AudioCodes Announces Completion of Acquisition of Netrake Corporation
Netrake Becomes a Wholly-Owned Subsidiary of AudioCodes
Lod, Israel – August 14, 2006 – AudioCodes (NASDAQ: AUDC), a leading provider of Voice over Packet (VoP) technologies and Voice Network products, today announced the successful completion of its previously announced acquisition of Netrake Corporation, a leading provider of Session Border Controllers (SBC) and Security Gateway solutions. SBCs enable connectivity, policies and security for real-time sessions such as VoIP and video when traversing IP to IP networks. Security Gateways enable secure real-time sessions across wifi, broadband and wireless networks in Fixed Mobile Convergence (FMC) deployments.
Under the definitive agreement, announced on July 6, 2006, Netrake Corporation was acquired for a purchase price of $10 million, which was paid in cash at closing.
“We are very pleased to announce the completion of the Netrake Corporation acquisition,” said Shabtai Adlersberg, Chairman, President and CEO of AudioCodes. “We are now better positioned to offer a richer product portfolio comprising of Session Border Controllers and Security Gateways in addition to our Media Gateway and Media Server products. The integration of this expanded product line adds scale and strength to our positioning with service providers and enhances our IMS offering to enable network convergence.”
“The employees in addition to our customers and partners are very excited about Netrake joining AudioCodes,” said Bruce Hill, CEO of Netrake. “AudioCodes is a company with a proven ability to execute and grow and has demonstrated to us a strong commitment to pursue a leading role in the Session Border Controller and Security Gateway markets.”
Including the impact of the Netrake acquisition, AudioCodes guidance for the third quarter of 2006 is net income per share on a GAAP basis of 1 cent.
Excluding the effect of stock-based compensation expenses and amortization of intangible assets, we anticipate a non-GAAP net income per share of 8 cents in the third quarter of 2006.
About Netrake Corporation
Netrake, an AudioCodes company, is a leading provider to fixed and mobile service providers for real-time delivery of voice and multimedia solutions across IP networks. Utilizing Netrake's session border controllers and security gateways, service providers can leverage market leading security capabilities, reliability, scalability, and feature richness to interconnect and secure networks and users. Netrake's nCite™ session controller and security gateway product portfolio stand as the first line of defense for wireline, wireless, cable, and fixed/mobile operators delivering real-time control of voice and multimedia applications across all IP networks. Netrake's nCite supports carrier-to-carrier peering as well as residential/ISP and business VoIP access services all while allowing service providers to extend their VoIP traffic across multiple types of network borders - taking advantage of convergence and the emerging IMS architecture.