LOD, Israel, Aug. 2, 2022
/PRNewswire/ --
Second Quarter Highlights
- Quarterly revenues increased by 12.9% year-over-year to
$68.4 million.
- Quarterly service revenues increased by 21.9% year-over-year to
$27.8 million.
- GAAP results:
- Quarterly GAAP gross margin was 65.1%;
- Quarterly GAAP operating margin was 11.6%; and
- Quarterly GAAP net income was $6.9
million, or $0.21 per diluted
share.
- Non-GAAP results:
- Quarterly Non-GAAP gross margin was 65.6%;
- Quarterly Non-GAAP operating margin was 17.4%; and
- Quarterly Non-GAAP net income was $11.3
million, or $0.34 per diluted
share.
- Net cash provided by operating activities was $4.8 million for the quarter.
- AudioCodes repurchased 374,479 of its ordinary shares during
the quarter at an aggregate cost of $8.3
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 second quarter ended June 30,
2022.
Revenues for the second quarter of 2022 were $68.4 million compared to $60.6 million for the second quarter of
2021.
Net income was $6.9 million, or
$0.21 per diluted share, for the
second quarter of 2022 compared to $8.2
million, or $0.24 per diluted
share, for the second quarter of 2021.
On a Non-GAAP basis, net income was $11.3
million, or $0.34 per diluted
share, for the second quarter of 2022 compared to $12.7 million, or $0.37 per diluted share, for the second quarter
of 2021.
Non-GAAP net income excludes: (i) share-based compensation
expenses; (ii) amortization expenses related to intangible
assets; (iii) expenses related to deferred payments in
connection with the acquisition of Callverso Ltd; (iv) other income
related to a payment made by the landlord to AudioCodes Inc., a
subsidiary of the Company, in connection with the termination of a
lease agreement for its offices in New
Jersey; (v) financial income related to exchange rate
differences in connection with revaluation of assets and
liabilities in non-dollar denominated currencies; and (vi) non-cash
deferred tax expenses (income). 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 $4.8 million for the second quarter of 2022.
Cash and cash equivalents, long and short-term bank deposits,
long and short-term marketable securities and long and short-term
financial investments were $138.5
million as of June 30, 2022
compared to $174.8 million as of
December 31, 2021. The decrease in
cash and cash equivalents, long and short-term bank deposits, long
and short-term marketable securities and long and short-term
financial investments was the result of the use of cash for the
continued repurchasing of the Company's ordinary shares pursuant to
its share repurchase program and the payment of a cash dividend
during the first quarter of 2022.
"I am pleased to report solid financial results for the second
quarter of 2022, growing top line revenue 12.9% year-over-year,"
said Shabtai Adlersberg, President
and Chief Executive Officer of AudioCodes.
Overall, we experienced strong market demand for our
products and services as we continued to successfully execute on
key strategic priorities in the UCC and Customer Experience (CX)
markets and accelerated the transition to software products and
recurring subscription services.
Microsoft business as a whole grew above 20% year over year and
Zoom phone business grew more than 50%. AudioCodes Live for
Microsoft Teams managed services continued to grow and reached a
level of $24 million ARR, a 100%
growth over the year ago quarter. We on-boarded a number of
seven-figure Live projects in the second quarter, with the Total
Contract Value (TCV) for our Live projects exceeding $60 million in total.
In CX, we saw a nice rebound this quarter with the business up
more than 20%, propelled by the ongoing contact center digital
transformation to the cloud and healthy spending environment.
Services business continued to grow at a nice pace, up over 20%
year-over-year, driven primarily by professional services and
AudioCodes Live managed services, reaching a level of above 40% of
total company revenue.
Despite an uncertain macro environment, we are executing
according to plan and controlling our cost structure. As we see new
growth opportunities emerging in our core markets and capitalize on
our strong portfolio of technologies and solutions and our growing
F500 enterprise customer base, we are determined to increase our
investments in both R&D and our customer-facing talent. While
we continue to be impacted by supply chain disruptions, we believe
this is a short-term phenomenon that should alleviate in coming
quarters. Lastly, upsell of new voice.ai-related applications
continues to take shape, with attach rates improving, and we have a
number of exciting products and partnerships launching in the
second half of the year," concluded Mr. Adlersberg.
Share Buy Back Program
During the quarter ended June 30,
2022, the Company acquired 374,479 of its ordinary shares
under its share repurchase program for a total consideration of
$8.3 million.
In June 2022, 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 December 12, 2022.
As of June 30, 2022, the Company
had $35 million available under this
approval for the repurchase of shares and/or declaration of cash
dividends.
Cash Dividend
AudioCodes also announced today that the Company's Board of
Directors has declared a cash dividend in the amount of
18 cents per share. The aggregate
amount of the dividend is approximately $5.7
million. The dividend is payable on August 31, 2022, to all of the Company's
shareholders of record at the close of trading on the NASDAQ Global
Select Market on August 17,
2022.
In accordance with Israeli tax law, the dividend is subject to
withholding tax at the 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%.
The dividend will be paid in U.S. dollars on the ordinary shares
of AudioCodes Ltd. that are traded on the Nasdaq Global Select
Market or the Tel-Aviv Stock Exchange. The amount and timing of any
other dividends will be determined by the Board.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the
Company's second quarter of 2022 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
Second quarter of 2022 earnings call supplementary slides are
available at 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.
©2022 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
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 35,246
|
|
$ 79,423
|
Restricted
cash
|
-
|
|
5,100
|
Short-term and
restricted bank deposits
|
5,207
|
|
220
|
Short-term marketable
securities and accrued interest
|
1,658
|
|
669
|
Short-term
financial investments
|
15,730
|
|
-
|
Trade receivables,
net
|
45,928
|
|
48,956
|
Other receivables and
prepaid expenses
|
9,605
|
|
9,197
|
Inventories
|
27,709
|
|
23,988
|
Total current
assets
|
141,083
|
|
167,553
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
Long-term and
restricted bank deposits
|
$ 94
|
|
$ 94
|
Long-term Trade
receivables
|
10,401
|
|
-
|
Long-term marketable
securities and accrued interest
|
80,318
|
|
89,307
|
Long-term financial
investments
|
270
|
|
-
|
Deferred tax
assets
|
10,632
|
|
8,905
|
Operating lease
right-of-use assets
|
16,130
|
|
16,457
|
Severance pay
funds
|
18,668
|
|
22,724
|
Total long-term
assets
|
136,513
|
|
137,487
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
4,040
|
|
4,394
|
|
|
|
|
GOODWILL, INTANGIBLE
ASSETS AND OTHER, NET
|
39,528
|
|
39,930
|
|
|
|
|
Total assets
|
$ 321,164
|
|
$ 349,364
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Trade
payables
|
$ 7,438
|
|
$ 7,863
|
Other payables and
accrued expenses
|
39,839
|
|
38,350
|
Deferred
revenues
|
40,984
|
|
41,591
|
Short-term operating
lease liabilities
|
7,370
|
|
8,139
|
Total current
liabilities
|
95,631
|
|
95,943
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Accrued severance
pay
|
$ 18,242
|
|
$ 22,895
|
Deferred revenues and
other liabilities
|
15,732
|
|
13,637
|
Long-term operating
lease liabilities
|
8,746
|
|
11,391
|
Total long-term
liabilities
|
42,720
|
|
47,923
|
|
|
|
|
Total shareholders'
equity
|
182,813
|
|
205,498
|
Total liabilities and
shareholders' equity
|
$ 321,164
|
|
$ 349,364
|
AUDIOCODES LTD. AND
ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands, except per share data
|
|
|
Six months
ended
|
|
Three months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
$ 79,406
|
|
$ 74,813
|
|
$ 40,586
|
|
$ 37,792
|
Services
|
55,311
|
|
44,600
|
|
27,774
|
|
22,783
|
Total
Revenues
|
134,717
|
|
119,413
|
|
68,360
|
|
60,575
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
30,118
|
|
26,970
|
|
15,843
|
|
13,434
|
Services
|
15,729
|
|
10,112
|
|
8,007
|
|
5,081
|
Total Cost of
revenues
|
45,847
|
|
37,082
|
|
23,850
|
|
18,515
|
Gross profit
|
88,870
|
|
82,331
|
|
44,510
|
|
42,060
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
29,941
|
|
24,772
|
|
14,959
|
|
12,725
|
Selling and
marketing
|
34,372
|
|
29,679
|
|
17,084
|
|
15,203
|
General and
administrative
|
8,583
|
|
7,625
|
|
4,545
|
|
4,000
|
Total operating
expenses
|
72,896
|
|
62,076
|
|
36,588
|
|
31,928
|
Operating
income
|
15,974
|
|
20,255
|
|
7,922
|
|
10,132
|
Financial income
(expenses), net
|
1,851
|
|
996
|
|
841
|
|
(582)
|
Income before taxes on
income
|
17,825
|
|
21,251
|
|
8,763
|
|
9,550
|
Taxes on income,
net
|
(2,281)
|
|
(3,018)
|
|
(1,827)
|
|
(1,310)
|
Net income
|
$ 15,544
|
|
$ 18,233
|
|
$ 6,936
|
|
$ 8,240
|
Basic net earnings per
share
|
$ 0.49
|
|
$ 0.55
|
|
$ 0.22
|
|
$ 0.25
|
Diluted net earnings
per share
|
$ 0.47
|
|
$ 0.53
|
|
$ 0.21
|
|
$ 0.24
|
Weighted average number
of shares used in computing
basic net earnings per share (in thousands)
|
32,019
|
|
32,875
|
|
31,809
|
|
32,745
|
Weighted average number
of shares used in computing
diluted net earnings per share (in thousands)
|
32,800
|
|
34,086
|
|
32,518
|
|
33,972
|
AUDIOCODES LTD. AND
ITS SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP NET INCOME
|
U.S. dollars in
thousands, except per share data
|
|
|
Six months
ended
|
|
Three months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
GAAP net
income
|
$ 15,544
|
|
$ 18,233
|
|
$ 6,936
|
|
$ 8,240
|
GAAP net earnings per
share
|
$ 0.47
|
|
$ 0.53
|
|
$ 0.21
|
|
$ 0.24
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
174
|
|
154
|
|
125
|
|
78
|
Amortization expenses
(2)
|
380
|
|
136
|
|
190
|
|
68
|
|
554
|
|
290
|
|
315
|
|
146
|
Research and
development, net:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
1,887
|
|
1,242
|
|
728
|
|
665
|
Deferred payments
expenses (3)
|
250
|
|
-
|
|
125
|
|
-
|
|
2,137
|
|
1,242
|
|
853
|
|
665
|
Selling and
marketing:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
3,151
|
|
2,845
|
|
1,712
|
|
1,545
|
Amortization expenses
(2)
|
22
|
|
8
|
|
11
|
|
2
|
Deferred payments
expenses (3)
|
250
|
|
-
|
|
125
|
|
-
|
|
3,423
|
|
2,853
|
|
1,848
|
|
1,547
|
General and
administrative:
|
|
|
|
|
|
|
|
Share-based
compensation (1)
|
2,522
|
|
2,112
|
|
1,354
|
|
1,078
|
Other Income
(4)
|
(810)
|
|
-
|
|
(405)
|
|
-
|
|
1,712
|
|
2,112
|
|
949
|
|
1,078
|
Financial expenses
(income):
|
|
|
|
|
|
|
|
Exchange rate
differences (5)
|
)1,215(
|
|
(982)
|
|
(495)
|
|
548
|
|
|
|
|
|
|
|
|
Income
taxes:
|
|
|
|
|
|
|
|
Deferred tax
(6)
|
353
|
|
1,669
|
|
940
|
|
450
|
Non-GAAP net
income
|
$ 22,508
|
|
$ 25,417
|
|
$ 11,346
|
|
$ 12,674
|
Non-GAAP diluted net
earnings per share
|
$ 0.67
|
|
$ 0.73
|
|
$ 0.34
|
|
$ 0.37
|
Weighted average number
of shares used in computing
Non-GAAP diluted net earnings per share (in thousands)
|
33,558
|
|
34,587
|
|
33,332
|
|
34,464
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation expenses related to options
and restricted share units granted to employees and others.
(2) Amortization expenses related to intangible
assets.
(3) Expenses related to deferred payments in connection
with the acquisition of Callverso Ltd.
(4) Other income related to a payment made to AudioCodes
Inc. in connection with the termination of a lease agreement for
its offices in New Jersey.
(5) Financial income or expenses related to exchange rate
differences in connection with revaluation of assets and
liabilities in non-dollar denominated currencies.
(6) Non-cash deferred tax expense.
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
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 15,544
|
|
$ 18,233
|
|
$ 6,936
|
|
$ 8,240
|
Adjustments required to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,464
|
|
1,158
|
|
722
|
|
599
|
Amortization of
marketable securities premiums and accretion of discounts,
net
|
|
793
|
|
741
|
|
433
|
|
612
|
Increase (decrease) in
accrued severance pay, net
|
|
(597)
|
|
(992)
|
|
91
|
|
(692)
|
Share-based
compensation expenses
|
|
7,734
|
|
6,353
|
|
3,919
|
|
3,366
|
Decrease in deferred
tax assets, net
|
|
237
|
|
1,647
|
|
887
|
|
440
|
Increase in accrued
interest and exchange rate effect of
loans, marketable securities and bank deposits
|
|
2
|
|
23
|
|
83
|
|
92
|
Gain derived from
financial investments
|
|
(330)
|
|
-
|
|
(261)
|
|
-
|
Decrease in operating
lease right-of-use assets
|
|
3,142
|
|
3,862
|
|
1,792
|
|
2,083
|
Decrease in operating
lease liabilities
|
|
(6,229)
|
|
(4,607)
|
|
(2,023)
|
|
(120)
|
Changes in IIA
settlement liability, net
|
|
-
|
|
(59)
|
|
-
|
|
330
|
Increase in trade
receivables, net
|
|
(7,373)
|
|
(2,485)
|
|
(6,199)
|
|
(813)
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
(1,220)
|
|
797
|
|
(87)
|
|
(45)
|
Decrease (increase) in
inventories
|
|
(3,850)
|
|
3,954
|
|
(2,437)
|
|
2,928
|
Increase (decrease) in
trade payables
|
|
(425)
|
|
(4,368)
|
|
1,421
|
|
(3,836)
|
Increase (decrease) in
other payables and accrued expenses
|
|
(4,799)
|
|
232
|
|
403
|
|
2,941
|
Increase
(decrease) in deferred
revenues
|
|
1,663
|
|
5,589
|
|
(862)
|
|
933
|
Net cash provided by
operating activities
|
|
5,756
|
|
30,078
|
|
4,818
|
|
17,058
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds (investment)
from short-term deposits,
net
|
|
(4,987)
|
|
84,303
|
|
10
|
|
147
|
Proceeds from
redemption of marketable securities
|
|
1,123
|
|
1,053
|
|
1,123
|
|
1,053
|
Purchase of marketable
securities
|
|
-
|
|
(17,525)
|
|
-
|
|
(3,211)
|
Proceeds from sale of
marketable securities
|
|
-
|
|
510
|
|
-
|
|
510
|
Purchase of financial
investments
|
|
(15,670)
|
|
-
|
|
(270)
|
|
-
|
Net cash paid in
acquisition of subsidiary
|
|
(100)
|
|
-
|
|
-
|
|
-
|
Purchase of property
and equipment
|
|
(579)
|
|
(416)
|
|
(289)
|
|
(313)
|
Net cash provided by
(used in) investing activities
|
|
(20,213)
|
|
67,925
|
|
574
|
|
(1,814)
|
|
|
|
|
|
|
|
|
|
AUDIOCODES LTD. AND
ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Purchase of treasury
shares
|
|
(29,169)
|
|
(17,351)
|
|
(8,300)
|
|
(7,096)
|
Repayment of bank
loans
|
|
-
|
|
(600)
|
|
-
|
|
(300)
|
Cash dividends paid to
shareholders
|
|
(5,832)
|
|
(5,302)
|
|
-
|
|
-
|
Proceeds from issuance
of shares upon exercise of options and warrants
|
|
181
|
|
737
|
|
176
|
|
325
|
Net cash used in
financing activities
|
|
(34,820)
|
|
(22,516)
|
|
(8,124)
|
|
(7,071)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash
|
|
(49,277)
|
|
75,487
|
|
(2,732)
|
|
8,173
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
84,523
|
|
46,034
|
|
37,978
|
|
113,348
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$ 35,246
|
|
$ 121,521
|
|
$ 35,246
|
|
$ 121,521
|
|
|
Company
Contacts
|
|
|
|
|
Niran
Baruch,
|
Roger L.
Chuchen
|
Chief Financial
Officer
|
VP, Investor
Relations
|
AudioCodes
|
AudioCodes
|
Tel:
+972-3-976-4000
|
Tel:
732-764-2552
|
niran.baruch@audiocodes.com
|
Mobile:
347-752-0780
|
|
roger.chuchen@audiocodes.com
|
|
|
View original
content:https://www.prnewswire.com/news-releases/audiocodes-reports-second-quarter-2022-results-and-declares-semi-annual-dividend-of-18-cents-per-share-301597586.html
SOURCE AudioCodes