Israeli advanced communications software company AudioCodes Ltd. (Nasdaq: AUDC; TASE:AUDC) has announced that it is laying off 8%-10% of its workforce, of which 6% will be leaving immediately. At the end of 2022, Audiocodes had 966 employees, including 491 in Israel, so between 77-97 employees will be leaving including 58 of them immediately. The company has increased its workforce by 193 over the past two years.
Audiocodes was founded by CEO Shabtai Adlersberg is traded on Nasdaq with a market cap of $323 million. Today the company published its first quarter 2023 results after previously publishing a profit warning.
Adlersberg said, ""Our first quarter financial results were impacted by the slowing global economy and rising uncertainties worldwide, which manifested in enterprise customers and partners slowing decision cycle on product purchases primarily in EMEA, coupled with North America service providers managing their inventory more tightly."
He added, "On a brighter side, we saw continued business momentum in the UCaaS and CCaaS markets. Leading growth in these areas were services, which have demonstrated growth of 10.8% year-over-year, with professional and managed services growing 11.8% year-over-year. Services business now represents 51.5% of our quarterly sales. With increased focus on moving to recurring business sales, our managed services business, Live and LiveCloud, ended the quarter at $35 million ARR, up over 60% year-over-year, with total contract value now over $110 million. We now expect Live to continue at above 50% growth rate throughout 2023, and we target ARR to reach between $46 to $50 million by the end of the year."
Revenue in the first quarter was $59.2 million, down 10.8% from the corresponding quarter of 2022. Non-GAAP net profit was $2.7 million, or $0.08 per diluted share, while there was a GAAP net loss of $182,000 compared with a net profit of $8.6 million in the corresponding quarter of 2022.
The company's share price has fallen 77% since its peak in July 2020.
Published by Globes, Israel business news - en.globes.co.il - on May 9, 2023.
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