Revenue of Audiocodes It grew in the first quarter by 12.8% compared to the corresponding quarter, but its net profit fell by 12.4% and it recorded a net profit per share that is 3 cents lower than analysts’ forecasts. The company notes that the reason for this is the rise in component prices against the background of supply chain difficulties as well as an increase in the workforce.
Audiocodes Which manufactures and markets communications solutions for organizations, ended the first quarter with revenues of $ 66.4 million, while revenues from products increased by 4.9% compared to the corresponding quarter and amounted to $ 38.8 million, and revenues from services, more profitable for the company, climbed 26.2% to $ 27.5 million.
According to GAAP, operating income was $ 1 million compared to $ 10.1 million in the same quarter last year, and bottom line was a net profit of $ 8.6 million, compared to $ 10 million in the same quarter last year. On a non-GAAP basis, after deducting various accounting items, including capital benefits for employees, net income amounted to $ 11.2 million, a decrease of 12.4% compared to the corresponding quarter, and earnings per share reached 33 cents.
At the end of the quarter, Audiocodes had $ 144 million in cash after generating $ 938,000 in the quarter, paying a $ 5.8 million dividend and using $ 20.9 million to buy its own shares. The average price of a share purchased was about $ 29, but today the price is lower, about $ 23.5 and reflects to Audiocodes a value of $ 767 million. In fact, the share price returned to its level in 2020, before rising to peaks following the Corona crisis (Audiocodes provides solutions that require, among other things, remote work).
Saturn Adlersberg, President and CEO of Audiocodes, noted that strong sales in the UCC business were the main driver for continued growth in the quarter. In an annual calculation. Business with Microsoft as a whole has grown more than 25% on an annualized basis, “said Adlersberg. He added that the company expects ARR (annual recurring revenue) from Live to Times service to double this year and reach more than $ 30 million.
Regarding revenue from services, Adlersberg said: “The growth in the services business was mainly due to professional services and managed services. In the first quarter, revenue from services reached 41.5% of the company’s total revenue. We see this momentum as an important indicator of continuous and successful change to our cloud services revenue .
Adlersberg added that “The non-GAAP operating profitability ratio was 18%, 240 basis points below the last quarter, mainly due to higher costs of $ 1.4 million for components, which affected the gross margin. The increase in operating expenses and the change in the operating profitability ratio based “Annual results were due to a 17% increase in the workforce and the accompanying budget to support our business expansion, as well as higher spending on components due to global supply chain damage, both expected to continue throughout the current year but weaken in 2023 and beyond,” Adlersberg concluded.