After achieving 19.2% revenue growth in 2010, VoIP solutions developer AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) is offering quite aggressive guidance for 2011. "2011, and the next 2-3 years in general, will be very good," said AudioCodes chairman, president and CEO Shabtai Adlersberg today. "We're seeing 20% average annual revenue growth, and better leverage will enable us to be more profitable, because most of our expenses infrastructure already exists."
AudioCodes beat the analysts' revenue consensus of $39.8 million for the fourth quarter, with $40.5 million revenue, up from $34.2 million for the corresponding quarter of 2009.
Non-GAAP net profit rose to $4.5 million ($0.11 per share) for the fourth quarter, in line with the analysts' consensus, up from $2.5 million for the corresponding quarter.
GAAP-based net profit was boosted to $5.4 million ($0.13 per share) for the fourth quarter, in part by a $2.3 million tax benefit, compared with $1.2 million for the corresponding quarter.
Revenue rose to $150 million in 2010 from $125.9 million in 2009. GAAP-based net profit was $12 million ($0.30 per share), compared with a GAAP-based net loss of $3.3 million in 2009. Non-GAAP net profit rose to $13.3 million ($0.33 per share) in 2010 from $3 million in 2009.
Cash flow from operations was $5.7 million for the fourth quarter, down from $11.9 million for the corresponding quarter. Full year cash flow fell to $16.4 million from $21 million in 2009. The company had $64.1 million in cash and cash equivalents at the end of December.
AudioCodes' share price rose 0.3% in early trading on Nasdaq today to $6.91, giving a market cap of $281 million, after rising 4% on the TASE to NIS 25.65. The share price has risen 165% since September.
Adlersberg said, "I think that, in general, our plan is working. Our strategy is to position ourselves as the ultimate VoIP expert, in contrast to most players who focus on software, applications, or in a particular service. We're not a small company, but we're not large enough to be perceived as a threat, which is why companies like Microsoft and Avaya want to partner with us."
AudioCodes predicts $165-173 million revenue in 2011, and non-GAAP earnings per share of $0.41-0.46 ($17-19.1 million). The guidance is similar to the analysts' consensus of non-GAAP earnings per share of $0.46 on $166.5 million revenue.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2011
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