AudioCodes Reports Fourth Quarter and Full Year 2011 Results
Lod, Israel – February 1, 2012 - AudioCodes (NasdaqGS: 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.