AudioCodes Reports Fourth Quarter and Full Year 2013 Results

AudioCodes Reports Fourth Quarter and Full Year 2013 Results

Jan 29, 2014

Fourth Quarter Highlights:

  • Revenues totaled $36.3 million, a 10.5% increase over the year ago quarter
  • Quarterly networking revenues increased 16.7% year-over-year and 7.1% over previous quarter
  • Non-GAAP net income was $1.9 million, or $0.05 per diluted share
  • Net cash provided by operating activities was $5.6 million
  • As of December 31, 2013, the amount of un-earned revenues that are expected to be recognized in the future were 45% higher than as of December 31, 2012
  • Strong momentum in revenues from SBC, Services and Microsoft Lync related activities

Details

Lod, Israel – January 29, 2014 – AudioCodes (NasdaqGS: 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 fourth quarter and full year periods ended December 31, 2013.

Revenues for the fourth quarter of 2013 were $36.3 million, compared to $35.0 million for the third quarter of 2013 and $32.8 million for the fourth quarter of 2012. Revenues were $137.2 million in 2013 compared to $127.5 million in 2012.

Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $2.8 million, or $0.07 per diluted share, for the fourth quarter of 2013, compared to GAAP net income of $935,000, or $0.02 per diluted share, for the third quarter of 2013, and GAAP net income of $524,000, or $0.01 per diluted share, for the fourth quarter of 2012.

The Company reported GAAP net income of $4.2 million, or $0.11 per diluted share, in 2013 compared to a GAAP net loss of $4.2 million, or ($0.11) per diluted share, in 2012.

Non-GAAP net income for the fourth quarter of 2013 was $1.9 million, or $0.05 per diluted share, compared to $1.8 million, or $0.04 per diluted share, for the third quarter of 2013, and $1.1 million, or $0.03 per diluted share, for the fourth quarter of 2012.

The Company reported non-GAAP net income of $5.3 million, or $0.14 per diluted share, in 2013 compared to a non-GAAP net loss of $1.5 million, or ($0.04) per diluted share, in 2012.

Non-GAAP net income (loss) excludes: (i) stock-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) non-cash deferred tax benefit. 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 fourth quarter of 2013 totaled $5.6 million. Cash and cash equivalents, bank deposits and marketable securities were $62.2 million as of December 31, 2013 compared to $58.0 million as of September 30, 2013 and $58.5 million as of December 31, 2012.

“We are pleased to report our sixth consecutive quarter of improved financial performance and solid growth for the full year 2013,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. “AudioCodes fourth quarter 2013 performance was underlined by strong sequential growth of sales in the Microsoft Lync voice segment and growth in sales of session border controller products. We also achieved better than anticipated increase in our services revenues in 2013. This business momentum drove better fourth quarter operating margin and cash flow contribution from operations. Investments made with our global partners over the past few years continue to contribute to our sustained growth and leadership in the voice networking business. These investments, coupled with increased focus on software products, solutions and services, are expected to provide further strength and support to our expected success in coming years.”

“As we look ahead to 2014, AudioCodes stands well positioned to extend its leadership in wide-area voice networking solutions and services for the fast growing segments of unified communications, business services and contact centers. AudioCodes end-to-end One Voice connectivity and networking solutions for Microsoft Lync, hosted PBX services and emerging cloud-based voice solutions have proved to provide high value to our enterprise and service provider customer base globally. Our deep knowledge and rich voice technologies portfolio for connectivity, security, quality of service, routing and mobility, among other features, is key to our success in recent years and is expected to enable our success in next coming years. We believe that these capabilities are a clear competitive advantage within one of the most attractive segments of the communications sector,” 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 fourth quarter and full year 2013 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 Web cast. Investors are invited to listen to the call live via Web cast at the AudioCodes corporate website at www.audiocodes.com.

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