AudioCodes Reports Third Quarter 2010 Financial Results
Lod, Israel – October 20, 2010 – AudioCodes Ltd. (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced financial results for the third quarter of 2010, ended September 30, 2010.
Revenues for the third quarter of 2010 were $38.3 million compared to $36.5 million for the second quarter of 2010 and $32.1 million for the third quarter of 2009.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $2.9 million, or $0.07 per diluted share, for the third quarter of 2010 compared to net income of $2.1 million, or $0.05 per diluted share, for the second quarter of 2010, and a net loss of $79,000, or $0.00 per share, for the third quarter of 2009.
Non-GAAP net income for the third quarter of 2010 was $3.6 million, or $0.09 per diluted share, compared to $2.8 million, or $0.07 per diluted share, for the second quarter of 2010, and $1.6 million, or $0.04 per diluted share, for the third quarter of 2009.
Non-GAAP net income excludes (i) stock-based compensation expenses, (ii) amortization expenses related to intangible assets, and (iii) for the 2009 periods, an adjustment to expenses related to the Company's Senior Convertible Notes due to application of FASB Staff Position APB 14-1. Almost all of the Company's Senior Convertible Notes were repurchased in November 2009. 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.
"I am pleased to announce another strong quarter of sequential and year-over-year revenue and net income growth. Our financial performance underscores our execution of our strategic initiative to migrate from a pure play VoIP gateway focus to a global provider of converged VoIP and data solutions for service providers and enterprises," said Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. "AudioCodes has put in place a number of new growth opportunities for our business which are starting to ramp up as we look ahead to 2011 and beyond. These include our Mobile VoIP solutions which are expected to enable us to emerge as an early leader in mobile VoIP clients for the smartphone market and our Enterprise Session Border Controllers which are seeing solid demand. We continue to launch leading edge products including our recently announced All-In-One Multimedia Home Gateway that provides service integration for the broadband home user, an increasingly important feature for our service provider customers. Overall, we continue to focus on financial execution, supported by our solid balance sheet, healthy cash flows from operations and a strict focus on maintaining an efficient operating expense base," concluded Mr. Adlersberg.
During the third quarter of 2010, AudioCodes generated $5.8 million in cash from operating activities compared to $5.6 million in the third quarter of 2009.
Cash and cash equivalents and short-term deposits were $58.6 million as of September 30, 2010 compared to $52.9 million as of December 31, 2009.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 9:00 A.M., Eastern Time on October 20, 2010 to discuss the Company's third quarter 2010 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