AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) swung to a loss on lower revenue for the first quarter of 2012, missing the analysts' forecasts, as legacy business fell faster than the company expected, and its new business has yet to pick up the slack.
Revenue fell to $32.3 million for the first quarter from $41 million for the corresponding quarter. GAAP-based net loss was $1.6 million ($0.04 per share) for the first quarter compared with a net profit $3 million for the corresponding quarter, and non-GAAP net loss was $827,000 ($0.02 per share) compared with a net profit of $4.1 million. The analysts' consensus was $0.01 earnings per share on $33.4 million revenue.
Cash flow from operations was $623,000 for the first quarter compared with $371,000 cash used in operations in the corresponding quarter. Cash and cash equivalents fell to $70.3 million at the end of March from $75.6 million at the end of 2011, but rose from $62 million a year earlier. AudioCodes obtained $23.8 million in new bank loans in the second half of last year.
"AudioCodes' first quarter revenues were below our original forecast and reflected a faster than anticipated decline in our legacy business, a trend we believe will become less significant in the second half of 2012," said AudioCodes chairman president and CEO Shabtai Adlersberg. "These lower revenues reflect weakness in sales in North America including a decline in legacy OEM business and lower than anticipated government and technology sales. Aside from these headwinds, we saw continued solid demand for our core networking business line which represents about 80% of our overall business."
Adlersberg added, "We continue to see good opportunities in unified communications, the contact center market and IP business communications services. In the first quarter of 2012, we continued to introduce innovative products and services into some of the fastest growing segments of the VoIP market, such as the Enterprise Session Border Controller (E-SBC) space where AudioCodes has seen good momentum in growing sales, and was recently ranked among the top three global public providers in a leading independent analysis. On the partner front, we continue to collaborate with market leaders such as Microsoft and their unified communications Lync solution to leverage the long-term opportunity we see in the market for communication and collaboration and networked telephony."
AudioCodes' share price rose 5.1% by mid-afternoon on the TASE to NIS 8.65, after rising 3.1% on Nasdaq yesterday to $2.30, giving a market cap of $95 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2012
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