The share price of AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) plummeted in early trading on Nasdaq, despite a good first quarter financial report.
Revenue rose 11.4% to $36 million for the first quarter from $32.3 million for the corresponding quarter of 2013. GAAP-based net loss was $278,000 ($0.01 per share for the first quarter, compared with a net profit of $71,000 for the corresponding quarter, and non-GAAP net profit rose to $1.1 million ($0.03 per share) from $691,000.
Nonetheless, the share price fell 18% in early trading on Nasdaq today to $5.31, giving a market cap of $200 million. The share price fell 15% on the TASE to NIS 18.88.
Cash flow from operations was $1.9 million during the first quarter, and the company's cash and cash equivalents rose to $94 million at the end March from $62.3 million at the end of 2013, mainly because of $29.7 million in net proceeds from its secondary offering.
"We strengthened our balance sheet, but there's nothing concrete on the agenda," said AudioCodes president and CEO Shabtai Adlersberg. "Our industry is a jungle where animals are hunting and hunted, and we're a strong company that will produce and grow. That's why the offering was so important. We're definitely examining acquisitions."
Audiocodes reaffirmed its full-year guidance of $147-152 million revenue and earnings per share of $0.18-0.22 (about $8.4 million).
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2014
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