7/17...AUDC Reports 30% Sequential Revenue Growth and 197% Year-Over-Year Net Income Growth
YEHUD, Israel, July 17 /PRNewswire/ -- AudioCodes Ltd. (Nasdaq: AUDC - news), a leading provider of IP Telephony and voice over packet technologies, today announced financial results for the second quarter and six months ended June 30, 2000. Net revenues for the second quarter ended June 30, 2000 were US$16.5 million, an increase of 139 percent compared with revenues of US$6.9 million for the second quarter ended June 30, 1999. Net income for the second quarter was US$6.2 million compared with a net income of US$2.1 million for the same period last year. Diluted earnings per share were US$0.29 compared with a diluted earnings per share of US$0.13 for the second quarter ended June 30, 1999.
Net revenues for the six months ended June 30, 2000 were US$29.3 million, an increase of 131 percent over the same period last year, when AudioCodes had revenues of US$12.7 million. Net income for the six months ended June 30, 2000 was US$11.2 million, versus a net income of US$3.7 million for the same period last year. Diluted earnings per share were US$0.52 compared with a diluted earnings per share of US$0.24 for the six months ended June 30, 1999.
``This quarter was very strong for AudioCodes not only in our record financial performance, but also as reflected in our ability to manage growth. Sustaining a quarterly revenues growth rate of 20% and above for the past ten quarters, and an industry leading high net operating margin of more than 25% for seven straight quarters, coupled with substantially improved infrastructure and abilities to service a fast growing market, is the best evidence to our strength,'' said Shabtai Adlersberg, Chief Executive Officer of AudioCodes Ltd.
AudioCodes enters New Markets
During the quarter, AudioCodes expanded its product offering for the IP telephony and mediation markets, and has shipped its first Voice-over-ATM product for the new fast evolving markets of next generation packet switching and Voice over DSL networks. Targeting the proprietary OEM-designed telecom equipment market, which represents the dominant portion of the access network, the newly introduced TPM-800 media gateway PMC module offers 240 channels of VoIP/VoATM, the highest channel density available in the industry today. In addition to featuring high density, scalability and high availability, the module enables OEMs in the telecom market to achieve quick time coupled with assured performance in a highly integrated subsystem design. The TPM-800 has already been designed into next-gen switching and access equipment, and samples have been shipped to leading telecom equipment vendors in this quarter.
For the PCI-based IP telephony and media server markets, AudioCodes has introduced the industry's first VoIP communications board to support 120 channels of voice, fax and data services. Supporting comprehensive PSTN signaling and packet telephony control protocols such as the H.323 and the MGCP, the TP-240 presents a new level of VoIP performance for PCI systems.
New Customers
AudioCodes continued to expand its customer base and announced important new customer relationships during the quarter. Shanghai PTIC and AudioCodes jointly announced a strategic partnership this quarter in which multiple AudioCodes products have been selected for the third phase of VoIP deployment in China. Shanghai PTIC will use AudioCodes TP200, TP-400, MP-100 and MP-200 products for different market segments in China. Carrier Access Corporation, a leading provider of broadband digital access equipment solutions, demonstrated during the second quarter the world's first carrier-class access media gateway for softswitched networks, utilizing the recently announced TPM-200 Media Gateway Module from AudioCodes. Mariposa, a leading supplier of Integrated Access Devices for the ATM market, also acknowledged the use of AudioCodes five channel AC 48105 processor, in their ATX family of products.
In the PCI-based IP telephony server applications market, the company announced design wins with Vocal Data, Inc. and Buffalo International which have selected the company products for their packet telephony server applications. Most recently, BreezeCOM, a leading provider of broadband wireless access solutions, announced that it has selected AudioCodes' Voice over IP (VoIP) processors for its BreezeACCESS Broadband Wireless Access (BWA) products.
Enhanced Infrastructure
AudioCodes also increased its headcount this quarter by 27%, mainly in research & development and sales & marketing functions. The Company expanded its staff in the United States by over 44% for the second straight quarter and has opened offices in Dallas, Texas, and Chicago, Illinois in addition to offices in San Jose, California, and will soon set up offices in Boston, Massachusetts. The increased presence in the United States reflects AudioCodes commitment to its strategic customers and its strong market penetration in the United States which comprises approximately 66% of total Company sales.
``Testimony to our success in managing growth is our continued rapid product development, increased geographical sales coverage and better customer support'', continued Shabtai Adlersberg. ``Our strong position in the market relies on our broad base of product offering and technological capabilities which are available for a significant number of different hardware platforms supported by the major protocols and standards required in today's telecommunications industry. We continue to witness a continued penetration of our enabling technologies in a diverse amount of applications developed by our OEM customers.''
About AudioCodes
AudioCodes Ltd. (Nasdaq: AUDC - news) designs, develops and markets enabling technologies and communication system components for voice over packet networks. AudioCodes is a voice compression technology leader and the key originator of the ITU G.723.1 standard for the emerging IP Telephony market. AudioCodes' product line includes, VoIP communication boards, VoIP media gateway modules, voice over packet chip processors, media gateway subsystems and communications software. Our customers, the leading telecom and datacom OEM's such as: Alcatel S.A., Cisco Systems, Inc., Clarent Corporation, Lucent Technologies, Siemens and Vocaltec Communications are all featuring AudioCoded equipment. AudioCodes' international headquarters and R&D facilities are in Yehud, Israel with its main marketing and sales offices in San Jose, California. For more information on AudioCodes, please visit the company web site at audiocodes.com.
This press release may contain forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, market demand for AudioCodes' products, economic and competitive factors, international market conditions, technological developments, the ability to finance operations and other factors, which are detailed in AudioCodes' SEC filings. AudioCodes, the AudioCodes logo, AudioCoded, TrunkPack and MediaPack are trademarks or registered trademarks of AudioCodes, Ltd. All other trademarks are property of their respective owners.
AUDIOCODES LTD.
CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
December 31, June 30,
1999 2000
ASSETS (unaudited)
CURRENT ASSETS
Cash and cash equivalents $60,500 $5,836
Short-term deposits 57,052 120,148
Trade receivables 5,863 9,990
Other receivables and prepaid expenses 647 1,202
Inventories 3,565 6,764
Total current assets 127,627 143,940
SEVERANCE PAY FUND 626 841
FIXED ASSETS, NET 1,269 1,885
Total assets $129,522 $146,666
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables $1,669 $1,658
Other payables and accrued expenses 6,586 10,866
Total current liabilities 8,255 12,524
ACCRUED SEVERANCE PAY 942 1,267
Total shareholders' equity 120,325 132,875
Total liabilities and shareholders' equity $129,522 $146,666
AUDIOCODES LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
U.S. dollars in thousands, except per share data
Three months ended
June 30,
1999 2000
(unaudited)
Revenues 6,920 16,532
Cost of revenues 2,662 6,444
Gross profit 4,258 10,088
Operating expenses
Research and development, net 1,080 2,363
Sales and marketing 898 2,646
General and administrative 367 672
Total operating expenses 2,345 5,681
Operating income 1,913 4,407
Financial income, net 241 1,896
Income before income taxes 2,154 6,303
Income taxes 75 126
Net income $2,079 $6,177
Diluted earnings per share $0.13 $0.29
Number of shares for diluted earnings
per share (in thousands) 16,540 21,533
AUDIOCODES LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
U.S. dollars in thousands, except per share data
Six months ended
June 30,
1999 2000
(unaudited)
Revenues 12,692 29,252
Cost of revenues 4,864 11,375
Gross profit 7,828 17,877
Operating expenses
Research and development, net 1,833 4,216
Sales and marketing 1,737 4,595
General and administrative 726 1,252
Total operating expenses 4,296 10,063
Operating income 3,532 7,814
Financial income, net 232 3,670
Income before income taxes 3,764 11,484
Income taxes 113 282
Net income $3,651 $11,202
Diluted earnings per share $0.24 $0.52
Number of shares for diluted earnings
per share (in thousands) 15,308 21,499
Contact: Mike Lilo, V.P. Finance & CFO of AudioCodes Ltd., 972-3-539-4000, mikel@audiocodes.com; or Magda Gagliano of Ruder Finn, Inc., 212-593-6319, gaglianom@ruderfinn.com, for AudioCodes Ltd.
SOURCE: AudioCodes Ltd. |
