AudioCodes Reports Fourth Quarter and Full Year 2009 Results
Lod, Israel – February 3, 2010 – AudioCodes Ltd. (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced financial results for the fourth quarter and full year 2009, ended December 31, 2009.
Revenues for the fourth quarter ended December 31, 2009 were $34.2 million compared to $32.1 million for the third quarter of 2009 and $38.8 million for the fourth quarter of 2008. Revenues were $125.9 million in 2009 compared to $174.7 million in 2008.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $1.3 million, or $0.03 per share, for the fourth quarter of 2009 compared to GAAP net income of $139,000, or $0.01 per share, for the third quarter of 2009, and a GAAP net loss of $87.1 million, or ($2.17) per share, for the fourth quarter of 2008. During the fourth quarter of 2008, the Company recognized a non-cash impairment charge of $86.1 million with respect to goodwill, long-lived assets and investment in an affiliate. The charge was identified in connection with the Company’s 2008 annual impairment tests and reflected market conditions at the time.
The Company reported a GAAP net loss of $2.6 million, or ($0.05) per diluted share, in 2009 compared to a GAAP net loss of $84.6 million, or ($2.05) per diluted share, in 2008. Results for 2008 included the $86.1 million non-cash impairment charge with respect to goodwill, long-lived assets and investment in an affiliate.
Non-GAAP net income for the fourth quarter of 2009 was $2.5 million, or $0.06 per diluted share, compared to non-GAAP net income of $1.6 million, or $0.04 per diluted share, for the third quarter of 2009, and non-GAAP net income of $776,000, or $0.02 per diluted share, for the fourth quarter of 2008.
Non-GAAP net income excludes (i) stock-based compensation expenses, (ii) amortization expenses related to intangible assets, (iii) an adjustment to expenses related to the Company’s Senior Convertible Notes due to implementation of FASB Staff Position APB 14-1, and (iv) the non-cash impairment charge recognized in the fourth quarter of 2008 with respect to goodwill, long-lived assets and investment in an affiliate. 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 fourth quarter of 2009, AudioCodes generated $11.8 million in cash from operating activities compared to $5.6 million in the third quarter of 2009 and $9.4 million in the fourth quarter of 2008. The Company generated $20.9 million in cash from operations in 2009 compared to $16.4 million in 2008.
Pursuant to the terms of the Indenture governing the Company’s Senior Convertible Notes (the “Notes”), the Company was required to offer to repurchase the outstanding principal amount of the Notes at a cash price equal to 100% of the aggregate principal amount of the Notes, together with any accrued and unpaid interest up to but not including November 9, 2009. As a result of that offer, in November 2009, the Company repurchased approximately $73.1 million in principal amount of the Notes and, as of December 31, 2009, there was a total of $403,000 in principal amount of the Notes outstanding.
Cash and cash equivalents, short-term and long-term deposits and short-term marketable securities were $52.9 million as of December 31, 2009, compared to $116.4 million as of September 30, 2009 and $115.1 million as of December 31, 2008. The sequential and year-over-year declines in this amount were primarily attributable to the repurchase of approximately $73.1 million in principal amount of the Company’s Senior Convertible Notes in the fourth quarter of 2009, offset, in part, by cash provided by operating activities.
“AudioCodes ended 2009 on a very strong note of improved business performance. The growth in all key business parameters for the 3rd consecutive quarter is clearly an encouraging sign for our business in 2010 and beyond,” stated Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. “We believe that our continued focus on investments in our networking business, which grew in the fourth quarter by 7% over the previous quarter, and in new product offerings and solutions planned for market entry in 2010 will further contribute to our growth. Our main goal in our investment focus was transitioning our offerings from a pure VoIP play into a converged voice, data and application enablement in our products. We believe this opens a substantially larger addressable market for us in 2010 and beyond,” concluded Shabtai 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 2009 operational 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