AudioCodes feels Nortel's bankruptcy, posts Q1 loss

AudioCodes, an Israeli VoIP technology and networking provider, announced a $1.6 million loss for the first quarter, due in large part to $1.7 million Nortel owes the company in deferred revenue. AudioCodes also reported $29.3 million in revenue for the first quarter, down from $43.7 million in the same quarter of 2008.

This is an additional pain point for the company, because Nortel was its largest customer in 2008, and it looks as if Nortel's bankruptcy is hurting AudioCodes's bottom line, though CEO Shabtai Adlersberg blamed the economy for the revenue slide.

"Our revenues decreased in the first quarter of 2009 as a result of the downturn in the global economy and the challenging environment," Adlersberg said. "Based on early second quarter inputs, we anticipate improving market conditions and forecast better financial performance in the coming quarter."

While the market may improve, AudioCodes relied on its OEM relationship with Nortel to the tune of 17 percent of its yearly revenue. AudioCodes cut salaries across the board to improve competitive position in January. 

For more:
- see the AudioCodes press release here [1] 

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