Lod, Israel - July 24, 2012 - AudioCodes (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies, products and services, today announced financial results for the second quarter ended June 30, 2012.
Revenues for the second quarter of 2012 were $31.0 million compared to $32.3 million for the first quarter of 2012 and $41.5 million for the second quarter of 2011.
Net loss in accordance with U.S. generally accepted accounting principles (GAAP) was $2.0 million, or ($0.05) per diluted share, for the second quarter of 2012 compared to a net loss of $1.6 million, or ($0.04) per diluted share, for the first quarter of 2012, and net income of $4.0 million, or $0.09 per diluted share, for the second quarter of 2011.
Non-GAAP net loss for the second quarter of 2012 was $1.4 million, or ($0.04) per diluted share, compared to a non-GAAP net loss of $827,000, or ($0.02) per diluted share, for the first quarter of 2012, and non-GAAP net income of $4.9 million, or $0.12 per diluted share, for the second quarter of 2011.
Non-GAAP net income (loss) excludes (i) stock-based compensation expenses and (ii) amortization expenses related to intangible assets. A reconciliation between net income (loss) on a GAAP basis and on a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
In accordance with AudioCodes’ Board of Directors authorized 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, the Company repurchased a total of approximately 750,000 shares at an aggregate cost of approximately $1.6 million during the second quarter of 2012. As of June 30, 2012, approximately 2.6 million shares have been repurchased through the program since its inception at an aggregate cost of approximately $8.1 million.
Cash and cash equivalents, bank deposits and marketable securities were $60.7 million as of June 30, 2012, compared to $70.3 million as of March 31, 2012 and $56.5 million as of June 30, 2011. The quarter-to-quarter net decrease in cash balances was primarily related to cash used for operating activities and the reduction in the Company’s accounts payable outstanding as well as $2.5 million utilized for the repayment of loans and $1.7 million used for the aforementioned repurchase of common shares during the quarter. The year-over-year net increase in cash balances includes new bank loans made to the Company during the second half of 2011.
“AudioCodes’ second quarter results reflect the challenges we’re facing in 2012 as we balance the transition of our business from our legacy product lines towards new emerging products, solutions and services for the enterprise and service provider markets,” said Shabtai Adlersberg, Chairman, President and Chief Executive Officer of AudioCodes. “In order to enable renewed growth, we announced two weeks ago a restructuring plan to better align the Company’s resources and assets to our core networking business. The plan is expected to generate estimated annualized savings of approximately 10% of the Company’s operating expenses and to be implemented over the next six to nine months. We expect the initial steps already taken to reduce our operating expenses by approximately 5% below the current level of expenses as soon as the fourth quarter of this year. In addition, we have already started a full global review of our business line activities in order to support our plan to return to profitability and growth in 2013 and beyond,” 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 2012 operating performance, financial results and updated 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.