LOD, Israel, Feb. 1, 2012 (GLOBE NEWSWIRE) -- AudioCodes (Nasdaq:AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced financial results for the fourth quarter and year ended December 31, 2011.
Revenues for the fourth quarter of 2011 were $37.2 million compared to $36.0 million for the third quarter of 2011 and $40.5 million for the fourth quarter of 2010. Revenues were $155.8 million in 2011 compared to $150.0 million in 2010.
AudioCodes has established a new financial reporting product line, Managed and Technical Services, effective with the Company's results for the fourth quarter of 2011. Revenues associated with the new Managed and Technical Services product line grew to 15% of total revenues in the fourth quarter of 2011.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $670,000, or $0.02 per diluted share, for the fourth quarter of 2011 compared to a net loss of $527,000, or ($0.01) per diluted share, for the third quarter of 2011, and net income of $5.4 million, or $0.13 per diluted share, for the fourth quarter of 2010.
The Company reported GAAP net income of $7.2 million, or $0.17 per diluted share, in 2011 compared to GAAP net income of $12.0 million, or $0.30 per diluted share, in 2010. During the three months and year ended December 31, 2010, the Company recorded a non-cash tax benefit of $2.3 million, equivalent to $0.06 per diluted share, due to deferred tax.
Non-GAAP net income for the fourth quarter of 2011 was $1.5 million, or $0.04 per diluted share, compared to $274,000, or $0.01 per diluted share, for the third quarter of 2011, and $4.5 million, or $0.11 per diluted share, for the fourth quarter of 2010.
The Company reported non-GAAP net income of $10.8 million, or $0.26 per diluted share, in 2011 compared to non-GAAP net income of $13.3 million, or $0.33 per diluted share, in 2010.
Non-GAAP net income excludes (i) stock-based compensation expenses, (ii) amortization expenses related to intangible assets and (iii) for the three months and year ended December 31, 2010, the non-cash tax benefit. A reconciliation between net income (loss) on a GAAP basis and non-GAAP net income is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
In October 2011, AudioCodes' Board of Directors authorized a program to repurchase up to 4.0 million of the Company's Ordinary Shares, NIS 0.01 nominal (par) value, which is approximately 10% of the Company's outstanding shares. As of December 31, 2011, approximately 1.2 million shares have been repurchased at an aggregate cost of $4.0 million.
During the fourth quarter of 2011, AudioCodes generated $4.1 million in cash from operating activities compared to cash used in operations of $405,000 in the third quarter of 2011 and cash generated from operating activities of $5.7 million in the fourth quarter of 2010. Cash and cash equivalents, bank deposits and marketable securities were $75.6 million as of December 31, 2011, compared to $72.8 million as of September 30, 2011 and $64.1 million as of December 31, 2010. The year-over-year net increase in cash balances included new bank loans made to the Company during the second half of 2011 in the amount of $23.8 million.
"AudioCodes fourth quarter 2011 performance was highlighted by a return to sequential growth in all key financial metrics including revenues, earnings and cash flow from operations, and continued strength in our core networking business which grew over 20% in 2011 compared to 2010," commented Shabtai Adlersberg, Chairman, President and Chief Executive Officer of AudioCodes. "In the fourth quarter of 2011 we experienced increased demand in our markets and growing activities and projects with our customers and partners in the areas of unified communications, IP and TDM connectivity for business services and mobility, all of which present additional opportunities for AudioCodes to continue our growth and increase our market share."
"In the past two years, we have invested in growing our managed and technical services, which accounted for 15% of our total revenues in the fourth quarter of 2011. Growing over 25% annually in the past two years, we believe that our services practice will continue to grow at a similar rate in coming years and expect it to be an influential growth engine for AudioCodes. Based on our confidence in the near and long-term growth prospects for AudioCodes' business, as well as the strength of our balance sheet, the Company's Board of Directors approved a stock repurchase program during the fourth quarter as part of our ongoing commitment to enhancing shareholder value," concluded Mr. Adlersberg.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 9:00 A.M., Eastern Time today to discuss the Company's fourth quarter and full year 2011 operating and financial results. The conference call will be simultaneously Web cast. Investors are invited to listen to the call live via Web cast at the AudioCodes corporate website at www.audiocodes.com
About AudioCodes
AudioCodes Ltd. (Nasdaq: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 Gateways, Session Border Controllers (SBC), Residential Gateways, IP Phones, Media Servers and Value Added Applications. 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 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.
©2012 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 and 3GX 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, | |||
| 2011 | 2010 | |||
| (Unaudited) | (Audited) | |||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ 26,352 | $ 50,311 | ||
| Short-term bank deposits | 15,971 | 13,825 | ||
| Trade receivables, net | 30,923 | (*) 26,321 | ||
| Other receivables and prepaid expenses | 4,764 | (*) 4,896 | ||
| Deferred tax assets | 2,600 | 2,287 | ||
| Inventories | 20,415 | (*) 16,279 | ||
| Total current assets | 101,025 | 113,919 | ||
| LONG-TERM INVESTMENTS: | ||||
| Long-term bank deposits | 9,120 | -- | ||
| Long-term marketable securities | 23,823 | -- | ||
| Investments in affiliated company | 1,251 | 1,317 | ||
| Deferred tax assets | 2,600 | 2,261 | ||
| Severance pay funds | 15,410 | 15,039 | ||
| Total long-term investments | 52,204 | 18,617 | ||
| PROPERTY AND EQUIPMENT, NET | 3,368 | 3,703 | ||
| GOODWILL, INTANGIBLE ASSETS, DEFERRED CHARGES AND OTHER, NET | 36,080 | 37,405 | ||
| Total assets | $ 192,677 | $ 173,644 | ||
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Current maturities of long-term bank loans and short-term loans | $ 10,243 | $ 6,000 | ||
| Trade payables | 12,362 | 13,519 | ||
| Other payables and accrued expenses | 18,102 | 24,168 | ||
| Deferred revenue | 5,235 | (*) 3,695 | ||
| Total current liabilities | 45,942 | 47,382 | ||
| LONG-TERM LIABILITIES: | ||||
| Accrued severance pay | $ 16,106 | $ 15,821 | ||
| Long-term bank loans | 22,912 | 9,750 | ||
| Senior convertible notes | 353 | 353 | ||
| Deferred revenue and other payables | 1,345 | 1,158 | ||
| Total long-term liabilities | 40,716 | 27,082 | ||
| Total equity | 106,019 | 99,180 | ||
| Total liabilities and equity | $ 192,677 | $ 173,644 | ||
| (*) Reclassified | ||||
| AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| U.S. dollars in thousands, except per share data | ||||||||
|
Year ended December 31, |
Three months ended December 31, |
|||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||
| Total revenues | $155,827 | $150,040 | $37,223 | $40,464 | ||||
| Total cost of revenues | 64,157 | 66,138 | 15,220 | 17,227 | ||||
| Gross profit | 91,670 | 83,902 | 22,003 | 23,237 | ||||
| Operating expenses: | ||||||||
| Research and development, net | 32,150 | 30,189 | 8,241 | 7,839 | ||||
| Selling and marketing | 43,260 | 35,024 | 10,775 | 9,998 | ||||
| General and administrative | 9,028 | 8,252 | 2,174 | 2,115 | ||||
| Total operating expenses | 84,438 | 73,465 | 21,190 | 19,952 | ||||
| Operating income | 7,232 | 10,437 | 813 | 3,285 | ||||
| Financial income (expenses), net | 423 | (94) | (93) | 191 | ||||
| Income before taxes on income | 7,655 | 10,343 | 720 | 3,476 | ||||
| Income tax expense (income), net | 238 | (1,885) | 45 | (2,110) | ||||
| Equity in losses of an affiliated company | 253 | 213 | 5 | 230 | ||||
| Net income | $7,164 | $12,015 | $670 | $5,356 | ||||
| Net loss attributable to the noncontrolling interest | -- | 111 | -- | -- | ||||
| Net income attributable to AudioCodes | $7,164 | $12,126 | $670 | $5,356 | ||||
| Basic net earnings per share | $0.17 | $0.30 | $0.02 | $0.13 | ||||
| Diluted net earnings per share | $0.17 | $0.30 | $0.02 | $0.13 | ||||
| Weighted average number of shares used in computing basic net earnings per share | 41,438 | 40,560 | 41,092 | 40,951 | ||||
| Weighted average number of shares used in computing diluted net earnings per share | 41,935 | 40,961 | 41,411 | 41,556 | ||||
| AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
| NON-GAAP PROFORMA STATEMENTS OF OPERATIONS | ||||||||
| U.S. dollars in thousands, except per share data | ||||||||
|
Year ended December 31, |
Three months ended December 31, |
|||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (Unaudited) | (Unaudited) | |||||||
| Total revenues | $155,827 | $150,040 | $37,223 | $40,464 | ||||
| Total cost of revenues (1) (2) | 62,990 | 64,840 | 14,965 | 16,903 | ||||
| Gross profit | 92,837 | 85,200 | 22,258 | 23,561 | ||||
| Operating expenses: | ||||||||
| Research and development, net (1) | 31,624 | 29,796 | 8,120 | 7,723 | ||||
| Selling and marketing (1) (2) | 41,985 | 33,540 | 10,512 | 9,155 | ||||
| General and administrative (1) | 8,325 | 7,799 | 2,015 | 1,967 | ||||
| Total operating expenses | 81,934 | 71,135 | 20,647 | 18,845 | ||||
| Operating income | 10,903 | 14,065 | 1,611 | 4,716 | ||||
| Financial income (expenses), net | 423 | (94) | (93) | 191 | ||||
| Income before taxes on income | 11,326 | 13,971 | 1,518 | 4,907 | ||||
| Income tax expense, net (3) | 238 | 436 | 45 | 211 | ||||
| Equity in losses of an affiliated company | 253 | 213 | 5 | 230 | ||||
| Non-GAAP net income | $10,835 | $13,322 | $1,468 | $4,466 | ||||
| Net loss attributable to the noncontrolling interest | -- | 111 | -- | -- | ||||
| Net income attributable to AudioCodes | $10,835 | $13,433 | $1,468 | $4,466 | ||||
| Non-GAAP diluted net earnings per share | $0.26 | $0.33 | $0.04 | $0.11 | ||||
| Weighted average number of shares used in computing non-GAAP diluted net earnings per share | 42,369 | 40,975 | 41,710 | 41,875 | ||||
| (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 CTI Squared. | ||||||||
| (3) Excluding non-cash deferred tax benefit in the three months and year ended December 31, 2010. | ||||||||
| 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 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 as well. | ||||||||
| AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
| RECONCILIATION BETWEEN GAAP NET INCOME AND NON-GAAP NET INCOME | ||||||||
| U.S. dollars in thousands, except per share data | ||||||||
|
Year ended December 31, |
Three months ended December 31, |
|||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (Unaudited) | (Unaudited) | |||||||
| GAAP Net income | $7,164 | $12,015 | $670 | $5,356 | ||||
| GAAP Diluted earnings per share | $0.17 | $0.30 | $0.02 | $0.13 | ||||
| Cost of revenues: | ||||||||
| Stock-based compensation (1) | 130 | 62 | 33 | 14 | ||||
| Amortization expenses (2) | 1,037 | 1,236 | 222 | 310 | ||||
| 1,167 | 1,298 | 255 | 324 | |||||
| Research and development, net: | ||||||||
| Stock-based compensation (1) | 526 | 393 | 121 | 116 | ||||
| Selling and marketing: | ||||||||
| Stock-based compensation (1) | 963 | 1,180 | 179 | 766 | ||||
| Amortization expenses (2) | 312 | 304 | 84 | 77 | ||||
| 1,275 | 1,484 | 271 | 843 | |||||
| General and administrative: | ||||||||
| Stock-based compensation (1) | 703 | 453 | 159 | 148 | ||||
| Income taxes: | ||||||||
| Deferred tax income (3) | -- | (2,321) | -- | (2,321) | ||||
| Non-GAAP Net income | $10,835 | $13,322 | $1,468 | $4,466 | ||||
| Non-GAAP Diluted earnings per share | ||||||||
| $0.26 | $0.33 | $0.04 | $0.11 | |||||
| (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 CTI Squared. | ||||||||
| (3) Non-cash deferred tax 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 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 as well. | ||||||||
| AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| U.S. dollars in thousands | ||||||||
| Year ended December 31, | Three months ended December 31, | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $7,164 | $12,015 | $670 | $5,356 | ||||
| Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,264 | 4,359 | 741 | 958 | ||||
| Amortization of marketable securities premiums and accretion of discounts, net | 416 | -- | 110 | -- | ||||
| Equity in losses of an affiliated company and interest of loans to affiliated company | 253 | 193 | 5 | 230 | ||||
| Decrease (increase) in accrued severance pay, net | (86) | (319) | (36) | 39 | ||||
| Stock-based compensation expenses | 2,322 | 1,370 | 492 | 326 | ||||
| Increase in accrued interest on marketable securities, bank deposits and structured notes | (182) | -- | (1) | -- | ||||
| Increase in deferred tax assets | (652) | (2,321) | (652) | (2,321) | ||||
| Decrease (increase) in trade receivables, net | (4,602) | (*) (7,799) | 924 | (*) (982) | ||||
| Decrease (increase) in other receivables and prepaid expenses | (345) | (*) (218) | 1,052 | (*) 1,115 | ||||
| Increase in inventories | (4,136) | (*) (3,963) | (1,959) | (*) (1,937) | ||||
| Increase (decrease) in trade payables | (1,157) | 4,910 | 1,313 | 921 | ||||
| Increase (decrease) in deferred revenues | 1,978 | (*) 1,851 | (67) | (*) (789) | ||||
| Increase (decrease) in other payables and accrued expenses | (5,464) | 6,324 | 1,478 | 2,775 | ||||
| Net cash provided by (used in) operating activities | (1,227) | 16,402 | 4,070 | 5,691 | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of marketable securities | (24,402) | -- | -- | -- | ||||
| Short-term deposit, net | (2,146) | 77 | 14,589 | 489 | ||||
| Investments in long-term deposits | (9,120) | -- | (9,120) | -- | ||||
| Investments in an affiliated company | (211) | -- | (211) | -- | ||||
| Purchase of property and equipment | (1,579) | (1,569) | (316) | (284) | ||||
| Net cash provided by (used in) investing activities | (37,458) | (1,492) | 4,942 | 205 | ||||
| (*) Reclassified | ||||||||
| AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Continued) | ||||||||
| U.S. dollars in thousands | ||||||||
|
Year ended December 31, |
Three months ended December 31, |
|||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||
| Cash flows from financing activities: | ||||||||
| Payment for the acquisition of NSC | (278) | (74) | -- | -- | ||||
| Repurchase of convertible notes, net of costs | -- | (50) | -- | -- | ||||
| Proceeds from loans | 24,005 | -- | 5,255 | -- | ||||
| Repayment of loan from bank | (6,600) | (6,000) | (2,100) | (1,500) | ||||
| Purchase of treasury stock | (3,812) | -- | (3,812) | -- | ||||
| Proceeds from issuance of shares upon exercise of options and employee stock purchase plan | 1,411 | 2,556 | 28 | 1,649 | ||||
| Net cash provided by (used in) financing activities | 14,726 | (3,568) | (629) | 149 | ||||
| Increase (decrease) in cash and cash equivalents | (23,959) | 11,342 | 8,383 | 6,045 | ||||
| Cash and cash equivalents at the beginning of the period | 50,311 | 38,969 | 17,969 | 44,266 | ||||
| Cash and cash equivalents at the end of the period | $26,352 | $50,311 | $26,352 | $50,311 | ||||