LOD, Israel, July 26, 2016 /PRNewswire/ --
Second Quarter Highlights:
- Quarterly revenues increased by 3.2% over the previous quarter
and by 10.7% year-over-year to $35.9
million;
- Revenues related to UC-SIP business increased above 25%
compared to the second quarter of 2015;
- Quarterly service revenues increased by 11.5% year-over-year to
$10.4 million;
- GAAP gross margin was a record of 60.5%, compared to 59.1% in
the second quarter of 2015;
- Non-GAAP gross margin was also a record of 61.4%, compared to
59.9% in the second quarter of 2015;
- Quarterly GAAP net income was $721,000, or $0.02
per diluted share, compared to a net loss of $1.9 million, or ($0.05) per diluted share, in the prior year
period;
- Quarterly Non-GAAP net income was $2.4
million, or $0.06 per diluted
share, compared to a Non-GAAP net loss of $537,000, or ($0.01) per diluted share, in the prior year
period;
- Quarterly cash flow from operating activities was $5.5 million;
- AudioCodes repurchased 421,000 shares of its ordinary shares at
an aggregate cost of $1.8 million
during the quarter;
- On July 20, 2016, AudioCodes
completed a cash self-tender offer and accepted for purchase a
total of 3,000,000 of its ordinary shares, the maximum amount of
shares subject to the offer, at a cash purchase price of
$4.35 per share;
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, 2016.
Revenues for the second quarter of 2016 were $35.9 million, compared to $34.8 million for the first quarter of 2016 and
$32.4 million for the second quarter
of 2015.
Net income was $721,000, or
$0.02 per diluted share, for the
second quarter of 2016, compared to a net loss of $1.9 million, or ($0.05) per diluted share, for the second quarter
of 2015.
On a Non-GAAP basis, the Company reported quarterly net income
of $2.4 million, or $0.06 per diluted share, compared to a net loss
of $537,000, or ($0.01) per diluted share, in the second 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 second quarter
of 2016 totaled $5.5 million. Cash
and cash equivalents, long- and short-term bank deposits and long-
and short-term marketable securities were $78.1 million as of June
30, 2016, compared to $78.6
million as of June 30, 2015.
Subsequent to the end of the quarter, the Company used
approximately $13.1 million of its
short-term bank deposits in connection with the purchase of shares
pursuant to its cash self-tender offer.
"We are pleased to report another quarter of strong financial
results reflecting the solid progress in our business," said
Shabtai Adlersberg, President and
Chief Executive Officer of AudioCodes.
"These results were driven by a strong performance in our
growing UC-SIP business, which grew above 25% compared to the year
ago quarter. We have witnessed strong momentum across our key lines
of activity. In the Skype for business market, we enjoyed strong
revenue growth, important projects and customer wins, increased
success in our solution offering and growing cooperation with our
global partners. We experienced similar growth trends in the SBC,
IP Phones, and the OVOC network management servers in the markets
we serve.
"We have coupled this quarterly growth in sales with a
conservative approach to cost control which has allowed top line
growth to filter through to higher gross margin and net income. We
maintain a high level of confidence in our business for the second
half of the year and coming years due to the top line growth
opportunities combined with our strong balance sheet. In the second
quarter of 2016 we have continued to buy back shares while
increasing investment in our core growth areas," concluded Mr.
Adlersberg.
Share Buy Back Program
During the quarter ended June 30,
2016, AudioCodes acquired 421,000 shares for a total
consideration of approximately $1.8
million. Since August 2014,
AudioCodes had acquired an aggregate of 7.4 million shares as of
June 30, 2016 for an aggregate
consideration of approximately $31.5
million.
In May 2016, 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. The current court approval for share
repurchases will expire on Oct 7,
2016.
Under the existing share repurchase program, on June 16, 2016, AudioCodes commenced an offer in
the U.S. and Israel to purchase up
to 3,000,000 of its ordinary shares, nominal (par) value
NIS 0.01 per share, for $4.35 per share. The offer expired on
July 20, 2016 and AudioCodes
purchased 3,000,000 shares, the maximum amount of shares subject to
the offer, at a price of $4.35 per
share.
Niran Baruch promoted to Chief
Financial Officer
The Company announced that it has promoted Niran Baruch from Chief Accounting Officer to
Vice President of Finance and Chief Financial Officer, effective
July 26, 2016. Mr. Baruch joined
AudioCodes in 2005 initially as Director of Finance and then as
Vice President of Finance. In the last year he served as Chief
Accounting Officer in which role he was responsible for the
management of the finance department. Mr. Baruch has over 16 years
of experience in Nasdaq traded public companies, and is a Certified
Public Accountant (CPA) with a BA in Business Management and
Accounting.
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
http://www.audiocodes.com/investors-lobby.
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.
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.
|
AUDIOCODES LTD. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS
U.S. dollars in
thousands
|
|
June
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$ 18,461
|
|
$ 18,908
|
|
Short-term and restricted
bank deposits
|
17,440
|
|
5,661
|
|
Short-term marketable
securities and accrued
interest
|
1,402
|
|
2,480
|
|
Trade receivables,
net
|
22,219
|
|
25,622
|
|
Other receivables and
prepaid
expenses
|
4,380
|
|
4,405
|
|
Inventories
|
15,025
|
|
16,778
|
|
Total current
assets
|
78,927
|
|
73,854
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Long-term and restricted
bank deposits
|
$ 2,707
|
|
$ 3,034
|
|
Long-term marketable
securities
|
38,075
|
|
50,294
|
|
Deferred tax
assets
|
998
|
|
2,216
|
|
Severance pay
funds
|
17,217
|
|
16,086
|
|
Total long-term
assets
|
58,997
|
|
71,630
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
4,064
|
|
4,090
|
|
|
|
|
|
GOODWILL, INTANGIBLE ASSETS
AND OTHER, NET
|
39,544
|
|
40,246
|
|
|
|
|
|
Total
assets
|
$ 181,532
|
|
$ 189,820
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current maturities of
long-term bank
loans
|
$ 3,709
|
|
$ 5,338
|
|
Trade
payables
|
5,123
|
|
7,304
|
|
Other payables and accrued
expenses
|
18,395
|
|
17,951
|
|
Deferred
revenues
|
12,124
|
|
12,885
|
|
Total current
liabilities
|
39,351
|
|
43,478
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Accrued severance
pay
|
$ 17,988
|
|
$ 16,377
|
|
Long-term bank
loans
|
4,761
|
|
6,032
|
|
Deferred revenues and other
liabilities
|
6,178
|
|
6,480
|
|
Total long-term
liabilities
|
28,927
|
|
28,889
|
|
|
|
|
|
Total
equity
|
113,254
|
|
117,453
|
|
Total liabilities and
equity
|
$ 181,532
|
|
$ 189,820
|
|
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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$ 50,016
|
|
$ 51,673
|
|
$ 25,482
|
|
$ 23,089
|
|
Services
|
20,609
|
|
18,212
|
|
10,383
|
|
9,316
|
|
Total
Revenues
|
70,625
|
|
69,885
|
|
35,865
|
|
32,405
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Products
|
22,854
|
|
23,821
|
|
11,574
|
|
10,678
|
|
Services
|
5,114
|
|
4,823
|
|
2,600
|
|
2,577
|
|
Total Cost of
revenues
|
27,968
|
|
28,644
|
|
14,174
|
|
13,255
|
|
Gross
profit
|
42,657
|
|
41,241
|
|
21,691
|
|
19,150
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and development,
net
|
14,161
|
|
14,676
|
|
7,296
|
|
7,097
|
|
Selling and
marketing
|
22,197
|
|
22,637
|
|
11,063
|
|
11,340
|
|
General and
administrative
|
4,100
|
|
4,655
|
|
1,995
|
|
2,493
|
|
Total operating
expenses
|
40,458
|
|
41,968
|
|
20,354
|
|
20,930
|
|
Operating income
(loss)
|
2,199
|
|
(727)
|
|
1,337
|
|
(1,780)
|
|
Financial income
(expenses),
net
|
(26)
|
|
606
|
|
96
|
|
541
|
|
Income (loss) before taxes
on income
|
2,173
|
|
(121)
|
|
1,433
|
|
(1,239)
|
|
Taxes on income,
net
|
(1,674)
|
|
(2,179)
|
|
(712)
|
|
(683)
|
|
Net income
(loss)
|
$ 499
|
|
$ (2,300)
|
|
$ 721
|
|
$ (1,922)
|
|
Basic net earnings (loss)
per share
|
$ 0.01
|
|
$ (0.06)
|
|
$ 0.02
|
|
$ (0.05)
|
|
Diluted net earnings (loss)
per share
|
$ 0.01
|
|
$ (0.06)
|
|
$ 0.02
|
|
$ (0.05)
|
|
Weighted average number of
shares used in computing basic net earnings (loss) per share (in
thousands)
|
36,882
|
|
41,391
|
|
36,490
|
|
40,813
|
|
Weighted average number of
shares used in computing diluted net earnings (loss) per share (in
thousands)
|
37,321
|
|
41,391
|
|
36,927
|
|
40,813
|
|
AUDIOCODES LTD. AND ITS
SUBSIDIARIES
RECONCILIATION OF GAAP
NET LOSS TO NON-GAAP NET INCOME
(LOSS)
U.S. dollars in
thousands, except share and per share
data
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$ 499
|
|
$ (2,300)
|
|
$ 721
|
|
$ (1,922)
|
|
|
GAAP net earnings (loss)
per share
|
$ 0.01
|
|
$ (0.06)
|
|
$ 0.02
|
|
$ (0.05)
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(1)
|
55
|
|
49
|
|
30
|
|
26
|
|
|
Amortization expenses
(2)
|
632
|
|
496
|
|
316
|
|
248
|
|
|
687
|
|
545
|
|
346
|
|
274
|
|
|
Research and development,
net:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(1)
|
228
|
|
238
|
|
117
|
|
117
|
|
|
Deferred payments expenses
(3)
|
376
|
|
-
|
|
188
|
|
-
|
|
|
604
|
|
238
|
|
305
|
|
117
|
|
|
Selling and
marketing:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(1)
|
559
|
|
568
|
|
282
|
|
276
|
|
|
Amortization expenses
(2)
|
60
|
|
163
|
|
30
|
|
72
|
|
|
619
|
|
731
|
|
312
|
|
348
|
|
|
General and
administrative:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(1)
|
360
|
|
452
|
|
183
|
|
227
|
|
|
Income
taxes:
|
|
|
|
|
|
|
|
|
|
Deferred tax
(4)
|
1,176
|
|
1,328
|
|
518
|
|
419
|
|
|
Non-GAAP net income
(loss)
|
$ 3,945
|
|
$ 994
|
|
$2,385
|
|
$ (537)
|
|
|
Non-GAAP diluted net
earnings (loss) per
share
|
$ 0.10
|
|
$ 0.03
|
|
$ 0.06
|
|
$ (0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(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 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
|
|
|
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(
Unaudited)
|
|
(
Unaudited)
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 499
|
|
$ (2,300)
|
|
$ 721
|
|
$ (1,922)
|
|
Adjustments required to
reconcile net income or loss to net cash provided by or used in
operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,550
|
|
1,627
|
|
781
|
|
803
|
|
Amortization of marketable
securities premiums and accretion of discounts,
net
|
|
490
|
|
552
|
|
221
|
|
239
|
|
Increase (decrease) in
accrued severance pay,
net
|
|
480
|
|
79
|
|
12
|
|
(82)
|
|
Stock-based compensation
expenses
|
|
1,202
|
|
1,307
|
|
612
|
|
646
|
|
Increase in accrued
interest and exchange rate effect of loans, marketable securities
and bank
deposits
|
|
230
|
|
29
|
|
201
|
|
177
|
|
Decrease in long-term
deferred tax assets,
net
|
|
1,218
|
|
872
|
|
539
|
|
253
|
|
Decrease in trade
receivables,
net
|
|
3,403
|
|
2,997
|
|
496
|
|
2,853
|
|
Decrease (increase) in
other receivables and prepaid
expenses
|
|
(59)
|
|
2,810
|
|
2,570
|
|
2,519
|
|
Decrease (increase) in
inventories
|
|
1,753
|
|
(396)
|
|
1,855
|
|
(528)
|
|
Decrease in trade
payables
|
|
(2,181)
|
|
(3,669)
|
|
(2,941)
|
|
(1,145)
|
|
Increase in other payables
and accrued
expenses
|
|
265
|
|
950
|
|
942
|
|
554
|
|
Increase (decrease) in
deferred
revenues
|
|
(633)
|
|
3,212
|
|
(508)
|
|
(1,010)
|
|
Net cash provided by
operating
activities
|
|
8,217
|
|
8,070
|
|
5,501
|
|
3,357
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
marketable
securities
|
|
12,429
|
|
-
|
|
12,429
|
|
-
|
|
Decrease (increase) in
short-term deposits,
net
|
|
(11,779)
|
|
3,269
|
|
(12,207)
|
|
(7)
|
|
Decrease in long-term bank
deposits
|
|
327
|
|
1,365
|
|
150
|
|
850
|
|
Proceeds from redemption of
marketable
securities
|
|
900
|
|
2,711
|
|
-
|
|
2,711
|
|
Purchase of property and
equipment
|
|
(822)
|
|
(1,332)
|
|
(361)
|
|
(490)
|
|
Net cash provided by
investing
activities
|
|
1,055
|
|
6,013
|
|
11
|
|
3,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(
Unaudited)
|
|
(
Unaudited)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
Purchase of treasury
stock
|
|
(6,726)
|
|
(11,329)
|
|
(1,805)
|
|
(6,080)
|
|
Repayment of long-term bank
loans
|
|
(2,979)
|
|
(2,342)
|
|
(1,687)
|
|
(1,366)
|
|
Consideration related to
payment of acquisition of
Mailvision
|
|
(233)
|
|
(233)
|
|
(233)
|
|
(233)
|
|
Proceeds from issuance of
shares upon exercise of options and
warrants
|
|
219
|
|
331
|
|
96
|
|
59
|
|
Net cash used in financing
activities
|
|
(9,719)
|
|
(13,573)
|
|
(3,629)
|
|
(7,620)
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash
and cash
equivalents
|
|
(447)
|
|
510
|
|
1,883
|
|
(1,199 )
|
|
Cash and cash equivalents
at the beginning of the
period
|
|
18,908
|
|
14,797
|
|
16,578
|
|
16,506
|
|
Cash and cash equivalents
at the end of the
period
|
|
$ 18,461
|
|
$ 15,307
|
|
$ 18,461
|
|
$ 15,307
|
|
Company
Contacts
|
|
IR Agency
Contact
|
|
Niran
Baruch,
VP Finance & Chief
Financial
Officer
AudioCodes
Tel:
+972-3-976-4000
niran.baruch@audiocodes.com
|
Shirley
Nakar,
Director, Investor
Relations
AudioCodes
Tel:
+972-3-976-4000
shirley@audiocodes.com
|
Philip Carlson/Elizabeth
Barker
KCSA Strategic
Communications
Tel:
+1-212-896-1233
audc@kcsa.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/audiocodes-reports-second-quarter-2016-results-300303869.html
SOURCE AudioCodes