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Audiocodes Ltd. — Interim / Quarterly Report 2005
Apr 25, 2005
6659_rns_2005-04-25_5aba207a-b706-4210-b2e1-cc16135e55ee.pdf
Interim / Quarterly Report
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AudioCodes
PRESS RELEASE
Company Contacts
Nachum Falek, VP Finance & CFO AudioCodes Tel: +972-3-976-4000 [email protected]
Shirley Nakar, Director, Investor Relations AudioCodes Tel: +972-3-976-4072 [email protected]
IR Agency Contact
Erik Knettel The Global Consulting Group Tel: +1-646-284-9415 [email protected]
AudioCodes Reports First Quarter 2005 Results
Quarterly Revenues Rise to $26.9 Million, Up 7% Sequentially and 76% Year over Year Net Income is $3.0 Million, or $0.07 Per Share
Lod, Israel – April 25, 2005 – AudioCodes (Nasdaq: AUDC), a leading provider of Voice over Packet (VoP) technologies and Voice Network products, today announced financial results for the first quarter ended March 31, 2005.
Revenues for the first quarter ended March 31, 2005 were $26.9 million compared to $25.2 million for the quarter ended December 31, 2004 and $15.3 million for the quarter ended March 31, 2004. First quarter revenues grew 7% sequentially and increased 76% compared to the first quarter of 2004. Net income for the first quarter of 2005 was $3.0 million, or $0.07 per basic and diluted share, compared to a net loss of $43,000, or $(0.00) per basic and diluted share, for the corresponding period last year.
Cash and cash equivalents, long-term bank deposits and structured notes were $209.6 million as of March 31, 2005 compared to $217.0 million as of December 31, 2004 and $100.8 million as of March 31, 2004. Cash and cash equivalents as of March 31, 2005 and December 31, 2004 include net proceeds of $120.2 million from the sale of convertible notes in November 2004. The Company used $10.0 million of cash in the first quarter of 2005 to fund an additional payment made in connection with the acquisition of Ai-Logix based on the achievement of revenue milestones.
AudioCodes Reports Q1 2005 Results page 1 of 5
"We are very pleased with the progress made on our strategic objectives during the first quarter," said Shabtai Adlersberg, President, Chairman and CEO of AudioCodes. "Strong top line revenue growth of 76 percent year over year reaffirms our position as a leader in the expanding global market for next generation VoIP networks. We had our fourteenth consecutive quarter of revenue growth, coupled with continued increase in our operating income and net income. We experienced solid progress across our core technology and networking businesses and continued to enjoy increased demand from OEMs and service providers for our wireline VoIP products, with growing activity and new leads in emerging cable and wireless VoIP networks. In view of the challenging market environment of the telecom industry this quarter, we believe that our first quarter performance reflects our strong market position and our continued ability to deliver focused execution and provide operational excellence while consistently delivering a suite of field-proven, leading-edge VoIP product solutions."
"In our continuing efforts to expand AudioCodes VoIP product offerings and capabilities to meet the changing needs of our customers and further enhance our position as a leading supplier of VoIP media gateways, AudioCodes launched two new product offerings during the first quarter. Our new Mediant 1000 VoIP Media Gateway represents an extension of our successful Mediant gateway family for low and mid density CPE and access networks. This compact, integrated analog and digital media gateway is designed to meet the need for a flexible and cost efficient solution for small scale carrier locations and SME applications. AudioCodes also announced a series of new analog media gateways, the Media Pack 112, 114 and 118, which offer service providers and enterprises high quality optimized solutions for feature rich and low cost hosted services applications," stated Mr. Adlersberg.
Conference Call & Webcast Information
AudioCodes will conduct a conference call on April 26, 2005 to discuss the first quarter 2005 financial results, which will be simultaneously Webcast at 9:00 A.M. Eastern Time. Investors are invited to listen to the call live via Webcast at the AudioCodes corporate Website at http://www.audiocodes.com.
AudioCodes Reports Q1 2005 Results page 2 of 5
AudioCodes Reports Q1 2005 Results page 3 of 5
About AudioCodes
AudioCodes Ltd. (Nasdaq: AUDC) enables the new voice infrastructure by providing innovative, reliable and cost-effective Voice over Packet technology and Voice Network products to OEMs, network equipment providers and system integrators. AudioCodes provides its customers and partners with a diverse range of flexible, comprehensive media gateway and media processing technologies, based on VoIPerfect™-- AudioCodes' underlying, best-of-breed, core media gateway architecture. The company is a market leader in voice compression technology and is a key originator of the ITU G.723.1 standard for the emerging Voice over IP market. AudioCodes voice network products feature media gateway and media server platforms for packet-based applications in the wireline, wireless, broadband access, and enhanced voice services markets. AudioCodes enabling technology products include VoIP and CTI communication boards, VoIP media gateway processors and modules, and CPE devices. Its customers include the leading telecom and data network equipment providers globally. AudioCodes' international headquarters and R&D facilities are located in Israel, with U.S. headquarters in San Jose, California. Additional offices are in Boston (MA), Chicago (IL), Research Triangle Park (NC), Somerset (NJ), Beijing, London, Mexico City, Paris and Tokyo. 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 continuing products' demand; 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; and other factors detailed in AudioCodes' filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.
AudioCodes, AC, Ardito, AudioCoded, NetCoder, TrunkPack, VoicePacketizer, MediaPack, Stretto, Mediant, VoIPerfect and IPmedia are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners.
Summary financial data follows
AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands
| | March 31, 2005 (Unaudited) | December 31, 2004 | | --- | --- | --- | | ASSETS | | | | CURRENT ASSETS: | | | | Cash and cash equivalents | $ 159,398 | $ 166,832 | | Trade receivables, net | 14,428 | 14,470 | | Other receivables and prepaid expenses | 4,701 | 4,608 | | Inventories | 9,172 | 10,059 | | Total current assets | 187,699 | 195,969 | | LONG-TERM BANK DEPOSITS AND STRUCTURED NOTES | 50,229 | 50,195 | | INVESTMENTS IN AN AFFILIATED COMPANY | 438 | 487 | | SEVERANCE PAY FUNDS | 4,767 | 4,538 | | PROPERTY AND EQUIPMENT, NET | 6,584 | 6,694 | | INTANGIBLE ASSETS, NET | 4,909 | 5,127 | | GOODWILL | 19,135 | 9,135 | | Total assets | $ 273,761 | $ 272,145 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | CURRENT LIABILITIES: | | | | Trade payables | $ 5,903 | $ 6,541 | | Other payables and accrued expenses | 15,375 | 17,981 | | Total current liabilities | 21,278 | 24,522 | | ACCRUED SEVERANCE PAY | 5,250 | 4,978 | | SENIOR CONVERTIBLE NOTES | 120,703 | 120,660 | | Total shareholders' equity | 126,530 | 121,985 | | Total liabilities and shareholders' equity | $ 273,761 | $ 272,145 |
AudioCodes Reports Q1 2005 Results
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
| Three months ended | ||
|---|---|---|
| March 31, | ||
| 2005 | 2004 | |
| (Unaudited) | ||
| Revenues | $ 26,928 | $ 15,324 |
| Cost of revenues | 10,942 | 6,533 |
| Gross profit | 15,986 | 8,791 |
| Operating expenses: | ||
| Research and development, net | 5,668 | 4,392 |
| Selling and marketing | 5,876 | 4,260 |
| General and administrative | 1,411 | 762 |
| Total operating expenses | 12,955 | 9,414 |
| Operating income (loss) | 3,031 | (623) |
| Financial income, net | 328 | 659 |
| Equity in losses of an affiliated company | 256 | 79 |
| Income (loss) before taxes on income | 3,103 | (43) |
| Taxes on income | 140 | - |
| Net income (loss) | $ 2,963 | $ (43) |
| Basic net earnings (loss) per share | $ 0.07 | $ (0.00) |
| Diluted net earnings (loss) per share | $ 0.07 | $ (0.00) |
| Weighted average number of shares used in computing basic net earnings (loss) per share (in thousands) | 40,027 | 38,050 |
| Weighted average number of shares used in computing diluted net earnings (loss) per share (in thousands) | 43,549 | 38,050 |
AudioCodes Reports Q1 2005 Results page 5 of 5