AudioCodes Posts Second Quarter 2007 Financial Results

By Mae Kowalke

TMCnet Associate Editor

 

Voice network products provider AudioCodes (News - Alert) on Tuesday posted its financial results for second quarter 2007, ended June 30. The company did well during the quarter, boosting revenues 5.2 percent compared to the previous quarter.

 

Total revenues for 2Q07 were $38.4 million, up from $36.5 million for first quarter (ended March 31, 2007). Year-over-year, the figures were also up from $33.3 million in revenues for second quarter 2006 (an increase of 15.5 percent).

 

The company also reported net GAAP losses of $1 million, or $0.02 per diluted share, for 2Q07. This was down from first quarter net losses of $2.4 million ($0.06 per diluted share).

 

Non-GAAP income for AudioCodes during the second quarter of 2007 were $1.4 million, up from $506,000 for the first quarter. The company said its non-GAAP net income numbers excluded stock-based compensation and amortization expenses related to its acquisitions of Nuera (a VoIP gateway manufacturer), Netrake (a session border controller manufacturer) and CTI (News - Alert) Squared LTD (a provider of messaging and communications solutions).

 

“AudioCodes’ second quarter financial results were highlighted by our return to sequential revenue growth coupled with continued strength in our networking business,” the company’s chairman, president and CEO, Shabtai Adlersberg, said in a statement to the press.

 

Adlersberg continued: “Underscoring our strong performance was our ability to generate $2.7 million of net cash from our operating activities. During the quarter we made solid progress towards increasing operating efficiencies and initiated a company wide cost reduction program aimed at improving bottom line performance during the second half of 2007 and beyond.”

 

He added that AudioCodes’ financial achievements were complemented by the addition of new session border control, media gateway and messaging solutions thanks to recent acquisitions. In particular, acquiring CTI Squared helped the company expand its suite of media server offerings.

 

Also, new design wins during 2Q07 enhanced AudioCodes’ ability to continue pursuing opportunities in the broadband, wireless, IMS and fixed-mobile convergence markets.