LOD, Israel, Jan. 26, 2011 (GLOBE NEWSWIRE) -- AudioCodes Ltd. (Nasdaq:AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced financial results for the fourth quarter and full year 2010, ended December 31, 2010.
Revenues for the fourth quarter of 2010 were $40.5 million compared to $38.3 million for the third quarter of 2010 and $34.2 million for the fourth quarter of 2009. Revenues were $150.0 million in 2010 compared to $125.9 million in 2009.
Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $5.4 million, or $0.13 per diluted share, for the fourth quarter of 2010 compared to GAAP net income of $2.9 million, or $0.07 per diluted share, for the third quarter of 2010, and GAAP net income of $1.2 million, or $0.03 per diluted share, for the fourth quarter of 2009. During 2010, the Company recorded a non-cash tax benefit of $2.3 million, equivalent to $0.06 per diluted share, due to deferred tax.
The Company reported GAAP net income of $12.0 million, or $0.30 per diluted share, in 2010 compared to a GAAP net loss of $3.3 million, or ($0.07) per share, in 2009.
Non-GAAP net income for the fourth quarter of 2010 was $4.5 million, or $0.11 per diluted share, compared to non-GAAP net income of $3.6 million, or $0.09 per diluted share, for the third quarter of 2010, and non-GAAP net income of $2.5 million, or $0.06 per diluted share, for the fourth quarter of 2009.
Non-GAAP net income excludes (i) stock-based compensation expenses, (ii) amortization expenses related to intangible assets, (iii) for the 2009 period, an adjustment to expenses related to the Company's Senior Convertible Notes due to application of FASB Staff Position APB 14-1, and (iv) a non-cash deferred tax income. Almost all of the Company's Senior Convertible Notes were repurchased in November 2009. A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
During the fourth quarter of 2010, AudioCodes generated $5.7 million in cash from operating activities compared to $5.8 million in the third quarter of 2010 and $11.9 million in the fourth quarter of 2009. The Company generated $16.4 million in cash from operations in 2010 compared to $21.0 million in 2009.
Cash and cash equivalents and short-term deposits were $64.1 million as of December 31, 2010, compared to $58.6 million as of September 30, 2010 and $52.9 million as of December 31, 2009.
"I am pleased to announce strong results for the fourth quarter and full year 2010," stated Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. "This is the seventh consecutive quarter of improved performance and momentum gain in our networking business. Year-over-year, revenues grew 19% and proforma net income grew more than 330%. Coupling these results with the ability to achieve a better-than-expected gross margin, continued positive cash flow, and our stated objective of 10% proforma operating margin, further underscores our improved performance. In 2010, we gained market share in the VoIP media gateway market, introduced our new enterprise session border controller product line for the SIP Trunking market, strengthened our partnerships with leading players in the telecom, applications and over-the-top (OTT) market, made first steps into the new mobile VoIP market, and grew sales coverage worldwide. SIP connectivity, mobility and security are increasingly becoming main trends in the VoIP market, and we believe that our continued investments in these areas will further drive market share gain and growth in 2011 and beyond," concluded Mr. Adlersberg.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 9:00 A.M., Eastern Time today to discuss the Company's fourth quarter and full year 2010 operational and financial results. The conference call will be simultaneously Web cast. Investors are invited to listen to the call live via Web cast at the AudioCodes corporate website at
About AudioCodes
AudioCodes Ltd. (Nasdaq:AUDC) designs, develops and sells advanced Voice over IP (VoIP) and converged VoIP and Data networking products and applications to Service Providers and Enterprises. AudioCodes is a VoIP technology market leader focused on converged VoIP & data communications and its products are deployed globally in Broadband, Mobile, Cable, and Enterprise networks. The company provides a range of innovative, cost-effective products including Media Gateways, Multi-Service Business Gateways, Session Border Controllers (SBC), Residential Gateways, IP Phones, Media Servers and Value Added Applications. AudioCodes' underlying technology, VoIPerfectHD™, relies on AudioCodes' leadership in DSP, voice coding and voice processing technologies. AudioCodes High Definition (HD) VoIP technologies and products provide enhanced intelligibility and a better end user communication experience in Voice communications. For more information on AudioCodes, visit
Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; possible disruptions from acquisitions; the integration of acquired companies' products and operations into AudioCodes' business; and other factors detailed in AudioCodes' filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.
©2011 AudioCodes Ltd. All rights reserved. AudioCodes, AC, AudioCoded, Ardito, CTI2, CTI², CTI Squared, HD VoIP, HD VoIP Sounds Better, InTouch, IPmedia, Mediant, MediaPack, NetCoder, Netrake, Nuera, Open Solutions Network, OSN, Stretto, TrunkPack, VMAS, VoicePacketizer, VoIPerfect, VoIPerfectHD, What's Inside Matters, Your Gateway To VoIP and 3GX are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
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CONTACT: Company Contacts Guy Avidan, VP Finance & CFO AudioCodes Tel: +972-3-976-4000 guy.avidan@audiocodes.com Shirley Nakar, Director, Investor Relations AudioCodes Tel: +972-3-976-4000 shirley@audiocodes.com IR Agency Contact Erik Knettel, Grayling Tel: +1-646-284-9415 erik.knettel@grayling.com