UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the Month of November 2023
Commission file number 0-30070
AUDIOCODES LTD.
(Translation of registrant’s name into English)
1 Hayarden Street • Airport City, Lod
7019900 • ISRAEL
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form
40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only
permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only
permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized
(the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities
are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the
registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
On November 2, 2023, AudioCodes
Ltd. (the “Registrant”) issued a press release announcing financial results for the third quarter of 2023
and other matters. A copy of this press release is attached hereto as Exhibit 1 and incorporated by reference herein.
The information set forth
in (a) the first, second, third and sixth paragraphs following the heading “Details,” the paragraphs following the
heading “Share Buy Back Program and Cash Dividend,” and (b) the condensed consolidated balance sheets, condensed consolidated
statements of operations and condensed consolidated statements of cash flows contained in the press release attached as Exhibit 1 to this
Report on Form 6-K are hereby incorporated by reference into (i) the Registrant’s Registration Statement on Form F-3ASR, File No.
333-238867; (ii) the Registrant’s Registration Statement on Form S-8, File No. 333-11894; (iii) the Registrant’s Registration
Statement on Form S-8, File No. 333-13268; (iv) the Registrant’s Registration Statement on Form S-8, File No. 333-105473; (v) the
Registrant’s Registration Statement on Form S-8, File No. 333-144825; (vi) the Registrant’s Registration Statement on Form
S-8, File No. 333-160330; (vii) the Registrant’s Registration Statement on Form S-8, File No. 333-170676; (viii) the Registrant’s
Registration Statement on Form S-8, File No. 333-190437; (ix) the Registrant’s Registration Statement on Form S-8, File No. 333-210438;
(x) the Registrant’s Registration Statement on Form S-8, File No. 333-230388; and (xi) the Registrant’s Registration Statement
on Form S-8, File No. 333-264535.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
AUDIOCODES LTD. |
| |
(Registrant) |
| |
|
| |
By: |
/s/ NIRAN BARUCH |
| |
|
Niran Baruch |
| |
|
Vice President Finance and Chief Financial Officer |
| |
|
| Dated: November 2, 2023 |
|
EXHIBIT INDEX
Exhibit 1
 |
|
AudioCodes
Press Release
|
| 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
roger.chuchen@audiocodes.com |
AudioCodes Reports Third Quarter
2023 Results
Lod, Israel – November 2, 2023 - AudioCodes
(NASDAQ: AUDC) Press Release
Third Quarter Highlights
| · | Quarterly revenues increased by 2.6% sequentially
to $61.6 million. |
| · | Quarterly Service revenues of $30.6 million accounted
for 49.6% of revenues |
| o | Quarterly GAAP gross margin was 66.5% compared to 64.1% in the prior quarter; |
| o | Quarterly GAAP operating margin was 9.4% compared to 3.8% in the prior quarter; and |
| o | Quarterly GAAP net income was $4.3 million, or $0.14 per diluted share compared to $1.1 million, or $0.03
per diluted share, in the prior quarter. |
| o | Quarterly Non-GAAP gross margin was 67.3% compared to 64.5% in the prior quarter; |
| o | Quarterly Non-GAAP operating margin was 15.5% compared to 9.5% in the prior |
quarter; and
| o | Quarterly Non-GAAP net income was $8.3 million, or $0.25 per diluted share, compared to $5.1 million, or
$0.16 per diluted share in the prior quarter. |
| · | Net cash provided by operating activities was
$0.2 million for the quarter. |
| · | AudioCodes declared a cash dividend of 18 cents
per share. The dividend, in the aggregate amount of $5.7 million, was paid on August 31, 2023 to shareholders of record on August 17,
2023. |
| · | AudioCodes repurchased 880,457 of its ordinary
shares during the quarter at an aggregate cost of $9.0 million. |
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AudioCodes Reports Third Quarter 2023 Results
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Page 1 of 10 |
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AudioCodes
Press Release
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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, 2023.
Revenues for the third quarter of 2023 were $61.6
million compared to $60.0 million for the second quarter of 2023 and $69.7 million for the third quarter of 2022.
Net
income was $4.3 million, or $0.14 per diluted share, for the third quarter of 2023 compared to $1.1 million, or $0.03 per diluted
share, for the second quarter of 2023 and $5.4 million, or $0.17 per diluted share, for the third quarter of 2022.
On
a Non-GAAP basis, net income was $8.3 million, or $0.25 per diluted share, for the third quarter of 2023 compared to $5.1 million,
or $0.16 per diluted share, for the second quarter of 2023 and $10.5 million, or $0.32 per diluted share, for the third quarter of 2022.
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; (vi) non-cash deferred tax expenses (income);
and (vii) non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the
lease for the Company’s new headquarters. 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 $0.2 million for the third quarter of 2023. Cash and cash equivalents, long and short-term
bank deposits, long and short-term marketable securities and long and short-term financial investments were $102.5 million as of September
30, 2023 compared to $124.3 million as of December 31, 2022. 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
each of the first and third quarters of 2023.
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AudioCodes Reports Third Quarter 2023 Results
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Page 2 of 10 |
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AudioCodes
Press Release
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“I am pleased to report solid third quarter
2023 results with improved growth in strategic areas of our business,” said Shabtai Adlersberg, President and Chief Executive Officer
of AudioCodes.
We continued to perform well in our enterprise
business, now reaching a record 90% of the company revenues. Microsoft-related business in the quarter grew 13% year-over-year, with Microsoft
Teams business up 21% year over year. We experienced continued strong momentum of our AudioCodes Live managed services, with ARR
growing over 50% year-over-year ending the quarter at $43 million, which means we are on track to achieve our target of $46- $50 million
in 2023, representing approximately 50% year-over-year growth.
Additionally, customer experience (CX) performance
improved to 13% year-over-year growth in the quarter and conversational AI business bookings grew over 50% year-over-year. Our investments
in product innovation in conversational AI are paying off and have successfully positioned our CX segment for faster sustainable top-line
growth. Since the announcement of Microsoft Teams certification of Voca CIC, our lightweight AI-first Teams CCaaS platform, we have
seen a step-up in customer interest and engagement. The success with our CCaaS offering is having a pull-through effect on the rest
of our conversational AI portfolio, in particular in our Generative AI powered recording services. We now see rising interest and progress
made with our Meeting Insights workflow productivity application and SmartTAP compliance recording.
This strong performance in strategic areas of
our business coupled with the flow-through impact of previously announced initiatives in cost savings drove significant sequential operating
margin improvement in the quarter.
Despite the tragic events in Israel over the past
three weeks, our global business has continued to operate without material disruptions due to our diverse global presence, lessons learned
during the Covid pandemic, and thanks to the commitment and dedication of our employees and partners across the world. Moreover,
the aforementioned positive business developments, backed by leading indicators such as pipeline remaining robust, give us increasing
confidence in our previously stated commitment to return to top-line growth with meaningful margin expansion in 2024 and beyond,”
concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
In
June 2023, the Company received court approval in Israel to purchase up to an aggregate amount of $25 million of additional ordinary
shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through
December 27, 2023.
On August 1, 2023, the Company declared a cash
dividend of 18 cents per share. The dividend, in the aggregate amount of approximately $5.7 million, was paid on August 31, 2023 to all
of the Company's shareholders of record on August 17, 2023.
During the quarter ended September 30, 2023,
the Company acquired 880,457 of its ordinary shares under its share repurchase program for a total consideration of $9.0 million.
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AudioCodes Reports Third Quarter 2023 Results
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Page 3 of 10 |
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AudioCodes
Press Release
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As of September 30, 2023, the Company had $10.0
million available under the approval for the repurchase of shares and/or declaration of cash dividends.
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 2023 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.
Third
quarter of 2023 earnings call supplementary slides will be available during our third quarter 2023 earnings call 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.
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AudioCodes Reports Third Quarter 2023 Results
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Page 4 of 10 |
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AudioCodes
Press Release
|
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; the effects of the current terrorist attacks by Hamas in Israel, and the war and hostilities between Israel
and Hamas, and Israel and Hezbollah as well as the possibility that this could develop into a broader regional conflict involving Israel
with other parties, may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations
by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel;
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.
©2023 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 is 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
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AudioCodes Reports Third Quarter 2023 Results
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Page 5 of 10 |
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AudioCodes
Press Release
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AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| | |
September 30, | | |
December 31, | |
| | |
2023 | | |
2022 | |
| | |
(Unaudited) | | |
(Audited) | |
| ASSETS | |
| | | |
| | |
| | |
| | | |
| | |
| CURRENT ASSETS: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 27,679 | | |
$ | 24,535 | |
| Short-term and restricted bank deposits | |
| 202 | | |
| 5,210 | |
| Short-term marketable securities | |
| 4,042 | | |
| 2,120 | |
| Short-term financial investments | |
| - | | |
| 15,258 | |
| Trade receivables, net | |
| 49,636 | | |
| 56,424 | |
| Other receivables and prepaid expenses | |
| 8,434 | | |
| 10,006 | |
| Inventories | |
| 44,829 | | |
| 36,377 | |
| Total current assets | |
| 134,822 | | |
| 149,930 | |
| | |
| | | |
| | |
| LONG-TERM ASSETS: | |
| | | |
| | |
| Long-term Trade receivables | |
$ | 15,242 | | |
$ | 13,099 | |
| Long-term marketable securities | |
| 67,727 | | |
| 75,946 | |
| Long-term financial investments | |
| 2,826 | | |
| 1,242 | |
| Deferred tax assets | |
| 7,808 | | |
| 9,073 | |
| Operating lease right-of-use assets | |
| 37,940 | | |
| 13,517 | |
| Severance pay funds | |
| 16,548 | | |
| 17,933 | |
| Total long-term assets | |
| 148,091 | | |
| 130,810 | |
| | |
| | | |
| | |
| PROPERTY AND EQUIPMENT, NET | |
| 7,859 | | |
| 3,965 | |
| | |
| | | |
| | |
| GOODWILL, INTANGIBLE ASSETS AND OTHER, NET | |
| 38,714 | | |
| 39,126 | |
| | |
| | | |
| | |
| Total assets | |
$ | 329,486 | | |
$ | 323,831 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| CURRENT LIABILITIES: | |
| | | |
| | |
| Trade payables | |
$ | 6,638 | | |
| 11,338 | |
| Other payables and accrued expenses | |
| 35,058 | | |
| 38,316 | |
| Deferred revenues | |
| 38,799 | | |
| 36,634 | |
| Short-term operating lease liabilities | |
| 6,428 | | |
| 8,169 | |
| Total current liabilities | |
| 86,923 | | |
| 94,457 | |
| | |
| | | |
| | |
| LONG-TERM LIABILITIES: | |
| | | |
| | |
| Accrued severance pay | |
$ | 15,877 | | |
$ | 17,755 | |
| Deferred revenues and other liabilities | |
| 17,473 | | |
| 16,308 | |
| Long-term operating lease liabilities | |
| 29,992 | | |
| 5,551 | |
| Total long-term liabilities | |
| 63,342 | | |
| 39,614 | |
| | |
| | | |
| | |
| Total shareholders’ equity | |
| 179,221 | | |
| 189,760 | |
| Total liabilities and shareholders' equity | |
$ | 329,486 | | |
$ | 323,831 | |
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AudioCodes Reports Third Quarter 2023 Results
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Page 6 of 10 |
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AudioCodes
Press Release
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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, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Revenues: | |
| | | |
| | | |
| | | |
| | |
| Products | |
$ | 91,299 | | |
$ | 122,285 | | |
$ | 31,039 | | |
$ | 42,879 | |
| Services | |
| 89,525 | | |
| 82,152 | | |
| 30,552 | | |
| 26,841 | |
| Total Revenues | |
| 180,824 | | |
| 204,437 | | |
| 61,591 | | |
| 69,720 | |
| Cost of revenues: | |
| | | |
| | | |
| | | |
| | |
| Products | |
| 36,568 | | |
| 47,851 | | |
| 11,347 | | |
| 17,733 | |
| Services | |
| 28,299 | | |
| 23,966 | | |
| 9,307 | | |
| 8,237 | |
| Total Cost of revenues | |
| 64,867 | | |
| 71,817 | | |
| 20,654 | | |
| 25,970 | |
| Gross profit | |
| 115,957 | | |
| 132,620 | | |
| 40,937 | | |
| 43,750 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Research and development, net | |
| 43,363 | | |
| 44,752 | | |
| 13,960 | | |
| 14,811 | |
| Selling and marketing | |
| 52,747 | | |
| 52,035 | | |
| 17,221 | | |
| 17,663 | |
| General and administrative | |
| 12,657 | | |
| 12,850 | | |
| 3,977 | | |
| 4,267 | |
| Total operating expenses | |
| 108,767 | | |
| 109,637 | | |
| 35,158 | | |
| 36,741 | |
| Operating income | |
| 7,190 | | |
| 22,983 | | |
| 5,779 | | |
| 7,009 | |
| Financial income, net | |
| 1,688 | | |
| 2,195 | | |
| 492 | | |
| 344 | |
| Income before taxes on income | |
| 8,878 | | |
| 25,178 | | |
| 6,271 | | |
| 7,353 | |
| Taxes on income, net | |
| (3,753 | ) | |
| (4,261 | ) | |
| (2,019 | ) | |
| (1,980 | ) |
| Net income | |
$ | 5,125 | | |
$ | 20,917 | | |
$ | 4,252 | | |
$ | 5,373 | |
| Basic net earnings per share | |
$ | 0.16 | | |
$ | 0.66 | | |
$ | 0.14 | | |
$ | 0.17 | |
| Diluted net earnings per share | |
$ | 0.16 | | |
$ | 0.64 | | |
$ | 0.14 | | |
$ | 0.17 | |
| Weighted average number of shares used in computing basic net earnings per share (in thousands) | |
| 31,642 | | |
| 31,919 | | |
| 31,390 | | |
| 31,717 | |
| Weighted average number of shares used in computing diluted net earnings per share (in thousands) | |
| 31,807 | | |
| 32,619 | | |
| 31,374 | | |
| 32,256 | |
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AudioCodes Reports Third Quarter 2023 Results
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Page 7 of 10 |
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AudioCodes
Press Release
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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, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| GAAP net income | |
$ | 5,125 | | |
$ | 20,917 | | |
$ | 4,252 | | |
$ | 5,373 | |
| GAAP net earnings per share | |
$ | 0.16 | | |
$ | 0.64 | | |
$ | 0.14 | | |
$ | 0.17 | |
| Cost of revenues: | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation (1) | |
| 304 | | |
| 300 | | |
| 94 | | |
| 126 | |
| Amortization expenses (2) | |
| 379 | | |
| 570 | | |
| 122 | | |
| 190 | |
| Lease expenses (7) | |
| 322 | | |
| - | | |
| 322 | | |
| - | |
| | |
| 1,005 | | |
| 870 | | |
| 538 | | |
| 316 | |
| Research and development, net: | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation (1) | |
| 2,090 | | |
| 2,642 | | |
| 649 | | |
| 755 | |
| Deferred payments expense (3) | |
| 375 | | |
| 375 | | |
| 125 | | |
| 125 | |
| Lease expenses (7) | |
| 362 | | |
| - | | |
| 362 | | |
| - | |
| | |
| 2,827 | | |
| 3,017 | | |
| 1,136 | | |
| 880 | |
| Selling and marketing: | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation (1) | |
| 3,380 | | |
| 4,694 | | |
| 1,050 | | |
| 1,543 | |
| Amortization expenses (2) | |
| 33 | | |
| 33 | | |
| 11 | | |
| 11 | |
| Deferred payments expense (3) | |
| 375 | | |
| 375 | | |
| 125 | | |
| 125 | |
| Lease expenses (7) | |
| 40 | | |
| - | | |
| 40 | | |
| - | |
| | |
| 3,828 | | |
| 5,102 | | |
| 1,226 | | |
| 1,679 | |
| General and administrative: | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation (1) | |
| 3,242 | | |
| 3,734 | | |
| 814 | | |
| 1,212 | |
| Other Income (4) | |
| - | | |
| (1,093 | ) | |
| - | | |
| (283 | ) |
| Lease expenses (7) | |
| 80 | | |
| - | | |
| 80 | | |
| - | |
| | |
| 3,322 | | |
| 2,641 | | |
| 894 | | |
| 929 | |
| Financial expenses (income): | |
| | | |
| | | |
| | | |
| | |
| Exchange rate differences (5) | |
| (1,237 | ) | |
| (1,094 | ) | |
| (767 | ) | |
| 121 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income taxes: | |
| | | |
| | | |
| | | |
| | |
| Deferred tax (6) | |
| 1,247 | | |
| 1,576 | | |
| 1,023 | | |
| 1,223 | |
| Non-GAAP net income | |
$ | 16,117 | | |
$ | 33,029 | | |
$ | 8,302 | | |
$ | 10,521 | |
| Non-GAAP diluted net earnings per share | |
$ | 0.49 | | |
$ | 0.99 | | |
$ | 0.25 | | |
$ | 0.32 | |
| Weighted average number of shares used in computing Non-GAAP diluted net earnings per share (in thousands) | |
| 32,870 | | |
| 33,449 | | |
| 32,576 | | |
| 33,231 | |
| (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. |
| (7) | Non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease
for the Company’s new headquarters. |
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 Reports Third Quarter 2023 Results
|
|
Page 8 of 10 |
| |
|
AudioCodes
Press Release
|
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, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Cash flows from operating activities: | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 5,125 | | |
$ | 20,917 | | |
$ | 4,252 | | |
$ | 5,373 | |
| Adjustments required to reconcile net income to net cash provided by operating activities: | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 1,972 | | |
| 2,261 | | |
| 652 | | |
| 797 | |
| Amortization of marketable securities premiums and accretion of discounts, net | |
| 1,027 | | |
| 1,155 | | |
| 315 | | |
| 362 | |
| Increase (decrease) in accrued severance pay, net | |
| (493 | ) | |
| (332 | ) | |
| (221 | ) | |
| 265 | |
| Share-based compensation expenses | |
| 9,016 | | |
| 11,370 | | |
| 2,607 | | |
| 3,636 | |
| Decrease in deferred tax assets, net | |
| 1,164 | | |
| 1,424 | | |
| 996 | | |
| 1,187 | |
| Cash financial loss (income), net | |
| (397 | ) | |
| (728 | ) | |
| (65 | ) | |
| (400 | ) |
| Decrease in operating lease right-of-use assets | |
| 6,688 | | |
| 4,639 | | |
| 2,406 | | |
| 1,497 | |
| Decrease in operating lease liabilities | |
| (8,411 | ) | |
| (9,258 | ) | |
| (4,056 | ) | |
| (3,029 | ) |
| Decrease (increase) in trade receivables, net | |
| 4,645 | | |
| (12,487 | ) | |
| (2,294 | ) | |
| (5,114 | ) |
| Decrease (increase) in other receivables and prepaid expenses | |
| 1,572 | | |
| (1,344 | ) | |
| (339 | ) | |
| (124 | ) |
| Decrease (increase) in inventories | |
| (8,605 | ) | |
| (8,048 | ) | |
| 907 | | |
| (4,198 | ) |
| Increase (decrease) in trade payables | |
| (4,700 | ) | |
| 4,639 | | |
| (482 | ) | |
| 5,064 | |
| Increase (decrease) in other payables and accrued expenses | |
| (6,414 | ) | |
| (6,203 | ) | |
| (1,480 | ) | |
| (1,404 | ) |
| Increase (decrease) in deferred revenues | |
| 3,423 | | |
| (147 | ) | |
| (3,020 | ) | |
| (1,810 | ) |
| Net cash provided by operating activities | |
| 5,612 | | |
| 7,858 | | |
| 178 | | |
| 2,102 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cash flows from investing activities: | |
| | | |
| | | |
| | | |
| | |
| Investment in short-term deposits | |
| - | | |
| (5,000 | ) | |
| - | | |
| - | |
| Proceeds from short-term deposits | |
| 5,008 | | |
| 15 | | |
| 2 | | |
| 2 | |
| Proceeds from long-term deposits | |
| - | | |
| 94 | | |
| - | | |
| 94 | |
| Proceeds of marketable securities | |
| 3,846 | | |
| - | | |
| 3,846 | | |
| - | |
| Proceeds from redemption of marketable securities | |
| 3,084 | | |
| 1,123 | | |
| 1,084 | | |
| - | |
| Proceeds from redemption of financial investments | |
| 14,094 | | |
| - | | |
| 3,051 | | |
| - | |
| Purchase of financial investments | |
| (81 | ) | |
| (16,210 | ) | |
| (81 | ) | |
| (540 | ) |
| Net cash paid in acquisition of subsidiary | |
| - | | |
| (100 | ) | |
| - | | |
| - | |
| Purchase of property and equipment | |
| (5,301 | ) | |
| (1,151 | ) | |
| (2,038 | ) | |
| (572 | ) |
| Net cash provided by (used in) investing activities | |
| 20,650 | | |
| (21,229 | ) | |
| 5,864 | | |
| (1,016 | ) |
| |
|
|
AudioCodes Reports Third Quarter 2023 Results
|
|
Page 9 of 10 |
| |
|
AudioCodes
Press Release
|
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, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Cash flows from financing activities: | |
| | | |
| | | |
| | | |
| | |
| Purchase of treasury shares | |
| (11,973 | ) | |
| (35,241 | ) | |
| (9,047 | ) | |
| (6,072 | ) |
| Cash dividends paid to shareholders | |
| (11,399 | ) | |
| (11,552 | ) | |
| (5,681 | ) | |
| (5,720 | ) |
| Proceeds from issuance of shares upon exercise of options | |
| 254 | | |
| 533 | | |
| 140 | | |
| 352 | |
| Net cash used in financing activities | |
| (23,118 | ) | |
| (46,260 | ) | |
| (14,588 | ) | |
| (11,440 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | |
| 3,144 | | |
| (59,631 | ) | |
| (8,546 | ) | |
| (10,354 | ) |
| Cash, cash equivalents and restricted cash at beginning of period | |
| 24,535 | | |
| 84,523 | | |
| 36,225 | | |
| 35,246 | |
| Cash, cash equivalents and restricted cash at end of period | |
$ | 27,679 | | |
$ | 24,892 | | |
$ | 27,679 | | |
$ | 24,892 | |
| |
|
|
AudioCodes Reports Third Quarter 2023 Results
|
|
Page 10 of 10 |
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