AudioCodes Reports Second Quarter 2011 Results
Lod, Israel – July 27, 2011 – 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 2011, ended June 30, 2011.
Revenues for the second quarter of 2011 were $41.5 million compared to $41.0 million for the first quarter of 2011 and $36.5 million for the second quarter of 2010.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $4.0 million, or $0.09 per diluted share, for the second quarter of 2011 compared to $3.0 million, or $0.07 per diluted share, for the first quarter of 2011, and $2.1 million, or $0.05 per diluted share, for the second quarter of 2010.
Non-GAAP net income for the second quarter of 2011 was $4.9 million, or $0.12 per diluted share, compared to $4.1 million, or $0.10 per diluted share, for the first quarter of 2011, and $2.8 million, or $0.07 per diluted share, for the second quarter of 2010.
Non-GAAP net income excludes (i) stock-based compensation expenses and (ii) amortization expenses related to intangible assets. 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.
Cash and cash equivalents, short-term deposits and short-term and long-term marketable securities were $56.5 million as of June 30, 2011, compared to $62.0 million as of March 31, 2011 and $54.5 million as of June 30, 2010.
“AudioCodes’ improved financial performance continued a trend that reflects the strength of our enterprise and carrier VoIP business,” stated Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. “Growth has been driven primarily by the rising demand in the access, broadband, contact centers and unified communications markets. Our second quarter results are highlighted by year-over-year growth of above 30% in our networking business, as well as sequential growth of 9% over the previous quarter, and by improved profitability. Strong gross margin performance continued to be driven by a favorable sales mix, introduction of new software products, and a higher contribution from AudioCodes services operations. Investments in partnering with global industry players and value added resellers, combined with an increase in our global sales force coverage, are yielding improvements that are expected to favorably impact us as we proceed through the second half of 2011.”
“With over a hundred million legacy telephony lines estimated to transition to VoIP over the next three years and a rising need for unified communications, our innovative, interoperable and diverse portfolio of solutions is well positioned to assist AudioCodes’ global customers across the evolving landscape for IP infrastructure. A key component of this strategy revolves around our partnership with Microsoft and their Microsoft Lync offerings, including enhanced media gateways, survivable branch appliances, enterprise session border controllers, SIP phones, mobile clients and software based recording appliances. Increasingly, we are being selected by leading Microsoft Voice Specialized Partners (VSPs) to provide significantly broader offerings for Lync solutions focused on connectivity, mobility and recording applications,” 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 second quarter 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