Second Quarter 2014 Highlights:
- Revenues totaled $37.6 million, an 11.5% increase over the year ago quarter
- Quarterly networking revenues totaled $33.2 million, an increase of 15.3% year-over-year
- GAAP net loss of $46,000, or $0.00 per diluted share
- Non-GAAP net income of $1.6 million, or $0.04 per diluted share
- Revenues from sales of SBC products grew above 100% year-over-year
- Revenues from our New Products group category grew above 30% over the previous quarter
Lod, Israel – July 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 second quarter ended June 30, 2014.
Revenues for the second quarter of 2014 were $37.6 million, compared to $36.0 million for the first quarter of 2014 and $33.7 million for the second quarter of 2013.
Net loss in accordance with U.S. generally accepted accounting principles (GAAP) was $46,000, or $0.00 per diluted share, for the second quarter of 2014, compared to a GAAP net loss of $278,000, or ($0.01) per diluted share, for the first quarter of 2014, and GAAP net income of $441,000, or $0.01 per diluted share, for the second quarter of 2013.
Non-GAAP net income for the second quarter of 2014 was $1.6 million, or $0.04 per diluted share, compared to $1.1 million, or $0.03 per diluted share, for the first quarter of 2014, and $1.0 million, or $0.03 per diluted share, for the second quarter of 2013.
Non-GAAP net income (loss) excludes: (i) stock-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) non-cash deferred tax 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 used in operating activities for the second quarter of 2014 totaled $386,000. Cash and cash equivalents, bank deposits and marketable securities were $91.8 million as of June 30, 2014 compared to $94.0 million as of March 31, 2014 and $57.5 million as of June 30, 2013. The increase from a year ago was primarily a result of the receipt of net proceeds of approximately $29.7 million in connection with a public offering of the Company’s ordinary shares in March 2014.
“We are very pleased to report strong growth of our networking business for the second quarter of 2014. This business comprised 88% of our revenues in the quarter. Driven by solid progress across all market segments, our networking business revenues grew 15.3% over the year-ago quarter, and 8.1% over the previous quarter,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. “We experienced record sales of our Session Border Controller line which grew more than 100% over the year-ago quarter and more than 30% over the previous quarter. Sales of the New Products group category comprising of SBC, Multi-service routers and IP Phones increased more than 30% compared to the previous quarter. In addition to these successes, we continued to grow in the Microsoft Lync segment in-line with our stated plan for 2014 to grow this segment by more than 40% over 2013.”
“To advance growth initiatives, we continue to introduce new products and solutions. The launch of AudioCodes One Box 365, a new One Voice for Lync solution that provides our partners an intuitive and quick way to bring enterprise voice alongside Office 365 in both pure cloud and hybrid on-premise solutions, expands our market opportunity in the Microsoft Lync ecosystem.”
“During the quarter, we launched and opened our new Cloud Delivery Network Architecture (CDNA) Research and Development Center that is supported by the Israeli Office of the Chief Scientist. This new R&D center is expected to provide a highly efficient platform to develop new cutting edge cloud-based real-time communications technologies and services, and to support further growth in revenues beginning in 2015. These activities are expected to further strengthen our foundation for AudioCodes’ growth in the years ahead,” concluded Mr. Adlersberg.
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 2014 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.