AudioCodes Reports Second Quarter 2009 Results
Lod, Israel – August 5, 2009 – AudioCodes Ltd. (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced financial results for the second quarter of 2009, ended June 30, 2009.
Revenues for the second quarter ended June 30, 2009 were $30.4 million compared to $29.3 million for the first quarter of 2009 and $45.7 million for the quarter ended June 30, 2008. Net loss in accordance with U.S. generally accepted accounting principles (GAAP) was $891,000, or ($0.02) per share, for the second quarter of 2009 compared to GAAP net loss of $3.1 million or ($0.07) per share, for the first quarter of 2009 and GAAP net income of $720,000, or $0.02 per share, for the corresponding second quarter of 2008.
Non-GAAP net income was $614,000, or $0.02 per diluted share, for the second quarter of 2009 compared to non-GAAP net loss of $1.6 million, or ($0.04) per share, for the first quarter of 2009, and non-GAAP net income of $3.6 million, or $0.09 per diluted share, for the second quarter of 2008.
Non-GAAP net income excludes (i) stock-based compensation expenses, (ii) amortization expenses related to the Nuera, Netrake and CTI Squared acquisitions and (iii) an adjustment to expenses related to the Company’s Senior Convertible Notes due to implementation of FASB Staff Position APB 14-1. A reconciliation between net income 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. During the second quarter of 2009, AudioCodes generated $3.5 million from operating activities compared to $26,000 in the first quarter of 2009 and $4.0 million in the second quarter of 2008.
Cash and cash equivalents, short-term and long-term bank deposits and short-term marketable securities were $114.9 million as of June 30, 2009, compared to $113.5 million as of March 31, 2009 and $147.3 million as of June 30, 2008. The year-over-year decline was primarily attributable to the repurchase of some of the Company’s Senior Convertible Notes in the fourth quarter of 2008 and the repurchase of our ordinary shares, offset, in part, by cash provided by operating activities and additional borrowings. The Company is required to offer to repurchase the remaining $73.5 million in principal amount of the Senior Convertible Notes in November 2009.
“We are pleased to report improved financials and return to non-GAAP profitability in the second quarter 2009 after a single quarter of loss. In the second quarter of 2009, AudioCodes delivered growth in top line revenues and strong operating cash flow. The improved financial performance was backed by signs of stabilization, increased demand in our markets and strength in our networking business. In addition we achieved good control of quarterly non-GAAP operating expenses which were 27.5% lower than the comparable quarter in 2008. With robust VoIP and telecom market demand and our continued success in acquiring more customers and projects, we are confident in our ability to continue our growth in coming years,” stated Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. “Overall, we are pleased to see early signs of improved market conditions as well as new key product launches, such as our HD VoIP offering which is resonating well with our customers and partners. Our continued investment in next generation products and technologies throughout this economic cycle, combined with our streamlined operating structure, is expected to allow AudioCodes to exit the current economic downturn in a position of competitive strength,” concluded Mr. Adlersberg.
Conference Call & Web cast Information
AudioCodes will conduct a conference call at 9:00 A.M., Eastern Daylight Time on Thursday, August 6, 2009 to discuss the company’s second quarter operational and financial results. The Second Quarter 2009 Financial Results Page 3 of 9 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