Mobility - I've been pounding the table on AudioCodes' mobile Over the Top (or "OTT") platform that should be coming out in a cloud based version as early as the Mobile World Congress. In fact, AudioCodes and BroadSoft have together worked on mobile for some time and comments today from Dean Bubley, Founder and Director of Disruptive Analysis that their collaboration could see then delivering new mobility services such as "an OTT model themselves" may bring my thesis into serious consideration and be very explosive to AudioCodes in the quarters to come if BroadSoft and AudioCodes push an OTT solution out to the hundreds of service providers that BroadSoft works with today. This is the special sauce to AudioCodes and could mean big EPS leverage in 2014.
· Hosting companies are exploding with next generation VoIP services and AudioCodes' strategy is right on the sweet spot in exploiting that growth and solving keys issues to the enterprises going to market with the services.
· According to Infotrack, nearly 60% of enterprises with over 500 seats are deploying or planning to deploy Lync.
· AudioCodes' Alan Percy, head of NA sales, recently announced that Cargill with 142,000 employees in 67 countries and Amgen (AMGN) with 20,000 employees around the globe have implemented Lync and are utilizing AudioCodes' suite of products. He also stated that "I expect to see many more enterprise wins with Lync going forward".
· The Cargill and Amgen contracts that AudioCodes landed are just a start and an indication of how big this opportunity is for the company in the next 3-4 years.
· Mobile World Congress and Microsoft Lync Conference - hedge funds and institutions will be all over these events and it'll become very obvious that my post takeover model will be evaluated and shares will go much higher as big demand will build post these events.
Chart:
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Today's announcement could be the catalyst that breaks AudioCodes out above $8.00. As you can see on the chart, $8 is resistance but with momentum building, it should see a quick run to $10 - $11. The longer term target is $15.
Conclusion:
It's very simple from here on out. I've been bullish on AudioCodes since it was $1.45 and I recently defended it when Oppenheimer downgraded it based on price target achieved (nothing changed with its business model). Today, the best analyst on AudioCodes, BroadSoft's CEO, Michael Tessler just told you to buy, with its adoption of AudioCodes' One Voice and what looks like the displacement of Oracle (Acme Packet). This speaks volumes to what AudioCodes possesses which is no surprise to the 1500 Seeking Alpha followers of AudioCodes. This company is going "One Way" - Up.
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