LOD, Israel, April 30, 2019 /PRNewswire/ --
First Quarter Highlights
- Quarterly revenues increased by 9.8% year-over-year to
$46.6 million;
- Quarterly service revenues increased by 3.4% year-over-year to
$14.1 million;
- Quarterly UC-SIP booking increased approximately 15%
year-over-year;
- Quarterly GAAP gross margin percentage was 62.8%; quarterly
Non-GAAP gross margin percentage was 63.0%;
- Quarterly GAAP operating margin percentage was 9.7%; quarterly
Non-GAAP operating margin percentage was 11.9%;
- Cash flow from operating activities was $8.3 million;
- Quarterly GAAP net income was $3.0
million, or $0.10 per diluted
share;
- Quarterly Non-GAAP net income was $5.5
million, or $0.18 per diluted
share;
- AudioCodes repurchased 86,613 of its ordinary shares during the
quarter at an aggregate cost of $951,000.
- AudioCodes declared a semiannual cash dividend of 11 cents per share. The dividend, in the
aggregate amount of $3.2 million, was
paid on February 19, 2019.
Details
AudioCodes (NASDAQ: AUDC), a leading vendor of advanced voice
networking and media processing solutions for the digital
workplace, today announced financial results for the first quarter
ended March 31, 2019.
Revenues for the first quarter of 2019 were $46.6 million compared to $45.8 million for the fourth quarter of 2018 and
$42.4 million for the first quarter
of 2018.
Net income was $3.0 million, or
$0.10 per diluted share, for the
first quarter of 2019, compared to $2.4
million, or $0.08 per diluted
share, for the first quarter of 2018.
On a Non-GAAP basis, net income was $5.5
million, or $0.18 per diluted
share, for the first quarter of 2019 compared to $3.9 million, or $0.13 per diluted share, for the first quarter of
2018.
Non-GAAP net income excludes: (i) share-based compensation
expenses; (ii) amortization expenses related to intangible assets;
(iii) expenses or income related to revaluation of an earn-out
liability in connection with the acquisition of Active
Communications Europe; (iv) financial income or expenses related to
exchange rate differences in connection with revaluation of assets
and liabilities in non-dollar denominated currencies and (v)
non-cash deferred tax benefit or 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 $8.3 million for the first quarter of 2019. Cash
and cash equivalents, long- and short-term bank deposits and long-
and short-term marketable securities were $68.4 million as of March
31, 2019 compared to $65.4
million as of December 31,
2018. The increase in cash and cash equivalents, long- and
short-term bank deposits and long- and short-term marketable
securities was the result of cash provided by operating activities
offset, in part, by the use of cash in 2019 for the continued
repurchasing of the Company's ordinary shares pursuant to its share
repurchase program and for the payment of a cash dividend.
"We are pleased to report solid financial results for the first
quarter of 2019," said Shabtai
Adlersberg, President and Chief Executive Officer of
AudioCodes. "The strong underlying growth in the unified
communications and UCaaS markets and the continuing transformation
to all IP are favorably impacting our financial results. We
continued to execute on our 2019 revenue plan and grew
approximately 10% year-over-year while continuing to generate
increased earnings and a strong cash flow from operations."
"New enterprise voice networking deployments and service
provider network transformation projects continue to drive our top
line growth. Our investments in adapting our One Voice solution to Cloud, and more
specifically to the Microsoft Teams collaboration solution started
to bear fruits in the first quarter of 2019 and we saw encouraging
new project starts in this space. At the same time, we continue to
invest in our emerging voice.ai business and we are seeing
encouraging initial results. We continue to prudently invest in our
future offerings and remain focused on maximizing the return on
these investments for our shareholders," concluded Mr.
Adlersberg.
Share Buy Back Program
As of March 31, 2019, AudioCodes
had acquired an aggregate of 17.64 million of its ordinary shares
since August 2014 for an aggregate
consideration of $95 million. During
the quarter ended March 31, 2019,
AudioCodes acquired 86,613 of its ordinary shares under its share
repurchase program for a total consideration of $951,000.
In January 2019, AudioCodes
received court approval in Israel
to purchase up to an aggregate of $12
million ("Permitted Amount") of additional ordinary shares
pursuant to its share repurchase program. The court approval also
permits AudioCodes to declare a dividend of any part of the
Permitted Amount during the approved validity period. The current
court approval will expire on July 1,
2019. As of March 31, 2019,
$7.8 million remained available to
the Company under this court approval for repurchasing shares or
declaring dividends.
Cash Dividend
On January 28, 2019, the Company
declared a cash dividend of $0.11 per
share. The dividend, in the aggregate amount of $3.2 million, was paid on February 19, 2019 to all of the Company's
shareholders of record on February 7,
2019.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the
Company's first quarter of 2019 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
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.
About AudioCodes
AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a leading vendor of
advanced voice networking and media processing 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; 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.
©2019 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 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 LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 47,186
|
|
$ 31,503
|
Short-term and
restricted bank deposits
|
7,385
|
|
12,381
|
Short-term marketable
securities and accrued interest
|
12,271
|
|
19,602
|
Trade receivables,
net
|
27,081
|
|
22,279
|
Other receivables and
prepaid expenses
|
6,237
|
|
5,885
|
Inventories
|
25,528
|
|
22,620
|
Total current
assets
|
125,688
|
|
114,270
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
$ 1,594
|
|
$ 1,894
|
Deferred tax
assets
|
3,807
|
|
4,350
|
Operating lease
right-of-use assets
|
31,582
|
|
-
|
Severance pay
funds
|
18,017
|
|
17,518
|
Total long-term
assets
|
55,000
|
|
23,762
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
4,604
|
|
3,865
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
37,387
|
|
37,475
|
|
|
|
|
Total
assets
|
$ 222,679
|
|
$ 179,372
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term bank loans
|
$ 2,474
|
|
$ 2,487
|
Trade
payables
|
6,815
|
|
6,188
|
Other payables and
accrued expenses
|
26,295
|
|
22,541
|
Deferred
revenues
|
29,134
|
|
23,727
|
Short-term operating
lease liabilities
|
8,196
|
|
-
|
Total current
liabilities
|
72,914
|
|
54,943
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
$ 19,388
|
|
$ 18,728
|
Long-term bank
loans
|
3,055
|
|
3,687
|
Deferred revenues and
other liabilities
|
8,488
|
|
7,466
|
Long-term operating
lease liabilities
|
22,953
|
|
-
|
Total long-term
liabilities
|
53,884
|
|
29,881
|
|
|
|
|
Total shareholders'
equity
|
95,881
|
|
94,548
|
Total liabilities and
shareholders' equity
|
$ 222,679
|
|
$ 179,372
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except per share data
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Products
|
|
$ 32,453
|
|
$ 28,763
|
Services
|
|
14,126
|
|
13,662
|
Total Revenues
|
|
46,579
|
|
42,425
|
Cost of
revenues:
|
|
|
|
|
Products
|
|
13,778
|
|
11,895
|
Services
|
|
3,572
|
|
3,371
|
Total Cost of
revenues
|
|
17,350
|
|
15,266
|
Gross
profit
|
|
29,229
|
|
27,159
|
Operating
expenses:
|
|
|
|
|
Research and
development, net
|
|
9,480
|
|
8,633
|
Selling and
marketing
|
|
12,561
|
|
12,988
|
General and
administrative
|
|
2,671
|
|
2,581
|
Total operating
expenses
|
|
24,712
|
|
24,202
|
Operating
income
|
|
4,517
|
|
2,957
|
Financial income
(expenses), net
|
|
(799)
|
|
243
|
Income before taxes
on income
|
|
3,718
|
|
3,200
|
Taxes on income,
net
|
|
(669)
|
|
(766)
|
Net income
|
|
$ 3,049
|
|
$ 2,434
|
Basic net earnings
per share
|
|
$ 0.10
|
|
$ 0.08
|
Diluted net earnings
per share
|
|
$ 0.10
|
|
$ 0.08
|
Weighted average
number of shares used in computing basic
net earnings per share (in thousands)
|
|
29,213
|
|
29,159
|
Weighted average
number of shares used in computing diluted
net earnings per share (in thousands)
|
|
30,729
|
|
30,349
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP NET INCOME
|
U.S. dollars in
thousands, except per share data
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
GAAP net
income
|
|
$ 3,049
|
|
$ 2,434
|
GAAP net earnings per
share
|
|
$ 0.10
|
|
$ 0.08
|
Cost of
revenues:
|
|
|
|
|
Share-based
compensation (1)
|
|
36
|
|
39
|
Amortization expenses
(2)
|
|
68
|
|
174
|
|
|
104
|
|
213
|
Research and
development, net:
|
|
|
|
|
Share-based
compensation (1)
|
|
212
|
|
113
|
Selling and
marketing:
|
|
|
|
|
Share-based
compensation (1)
|
|
333
|
|
274
|
Amortization expenses
(2)
|
|
15
|
|
15
|
|
|
348
|
|
289
|
General and
administrative:
|
|
|
|
|
Share-based
compensation (1)
|
|
366
|
|
269
|
Revaluation of
earn-out liability (3)
|
|
(23)
|
|
-
|
|
|
343
|
|
269
|
Financial
expenses:
|
|
|
|
|
Exchange rate
differences (4)
|
|
900
|
|
-
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
Deferred tax
(5)
|
|
544
|
|
584
|
Non-GAAP net
income
|
|
$ 5,500
|
|
$ 3,902
|
Non-GAAP diluted net
earnings per share
|
|
$ 0.18
|
|
$ 0.13
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation expenses related to options and restricted
share
units granted to employees and others.
|
(2) Amortization of
intangible assets related to the acquisitions of Mailvision and
Active Communications Europe assets.
|
(3) Expenses or income
related to revaluation of an earn-out liability in connection
with
the acquisition of Active Communications Europe.
|
(4) Financial income or
expenses related to exchange rate differences in connection
with
revaluation of assets and liabilities in non-dollar
denominated currencies.
|
(5) Non-cash deferred
tax benefit or 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.
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$ 3,049
|
|
$ 2,434
|
Adjustments required
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
474
|
|
540
|
Amortization of
marketable securities premiums and accretion of discounts,
net
|
|
56
|
|
103
|
Increase in accrued
severance pay, net
|
|
161
|
|
47
|
Share-based
compensation expenses
|
|
947
|
|
695
|
Decrease in deferred
tax assets, net
|
|
425
|
|
563
|
Decrease (increase)
in accrued interest and exchange rate effect of loans, marketable
securities and bank deposits
|
|
(11)
|
|
15
|
Changes in operating
leases, net
|
|
(433)
|
|
-
|
Decrease (increase)
in trade receivables, net
|
|
(4,860)
|
|
389
|
Increase in other
receivables and prepaid expenses
|
|
(254)
|
|
(1,734)
|
Increase in
inventories
|
|
(2,899)
|
|
(971)
|
Increase in trade
payables
|
|
627
|
|
162
|
Increase (decrease)
in other payables and accrued expenses
|
|
4,466
|
|
(1,081)
|
Increase in deferred
revenues
|
|
6,547
|
|
7,124
|
Net cash provided by
operating activities
|
|
8,295
|
|
8,286
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from
short-term deposits
|
|
5,971
|
|
-
|
Proceeds from
long-term deposits
|
|
300
|
|
-
|
Proceeds from
redemption of marketable securities
|
|
7,291
|
|
727
|
Purchase of property
and equipment
|
|
(1,116)
|
|
(280)
|
Net cash provided by
investing activities
|
|
12,446
|
|
447
|
|
|
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
Cash flows from
financing activities:
|
|
|
|
|
Purchase of treasury
shares
|
|
(951)
|
|
(7,224)
|
Repayment of bank
loans
|
|
(618)
|
|
(636)
|
Cash dividends paid
to shareholders
|
|
(3,218)
|
|
-
|
Payment related to
the acquisition of ACS
|
|
(410)
|
|
(151)
|
Proceeds from
issuance of shares upon exercise of options and warrants
|
|
1,114
|
|
1,446
|
Net cash used in
financing activities
|
|
(4,083)
|
|
(6,565)
|
|
|
|
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
|
16,658
|
|
2,168
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
31,503
|
|
31,181
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$ 48,161
|
|
$ 33,349
|
Company
Contacts
|
|
IR Agency
Contact
|
Niran
Baruch,
|
Shirley
Nakar,
|
Rob Fink,
|
VP Finance &
Chief Financial Officer
|
Director, Investor
Relations
|
Hayden IR
|
AudioCodes
|
AudioCodes
|
Tel:
+1-646-415-8972
|
Tel:
+972-3-976-4000
|
Tel:
+972-3-976-4000
|
audc@haydenir.com
|
Niran.baruch@audiocodes.com
|
shirley@audiocodes.com
|
|
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SOURCE AudioCodes