LOD, Israel, Oct. 26, 2021 /PRNewswire/ --
Third Quarter Highlights
- Quarterly revenues increased by 12.1% year-over-year to
$63.4 million; Quarterly service
revenues increased by 26.7% year-over-year to $24.8 million.
- GAAP results:
- Quarterly GAAP gross margin was 69.6%;
- Quarterly GAAP operating margin was 15.8%; and
- Quarterly GAAP net income was
$8.3 million, or $0.24 per diluted share.
- Non-GAAP results:
- Quarterly Non-GAAP gross margin was 69.9%;
- Quarterly Non-GAAP operating margin was 21.4%;
and
- Quarterly Non-GAAP net income was $12.9 million, or $0.38 per diluted share.
- Net cash provided by operating activities was $13.0 million for the quarter.
- AudioCodes repurchased 424,307 of its ordinary
shares during the quarter at an aggregate cost of
$13.8 million.
Details
AudioCodes (NASDAQ: AUDC), a leading vendor of advanced
communications software, products and productivity solutions for
the digital workplace, today announced its financial results for
the third quarter ended September 30,
2021.
Revenues for the third quarter of 2021 were $63.4 million compared to $60.6 million for the second quarter of 2021 and
$56.6 million for
the third quarter of 2020.
Net income was $8.3 million, or $0.24 per diluted share, for the third quarter of
2021, compared to a net income of $7.0 million, or
$0.20 per diluted share, for the
third quarter of 2020.
On a Non-GAAP basis, net income was
$12.9 million, or $0.38 per diluted share, for
the third quarter of 2021 compared to $13.3 million,
or $0.38 per
diluted share, for the third quarter of 2020.
Non-GAAP net income excludes: (i) share-based compensation
expenses; (ii) amortization expenses related to the acquisition of
Active Communications Europe assets; (iii) financial income or
expenses related to exchange rate differences in connection with
revaluation of assets and liabilities in non-dollar denominated
currencies and (iv) non-cash deferred tax expenses. A
reconciliation of net income on a GAAP basis to a non-GAAP basis is
provided in the tables that accompany the condensed consolidated
financial statements contained in this press release.
Net cash provided by operating activities was $13.0
million for the third quarter of 2021. Cash and cash equivalents,
long and short-term bank deposits and long and short-term
marketable securities were $184.9 million as of September 30, 2021 compared to $186.3 million as of December 31, 2020. Cash and cash equivalents,
long and short-term bank deposits and long and short-term
marketable securities were about the same as of the end of both
periods as the use of cash for the repurchasing of the Company's
ordinary shares pursuant to its share repurchase program and the
payment of cash dividends during 2021 was basically offset by cash
generated from operating activities.
"We are pleased to report strong financial results for the third
quarter of 2021," said Shabtai
Adlersberg, President and Chief Executive Officer of
AudioCodes.
"In the third quarter of 2021 we saw continued momentum in our
enterprise operations related to the UCaaS and Contact
Center/customer experience (CX) markets. Contributing close to 85%
of our revenues in the third quarter, and generating growth of
above 20% year-over-year, the enterprise business provides a solid
base for continued growth. At the core of this success was our
UCaaS business which grew about 18% year-over-year and our contact
center business which grew more than 20% year-over-year."
"We experienced continued expansion in our services operations
as revenues from services grew more than 25% year-over-year,
representing close to 40% of our revenue in the third quarter of
2021 and becoming key to our continued business expansion. Growth
in our services business was substantially related to the shift
towards use of cloud communications and our focus on becoming a
leading provider of Teams Voice as a Service. The increase in
Services revenue was driven primarily by strength in our
professional and managed services offerings. Key to this
growth is our continued progress in generating recurring revenues
with strong execution in our AudioCodes Live offering
operations."
"We continue to enjoy success in expanding our Voice.ai
operations where bookings grew more than 100% year-over-year for
both the three and nine month periods ended September 30, 2021. We now forecast Voice.ai
bookings for 2021 to reach a level of $5M for the full year. We continue to invest
heavily in this growth engine and believe that it will grow to
become a meaningful line of business for us in coming years.
Voice.ai which is part of our AudioCodes Live offering
provides strong foundation for growth in recurring revenues over
time," concluded Mr. Adlersberg.
Share Buy Back Program
In July 2021, the Company received
court approval in Israel to
purchase up to an aggregate amount of $35
million of additional ordinary shares. The court approval
also permits AudioCodes to declare a dividend of any part of this
amount. The approval is valid through January 03, 2022.
During the quarter ended September 30,
2021, the Company acquired 424,307 of its ordinary shares
under its share repurchase program for a total consideration of
$13.8 million.
Cash Dividend
On July 27, 2021, the Company
declared a cash dividend of $0.17 per
share. The dividend, in the aggregate amount of approximately
$5.6 million, was paid on
August 26, 2021 to all of the
Company's shareholders of record on August
11, 2021.
In accordance with Israeli tax law, the dividend is subject to
withholding tax at source at the rate of 25% of the dividend amount
payable to each shareholder of record, subject to applicable
exemptions. If the recipient of the dividend is at the time of
distribution or was at any time during the preceding 12-month
period the holder of 10% or more of the Company's share capital,
the withholding rate is 30%.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the
Company's third quarter of 2021 operating performance,
financial results and outlook. Interested parties may participate
in the conference call by dialing one the following numbers:
United States Participants: 888-506-0062
International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast.
Investors are invited to listen to the call live via webcast at the
AudioCodes investor website at
http://www.audiocodes.com/investors-lobby
Follow AudioCodes' social media channels:
AudioCodes invites you to join our online community and follow
us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook,
and YouTube.
About AudioCodes
AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a leading vendor of
advanced communications software, products and productivity
solutions for the digital workplace. AudioCodes enables enterprises
and service providers to build and operate all-IP voice networks
for unified communications, contact centers, and hosted business
services. AudioCodes offers a broad range of innovative
products, solutions and services that are used by large
multi-national enterprises and leading tier-1 operators around the
world.
For more information on AudioCodes, visit
http://www.audiocodes.com.
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 the demand
for existing products; 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 need for
additional financing; the ability to satisfy covenants in the
Company's loan agreements; possible disruptions from acquisitions;
the ability of AudioCodes to successfully integrate the products
and operations of acquired companies into AudioCodes' business;
possible adverse impact of the COVID-19 pandemic on our business
and results of operations; and other factors detailed in
AudioCodes' filings with the U.S. Securities and Exchange
Commission. AudioCodes assumes no obligation to update the
information in this release.
©2021 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD
VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's
Inside Matters, OSN, SmartTAP, User Management Pack, VMAS,
VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom,
AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room
Experience and CloudBond 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.
Summary financial data follows
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
September
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 88,448
|
|
$ 40,934
|
Restricted
cash
|
5,100
|
|
5,100
|
Short-term and
restricted bank deposits
|
363
|
|
84,817
|
Short-term marketable
securities and accrued interest
|
752
|
|
449
|
Trade receivables,
net
|
40,270
|
|
34,518
|
Other receivables and
prepaid expenses
|
8,102
|
|
8,631
|
Inventories
|
23,841
|
|
29,193
|
Total current
assets
|
166,876
|
|
203,642
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
$ 94
|
|
$ 94
|
Long-term marketable
securities and accrued interest
|
90,133
|
|
54,895
|
Deferred tax
assets
|
9,362
|
|
12,081
|
Operating lease
right-of-use assets
|
21,103
|
|
25,430
|
Severance pay
funds
|
21,333
|
|
20,597
|
Total long-term
assets
|
142,025
|
|
113,097
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
4,608
|
|
4,593
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
36,577
|
|
36,791
|
|
|
|
|
Total
assets
|
$ 350,086
|
|
$ 358,123
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term bank loans
|
$ 300
|
|
$ 1,200
|
Trade
payables
|
5,204
|
|
6,984
|
Other payables and
accrued expenses
|
31,960
|
|
28,531
|
IIA settlement
liability
|
11,860
|
|
11,684
|
Deferred
revenues
|
40,268
|
|
37,182
|
Short-term operating
lease liabilities
|
8,987
|
|
9,178
|
Total current
liabilities
|
98,579
|
|
94,759
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
$ 21,858
|
|
$ 21,830
|
Deferred revenues and
other liabilities
|
13,388
|
|
12,243
|
Long-term operating
lease liabilities
|
12,760
|
|
19,436
|
Total long-term
liabilities
|
48,006
|
|
53,509
|
|
|
|
|
Total shareholders'
equity
|
203,501
|
|
209,855
|
Total liabilities and
shareholders' equity
|
$ 350,086
|
|
$ 358,123
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except per share data
|
|
Nine months
ended
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
$ 113,423
|
|
$ 107,688
|
|
$ 38,610
|
|
$ 36,987
|
Services
|
69,398
|
|
54,420
|
|
24,798
|
|
19,577
|
Total Revenues
|
182,821
|
|
162,108
|
|
63,408
|
|
56,564
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
40,483
|
|
42,313
|
|
13,513
|
|
14,520
|
Services
|
15,884
|
|
11,839
|
|
5,772
|
|
4,065
|
Total Cost of
revenues
|
56,367
|
|
54,152
|
|
19,285
|
|
18,585
|
Gross
profit
|
126,454
|
|
107,956
|
|
44,123
|
|
37,979
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
38,944
|
|
33,544
|
|
14,172
|
|
10,738
|
Selling and
marketing
|
45,460
|
|
38,107
|
|
15,781
|
|
12,521
|
General and
administrative
|
11,797
|
|
10,073
|
|
4,172
|
|
3,495
|
Total operating
expenses
|
96,201
|
|
81,724
|
|
34,125
|
|
26,754
|
Operating
income
|
30,253
|
|
26,232
|
|
9,998
|
|
11,225
|
Financial income,
net
|
1,099
|
|
958
|
|
103
|
|
504
|
Income before taxes
on income
|
31,352
|
|
27,190
|
|
10,101
|
|
11,729
|
Taxes on income,
net
|
(4,856)
|
|
(8,323)
|
|
(1,838)
|
|
(4,765)
|
Net income
|
$ 26,496
|
|
$ 18,867
|
|
$ 8,263
|
|
$ 6,964
|
Basic net earnings
per share
|
$ 0.81
|
|
$ 0.61
|
|
$ 0.25
|
|
$ 0.21
|
Diluted net earnings
per share
|
$ 0.78
|
|
$ 0.58
|
|
$ 0.24
|
|
$ 0.20
|
Weighted average
number of shares used
in computing basic net earnings per share
(in thousands)
|
32,790
|
|
30,951
|
|
32,618
|
|
32,673
|
Weighted average
number of shares used
in computing diluted net earnings per share
(in thousands)
|
34,005
|
|
32,484
|
|
33,843
|
|
34,198
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP NET INCOME
|
U.S. dollars in
thousands, except per share data
|
|
Nine months
ended
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
GAAP net
income
|
$ 26,496
|
|
$ 18,867
|
|
$ 8,263
|
|
$ 6,964
|
GAAP net earnings per
share
|
$ 0.78
|
|
$ 0.58
|
|
$ 0.24
|
|
$ 0.20
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
277
|
|
157
|
|
123
|
|
58
|
Amortization expenses
(2)
|
204
|
|
204
|
|
68
|
|
68
|
|
481
|
|
361
|
|
191
|
|
126
|
Research and
development, net:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
2,018
|
|
764
|
|
776
|
|
274
|
Selling and
marketing:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
4,246
|
|
2,668
|
|
1,401
|
|
1,045
|
Amortization expenses
(2)
|
10
|
|
45
|
|
2
|
|
15
|
|
4,256
|
|
2,713
|
|
1,403
|
|
1,060
|
General and
administrative:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
3,286
|
|
1,984
|
|
1,174
|
|
720
|
|
3,286
|
|
1,984
|
|
1,174
|
|
720
|
Financial expenses
(income):
|
|
|
|
|
|
|
|
Exchange rate
differences (3)
|
(944)
|
|
(871)
|
|
38
|
|
(418)
|
|
|
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
|
|
|
Deferred tax
(4)
|
2,763
|
|
7,678
|
|
1,094
|
|
4,524
|
Non-GAAP net
income
|
$ 38,356
|
|
$ 31,496
|
|
$ 12,939
|
|
$ 13,250
|
Non-GAAP diluted net
earnings per share
|
$ 1.11
|
|
$ 0.96
|
|
$ 0.38
|
|
$ 0.38
|
(1) Share-based
compensation expenses related to options and restricted share units
granted to employees and others.
|
(2)
Amortization of intangible assets related to the acquisitions of
Active Communications Europe assets.
|
(3) Financial
expenses (income) related to exchange rate differences in
connection with revaluation of assets and liabilities in non-dollar
denominated currencies.
|
(4) Non-cash
deferred tax expenses.
|
|
|
|
|
|
|
|
|
|
Note: Non-GAAP measures should be considered in
addition to, and not as a substitute for, the results prepared in
accordance with GAAP. The Company believes that non-GAAP
information is useful because it can enhance the understanding of
its ongoing economic performance and therefore uses internally this
non-GAAP information to evaluate and manage its operations. The
Company has chosen to provide this information to investors to
enable them to perform comparisons of operating results in a manner
similar to how the Company analyzes its operating results and
because many comparable companies report this type of
information.
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 26,496
|
|
$ 18,867
|
|
$ 8,263
|
|
$ 6,964
|
|
Adjustments required
to reconcile net income to net
cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,746
|
|
1,681
|
|
588
|
|
562
|
|
Amortization of
marketable securities premiums and
accretion of discounts,
net
|
|
1,241
|
|
38
|
|
500
|
|
38
|
|
Increase (decrease)
in accrued severance pay, net
|
|
(708)
|
|
423
|
|
284
|
|
(201)
|
|
Share-based
compensation expenses
|
|
9,827
|
|
5,573
|
|
3,474
|
|
2,097
|
|
Decrease in deferred
tax assets, net
|
|
2,729
|
|
7,637
|
|
1,082
|
|
4,510
|
|
Increase in accrued
interest and exchange rate effect of
loans, marketable securities and
bank deposits
|
|
(31)
|
|
(19)
|
|
(54)
|
|
(20)
|
|
Decrease in operating
lease right-of-use assets
|
|
5,705
|
|
5,720
|
|
1,843
|
|
1,822
|
|
Decrease in operating
lease liabilities
|
|
(8,245)
|
|
(7,506)
|
|
(3,638)
|
|
(3,322)
|
|
Changes in IIA
settlement liability, net
|
|
176
|
|
271
|
|
235
|
|
210
|
|
Increase in trade
receivables, net
|
|
(5,752)
|
|
(3,653)
|
|
(3,267)
|
|
(1,010)
|
|
Increase in other
receivables and prepaid expenses
|
|
(960)
|
|
(1,749)
|
|
(1,757)
|
|
(1,732)
|
|
Decrease (increase)
in inventories
|
|
4,748
|
|
(2,454)
|
|
794
|
|
(1,046)
|
|
Increase (decrease)
in trade payables
|
|
(1,780)
|
|
(34)
|
|
2,588
|
|
1,983
|
|
Increase
(decrease) in other payables and accrued expenses
|
|
3,429
|
|
(304)
|
|
3,197
|
|
673))
|
|
Increase
(decrease) in deferred revenues
|
|
4,470
|
|
3,898
|
|
(1,119)
|
|
692
|
|
Net cash provided by
operating activities
|
|
43,091
|
|
28,389
|
|
13,013
|
|
10,874
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Investment in
short-term deposits
|
|
-
|
|
(84,000)
|
|
-
|
|
(84,000)
|
|
Proceeds from
short-term deposits
|
|
84,454
|
|
674
|
|
151
|
|
223
|
|
Proceeds from
long-term deposits
|
|
-
|
|
225
|
|
-
|
|
75
|
|
Proceeds from
redemption of marketable securities
|
|
1,053
|
|
-
|
|
-
|
|
-
|
|
Purchase of
marketable securities
|
|
(41,094)
|
|
(27,664)
|
|
(23,569)
|
|
(27,664)
|
|
Proceeds from sale of
marketable securities
|
|
2,571
|
|
-
|
|
2,061
|
|
-
|
|
Purchase of property
and equipment
|
|
(943)
|
|
(1,112)
|
|
(527)
|
|
(471)
|
|
Net cash provided by
(used in) investing activities
|
|
46,041
|
|
(111,877)
|
|
(21,884)
|
|
(111,837)
|
|
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD.
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Purchase of treasury
shares
|
|
(31,199)
|
|
-
|
|
(13,848)
|
|
-
|
Repayment of bank
loans
|
|
(900)
|
|
(1,865)
|
|
(300)
|
|
(627)
|
Cash dividends paid
to shareholders
|
|
(10,865)
|
|
(7,587)
|
|
(5,563)
|
|
(3,721)
|
Proceeds from
issuance of shares, net
|
|
-
|
|
85,426
|
|
-
|
|
(228)
|
Proceeds from
issuance of shares upon exercise of options and warrants
|
|
1,346
|
|
1,376
|
|
609
|
|
325
|
Net cash provided by
(used in) financing activities
|
|
(41,618)
|
|
77,350
|
|
(19,102)
|
|
(4,251)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
47,514
|
|
(6,138)
|
|
(27,973)
|
|
(105,214)
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
46,034
|
|
69,773
|
|
121,521
|
|
168,849
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$ 93,548
|
|
$ 63,635
|
|
$ 93,548
|
|
$ 63,635
|
Company
Contacts
|
|
|
Niran Baruch,
Chief Financial Officer
AudioCodes
Tel:
+972-3-976-4000
niran.baruch@audiocodes.com
|
|
Roger L.
Chuchen
VP, Investor
Relations
AudioCodes
Tel:
732-764-2552
Mobile:
347-752-0780
roger.chuchen@audiocodes.com
|
View original
content:https://www.prnewswire.com/news-releases/audiocodes-reports-third-quarter-2021-results-301408304.html
SOURCE AudioCodes