AudioCodes reports 21% revenue drop, blames rapid decay of legacy business
Israeli VoIP technologies provider AudioCodes Ltd. (Nasdaq: AUDC) today said first-quarter 2012 revenues were $32.3 million, down more than 21 percent, from $41 million the same quarter a year ago, and down sequentially 13 percent, from $37.2 million, in Q4 2011.
The company, which has earned an increasing share in the enterprise Session Border Controller market of late, is coming off a tough fourth quarter and full year 2011, and came in under its own forecast for the first quarter, surprised, it said, buy the rapid decline of its legacy business.
That trend, said Chief Executive Shabtai Adlersberg, should ease in the second half of the year.
"These lower revenues reflect weakness in sales in North America including, among others, a decline in legacy OEM business and lower than anticipated government and technology sales," he said. "Aside from these headwinds, we saw continued solid demand for our core networking business line which represents about 80 percent of our overall business."
Adlersberg said AudioCodes will benefit from continued growth in the unified communications and contact center market, and from IP business communications services.
"In the first quarter of 2012, we continued to introduce innovative products and services into some of the fastest growing segments of the VoIP market, such as the Enterprise Session Border Controller space where AudioCodes has seen good momentum in growing sales...," he said. "We continue to collaborate with market leaders such as Microsoft (Nasdaq: MSFT) and their unified communications Lync solution to leverage the long-term opportunity we see in the market for communication and collaboration and networked telephony."
AudioCodes reported a net GAAP loss of $1.6 million, or 4 cents per diluted share, compared to net income of $3 million, or 7 cents per diluted share, for the first quarter of 2011, topping analyst estimates of a per-share loss of 4 cents.
During the quarter, the company continued the stock buyback program it launched in October, repurchasing about 692,000 shares at an aggregate cost of approximately $2.5 million in Q1. So far, it's purchased 1.9 million shares of the 4 million it plans at an aggregate cost of approximately $6.5 million.
AudioCodes was down about 2 percent at close Friday to $2.23. It's traded in a range of $2.08 to $2.29 over the past 52-weeks.
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