VoIP solutions provider AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) widened its losses on lower revenue for the second quarter of 2012. Revenue fell to $31 million for the second quarter from $41.5 million for the corresponding quarter of 2011.
GAAP-based net loss was $2 million ($0.05 per share) for the second quarter, compared with a net loss of $1.6 million for the preceding quarter a net profit of $4 million for the corresponding quarter. Non-GAAP net loss widened to $1.4 million ($0.04 per share) for the second quarter from $827,000 for the preceding quarter, and compared with a net profit of $4.9 million for the corresponding quarter.
In October 2011, AudioCodes' board approved a share buyback plan for four million shares, 10% of its shares. The company bought back 750,000 shared during the second quarter for $1.6 million, bringing the total shares bought back to 2.6 million for total of $8.1 million.
Cash and cash equivalents, bank deposits and marketable securities fell to $60.7 million as of the end of June from $70.3 million at the end of March, but mode than the $56.5 million a year earlier. The decline in the cash balance during the quarter was mainly due to cash used for operating activities and the reduction in the company's accounts payable outstanding, as well as $2.5 million utilized for the repayment of loans and the buyback of shares. The net increase in the cash balance from the year before was partly due to new bank loans made to the company during the second half of 2011.
"AudioCodes' second quarter results reflect the challenges we're facing in 2012 as we balance the transition of our business from our legacy product lines towards new emerging products, solutions and services for the enterprise and service provider markets," said AudioCodes chairman, president and CEO Shabtai Adlersberg. "In order to enable renewed growth, we announced two weeks ago a restructuring plan to better align the company's resources and assets to our core networking business. The plan is expected to generate estimated annualized savings of approximately 10% of the company's operating expenses and to be implemented over the next six to nine months. We expect the initial steps already taken to reduce our operating expenses by approximately 5% below the current level of expenses as soon as the fourth quarter of this year. In addition, we have already started a full global review of our business line activities in order to support our plan to return to profitability and growth in 2013 and beyond."
AudioCodes's share price rose 0.2% in morning trading on the TASE to NIS 6.58, after falling 1.8% on Nasdaq yesterday to $1.67, giving a market cap of $67 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2012
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