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AudioCodes Reports Second Quarter 2021 Results and Declares Semi-Annual Dividend of 17 cents per share

Jul 27, 2021

Second Quarter Highlights

  • Quarterly revenues increased by 13.2% year-over-year to $60.6 million; Quarterly service revenues increased by 32.8% year-over-year to $22.8 million.
  • GAAP results:
    • Quarterly GAAP gross margin was 69.4%;
    • Quarterly GAAP operating margin was 16.7%; and
    • Quarterly GAAP net income was $8.2 million, or $0.24 per diluted share.
  • Non-GAAP results:
    • Quarterly Non-GAAP gross margin was 69.7%;
    • Quarterly Non-GAAP operating margin was 22.4%; and
    • Quarterly Non-GAAP net income was $12.7 million, or $0.37 per diluted share.
    • Net cash provided by operating activities was $17.1 million for the quarter.
    • AudioCodes repurchased 236,544 of its ordinary shares during the quarter at an aggregate cost of $7.1 million.

Details

Lod, Israel – July 27, 2021 - AudioCodes (NASDAQ: AUDC) Press Release

AudioCodes, a leading vendor of advanced communications software, products and productivity solutions for the digital workplace, today announced its financial results for the second quarter ended June 30, 2021.

Revenues for the second quarter of 2021 were $60.6 million compared to $58.8 million for the first quarter of 2021 and $53.5 million for the second quarter of 2020.

Net income was $8.2 million, or $0.24 per diluted share, for the second quarter of 2021, compared to a net income of $6.6 million, or $0.21 per diluted share, for the second quarter of 2020.

On a Non-GAAP basis, net income was $12.7 million, or $0.37 per diluted share, for the second quarter of 2021 compared to $10.5 million, or $0.32 per diluted share, for the second quarter of 2020.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to the acquisition of Active Communications Europe assets; (iii) financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies and (iv) non-cash deferred tax expenses. A reconciliation of net income 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.

Net cash provided by operating activities was $17.1 million for the second quarter of 2021. Cash and cash equivalents, long and short-term bank deposits and long and short-term marketable securities were $191.9 million as of June 30, 2021 compared to $186.3 million as of December 31, 2020. The increase in cash and cash equivalents, long and short-term bank deposits and long and short-term marketable securities was the result of cash provided by operating activities offset, in part, by the use of cash for the repurchasing of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend in the first quarter of 2021.

“We are pleased to report strong financial results for the second quarter of 2021,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.

“In the second quarter of 2021 we continued to enjoy solid business momentum in our enterprise activities related to the UCaaS and Contact Center markets. Our UCaaS business grew more than 20% year-over-year and our contact center business grew more than 25% year-over-year. Our Enterprise Business, which has contributed close to 85% of our second quarter revenue, demonstrated growth of above 20% year-over-year and provides a solid base for continued growth.

Key to this continued expansion is our services operations which grew above 25% year-over-year and are key to our go-to-market operations. The increase in revenues from our services operations was driven primarily by strength in our professional and managed services offerings.  At the core of this growth is our continued progress in pivoting to recurring revenues with strong execution in our AudioCodes Live offering operations.”

“We enjoyed another solid quarter in our Voice.ai operations where revenue for our Voice.ai operations grew more than 100% year-over-year. We continue to invest in enhancing our technological solutions for real-time cloud communications and transitioning our portfolio of products into software as a service solutions. These solutions provide recurring revenues that increases our confidence in our ability to continue to expand our business and provide a strong basis for our expected growth in coming years,” concluded Mr. Adlersberg.

Share Buy Back Program

During the quarter ended June 30, 2021, the Company acquired 236,544 of its ordinary shares under its share repurchase program for a total consideration of $7.1 million.

In July 2021, the Company received court approval in Israel to purchase up to an aggregate amount of $35 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend of any part of this amount. The approval is valid through January 03, 2022.

Cash Dividend

AudioCodes also announced that the Company’s Board of Directors has declared a cash dividend in the amount of 17 cents per share. The aggregate amount of the dividend is approximately $5.5 million. The dividend is payable on August 26, 2021 to all of the Company’s shareholders of record at the close of trading on the NASDAQ Global Select Market on August 11, 2021. 

In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital, the withholding rate is 30%.

The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Board.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's second quarter of 2021 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:

  • United States Participants: +1 (877) 407-0778
  • International Participants: +1 (201) 689-8565

The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at www.audiocodes.com/investors-lobby

 

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