First Quarter Highlights:
- Revenues for the first quarter of 2016 were $34.8 million, compared to $37.5 million in the first quarter of 2015;
- Revenues related to UC-SIP business increased 20% compared to the first quarter of 2015;
- Service revenues were $10.2 million, compared to $8.9 million in the first quarter of 2015;
- Non-GAAP gross margin was a record 61.3%, compared to 59.7% in the first quarter of 2015;
- Non-GAAP operating expenses were $19.3 million compared to $20.3 million in the first quarter of 2015;
- Quarterly Non-GAAP net income was $1.6 million, or $0.04 per diluted share, compared to $1.9 million, or $0.05 per diluted share, in the first quarter of 2015;
- Quarterly cash flow from operating activities was $2.7 million; and
- AudioCodes repurchased 1.1 million shares of its ordinary shares at an aggregate cost of $4.9 million during the quarter.
AudioCodes (Nasdaq: AUDC), a leading provider of converged voice solutions that enable enterprises and service providers to transition to all-IP voice networks, today announced financial results for the first quarter ended March 31, 2016.
Revenues for the first quarter of 2016 were $34.8 million, compared to $35.6 million for the fourth quarter of 2015 and $37.5 million for the first quarter of 2015.
Net loss was $222,000, or ($0.01) per diluted share, for the first quarter of 2016, compared to $378,000, or ($0.01) per diluted share, for the first quarter of 2015.
On a Non-GAAP basis, net income was $1.6 million, or $0.04 per diluted share, in the first quarter of 2016 compared to $1.9 million, or $0.05 per diluted share, in the first quarter of 2015.
Non-GAAP net income excludes: (i) stock-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Active Communications Europe and (iv) non-cash deferred tax benefit or expenses. 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.
Net cash provided by operating activities for the first quarter of 2016 totaled $2.7 million. Cash and cash equivalents, bank deposits and marketable securities were $76.9 million as of March 31, 2016, compared to $80.4 million as of December 31, 2015. The decrease in cash and cash equivalents, bank deposits and marketable securities was primarily the result of the use of cash for the continued repurchasing of the Company’s ordinary shares pursuant to its share repurchase program.
“We are pleased to report good financial results and solid progress in our business in the first quarter of 2016,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. “Our strategic plan aims to grow our UC-SIP business about 15% annually, and evolve it to become the Company’s main business. I am pleased to report that in the first quarter of 2016 we achieved 20% growth in our UC-SIP business over the year-ago quarter, and made important progress in sales of SBC, IP Phones and CloudBond 365, which are key to the UC-SIP business. As businesses globally accelerate their adoption of hosted UC and SIP Trunking, and as service providers are making increased efforts to migrate to All-IP, we firmly believe in the long term secular growth of our UC-SIP business. Achieving record gross margin of 61.3% in the first quarter of 2016, good control of operating expenses, and positive cash flow from operations, further support our confidence in the strength of our business.”
“We also made good progress on other fronts in order to support growth going forward. We invested in strengthening existing partnerships and in creating new ones. We have increased our sales efforts and resources globally. We announced new important products in the NFV area and enhanced our SBC business line offering with new products for hosted and virtualized environments. We introduced ARM, an innovative routing session management solution, and enhanced our portfolio of solutions for the Microsoft’s Skype for Business UC application by announcing support for its Cloud Connector Edition (CCE),” concluded Mr. Adlersberg.
Share Buy Back Program
In January 2016, AudioCodes received court approval in Israel to purchase up to an aggregate of $15 million of additional ordinary shares pursuant to this program. The current court approval for share repurchases will expire on May 19, 2016.
During the quarter ended March 31, 2016, AudioCodes acquired 1.1 million shares under the existing share repurchase program for a total consideration of approximately $4.9 million. As of March 31, 2016 and since beginning the repurchase of its shares in August 2014, AudioCodes has acquired an aggregate of 6.9 million shares for an aggregate consideration of approximately $29.7 million.
On April 5, 2016, our Board of Directors approved filing a new application with the court in Israel requesting approval for an additional repurchase program for $15 million of Ordinary Shares once the existing program expires. We filed a new application and we are expecting a decision in the coming weeks.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:00 A.M., Eastern Time today to discuss the Company’s first quarter 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 http://www.audiocodes.com/investors-lobby.
A replay of the call will also be available for callers in the United States and Canada, at +1 (877) 660-6853 and, for callers outside of the United States and Canada, at +1 (201) 612-7415. The access number for the replay is 13634482.