Audiocodes, a provider of productivity solutions, communications, software and products for digital work environments, today announced its financial results for the first quarter which ended on June 30, 2020.
Revenue in the second quarter of 2020 was $ 53.5 million, compared to $ 52.0 million in the first quarter of 2020 and $ 49.5 million in the second quarter of 2019. Net income in the second quarter of 2020 was $ 6.6 million, or 21 cents a share. In full dilution, compared to net income of $ 4.8 million, or 16 cents per share in full dilution, in the second quarter of 2019. Non-GAAP net income in the second quarter of 2020 amounted to $ 10.5 million, or 32 cents per fully diluted share, Compared to a net profit of $ 6.8 million, or 22 cents per share in full dilution, in the second quarter of 2019.
The net profit on a non-GAAP basis does not include, among other things, expenses or income in respect of the revaluation of the Earn-Out obligation in connection with the acquisition of Active Communications Europe.
Cash flow from operating activities amounted to $ 10.7 million in the second quarter of 2020. As of June 30, 2020, the Company had cash and cash equivalents and short-term bank deposits, amounting to $ 170.4 million, compared to $ 71.9 million on December 31, 2019. The increase The amount of cash and the value of cash and bank deposits in 2020 resulted from the net proceeds received in the public offering that occurred in June 2020 as well as from the Company’s current operations.
“We are pleased to report strong financial results for the second quarter of 2020,” said Saturn Adlersberg, President and CEO of Audiocodes. The work-from-home (WFH) trend has become the new norm in recent months, so UCaaS and Collaboration have taken a central place in the transition of many companies to the digital workspace. As a result, we have experienced good business momentum in most areas of the company’s operations, particularly in the field of UCaaS and service centers. In addition, we are experiencing ongoing momentum in the network transition to All IP from communications service providers. The combination of the positive sales momentum and lower-than-expected operating expenses in the second quarter of 2020 due to the COVID-19 epidemic led to a continued improvement in our financial performance compared to last year. ”
“Our financial success is reflected in an improvement in the gross profit margin that rose to 66.9% in the current quarter compared to 63.5% in the corresponding quarter last year, and a significant increase in operating profit that rose to 20.1% in the second quarter of 2020 compared to 14.1% in the second quarter
Of 2019. As a result, we were able to show an increase of over 50% in net profit and generate strong cash flow from operating activities. Following the sales trend of the first quarter of 2020, we experienced increased market activity and demand for Microsoft Teams solutions. Revenues related to the Microsoft Teams system increased more than 300% compared to the same quarter last year, reaching more than $ 10 million. ”
“The progress we have made in our Voice.ai business is also noteworthy. We have experienced progress and growing interest in the Meeting Insights solution, a software tool for improving productivity by collaborating with groups in the organization. In the voice.ai gateway (VAIG) market, we have seen an increase in opportunities related to adding voice and telephony channels to virtual agents and smart organizational assistants, uses that are growing rapidly during this period. Looking ahead, we expect the positive trends in WFH and Collaboration to continue in the coming years and we are confident of our ability to continue to expand our business during the second half of 2020 and beyond. Although the overall effects of the COVID-19 epidemic are uncertain and may remain a global challenge in the coming years, we believe in our ability to respond to new developments and challenges in the markets in which we operate. We plan to continue our investment in future products, and focus on the return on investment for our shareholders, ”Adlersberg concluded.