AudioCodes reports flat revenue, small profit

CFO Guy Avidan: It may look like nothing has happened in revenue, but we're seeing big changes in our production lines and activities.

AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) today reported flat revenue and net profits for the first quarter of 2013 compared with the corresponding quarter of 2012. Revenue was unchanged at $32.3 million.

GAAP-based net profit was $71,000 ($0.00 per share) for the first quarter compared with a net loss of $1.6 million for the corresponding quarter, and non-GAAP net profit was $691,000 ($0.02 per share), compared with a non-GAAP net loss of $827,000.

AudioCodes reiterated its full-year guidance of non-GAAP earnings per share of $0.10-0.14 ($3.9-5.4 million) on $133-137 million revenue. The guidance is in line with the analysts' consensus of $0.11 earnings per share on $134.7 million revenue.

Cash flow from operations totaled $2.7 million for the first quarter, and the company's cash and cash equivalents totaled $57.5 million of March, down from $70.3 million a year earlier.

"It may look like nothing has happened in revenue, but we're seeing big changes in our production lines and activities," said AudioCodes CFO Guy Avidan. He said that, in line with the company's expectations, there has been a big change in its sales mix, with lower sales of gateway solutions (which connect VoIP networks with older networks) and a rise in SBC sales (which connect different VoIP networks) and products for the unified communications market.

"This is a change, and it's very good for us," said Avidan. "We usually feel it when one market falls, and we pray that a new market will rise, and this has already happened here. Our indication is Microsoft, which reported more than 30% growth in unified communications."

AudioCodes is a partner of Microsoft Corporation (Nasdaq: MSFT). Avidan says that the collaboration generates substantial income for AudioCodes, but he declined to elaborate.

AudioCodes also announced a small acquisition, acquiring certain assets of an Israeli partner, MailVision Ltd., a provider of VoIP solutions for mobile, PC, web and tablets, for $233,000 over 12 months, plus milestone payments. AudioCodes already owns 26.4% of the company, and will assume up to $1.3 million of MailVision's liabilities.

Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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