AudioCodes Reports First Quarter 2024 Results
LOD,
First Quarter Highlights
- Quarterly revenues increased by 1.5% year-over-year to
$60.1 million ; - Quarterly service revenues increased by 3.3% year-over-year to
$31.5 million ; - GAAP results:
- Quarterly GAAP gross margin was 64.4%;
- Quarterly GAAP operating margin was 5.5%;
- Quarterly GAAP net income was$2.1 million , or$0.07 per diluted share. - Non-GAAP results:
- Quarterly Non-GAAP gross margin was 65.2%;
- Quarterly Non-GAAP operating margin was 10.5%;
- Quarterly Non-GAAP net income was$5.2 million , or$0.17 per diluted share. - Net cash provided by operating activities was
$15.0 million for the quarter. -
AudioCodes 18 cents per share. The dividend, in the aggregate amount of$5.5 million , was paid onMarch 6, 2024 to shareholders of record onFebruary 20, 2024 . -
AudioCodes $3.6 million .
Details
Revenues for the first quarter of 2024 were
Net income was
On a Non-GAAP basis, net income was
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
Net cash provided by operating activities was
"Our first quarter 2024 results were highlighted by healthy revenue growth of 1.5% year-over-year and progress made in strategic areas for our business", said
Growth in key business lines for our future continued as planned. Microsoft business grew 8% year-over-year, with steady increase in the Live managed services, which grew 45% year-over-year, and have reached ARR of
On the financial front, we enjoyed strong positive cash flow from operations in the quarter. To support further margin expansion, we have recently initiated the second phase of cost rationalization plans discussed previously.
Overall, while we had a slower than expected start of revenue growth to the year due to the decline in gateways and muted business spending as a result of the elevated interest rate environment in 2024, we remain confident in our ability to sustain healthy top-line growth long-term while driving significant margin expansion in 2024 and beyond," concluded
Share Buy Back Program and Cash Dividend
In
On
During the quarter ended
As of
Conference Call & Web Cast Information
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
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Statements concerning
©2024
Summary financial data follows
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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March 31, |
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2024 |
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2023 |
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(Unaudited) |
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(Audited) |
ASSETS |
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CURRENT ASSETS: |
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|
|
Cash and cash equivalents |
|
|
|
Short-term and restricted bank deposits |
208 |
|
212 |
Short-term marketable securities |
15,322 |
|
7,438 |
Trade receivables, net |
48,977 |
|
51,125 |
Other receivables and prepaid expenses |
8,841 |
|
9,381 |
Inventories |
40,658 |
|
43,959 |
Total current assets |
144,416 |
|
142,661 |
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LONG-TERM ASSETS: |
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Long-term Trade receivables |
|
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Long-term marketable securities |
57,532 |
|
65,732 |
Long-term financial investments |
2,543 |
|
2,730 |
Deferred tax assets |
6,890 |
|
6,208 |
Operating lease right-of-use assets |
35,061 |
|
36,712 |
Severance pay funds |
17,219 |
|
17,202 |
Total long-term assets |
135,875 |
|
145,382 |
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PROPERTY AND EQUIPMENT, NET |
17,394 |
|
10,893 |
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|
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|
38,448 |
|
38,581 |
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Total assets |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
|
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Trade payables |
7,322 |
|
7,556 |
Other payables and accrued expenses |
28,460 |
|
29,943 |
Deferred revenues |
44,312 |
|
38,820 |
Short-term operating lease liabilities |
6,474 |
|
7,878 |
Total current liabilities |
86,568 |
|
84,197 |
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LONG-TERM LIABILITIES: |
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Accrued severance pay |
|
|
|
Deferred revenues and other liabilities |
17,929 |
|
17,142 |
Long-term operating lease liabilities |
31,435 |
|
31,404 |
Total long-term liabilities |
65,933 |
|
65,208 |
|
|
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Total shareholders' equity |
183,632 |
|
188,112 |
Total liabilities and shareholders' equity |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three months ended |
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2024 |
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2023 |
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(Unaudited) |
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Revenues: |
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Products |
|
|
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|
Services |
|
31,526 |
|
30,520 |
Total Revenues |
|
60,076 |
|
59,213 |
Cost of revenues: |
|
|
|
|
Products |
|
11,825 |
|
13,044 |
Services |
|
9,584 |
|
9,626 |
Total Cost of revenues |
|
21,409 |
|
22,670 |
Gross profit |
|
38,667 |
|
36,543 |
Operating expenses: |
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|
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Research and development, net |
|
13,933 |
|
15,009 |
Selling and marketing |
|
17,367 |
|
17,847 |
General and administrative |
|
4,086 |
|
4,531 |
Total operating expenses |
|
35,386 |
|
37,387 |
Operating income (loss) |
|
3,281 |
|
(844) |
Financial income, net |
|
23 |
|
949 |
Income before taxes on income |
|
3,304 |
|
105 |
Taxes on income, net |
|
(1,221) |
|
(287) |
Net income (loss) |
|
|
|
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Basic net earnings (loss) per share |
|
|
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Diluted net earnings (loss) per share |
|
|
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Weighted average number of shares used in computing basic net |
|
30,333 |
|
31,750 |
Weighted average number of shares used in computing diluted net |
|
30,793 |
|
32,148 |
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME |
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Three months ended |
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|
2024 |
|
2023 |
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(Unaudited) |
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GAAP net income (loss) |
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GAAP net earnings (loss) per share |
|
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Cost of revenues: |
|
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|
Share-based compensation (1) |
|
79 |
|
107 |
|
Amortization expenses (2) |
|
122 |
|
135 |
|
Lease expenses (6) |
|
304 |
|
- |
|
|
|
505 |
|
242 |
|
Research and development, net: |
|
|
|
|
|
Share-based compensation (1) |
|
592 |
|
743 |
|
Deferred payments expenses (3) |
|
- |
|
125 |
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Lease expenses (6) |
|
342 |
|
- |
|
|
|
934 |
|
868 |
|
Selling and marketing: |
|
|
|
|
|
Share-based compensation (1) |
|
723 |
|
1,237 |
|
Amortization expenses (2) |
|
11 |
|
11 |
|
Deferred payments expenses (3) |
|
- |
|
125 |
|
Lease expenses (6) |
|
38 |
|
- |
|
|
|
772 |
|
1,373 |
|
General and administrative: |
|
|
|
|
|
Share-based compensation (1) |
|
742 |
|
1,259 |
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Lease expenses (6) |
|
76 |
|
|
|
|
|
818 |
|
1,259 |
|
Financial expenses: |
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|
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Exchange rate differences (4) |
|
(364) |
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(541) |
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Income taxes: |
|
|
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Deferred tax (5) |
|
471 |
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(338) |
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Non-GAAP net income |
|
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|
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Non-GAAP diluted net earnings per share |
|
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Weighted average number of shares used in computing Non-GAAP |
|
31,570 |
|
33,056 |
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(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 (4) Financial expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. (5) Non-cash deferred tax expenses. (6) 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. |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
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Three months ended |
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2024 |
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2023 |
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(Unaudited) |
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Cash flows from operating activities: |
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Net income (loss) |
|
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Adjustments required to reconcile net income to net cash provided |
|
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Depreciation and amortization |
|
523 |
|
651 |
Amortization of marketable securities premiums and accretion of |
|
314 |
|
372 |
Increase (decrease) in accrued severance pay, net |
|
(110) |
|
16 |
Share-based compensation expenses |
|
2,136 |
|
3,346 |
Increase in deferred tax assets, net |
|
(786) |
|
(366) |
Cash financial loss (income), net |
|
85 |
|
(390) |
Decrease in operating lease right-of-use assets |
|
2,389 |
|
2,150 |
Decrease in operating lease liabilities |
|
(2,111) |
|
(3,537) |
Decrease in trade receivables, net |
|
2,316 |
|
6,511 |
Decrease in other receivables and prepaid expenses |
|
540 |
|
184 |
Decrease (increase) in inventories |
|
3,258 |
|
(5,766) |
Decrease in trade payables |
|
(234) |
|
(756) |
Decrease in other payables and accrued expenses |
|
(1,732) |
|
(4,065) |
Increase in deferred revenues |
|
6,310 |
|
5,060 |
Net cash provided by operating activities |
|
14,981 |
|
3,228 |
Cash flows from investing activities: |
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Proceeds from short-term deposits |
|
4 |
|
5,004 |
Proceeds from financial investment |
|
21 |
|
- |
Proceeds from redemption of marketable securities |
|
500 |
|
1,000 |
Proceeds from redemption of financial investments |
|
- |
|
2,749 |
Purchase of property and equipment |
|
(6,785) |
|
(1,316) |
Net cash provided by (used in) investing activities |
|
(6,260) |
|
7,437 |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
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Three months ended |
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2024 |
|
2023 |
|
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(Unaudited) |
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Cash flows from financing activities: |
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Purchase of treasury shares |
|
(3,584) |
|
- |
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Cash dividends paid to shareholders |
|
(5,453) |
|
(5,718) |
|
Proceeds from issuance of shares upon exercise of options |
|
180 |
|
96 |
|
Net cash used in financing activities |
|
(8,857) |
|
(5,622) |
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|
|
|
|
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Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(136) |
|
5,043 |
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Cash, cash equivalents and restricted cash at beginning of period |
|
30,546 |
|
24,535 |
|
Cash, cash equivalents and restricted cash at end of period |
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Company Contacts |
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Chief Financial Officer
Tel: +972-3-976-4000 |
|
VP, Investor Relations
Tel: 732-764-2552 |
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