We just completed a very exciting year. Overall, AudioCodes grew 40% year over year, achieved its 17th straight quarter of growing quarter over quarter, and finished the year with $115.8M in revenues, profitable and $220 million in cash.
2005 was not just about our revenue and profit achievement, it was also about preparing for the future and gaining momentum for the long term. First, we continued to help ISVs and OEMs transition from TDM platforms to IP solutions and from proprietary APIs to SIP. Second, with the launch of our Mediant™ 1000 we helped OEMs, distributors, VARs and service provider launch VoIP in the enterprise market with a flexible, robust and cost effective gateway that supports both analog and digital interfaces.
Third, 2005 was the year when MSOs began significant deployments of VoIP. AudioCodes played an important role by supplying media gateways and media servers in deployments in Voice over broadband in North America, Europe, Middle East, and South America. Fourth, we are fueling the next acceleration in VoIP by participating in fixed mobile convergence trials and by helping NEPs get ready for future EVDO rev A and UMTS deployments.
Our media servers are playing an important role in enabling new and exciting SIP applications that will provide value to consumers and greater productivity and collaboration to the workplace. Finally, we have continued to assist the industry to prepare for IMS by investing in transcoding, signaling and call control protocols that enable convergence across multiple access networks and ensure the ability for service providers to deploy best of breed and multi vendor networks.
We diversified our customer base and developed closer relationships with our distributors and VARs.
We have recently secured:
• Media server wins in IMS and Conferencing solutions
• Media gateway wins in FMC & UMTS solutions
• For our blades, we achieved IBM preferred vendor status
• For CPE we secured more distributors such as Paracon
In EMEA we saw nice growth in revenue Year on Year. With our high density gateways, we have:
• Secured multiple tier one operator wins via our NEP and SI customers.
• The CPE division secured in 2005, through our customers, 2nd and 3rd tier operator wins in Sweden, Germany, Italy, Russia and Romania among others.
2005 saw South America achieve design wins via our customers with wireless, wireline and cable operators in various countries such as Brazil, Chile, Venezuela and Panama.
In closing, we benefited in 2005 from positive market trends in enterprise and wireline, and we believe that as we look to the second half of 2006 and early 2007, VoIP will also be wrapped into IMS and SIP applications and enter additional market segments that will accelerate growth for companies focused on VoIP.