conf call notes. w/warts and all.
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eli alyon:
P&L q3
-top line 23mm (see earnings release)
gross margin on product was 42% compared to 40% in 98
-total gross margin of co, 54% vs 52%
-r&d expenses increased over 1m, related to massive investment to improve top line
..these investments already showed results. %wise, kept R&D the same
-increase in interest revenue = 1.5m, reflect cash increase
equity income:
-portion of audiocodes 669k
-diluted eps: 0.44 despite increase in number of shares from 12m to 13.184m shares
balance sheet:
-no debt, 115m in cash, 74% of total assets
-a/r 11.9m, vs 5.72, = dso of 46 days, a reduction from 53 dso previous quarter.
-stockholders equity 139.8m, or 89% of total assets.
Not on financial statements, record backlog of co.
2 more licensing agreements signed for cores
-1 us co, 1 japanese co, which were licensees of previous versions.
After end of quarter, audiocodes raised $57m,
dspg?s portion: 818k at 41, net cash addition: 32m dollars, 38m cap gain.
Which will be in next q?s results.
**this is explained better in q&a
Goldman sachs
q. rough estimate of size of licensing deals?
a. ?significant? as a result, the backlog at the end of quarter ?significantly? increased.
Reminder, we do not invoice in the quarter of the deal
Revenues every quarter do not reflect the bookings?
**looping on the word ?significantly?.., getting silly***
q. status of cordless business?
a. modest figures this year, developing new chips (old news)
will be delivered in mass production in 2nd half of y2k. have a couple
of design wins for y2k, one for existing model, one for new model in se asia.
In y2k biggest part of product revenues will come from ?extremeley successul?
line, the d16.
-Backlog is huge for d16, hopeful about wireless for second half of y2k
q. re: audiocodes, what is after tax?
a. apply 35-40% tax
Lucas Ward, H&Q
q. on product biz, more breakdown on tad products vs wireless
a. cordless this year, modest ~5m, next year a bit more than double, in 2001 we expect the growth in this line to be very significant.
-BIG design win this week on d16, with major oem which will represent big volume for next year.
q. what is outlook? For next q and next yr
a. very, very good for next quarter.
I can?t say we have a full year in backlog because that is not the practice in our business, but we
have a good confidence level from what we can see today. We?ve never had such visibility in our business.
2 licensees are new, in addition to 2 last q
25% of licensing revs from royalties
vlsi tech has begun to ship
samsung has also begun to ship
**both have significant royalties
sg cowen rob stone
q. about a half a dozen paying recurring royalties now?
a. yes
q. comment on ip telephony.., current and future
a. 2 products we?re selling today compression and decompression and packetizing speech
**another company does the protocol stacks (???)
d8021 new version of old product
**sales this year not very significant (exceeding 3m), but growing.
Q from??? Lucas ward
q. explain cap gain of 38m
a. composed of 26.9 cap gain. Plus 11.1 revaluation of bs holdings
q. is there a lock up on the rest of audiocodes holdings?
a. all existing shareholders have lock up for 3 months. We are the only ones who can sell without the lockup, in a private deal.
Goldman
q. have 135m of cash on bs. What are your intentions with this?
a. make acquisitions with cash instead of shares, like a strong cash position
another guy:
q. re Voip what do they go into?
a. mostly into ip phones and video phones. Competition is very weak right now. In y2k, with new products will have a much better standing and will be able to increase sales a lot
q. in y2k what will be the driving product?
a. all in general should be strong, are very comfortable with cordless as well as ip telephony and licensing
q. lucas ward. Any impact from Taiwan?
a. Most production is from tsmc. We do not expect at this stage ANY IMPACT on our deliveries. 1st, had a big portion of our material in primary assembly and final testing and the test facility was not affected, 2nd, tsmc worked together with us a ?crash??? program and at this stage are very succesfull in meeting their ?crash? program. Whatever that is..
q. Dspc/intc any impact?
a. separate companies. They are licensees of our cores?, no other aspect except that we hope this will mean an increase in licensing revenues through their increased sales. |
