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January 28, 2011

Enterprise SBC Provider AudioCodes Confident in 2011

By Ed Silverstein, TMCnet Contributor

AudioCodes Ltd., a provider of Voice over IP (VoIP) technology and voice network products, is confident about its performance during 2011 after reporting financial results for the fourth quarter and entire 2010 year.

According to a company press release, revenues for the fourth quarter of 2010 were $40.5 million compared to $34.2 million for the fourth quarter of 2009. Revenues were $150.0 million in 2010 compared to $125.9 million in 2009.

AudioCodes’ net income (GAAP) was $5.4 million for the fourth quarter of 2010 compared to GAAP net income of $1.2 million for the fourth quarter of 2009.

Shabtai Adlersberg, chairman, president and CEO of AudioCodes, said the 4Q 2010 results represented “the seventh consecutive quarter of improved performance and momentum gain in our networking business. 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," Adlersberg said.

Enterprise session border controllers (E-SBCs) enable interoperability and security between enterprises and service providers’ VoIP networks. Often installed in a point of demarcation between the service provider network and the enterprise network, E-SBCs perform a variety of functions, such as: protecting companies from malicious VoIP attacks; mediation for allowing the connection of PBX (News - Alert) and/or IP-PBX systems to SIP Service Providers and Service Assurance for survivability and manageability.

"2011, and the next two to three years in general, will be very good," Adlersberg added in a statement carried by Globes, based in Israel. "We're seeing 20 percent average annual revenue growth, and better leverage will enable us to be more profitable, because most of our expenses infrastructure already exists."

"I think that, in general, our plan is working,” Adlersberg continued. “Our strategy is to position ourselves as the ultimate VoIP expert, in contrast to most players who focus on software, applications, or in a particular service. We're not a small company, but we're not large enough to be perceived as a threat, which is why companies like Microsoft and Avaya (News - Alert) want to partner with us."

There are some PBX vendors that have started to strongly push the idea of en enterprise session border controller (E-SBC), which not only helps with interoperability between SIP trunks and PBXs, but also provides a layer of security, as reported by Erik Linask, group editorial director of TMCnet.

Security conscious enterprises are starting to look closely at E-SBCs for their security features and firewall technologies, in addition to helping overcome normalization and interop issues,” said Matt Vlasach of Unwired Revolution (News - Alert) during an interview with Linask.

AudioCodes predicted between $165 million and $173 million revenue in 2011, and non-GAAP earnings per share of between $17 million and $19.1 million.

In other recent company news, TMCnet CTO Tom Keating reported in his blog that AudioCodes launched MediaPack 252 (MP-252). Launched at TMC's (News - Alert) ITEXPO, it features a built-in ADSL2+ modem, multiple antenna wireless LAN connectivity, DECT handsets supporting HD VoIP, Bluetooth interface for connecting cellular phones and optional battery backup, says TMCnet. It can connect to file servers and UPnP AV Media Servers, Keating adds.

AudioCodes will be attending ITEXPO East 2011 and is a Platinum Sponsor. ITEXPO (News - Alert) (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.

Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

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