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Monday January 22, 6:03 pm Eastern Time
Press Release
SOURCE: AudioCodes Ltd.
AudioCodes Announces Record Fourth Quarter and Year-End Results for 2000; AudioCodes Grows Over 130% in Revenues and 150% in Net Income in 2000
YEHUD, Israel, Jan. 22 /PRNewswire/ -- AudioCodes Ltd. (Nasdaq: AUDC - news), a leading provider of IP Telephony and voice over packet technologies, today announced financial results for the fourth quarter and year-ended December 31, 2000. The results for 2000 reflect growth of 130% in revenues and 150% in net income compared to 1999.
Net revenues for the fourth quarter ended December 31, 2000 were US$22.5 million, an increase of 121 percent compared to revenues of US$10.2 million for the fourth quarter ended December 31, 1999. Net income for the fourth quarter was US$8.0 million compared to net income of US$4.1 million for the same period last year. Diluted earnings per share were US$0.19 compared to diluted earnings per share of US$0.10 for the same period last year.
Net revenues for the year ended December 31, 2000 were US$71.8 million, an increase of 130 percent over last year, when AudioCodes had revenues of US$31.2 million. Net income in 2000 was US$26.7 million compared to net income of US$10.7 million in 1999. Diluted earnings per share were US$0.62 in 2000 compared to diluted earnings per share of US$0.29 in 1999. The number of shares used to compute diluted earnings per share was 43.1 million in 2000 compared to 36.2 million in 1999.
For the year ended December 31, 2000, AudioCodes generated US$28.7 million of net cash from operations, of which $13.1 million was generated in the fourth quarter. During 2000, AudioCodes invested $3.0 million in capital expenditures mainly to enhance R&D capabilities.
Based on the iLocus global IP Telephony report of December 2000, AudioCodes continued to lead the voice over packet enabling technologies market for the 2nd year in a row after similar success in 1999. According to the report, AudioCodes' products enabled its leading customers to capture over 40% of the market of IP telephony service providers global traffic. While maintaining market leadership and enhancing its infrastructure, AudioCodes continued to exhibit strong performance by concluding its twelfth consecutive quarter of revenue growth and tenth consecutive profitable quarter. This year, AudioCodes has strengthened its relationship with its leading customers including Clarent, Cisco, Alcatel, Nortel, Lucent, Siemens and VocalTec and enjoyed new design wins with other leading telecom equipment vendors. In addition, management reported impressive growth in operational efficiency, maintaining operational profit of 26% throughout the year with revenue per employee in 2000 reaching $532,000 compared to $490,000 in 1999.
``In 2000 AudioCodes demonstrated outstanding execution performance and strong leadership in its target markets and we are very proud and excited about our accomplishments,'' said Shabtai Adlersberg, Chief Executive Officer of AudioCodes. ``Accomplishments included significant milestones such as penetration of the multi-billion dollar switching market with our high density media gateway subsystems. In addition, we were the first voice over packet enabling technology company to introduce integrated VoIP and VoATM processing on the same platform enabling any-to-any mediation of TDM, VoIP and VoATM communications, a distinctive competitive capability in the industry. These technological breakthroughs position AudioCodes as a most advanced and reliable technology partner for OEMs aiming to capitalize on the fast growing markets of VoIP, voice over broadband access networks and infrastructure for the 3G wireless networks.''
During 2000, the Company underwent several significant initiatives that not only positively affected AudioCodes 2000 results, but also positioned the Company for continued growth in 2001. These initiatives included:
-- An increase of 154% in R&D personnel in 2000. AudioCodes expects to
increase investments in R&D by 40% in 2001 compared to 2000.
-- Establishing strategic marketing teams through business centers for
better market focus. Increased sales coverage in the US, Europe and
the Far East. Sales and marketing personnel increased by 141% in 2000.
-- Reorganization of product management, customer support and professional
service teams.
-- Instituting two new product lines of high-density PMC modules and a
series of media gateways in addition to AudioCodes proven TrunkPack
communication board product line and signal processor chip product
line.
``Combining our sound financial position with an improved company infrastructure, more advanced and mature product lines and significant new products, with more to be introduced in the coming months, said Shabtai Adlersberg Chief Executive Officer, ''AudioCodes is ready to compete effectively in what appears to be a more challenging market in the coming quarter and year. We remain confident that despite lower visibility and a less favorable market climate in 2001, AudioCodes is adequately structured to aim and succeed in the multi-billion dollar market opportunities developing for voice over packet technologies in the next three to five years.``
About AudioCodes
Founded in 1993, AudioCodes Ltd. (Nasdaq: AUDC - news) designs, develops and markets enabling technologies and communication system components for voice over packet networks. The company is a market leader in voice compression technology and the key originator of the ITU G.723.1 standard for the emerging IP Telephony market. AudioCodes' product line includes leading-edge VoIP communication boards, VoIP media gateway modules, voice over packet chip processors, media gateway subsystems and communications software. Its customers -- the leading global telecom and datacom OEMs including Alcatel S.A., Cisco Systems, Inc., Clarent Corporation, Lucent Technologies, Siemens and VocalTec Communications -- all feature AudioCoded equipment. AudioCodes' international headquarters and R&D facilities are located in Yehud, Israel, with US headquarters 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, AC, AudioCoded, IPmedia, NetCoder and TrunkPack 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,
1999 2000
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 60,500 $ 9,575
Short-term deposits 57,052 135,598
Trade receivables 5,863 11,582
Other receivables and prepaid expenses 647 1,730
Inventories 3,565 10,714
Total current assets 127,627 169,199
SEVERANCE PAY FUND 626 1,201
FIXED ASSETS, NET 1,269 3,329
INVESTMENTS -- 600
Total assets $ 129,522 $ 174,329
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables $ 1,669 $ 7,923
Other payables and accrued expenses 6,586 15,157
Total current liabilities 8,255 23,080
ACCRUED SEVERANCE PAY 942 1,529
Total shareholders' equity 120,325 149,720
Total liabilities and shareholders' equity $ 129,522 $ 174,329
AUDIOCODES LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
U.S. dollars in thousands, except per share data
Three months ended
December 31,
1999 2000
Revenues $ 10,201 $ 22,525
Cost of revenues 3,889 8,833
Gross profit 6,312 13,692
Operating expenses
Research and development, net 1,642 3,378
Sales and marketing 1,433 3,553
General and administrative 508 911
Total operating expenses 3,583 7,842
Operating income 2,729 5,850
Financial income, net 1,501 2,241
Income before income taxes 4,230 8,091
Income taxes 137 81
Net income $ 4,093 $ 8,010
Diluted earnings per share $ 0.10 $ 0.19
Number of shares for diluted earnings
per share (in thousands) 42,100 42,614
AUDIOCODES LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
U.S. dollars in thousands, except per share data
Year Ended December 31,
1999 2000
Revenues $ 31,204 $ 71,798
Cost of revenues 11,921 28,029
Gross profit 19,283 43,769
Operating expenses
Research and development, net 4,812 10,588
Sales and marketing 4,262 11,204
General and administrative 1,665 2,917
Total operating expenses 10,739 24,709
Operating income 8,544 19,060
Financial income, net 2,471 8,057
Income before income taxes 11,015 27,117
Income taxes 355 438
Net income $ 10,660 $ 26,679
Diluted earnings per share $ 0.29 $ 0.62
Number of shares for diluted earnings
per share (in thousands) 36,163 43,051
SOURCE: AudioCodes Ltd. |
