financial results and solid
progress in our business in the first quarter of 2016," said
Shabtai Adlersberg, President and
Chief Executive Officer of AudioCodes. "Our strategic plan aims to
grow our UC-SIP business about 15% annually, and evolve it to
become the Company's main business. I am pleased to report that in
the first quarter of 2016 we achieved 20% growth in our UC-SIP
business over the year-ago quarter, and made important progress in
sales of SBC, IP Phones and CloudBond 365, which are key to the
UC-SIP business. As businesses globally accelerate their adoption
of hosted UC and SIP Trunking, and as service providers are making
increased efforts to migrate to All-IP, we firmly believe in the
long term secular growth of our UC-SIP business. Achieving record
gross margin of 61.3% in the first quarter of 2016, good control of
operating expenses, and positive cash flow from operations, further
support our confidence in the strength of our business."
"We also made good progress on other fronts in order to support
growth going forward. We invested in strengthening existing
partnerships and in creating new ones. We have increased our sales
efforts and resources globally. We announced new important products
in the NFV area and enhanced our SBC business line offering with
new products for hosted and virtualized environments. We introduced
ARM, an innovative routing session management solution, and
enhanced our portfolio of solutions for the Microsoft's Skype for
Business UC application by announcing support for its Cloud
Connector Edition (CCE)," concluded Mr. Adlersberg.
Share Buy Back Program
In January 2016, AudioCodes
received court approval in Israel
to purchase up to an aggregate of $15
million of additional ordinary shares pursuant to this
program. The current court approval for share repurchases will
expire on May 19, 2016.
During the quarter ended March 31,
2016, AudioCodes acquired 1.1 million shares under the
existing share repurchase program for a total consideration of
approximately $4.9 million. As of
March 31, 2016 and since beginning
the repurchase of its shares in August
2014, AudioCodes has acquired an aggregate of 6.9 million
shares for an aggregate consideration of approximately $29.7 million.
On April 5, 2016, our Board of
Directors approved filing a new application with the court in
Israel requesting approval for an
additional repurchase program for $15
million of Ordinary Shares once the existing program
expires. We filed a new application and we are expecting a decision
in the coming weeks.
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 investor website at
http://www.audiocodes.com/investors-lobby.
A replay of the call will also be available for callers in
the United States and Canada, at +1 (877) 660-6853 and, for callers
outside of the United States and
Canada, at +1 (201) 612-7415. The
access number for the replay is 13634482.
Follow AudioCodes' social media channels:
AudioCodes invites you to join our online community and follow
us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and
YouTube.
To download 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.
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 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 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.
©2016 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD
VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's
Inside Matters, OSN, SmartTAP, 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.
Summary financial data follows
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
March
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 16,578
|
|
$ 18,908
|
Short-term and
restricted bank deposits
|
5,233
|
|
5,661
|
Short-term marketable
securities and accrued interest
|
1,912
|
|
2,480
|
Trade receivables,
net
|
22,715
|
|
25,622
|
Other receivables and
prepaid expenses
|
7,447
|
|
4,405
|
Inventories
|
16,880
|
|
16,778
|
Total current
assets
|
70,765
|
|
73,854
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
$ 2,857
|
|
$ 3,034
|
Long-term marketable
securities
|
50,290
|
|
50,294
|
Deferred tax
assets
|
1,537
|
|
2,216
|
Severance pay
funds
|
15,099
|
|
16,086
|
Total long-term
assets
|
69,783
|
|
71,630
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
4,133
|
|
4,090
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
39,895
|
|
40,246
|
|
|
|
|
Total
assets
|
$ 184,576
|
|
$ 189,820
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term bank loans
|
$ 4,768
|
|
$ 5,338
|
Trade
payables
|
8,064
|
|
7,304
|
Other payables and
accrued expenses
|
17,743
|
|
17,951
|
Deferred
revenues
|
12,368
|
|
12,885
|
Total current
liabilities
|
42,943
|
|
43,478
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
$ 15,858
|
|
$ 16,377
|
Long-term bank
loans
|
5,454
|
|
6,032
|
Deferred revenues and
other liabilities
|
6,385
|
|
6,480
|
Total long-term
liabilities
|
27,697
|
|
28,889
|
|
|
|
|
Total
equity
|
113,936
|
|
117,453
|
Total liabilities and
equity
|
$ 184,576
|
|
$ 189,820
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except share and per share data
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Products
|
|
$ 24,534
|
|
$ 28,584
|
Services
|
|
10,226
|
|
8,896
|
Total
Revenues
|
|
34,760
|
|
37,480
|
Cost of
revenues:
|
|
|
|
|
Products
|
|
11,280
|
|
13,143
|
Services
|
|
2,514
|
|
2,246
|
Total Cost of
revenues
|
|
13,794
|
|
15,389
|
Gross
profit
|
|
20,966
|
|
22,091
|
Operating
expenses:
|
|
|
|
|
Research and
development, net
|
|
6,865
|
|
7,579
|
Selling and
marketing
|
|
11,134
|
|
11,297
|
General and
administrative
|
|
2,105
|
|
2,162
|
Total operating
expenses
|
|
20,104
|
|
21,038
|
Operating
income
|
|
862
|
|
1,053
|
Financial income
(expenses), net
|
|
(122)
|
|
65
|
Income before taxes
on income
|
|
740
|
|
1,118
|
Income tax expense,
net
|
|
(962)
|
|
(1,496)
|
Net loss
|
|
$ (222)
|
|
$ (378)
|
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 and diluted net loss per
share (in thousands)
|
|
37,273
|
|
41,968
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
NON-GAAP PROFORMA
STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except share and per share data
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Products
|
|
$ 24,534
|
|
$ 28,584
|
Services
|
|
10,226
|
|
8,896
|
Total
Revenues
|
|
34,760
|
|
37,480
|
Cost of
revenues:
|
|
|
|
|
Products
|
|
11,033
|
|
12,938
|
Services
|
|
2,420
|
|
2,180
|
Total Cost of
revenues (1) (2)
|
|
13,453
|
|
15,118
|
Gross
profit
|
|
21,307
|
|
22,362
|
Operating
expenses:
|
|
|
|
|
Research and
development, net (1) (3)
|
|
6,566
|
|
7,458
|
Selling and marketing
(1) (2)
|
|
10,827
|
|
10,914
|
General and
administrative (1)
|
|
1,928
|
|
1,937
|
Total operating
expenses
|
|
19,321
|
|
20,309
|
Operating
income
|
|
1,986
|
|
2,053
|
Financial income
(expenses), net
|
|
(122)
|
|
65
|
Income before taxes
on income
|
|
1,864
|
|
2,118
|
Taxes on income, net
(4)
|
|
(304)
|
|
(168)
|
Net income
|
|
$ 1,560
|
|
$ 1,950
|
Diluted net earnings
per share
|
|
$ 0.04
|
|
$ 0.05
|
Weighted average
number of shares used in computing diluted net earnings per share
(in thousands)
|
|
38,107
|
|
42,891
|
|
(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, Mailvision and Active Communications Europe
assets.
|
(3) Excluding expenses
related to deferred payments in connection with the acquisition of
Active Communications Europe.
|
(4) Excluding
non-cash deferred tax expenses (benefits).
|
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,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
GAAP net
loss
|
|
$(222)
|
|
$(378)
|
GAAP net loss per
share
|
|
$(0.01)
|
|
$(0.01)
|
Cost of
revenues:
|
|
|
|
|
Stock-based
compensation (1)
|
|
25
|
|
23
|
Amortization expenses
(2)
|
|
316
|
|
248
|
|
|
341
|
|
271
|
Research and
development, net:
|
|
|
|
|
Stock-based
compensation (1)
|
|
111
|
|
121
|
Deferred payments
expenses (3)
|
|
188
|
|
-
|
|
|
299
|
|
121
|
Selling and
marketing:
|
|
|
|
|
Stock-based
compensation (1)
|
|
277
|
|
292
|
Amortization expenses
(2)
|
|
30
|
|
91
|
|
|
307
|
|
383
|
General and
administrative:
|
|
|
|
|
Stock-based
compensation (1)
|
|
177
|
|
225
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
Deferred tax
(4)
|
|
658
|
|
1,328
|
Non-GAAP net
income
|
|
$ 1,560
|
|
$ 1,950
|
Non-GAAP diluted net
earnings per share
|
|
$ 0.04
|
|
$ 0.05
|
|
(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
Nuera, 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 (benefits).
|
|
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,
|
|
|
2016
|
2015
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net Loss
|
|
$ (222)
|
$ (378)
|
|
Adjustments required
to reconcile net income or loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
769
|
824
|
|
Amortization of
marketable securities premiums and accretion of discounts,
net
|
|
269
|
313
|
|
Increase in accrued
severance pay, net
|
|
468
|
161
|
|
Stock-based
compensation expenses
|
|
590
|
661
|
|
Increase in accrued
interest and exchange rate effect of loans, marketable securities
and bank deposits
|
|
29
|
(148)
|
|
Decrease in long-
term deferred tax assets
|
|
679
|
619
|
|
Decrease in trade
receivables, net
|
|
2,907
|
144
|
|
Decrease
(increase) in other receivables and prepaid
expenses
|
|
(2,629)
|
291
|
|
Decrease (increase)
in inventories
|
|
(102)
|
132
|
|
Increase (decrease)
in trade payables
|
|
760
|
(2,524)
|
|
Increase (decrease)
in other payables and accrued expenses
|
|
(677)
|
396
|
|
Increase (decrease)
in deferred revenues
|
|
(125)
|
4,222
|
|
Net cash provided by
operating activities
|
|
2,716
|
4,713
|
|
Cash flows from
investing activities:
|
|
|
|
|
Decrease in
short-term deposits, net
|
|
428
|
3,276
|
|
Decrease in long-term
bank deposits
|
|
177
|
515
|
|
Proceeds from
redemption of marketable securities
|
|
900
|
-
|
|
Purchase of property
and equipment
|
|
(461)
|
(842)
|
|
Net cash provided by
investing activities
|
|
1,044
|
2,949
|
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Cash flows from
financing activities:
|
|
|
|
|
Purchase of treasury
stock
|
|
(4,921)
|
|
(5,249)
|
Repayment of bank
loans
|
|
(1,292)
|
|
(976)
|
Proceeds from
issuance of shares upon exercise of options and warrants
|
|
123
|
|
272
|
Net cash used in
financing activities
|
|
(6,090)
|
|
(5,953)
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(2,330)
|
|
1,709
|
Cash and cash
equivalents at the beginning of the period
|
|
18,908
|
|
14,797
|
Cash and cash
equivalents at the end of the period
|
|
$ 16,578
|
|
$ 16,506
|
Company
Contacts
|
|
IR Agency
Contact
|
|
|
|
Niran
Baruch,
|
Shirley
Nakar,
|
Philip Carlson/Collin
Dennis
|
VP Finance &
Chief Accounting Officer
|
Director, Investor
Relations
|
KCSA Strategic
Communications
|
AudioCodes
|
AudioCodes
|
Tel:
+1-212-896-1233
|
Tel:
+972-3-976-4000
|
Tel:
+972-3-976-4000
|
audc@kcsa.com
|
niran.baruch@audiocodes.com
|
shirley@audiocodes.com
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/audiocodes-reports-first-quarter-2016-results-300261592.html
SOURCE AudioCodes