Audiocodes has released good reports; “We are in a great situation”


Audiocodes Continues to justify the peak levels at which its stock is trading, and publishes today Reports Good for concluding the second quarter of the year. The company continues to benefit from the trend of moving to work from home against the backdrop of the Corona plague because it provides communication solutions to businesses. In the second quarter, the company’s revenues grew by 8.1% compared to the previous quarter to $ 53.5 million, slightly above analysts’ forecasts, and non-GAAP net earnings per share amounted to 32 cents – 5 cents higher than the forecasts.

“We are in a great situation, which is likely to continue in the coming years. The Corona has changed world orders, and the whole issue of working from home and collaborative solutions are super-essential,” he says. Saturn Adlersberg, Founder and CEO of the company. “If until the crisis we all came to work every morning, today it is not at all obvious. It is clear that some of the work will be from home and there is no problem with that when there are communication systems, on the contrary, many times the efficiency is higher. What will require interactions and meetings will be done at the company offices. In this way, the organizations move to a much more efficient and inexpensive work mode. ”

In the first half revenue Audiocodes Amounted to about $ 106 million, a growth of 9.9%. Of this, $ 70.7 million came from product sales – 8.3% growth, and $ 34.8 million from services the company provides, 13.2% growth.

According to GAAP, quarterly earnings were $ 6.6 million compared to $ 4.8 million in the same quarter last year, and at half-time profit grew 51.8% to $ 11.9 million. On a non-GAAP basis, excluding various accounting items, the quarterly operating profit margin jumped to 20.1% compared to 14.1% in the corresponding quarter. Bottom line, non-GAAP net income grew by 54% in the quarter and 48.2% in the half, to $ 10.5 million and $ 18.2 million, respectively.

Are these profitability rates expected to continue? “In the second quarter we had 0 flights, which is a significant portion of the operating expenses savings,” says Edlersberg. “I guess in the future the business will be a little more normal and the flights will return; will I go back to where I was before? No. We understand much better that an expense we thought was necessary is only necessary in some cases, so there will certainly be savings. In real estate too, we have a contract For another three years (in Airport City), but at the end of the three years the real estate here will fall by 50%, because we will move to a hybrid working model.

Audiocodes recently raised $ 91 million and at the end of the quarter, after generating $ 10.7 million in current operations, it had approximately $ 164 million in cash. “The goal in recruitment was firstly to strengthen the balance, and secondly, today all our growth is organic, and we also want inorganic growth. Our markets are boiling, and those who do not run forward, will eventually be left behind. We do neat work, set strategic goals. “Companies in the field that are not currently able to become public, let’s say companies that sell for less than $ 50-100 million, that are ‘stuck’, and their shareholders want to sell. That does not mean we will take any company.”

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