AudioCodes Reports Fourth Quarter and Full Year 2012 Results
Lod, Israel – January 30, 2013 – AudioCodes (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies, products and services, today announced financial results for the fourth quarter and full year ended December 31, 2012.
Revenues for the fourth quarter of 2012 were $32.8 million, compared to $31.4 million for the third quarter of 2012, and $37.2 million for the fourth quarter of 2011. Revenues were $127.5 million in 2012 compared to $155.8 million in 2011.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was, $524,000, or $0.01 per diluted share, for the fourth quarter of 2012, compared to a GAAP net loss of $1.1 million, or ($0.03) per diluted share, for the third quarter of 2012, and GAAP net income of $670,000, or $0.02 per diluted share, for the fourth quarter of 2011.
The Company reported a GAAP net loss of $4.2 million, or ($0.11) per diluted share, in 2012 compared to GAAP net income of $7.2 million, or $0.17 per diluted share, in 2011.
Non-GAAP net income for the fourth quarter of 2012 was $1.1 million, or $0.03 per diluted share, compared to a non-GAAP net loss of $419,000, or ($0.01) per diluted share, for the third quarter of 2012, and non-GAAP net income of $1.4 million, or $0.04 per diluted share, for the fourth quarter of 2011.
The Company reported a non-GAAP net loss of $1.5 million, or ($0.04) per diluted share, in 2012 compared to non-GAAP net income of $10.8 million, or $0.26 per diluted share, in 2011.
Non-GAAP net income (loss) excludes: (i) stock-based compensation expenses; and (ii) amortization expenses related to intangible assets. A reconciliation of net income (loss) on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Positive cash flow from operations for the fourth quarter of 2012 totaled $8.2 million. Cash and cash equivalents, bank deposits and marketable securities were $58.5 million as of December 31, 2012, compared to $54.1 million as of September 30, 2012 and $75.6 million as of December 31, 2011. The year-over-year net decrease in cash balances was primarily related to cash used for stock repurchases and the reduction in the Company’s accounts payable outstanding as well as $10.2 million used for the repayment of loans.
In October 2011, the Company’s 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. During 2012, the Company repurchased a total of approximately 2.76 million of its ordinary shares at an aggregate cost of approximately $6.7 million. As of October 1, 2012, the authorized stock repurchase program was completed, with AudioCodes having repurchased 3.96 million of its ordinary shares at an aggregate cost of approximately $10.7 million.
“We are pleased to report a second consecutive quarter of improved financial performance underlined by sequential growth in revenue, return to profitability and substantial improvement in cash flow from operations,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. “Growth in our networking business was driven primarily by higher product sales and services in the areas of Unified Communication and Enterprise Session Border Controllers applications, both representing strategic directions for us. Investments made with our global partners over the past few years continue to contribute in a meaningful way to our return to growth and our leadership in the industry. These investments also provide further strength and support to our expected success in coming years.”
“As we look ahead to 2013, AudioCodes stands well positioned to extend its presence within the multi-billion dollar markets for Unified Communications, Contact Centers and Business Services. We believe that our leadership in the Microsoft Lync voice eco-system, as the only single-source provider for Microsoft partners for end-to-end voice product and services solutions, is a clear competitive advantage within one of the most attractive segments of the communications sector. With the recent launch of our ‘AudioCodes One Voice for Microsoft Lync’ offering, we are simplifying and accelerating voice-enablement of Lync implementations with a complete portfolio of products and services, including, among others, IP Phones, Media Gateways, Enterprise Session Border Controllers (E-SBCs), Survivable Branch Appliances (SBAs) and Session Experience Manager (SEM), as well as complete network management and assessment tools, support and professional services,” 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 2012 operating performance, financial results and outlook. 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.