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Enterprise SPC Provider Audiocodes Shows Continued Growth with Fourth Quarter Results
By Janice McDuffee, TMC Copy Editor
Revenues for the fourth quarter ending Dec. 31, 2010 were $40.5 million compared to $38.3 million for the third quarter of 2010 and $34.2 million for the fourth quarter of 2009. Revenues were $150.0 million in 2010 compared to $125.9 million in 2009.
"I am pleased to announce strong results for the fourth quarter and full year 2010," stated Shabtai Adlersberg, chairman of the board, president and CEO of AudioCodes (News - Alert). "This is the seventh consecutive quarter of improved performance and momentum gain in our networking business. Year-over-year, revenues grew 19 percent and proforma net income grew more than 330 percent. Coupling these results with the ability to achieve a better-than-expected gross margin, continued positive cash flow, and our stated objective of 10 percent proforma operating margin, further underscores our improved performance.”
The company’s net income in accordance with U.S. generally accepted accounting principles (GAAP) for the fourth quarter 2010 was $5.4 million, or $0.13 per dilute share. The third quarter was at $2.9 million, or $0.07 per diluted share. The results show considerable growth from last year’s net income, where the fourth quarter garnered $1.2 million, or $0.03 per diluted share.
While the company felt a GAAP net loss of $3.3 million ($0.07 per share) in 2009, the company was able to report a net income of $12.0 million ($0.30 per diluted share) for 2010.
Non-GAAP net income (excluding stock-based compensation expenses and amortization expenses related to intangible assets) for the 2010 fourth quarter was $4.5 million, or $0.11 per diluted share, compared to $3.6 million ($0.09 per diluted share) in the third quarter and $2.5 million ($0.06 per diluted share) for last year’s fourth quarter.
Non-GAAP for the 2000 period also includes an adjustment to expenses related to the Company’s Senior Convertible Notes due to application of FASB Staff Position APB 14-1, in addition to a non-cash deferred tax income.
The company reported its cash and cash equivalents and short term deposits were $64.1 million at the end of the fourth quarter, compared to $58.6 million for the third quarter and $52.9 million for the fourth quarter in 2009.
“In 2010, we gained market share in the VoIP media gateway market, introduced our new enterprise session border controller product line for the SIP Trunking market, strengthened our partnerships with leading players in the telecom, applications and over-the-top (OTT) market, made first steps into the new mobile VoIP market, and grew sales coverage worldwide. SIP connectivity, mobility and security are increasingly becoming main trends in the VoIP market, and we believe that our continued investments in these areas will further drive market share gain and growth in 2011 and beyond," added Adlersberg.
AudioCodes will be attending ITEXPO East 2011 and is a Platinum Sponsor. ITEXPO (News - Alert) is where buyers, sellers, resellers and manufacturers meet to learn about IP-based voice, video, fax and unified communications, and to forge relationships and close deals. AudioCodes will also be participating in a bingo card car giveaway. Visit the company at booth #507.
Janice McDuffee has worked in marketing, editing and freelance writing for companies including SheKnows and HBM Inc. after receiving her master's and bachelor's degrees in journalism from the University of Illinois Urbana-Champaign. To read more of her articles, please visit her columnist page.
Edited by Janice McDuffee