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Audiocodes Ltd. Earnings Release 2021
6659_rns_2022-02-01_76e52c46-aa98-48b7-8f39-f816afaa701b.pdf
Earnings Release
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the Month of February 2022
Commission file number 0-30070
AUDIOCODES LTD.
(Translation of registrant's name into English)
1 Hayarden Street • Airport City, Lod 7019900 • ISRAEL (Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
On February 1, 2022, AudioCodes Ltd. (the "Registrant") issued a press release announcing financial results for the fourth quarter and full year periods ended December 31, 2021, a semi-annual cash dividend, and other matters. A copy of this press release is attached hereto as Exhibit 1 and incorporated by reference herein.
The information set forth in (a) the first, second, third, sixth and seventh paragraphs following the heading "Details," the paragraph following the heading "Acquisition of Callverso Ltd.," the paragraphs following the heading "Share Buy Back Program," and the paragraphs following the heading "Cash Dividend," and (b) the condensed consolidated balance sheets, condensed consolidated statements of operations and condensed consolidated statements of cash flows contained in the press release attached as Exhibit 1 to this Report on Form 6-K are hereby incorporated by reference into (i) the Registrant's Registration Statement on Form F-3ASR, File No. 333-238867; (ii) the Registrant's Registration Statement on Form S-8, File No. 333-11894; (iii) the Registrant's Registration Statement on Form S-8, File No. 333-13268; (iv) the Registrant's Registration Statement on Form S-8, File No. 333-105473; (v) the Registrant's Registration Statement on Form S-8, File No. 333-144825; (vi) the Registrant's Registration Statement on Form S-8, File No. 333-160330; (vii) the Registrant's Registration Statement on Form S-8, File No. 333-170676; (viii) the Registrant's Registration Statement on Form S-8, File No. 333-190437; (ix) the Registrant's Registration Statement on Form S-8, File No. 333-210438; and (x) the Registrant's Registration Statement on Form S-8, File No. 333- 230388.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AUDIOCODES LTD. (Registrant)
By: /s/ NIRAN BARUCH
Niran Baruch Vice President Finance and Chief Financial Of icer
Dated: February 1, 2022
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 1 | Press release, dated February 1, 2022, announcing financial results for the fourth quarter and full year periods ended December 31, 2021, |
| declaration of semi-annual cash dividend, and other matters. |
PRESS RELEASE
Company Contacts
Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 [email protected] Roger L. Chuchen VP, Investor Relations AudioCodes Tel: 732-764-2552 Mobile: 347-752-0780 [email protected]
AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share
Lod, Israel – February 1, 2022 - AudioCodes (NASDAQ: AUDC) Press Release
Fourth Quarter and Full Year 2021 Highlights
- · Quarterly revenues increased by 12.7% year-over-year to \$66.1 million; full 2021 year revenues increased by 12.7% to \$248.9 million.
- · Quarterly service revenues increased by 16.2% year-over-year to \$24.4 million; full 2021 year service revenues increased by 24.4% to \$93.8 million.
- · GAAP results:
- o Quarterly GAAP gross margin was 67.2%;
- o Quarterly GAAP operating margin was 14.0%;
- o Quarterly GAAP net income was \$7.3 million, or \$0.22 per diluted share; and
- o Full 2021 year GAAP net income was \$33.8 million, or \$1.00 per diluted share.
- · Non-GAAP results:
- o Quarterly Non-GAAP gross margin was 67.6%;
- o Quarterly Non-GAAP operating margin was 20.4%;
- o Quarterly Non-GAAP net income was \$13.4 million, or \$0.39 per diluted share; and
- o Full 2021 year Non-GAAP net income was \$51.8 million, or \$1.50 per diluted share.
- · Net cash provided by operating activities was \$4.3 million for the quarter and \$47.3 million for the full year.
- · AudioCodes repurchased 314,227 of its ordinary shares during the quarter at an aggregate cost of \$10.7 million.
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 1 of 11
Details
AudioCodes (NASDAQ: AUDC), a leading vendor of advanced communications software, products and productivity solutions for the digital workplace, today announced its financial results for the fourth quarter and full year periods ended December 31, 2021.
Revenues for the fourth quarter of 2021 were \$66.1 million compared to \$63.4 million for the third quarter of 2021 and \$58.7 million for the fourth quarter of 2020. Revenues were \$248.9 million in 2021 compared to \$220.8 million in 2020.
Net income was \$7.3 million, or \$0.22 per diluted share, for the fourth quarter of 2021 compared to \$8.4 million, or \$0.24 per diluted share, for the fourth quarter of 2020. Net income was \$33.8 million, or \$1.00 per diluted share, in 2021 compared to \$27.2 million, or \$0.83 per diluted share, in 2020.
On a Non-GAAP basis, net income was \$13.4 million, or \$0.39 per diluted share, for the fourth quarter of 2021 compared to \$15.2 million, or \$0.44 per diluted share, for the fourth quarter of 2020. Non-GAAP net income was \$51.8 million, or \$1.50 per diluted share, in 2021 compared to \$46.7 million, or \$1.41 per diluted share, in 2020.
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Callverso Ltd; (iv) other income related to a payment made by the landlord to AudioCodes Inc., a subsidiary of the Company, in connection with the termination of a lease agreement for its offices in New Jersey; (v) financial expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; and (vi) 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 \$4.3 million for the fourth quarter of 2021 and \$47.3 million for 2021. Net cash provided by operating activities in both periods was impacted by the \$12.2 million payment made in December 2021 which was the third and last installment payment pursuant to the royalty buyout agreement.
Cash and cash equivalents, long and short-term bank deposits and long and short-term marketable securities were \$174.8 million as of December 31, 2021 compared to \$186.3 million as of December 31, 2020. The decrease in cash and cash equivalents, long and short-term bank deposits and long and short-term marketable securities was the result of the use of cash for the continued repurchasing of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividends during 2021, offset, in part, by cash provided by operating activities.
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 2 of 11
"We are pleased to report strong financial results for the fourth quarter and full year 2021 which demonstrate exceptional performance for the Company. With year over year growth in annual revenues accelerating from 10.2% in 2020 to 12.7% in 2021, ongoing improved gross margin, stronger competitive positioning, and expansion of our core service offerings, 2021 sets the stage for success in coming years" said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
"We executed successfully on our long term strategic plan while pivoting the business towards greater contribution from recurring revenues and Cloud Communications," Mr. Adlersberg continued. "At the heart of our success was our offering and sales of solutions for Microsoft UC, which grew about 20% year over year. Additionally, our contact center business in the quarter grew 12% YoY and more than 15% for the full year. Enterprise contributed nearly 85% of our revenue during the year, growing above 15% in 2021. Our AudioCodes Live managed service performance exceeded our internal expectations, with ARR exiting this year well above our target of \$15 million, and more than doubling from a year ago. Our services revenue grew 24.4% year-on-year and accounted for 37.7% of revenues, up from 34.2% a year ago. Additionally, our pipeline continues to expand across core areas of our business, supported by long-term trends of migration of voice infrastructure to the cloud, hybrid work, and enhanced customer engagement and experience (CX) solutions powered by AI."
"While still a small percentage of our revenues, Voice.ai bookings and revenues grew over 100% during the year, eclipsing our projection of \$5 million booking for the year. We now project this business should nearly double again in 2022. In the 4th quarter of 2021, we announced the acquisition of Callverso which specializes in development and deployment of state-of-the-art virtual agent solutions for contact center applications. This acquisition further strengthens AudioCodes' ability to help contact centers improve their customer experience while reducing operational costs," concluded Mr. Adlersberg.
Acquisition of Callverso Ltd.
In November 2021, the Company acquired Callverso, a leading Israeli developer and provider of conversational AI solutions for contact centers. This acquisition is intended to add Callverso's Conversational AI capabilities to AudioCodes portfolio of innovative contact center solutions and Live CX services that already cover high quality voice connectivity, work from home solutions, contextual click-to-call and voice channel integration with chatbots. The Company acquired Callverso for cash plus an earn-out arrangement based on attaining certain sales targets over the next three years.
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 3 of 11
Share Buy Back Program
During the quarter ended December 31, 2021, the Company acquired 314,227 of its ordinary shares under its share repurchase program for a total consideration of \$10.7 million.
In December 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 June 19, 2022.
Cash Dividend
AudioCodes also announced today that the Company's Board of Directors has declared a cash dividend in the amount of 18 cents per share. The aggregate amount of the dividend is approximately \$5.8 million. The dividend is payable on March 1, 2022, to all of the Company's shareholders of record at the close of trading on the NASDAQ Global Select Market on February 15, 2022.
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.
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 4 of 11
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's fourth quarter and full year 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: 888-506-0062
International Participants: +1 (973) 528-0011
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
Follow AudioCodes' social media channels:
AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 5 of 11
About AudioCodes
AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a leading vendor of advanced communications software, products and productivity solutions for the digital workplace. AudioCodes enables enterprises and service providers to build and operate all-IP voice networks for unified communications, contact centers, and hosted business services. AudioCodes offers a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
For more information on AudioCodes, visit http://www.audiocodes.com.
Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company's loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; and other factors detailed in AudioCodes' filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.
©2022 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience and CloudBond are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
Summary financial data follows
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 6 of 11
AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| December 31, 2021 |
December 31, 2020 |
|
|---|---|---|
| (Unaudited) | (Audited) | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | \$ | 79,423 \$ 40,934 |
| Restricted cash | 5,100 5,100 |
|
| Short-term and restricted bank deposits | 220 84,817 |
|
| Short-term marketable securities and accrued interest | 669 449 |
|
| Trade receivables, net | 48,956 34,518 |
|
| Other receivables and prepaid expenses | 9,197 8,631 |
|
| Inventories | 23,988 29,193 |
|
| Total current assets | 167,553 203,642 |
|
| LONG-TERM ASSETS: | ||
| Long-term and restricted bank deposits | \$ | 94 \$ 94 |
| Long-term marketable securities and accrued interest | 89,307 54,895 |
|
| Deferred tax assets | 8,812 12,081 |
|
| Operating lease right-of-use assets | 16,457 25,430 |
|
| Severance pay funds | 22,724 20,597 |
|
| Total long-term assets | 137,394 113,097 |
|
| PROPERTY AND EQUIPMENT, NET | 4,394 4,593 |
|
| GOODWILL, INTANGIBLE ASSETS AND OTHER, NET | 39,930 36,791 |
|
| Total assets | \$ | 349,271 \$ 358,123 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Current maturities of long-term bank loans | \$ | - \$ 1,200 |
| Trade payables | 7,863 6,984 |
|
| Other payables and accrued expenses | 38,350 28,531 |
|
| IIA settlement liability | - 11,684 |
|
| Deferred revenues | 41,591 37,182 |
|
| Short-term operating lease liabilities | 8,139 9,178 |
|
| Total current liabilities | 95,943 94,759 |
|
| LONG-TERM LIABILITIES: | ||
| Accrued severance pay | \$ | 22,895 \$ 21,830 |
| Deferred revenues and other liabilities | 13,544 12,243 |
|
| Long-term operating lease liabilities | 11,391 19,436 |
|
| Total long-term liabilities | 47,830 53,509 |
|
| Total shareholders' equity | 205,498 209,855 |
|
| Total liabilities and shareholders' equity | \$ | 349,271 \$ 358,123 |
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 7 of 11
AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
| Year ended December 31, |
Three months ended December 31, |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 (Unaudited) |
2020 | 2021 | 2020 | |||||||
| (Audited) | (Unaudited) | |||||||||
| Revenues: | ||||||||||
| Products | \$ | 155,089 | \$ | 145,332 | \$ | 41,666 | \$ | 37,644 | ||
| Services | 93,831 | 75,442 | 24,433 | 21,022 | ||||||
| Total Revenues | 248,920 | 220,774 | 66,099 | 58,666 | ||||||
| Cost of revenues: | ||||||||||
| Products | 52,750 | 54,384 | 14,305 | 12,071 | ||||||
| Services | 25,279 | 16,574 | 7,357 | 4,735 | ||||||
| Total Cost of revenues | 78,029 | 70,958 | 21,662 | 16,806 | ||||||
| Gross profit | 170,891 | 149,816 | 44,437 | 41,860 | ||||||
| Operating expenses: | ||||||||||
| Research and development, net | 53,396 | 46,072 | 14,452 | 12,528 | ||||||
| Selling and marketing | 62,057 | 51,217 | 16,597 | 13,110 | ||||||
| General and administrative | 15,914 | 14,177 | 4,117 | 4,104 | ||||||
| Total operating expenses | 131,367 | 111,466 | 35,166 | 29,742 | ||||||
| Operating income | 39,524 | 38,350 | 9,271 | 12,118 | ||||||
| Financial income (loss), net | 123 | (1,703) | (976) | (2,661) | ||||||
| Income before taxes on income | 39,647 | 36,647 | 8,295 | 9,457 | ||||||
| Taxes on income, net | (5,896) | (9,399) | (1,040) | (1,076) | ||||||
| Net income | \$ | 33,751 | \$ | 27,248 | \$ | 7,255 | \$ | 8,381 | ||
| Basic net earnings per share | \$ | 1.03 | \$ | 0.87 | \$ | 0.22 | \$ | 0.25 | ||
| Diluted net earnings per share | \$ | 1.00 | \$ | 0.83 | \$ | 0.22 | \$ | 0.24 | ||
| Weighted average number of shares used in computing basic net | ||||||||||
| earnings per share (in thousands) | 32,703 | 31,440 | 32,445 | 32,907 | ||||||
| Weighted average number of shares used in computing diluted net | ||||||||||
| earnings per share (in thousands) | 33,846 | 32,916 | 33,555 | 34,210 | ||||||
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 8 of 11
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
U.S. dollars in thousands, except per share data
| Year ended December 31, |
Three months ended December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2021 (Unaudited) |
2020 (Audited) |
2021 | 2020 (Unaudited) |
|||||
| GAAP net income | \$ | 33,751 | \$ | 27,248 | \$ | 7,255 | \$ | 8,381 |
| GAAP net earnings per share | \$ | 1.00 | \$ | 0.83 | \$ | 0.22 | \$ | 0.24 |
| Cost of revenues: | ||||||||
| Share-based compensation (1) | 411 | 181 | 134 | 24 | ||||
| Amortization expenses (2) | 340 | 272 | 136 | 68 | ||||
| 751 | 453 | 270 | 92 | |||||
| Research and development, net: | ||||||||
| Share-based compensation (1) | 2,772 | 1,535 | 754 | 771 | ||||
| Deferred payments expenses (3) | 70 | - | 70 | - | ||||
| 2,842 | 1,535 | 824 | 771 | |||||
| Selling and marketing: | ||||||||
| Share-based compensation (1) | 6,170 | 3,635 | 1,924 | 967 | ||||
| Amortization expenses (2) | 18 | 60 | 8 | 15 | ||||
| Deferred payments expenses (3) | 70 | - | 70 | - | ||||
| 6,258 | 3,695 | 2,002 | 982 | |||||
| General and administrative: | ||||||||
| Share-based compensation (1) | 4,811 | 3,420 | 1,525 | 1,436 | ||||
| Other Income (4) | (382) | - | (382) | - | ||||
| 4,429 | 3,420 | 1,143 | 1,436 | |||||
| Financial expenses: | ||||||||
| Exchange rate differences (5) | 294 | 1,973 | 1,238 | 2,844 | ||||
| Income taxes: | ||||||||
| Deferred tax (6) | 3,463 | 8,398 | 700 | 720 | ||||
| Non-GAAP net income | \$ | 51,788 | \$ | 46,722 | \$ | 13,432 | \$ | 15,226 |
| Non-GAAP diluted net earnings per share | \$ | 1.50 | \$ | 1.41 | \$ | 0.39 | \$ | 0.44 |
| Weighted average number of shares used in computing Non-GAAP | ||||||||
| diluted net earnings per share (in thousands) | 34,432 | 33,254 | 34,183 | 34,682 |
(1) Share-based compensation expenses related to options and restricted share units granted to employees and others.
(2) Amortization expenses related to intangible assets.
(3) Expenses related to deferred payments in connection with the acquisition of Callverso Ltd.
(4) Other income related to a payment made to AudioCodes Inc. in connection with the termination of a lease agreement for its offices in New Jersey.
(5) Financial expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.
(6) Non-cash deferred tax expenses.
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.
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AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
| Year ended December 31, |
Three months ended December 31, |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||||
| (Unaudited) | (Audited) | (Unaudited) | |||||||
| Cash flows from operating activities: | |||||||||
| Net income Adjustments required to reconcile net income to net cash provided by |
\$ | 33,751 | \$ | 27,248 | \$ | 7,255 | \$ | 8,381 | |
| operating activities: | |||||||||
| Depreciation and amortization | 2,432 | 2,268 | 686 | 587 | |||||
| Amortization of marketable securities premiums and accretion of | |||||||||
| discounts, net | 1,589 | 172 | 348 | 134 | |||||
| Increase (decrease) in accrued severance pay, net | (1,062) | 290 | (354) | (133) | |||||
| Share-based compensation expenses | 14,164 | 8,771 | 4,337 | 3,198 | |||||
| Decrease in deferred tax assets, net | 3,406 | 8,329 | 677 | 692 | |||||
| Increase (decrease) in accrued interest and exchange rate effect of | |||||||||
| loans, marketable securities and bank deposits | 54 | (26) | 85 | (7) | |||||
| Decrease in operating lease right-of-use assets | 7,445 | 7,913 | 1,740 | 2,193 | |||||
| Increase (decrease) in operating lease liabilities | (7,556) | (6,717) | 689 | 789 | |||||
| Changes in IIA settlement liability, net | (11,684) | (9,815) | (11,860) | (10,086) | |||||
| Increase in trade receivables, net | (14,438) | (7,017) | (8,686) | (3,364) | |||||
| Decrease (increase) in other receivables and prepaid expenses | (1,221) | (1,516( | (261) | 233 | |||||
| Decrease (increase) in inventories | 4,504 | (1,525) | (244) | 929 | |||||
| Increase in trade payables | 879 | 356 | 2,659 | 390 | |||||
| Increase in other payables and accrued expenses | 9,601 | 3,839 | 6,172 | 4,143 | |||||
| Increase in deferred revenues | 5,480 | 5,906 | 1,010 | 2,008 | |||||
| Net cash provided by operating activities | 47,344 | 38,476 | 4,253 | 10,087 | |||||
| Cash flows from investing activities: | |||||||||
| Investment in short-term deposits | - | (84,000) | - | (75) | |||||
| Proceeds from short-term deposits | 84,597 | 599 | 143 | - | |||||
| Proceeds from long-term deposits | - | 600 | - | 375 | |||||
| Proceeds from redemption of marketable securities | 3,240 | - | 2,187 | - | |||||
| Purchase of marketable securities | (43,808) | (54,977) | (2,714) | (27,313) | |||||
| Proceeds from sale of marketable securities | 2,571 | - | - | - | |||||
| Net cash paid in acquisition of subsidiary | (2,804) | - | (2,804) | - | |||||
| Purchase of property and equipment | (1,174) | (1,530) | (231) | (418) | |||||
| Net cash provided by (used in) investing activities | 42,622 | (139,308) | (3,419) | (27,431) |
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AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
| Year ended December 31, |
Three months ended December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||
| Cash flows from financing activities: | ||||||||
| Purchase of treasury shares | (41,849) | - | (10,650) | - | ||||
| Repayment of bank loans | (1,200) | (2,497) | (300) | (632) | ||||
| Cash dividends paid to shareholders | (10,865) | (8,442) | - | (855) | ||||
| Proceeds from issuance of shares, net | - | 85,426 | - | - | ||||
| Proceeds from issuance of shares upon exercise of options and | ||||||||
| warrants | 2,437 | 2,606 | 1,091 | 1,230 | ||||
| Net cash provided by (used in) financing activities | (51,477) | 77,093 | (9,859) | (257) | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 38,489 | (23,739) | (9,025) | (17,601) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 46,034 | 69,773 | 93,548 | 63,635 | ||||
| Cash, cash equivalents and restricted cash at end of period | \$ 84,523 |
\$ | 46,034 | \$ | 84,523 | \$ | 46,034 |
AudioCodes AudioCodes Reports Fourth Quarter and Full Year 2021 Results and Declares Semi-Annual Dividend of 18 cents per share Page 11 of 11