LOD, Israel, Jan. 24, 2018 /PRNewswire/ --
Fourth Quarter and Full Year 2017 Highlights
- Quarterly revenues
increased by 9.7% year-over-year to $41.4
million; full 2017 year revenues were $156.7 million compared to $145.6 million in 2016;
- Quarterly service
revenues increased by 17.4% year-over-year to $13.4 million; full 2017 year service revenues
were $49.3 million compared to
$43.3 million in 2016;
- Quarterly UC-SIP
revenues increased more than 15% year-over-year;
- Quarterly GAAP gross
margin was 63.1%; quarterly Non-GAAP gross margin was 63.6%;
- Quarterly GAAP
operating margin was 7.8%; quarterly Non-GAAP operating margin was
9.7%;
- Cash flow from
operating activities was $8.4 million
for the quarter and $17.8 million for
the full year;
- Quarterly GAAP net
income was $672,000, or $0.02 per diluted share, Quarterly Non-GAAP net
income was $3.8 million, or
$0.12 per diluted share;
- Full 2017 year GAAP
net income was $4.0 million, or
$0.13 per diluted share; full 2017
year Non-GAAP net income was $12.2
million, or $0.37 per diluted
share;
- AudioCodes
repurchased 1.3 million of its ordinary shares during the quarter
at an aggregate cost of $9.0
million.
Details
AudioCodes,(NASDAQ: AUDC) a leading vendor of advanced
voice networking and media processing solutions for the digital
workplace, today announced financial results for the fourth quarter
and full year periods ended December 31,
2017.
Revenues for the fourth quarter of 2017 were $41.4 million, compared to $39.2 million for the third quarter of 2017 and
$37.8 million for the fourth quarter
of 2016. Revenues were $156.7 million
in 2017 compared to $145.6 million in
2016.
Net income was $672,000, or
$0.02 per diluted share, for the
fourth quarter of 2017, compared to $14.8
million or $0.44 per diluted
share, for the fourth quarter of 2016. Net income in 2017 was
$4.0 million or $0.13 per diluted share, compared to $16.2, or $0.45 per
diluted share, in 2016.
In the fourth quarter and full year of 2016, net income per
diluted share included $0.34 per
share and $0.32 per share,
respectively, as a result of the creation of a deferred tax asset.
Non-GAAP net income excludes the effect of this non-cash deferred
tax benefit.
On a Non-GAAP basis, net income was $3.8
million, or $0.12 per diluted
share, for the fourth quarter of 2017 compared to $2.6 million, or $0.08 per diluted share, in the fourth quarter
last year. Non-GAAP net income in 2017 was $12.2 million, or $0.37 per diluted share, compared to $9.4 million, or $0.26 per diluted share, in 2016.
Non-GAAP net income excludes: (i) share-based compensation
expenses; (ii) amortization expenses related to intangible assets;
(iii) expenses related to deferred payments and income due to
revaluation of an earn-out liability, each 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 was $8.4 million for the fourth quarter of 2017 and
$17.8 million for 2017. Cash and cash
equivalents, long- and short-term bank deposits and long- and
short-term marketable securities were $58.7
million as of December 31,
2017 compared to $69.5 million
as of December 31, 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 program.
"We are pleased to report strong financial results for the
fourth quarter and full year 2017," said Shabtai Adlersberg, President and Chief
Executive Officer of AudioCodes.
"In 2017 we executed well on our strategic goal to lead the
Enterprise Voice space with voice connectivity solutions and
enhanced our leadership position for coming years. We achieved
record financial results and new highs in our gross margin and
operating income, an attestation to our efficient operations.
Looking forward, we expect to continue our evolution and growth in
2018, continuing our strong cash flow for the fourth year in a row.
We also expect to continue investment in future offerings as well
as focus on the return on investment to our shareholders."
"We have decided to formulate a new Business Unit called
Voice.AI to follow on the steps of success of our Networking
Business Unit and UC-SIP operations. Leveraging our existing
operations in voice recognition and call logging/recording,
Voice.AI is intended to capitalize on the endless amount of
business voice interactions and resources and the growing
effectiveness of AI technologies such as NLP and NLU. The newly
developed Voice.AI solutions will be used to process and
distribute meaningful actionable business insights. Capitalizing on
our leadership position in enterprise voice and large customer
base, expertise in telephony and VoIP communications, as well as
our extensive product portfolio of gateways, session border
controllers and end point devices and appliances, we envision
significant potential for future products and solutions."
"Additionally, the ongoing trend of all-IP network
transformation provides us with much to look forward to, while we
work on new growth engines and new technological developments,"
concluded Mr. Adlersberg.
Share Buy Back Program
As of December 31, 2017,
AudioCodes had acquired an aggregate of 15.8 million of its
ordinary shares since August 2014 for
an aggregate consideration of $79.7
million. During the quarter ended December 31, 2017, AudioCodes acquired 1.3
million of its ordinary shares under its share repurchase program
for a total consideration of $9.0
million. During 2017, AudioCodes acquired 3.7 million of its
ordinary shares for a total consideration of $25.6 million.
In November 2017, AudioCodes
received court approval in Israel
to purchase up to an aggregate of $20
million of additional ordinary shares pursuant to its share
repurchase program. As of December 31,
2017, $16.8 million remained
available to the Company for repurchasing shares under this court
approval. The current court approval for share repurchases will
expire on May 27, 2018.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:00 A.M., Eastern Time today to discuss the
Company's fourth quarter and full year of 2017 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) is a leading vendor of
advanced voice networking and media processing solutions for the
digital workplace. AudioCodes enables enterprises and service
providers to build and operate all-IP voice networks for unified
communications, contact centers, and hosted business
services. AudioCodes offers a broad range of innovative
products, solutions and services that are used by large
multi-national enterprises and leading tier-1 operators around the
world.
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.
©2018 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.
Summary financial data follows
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 24,235
|
|
$ 24,344
|
Short-term and
restricted bank deposits
|
2,739
|
|
3,401
|
Short-term marketable
securities and accrued interest
|
7,087
|
|
6,778
|
Trade receivables,
net
|
22,059
|
|
25,448
|
Other receivables and
prepaid expenses
|
4,693
|
|
3,377
|
Inventories
|
16,563
|
|
16,333
|
Total current
assets
|
77,376
|
|
79,681
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
$ 4,207
|
|
$ 5,407
|
Long-term marketable
securities
|
20,475
|
|
29,540
|
Deferred tax
assets
|
6,685
|
|
11,607
|
Severance pay
funds
|
20,138
|
|
17,820
|
Total long-term
assets
|
51,505
|
|
64,374
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
3,835
|
|
3,867
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
38,222
|
|
39,054
|
|
|
|
|
Total
assets
|
$ 170,938
|
|
$ 186,976
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term bank loans
|
$ 2,519
|
|
$ 3,451
|
Trade
payables
|
5,639
|
|
7,710
|
Other payables and
accrued expenses
|
20,786
|
|
18,618
|
Deferred
revenues
|
16,417
|
|
14,951
|
Total current
liabilities
|
45,361
|
|
44,730
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
$ 21,228
|
|
$ 18,941
|
Long-term bank
loans
|
6,237
|
|
8,493
|
Deferred revenues and
other liabilities
|
5,731
|
|
6,153
|
Total long-term
liabilities
|
33,196
|
|
33,587
|
|
|
|
|
Total
equity
|
92,381
|
|
108,659
|
Total liabilities and
equity
|
$ 170,938
|
|
$ 186,976
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except shares and per share data
|
|
|
|
|
|
|
Year
ended
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Audited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
$ 107,482
|
|
$ 102,279
|
|
$ 28,032
|
|
$ 26,359
|
Services
|
49,257
|
|
43,292
|
|
13,386
|
|
11,401
|
Total
Revenues
|
156,739
|
|
145,571
|
|
41,418
|
|
37,760
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
47,445
|
|
46,935
|
|
12,204
|
|
12,039
|
Services
|
11,449
|
|
10,295
|
|
3,090
|
|
2,717
|
Total Cost of
revenues
|
58,894
|
|
57,230
|
|
15,294
|
|
14,756
|
Gross
profit
|
97,845
|
|
88,341
|
|
26,124
|
|
23,004
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
30,348
|
|
29,139
|
|
8,126
|
|
7,682
|
Selling and
marketing
|
48,954
|
|
45,084
|
|
12,405
|
|
11,369
|
General and
administrative
|
8,893
|
|
6,364
|
|
2,356
|
|
366
|
Total operating
expenses
|
88,195
|
|
80,587
|
|
22,887
|
|
19,417
|
Operating
income
|
9,650
|
|
7,754
|
|
3,237
|
|
3,587
|
Financial expenses,
net
|
(10)
|
|
(160)
|
|
(4)
|
|
(127)
|
Income before taxes
on income
|
9,640
|
|
7,594
|
|
3,233
|
|
3,460
|
Taxes on income,
net
|
(5,610)
|
|
8,644
|
|
(2,561)
|
|
11,308
|
Net income
|
$ 4,030
|
|
$ 16,238
|
|
$ 672
|
|
$ 14,768
|
Basic net earnings
per share
|
$ 0.13
|
|
$ 0.46
|
|
$ 0.02
|
|
$ 0.45
|
Diluted net earnings
per share
|
$ 0.13
|
|
$ 0.45
|
|
$ 0.02
|
|
$ 0.44
|
Weighted average
number of shares used in computing basic net earnings per share (in
thousands)
|
31,104
|
|
35,174
|
|
29,915
|
|
32,956
|
Weighted average
number of shares used in computing diluted net earnings per share
(in thousands)
|
32,168
|
|
40,565
|
|
31,071
|
|
33,859
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP NET INCOME
|
U.S. dollars in
thousands, except per share data
|
|
|
|
|
|
|
Year
ended
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Audited)
|
|
(Unaudited)
|
GAAP net
income
|
$ 4,030
|
|
$ 16,238
|
|
$ 672
|
|
$ 14,768
|
GAAP net earnings per
share
|
$ 0.13
|
|
$ 0.45
|
|
$ 0.02
|
|
$ 0.44
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
84
|
|
118
|
|
25
|
|
31
|
Amortization expenses
(2)
|
696
|
|
1,052
|
|
174
|
|
174
|
|
780
|
|
1,170
|
|
199
|
|
205
|
Research and
development, net:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
383
|
|
459
|
|
105
|
|
113
|
Deferred payments
expenses (3)
|
198
|
|
752
|
|
62
|
|
188
|
|
581
|
|
1,211
|
|
167
|
|
301
|
Selling and
marketing:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
1,024
|
|
1,101
|
|
245
|
|
264
|
Amortization expenses
(2)
|
116
|
|
120
|
|
26
|
|
30
|
|
1,140
|
|
1,221
|
|
271
|
|
294
|
General and
administrative:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
816
|
|
736
|
|
251
|
|
182
|
Revaluation of
earn-out liability (4)
|
(118)
|
|
(1,674)
|
|
(118)
|
|
(1,674)
|
|
698
|
|
(938)
|
|
133
|
|
(1,492)
|
Income
taxes:
|
|
|
|
|
|
|
|
Deferred tax
(5)
|
4,922
|
|
(9,475)
|
|
2,362
|
|
(11,468)
|
Non-GAAP net
income
|
$ 12,151
|
|
$ 9,427
|
|
$ 3,804
|
|
$ 2,608
|
Non-GAAP diluted net
earnings per share
|
$ 0.37
|
|
$ 0.26
|
|
$ 0.12
|
|
$ 0.08
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expenses related to options and restricted share units granted to
employees and others.
(2) Excluding amortization of
intangible assets related to the acquisitions of Mailvision and
Active Communications Europe assets.
(3) Excluding expenses related to
deferred payments in connection with the acquisition of Active
Communications Europe.
(4) Revaluation of earn-out
liability in connection with the acquisition of Active
Communications Europe.
(5) Non-cash deferred tax expenses
(benefit).
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 STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Year
ended
|
|
Three months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 4,030
|
|
$ 16,238
|
|
$ 672
|
|
$ 14,768
|
|
Adjustments required
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,438
|
|
2,892
|
|
579
|
|
630
|
|
Amortization of
marketable securities premiums and accretion of discounts,
net
|
|
570
|
|
973
|
|
95
|
|
296
|
|
Increase (decrease)
in accrued severance pay, net
|
|
(31)
|
|
830
|
|
(263)
|
|
247
|
|
Share-based
compensation expenses
|
|
2,307
|
|
2,414
|
|
626
|
|
590
|
|
Decrease (increase)
in long-term deferred tax assets, net
|
|
4,838
|
|
(9,391)
|
|
2,341
|
|
(11,446)
|
|
Decrease (increase)
in accrued interest and exchange rate effect of loans, marketable
securities and bank deposits
|
|
403
|
|
114
|
|
152
|
|
(73)
|
|
Decrease in trade
receivables, net
|
|
3,389
|
|
174
|
|
2,538
|
|
385
|
|
Decrease (increase)
in other receivables and prepaid expenses
|
|
(1,316)
|
|
732
|
|
473
|
|
1,390
|
|
Decrease (increase)
in inventories
|
|
(230)
|
|
445
|
|
(132)
|
|
(666)
|
|
Increase (decrease)
in trade payables
|
|
(2,071)
|
|
406
|
|
244
|
|
93
|
|
Increase (decrease)
in other payables and accrued expenses
|
|
1,798
|
|
(680)
|
|
204
|
|
(2,318)
|
|
Increase in deferred
revenues
|
|
1,640
|
|
3,195
|
|
831
|
|
2,795
|
|
Net cash provided by
operating activities
|
|
17,765
|
|
18,342
|
|
8,360
|
|
6,691
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
marketable securities
|
|
-
|
|
12,429
|
|
-
|
|
-
|
|
Decrease in
short-term deposits, net
|
|
662
|
|
2,260
|
|
166
|
|
531
|
|
Decrease (increase)
in long-term bank deposits
|
|
1,200
|
|
(2,367)
|
|
300
|
|
(2,844)
|
|
Proceeds from
redemption of marketable securities
|
|
8,116
|
|
3,215
|
|
2,766
|
|
2,315
|
|
Purchase of property
and equipment
|
|
(1,574)
|
|
(1,477)
|
|
(533)
|
|
(288)
|
|
Net cash provided by
(used in) investing activities
|
|
8,404
|
|
14,060
|
|
2,699
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
Year
ended
|
|
Three months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
(Unaudited)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of treasury
share
|
|
(25,563)
|
|
(29,392)
|
|
(9,015)
|
|
(7,666)
|
|
Repayment of
long-term bank loans
|
|
(3,504)
|
|
(5,353)
|
|
(626)
|
|
(1,078)
|
|
Proceeds from bank
loans
|
|
-
|
|
6,000
|
|
-
|
|
6,000
|
|
Consideration related
to payment of acquisition of Mailvision
|
|
-
|
|
(233)
|
|
-
|
|
-
|
|
Proceeds from
issuance of shares upon exercise of options and warrants
|
|
2,789
|
|
2,012
|
|
777
|
|
1,451
|
|
Net cash used in
financing activities
|
|
(26,278)
|
|
(26,966)
|
|
(8,864)
|
|
(1,293)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(109)
|
|
5,436
|
|
2,195
|
|
5,112
|
|
Cash and cash
equivalents at the beginning of the period
|
|
$ 24,344
|
|
$ 18,908
|
|
$ 22,040
|
|
$ 19,232
|
|
Cash and cash
equivalents at the end of the period
|
|
$ 24,235
|
|
$ 24,344
|
|
$ 24,235
|
|
$ 24,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
Contacts
|
|
IR Agency
Contact
|
Niran
Baruch,
|
Shirley
Nakar,
|
Philip
Carlson
|
VP Finance &
Chief Financial Officer
|
Director,
Investor Relations
|
CSA
Strategic
|
AudioCodes
|
AudioCodes
|
Communications
|
Tel:
+972-3-976-4000
|
Tel:
+972-3-976-4000
|
Tel:
+1-212-896-1233
|
Niran.baruch@audiocodes.com
|
shirley@audiocodes.com
|
audc@kcsa.com
|
View original
content:http://www.prnewswire.com/news-releases/audiocodes-reports-fourth-quarter-and-full-year-2017-results-300587333.html
SOURCE AudioCodes