AudioCodes Reports First Quarter Results

Apr 18, 2001, 01:00 ET from AudioCodes Ltd.

    YEHUD, Israel, April 18 /PRNewswire/ -- AudioCodes Ltd. (Nasdaq:   AUDC), a
 leading provider of IP Telephony and voice over packet technologies, today
 announced financial results for the first quarter ended March 31, 2001.  Net
 revenues for the first quarter ended March 31, 2001 were US$13.6 million, an
 increase of 6.6 percent compared with revenues of US$12.7 million for the
 first quarter ended March 31, 2000.  Net income for the first quarter was
 US$2.2 million compared with a net income of US$5.0 million for the same
 period last year.  Diluted earnings per share were US$0.05 compared with
 diluted earnings per share of US$0.12 for the first quarter ended
 March 31, 2000.
     "AudioCodes, like other telecom equipment manufacturers, was affected this
 quarter by the slowdown in global telecom market capital spending.  As a
 result, we have witnessed a substantial decrease in the purchases of our
 products from our OEM customers," said Shabtai Adlersberg, President and CEO
 of AudioCodes Ltd.  "Despite a less favorable climate in 2001, we remain
 confident in the substantial opportunities for voice over packet technologies
 in the next coming years and in the value of AudioCodes' technology, product
 lines and ability to provide leadership in this market.  Our current focus is
 on building the Company and it's customer base through design wins and
 investment in infrastructure in order to secure our position in the market and
 be prepared for renewed demand."
     During the quarter, AudioCodes continued its focus on integrated, fully
 featured voice over packet hardware platforms for OEMs for the access,
 enterprise, media processing and 3G wireless networks.  Among other
 achievements, AudioCodes enjoyed success in winning new customers for its
 TrunkPack(R) module product line, mainly due to the robust, feature rich, and
 field proven VoIP processing platform that is deployed in millions of lines in
 the field.  AudioCodes continued expansion of the Company's product offerings
 by introducing the following products:
 
     1) Second generation of MediaPack(TM) analog media gateway products for
 OEM's, targeting the enterprise and the access marketplace with three separate
 stand alone devices which support 4-24 analog ports that enable smooth
 migration from legacy PBX enterprise environments to LAN Telephony and access
 to VoIP networks.
 
     2) TrunkPack(R) 1610 carrier class high density CompactPCI IP Telephony
 board that supports 16 E1/T1 telephony trunks with a feature rich design
 supporting a variety of PSTN signaling and Voice over IP (VoIP) call controls.
 Providing the highest density in the cPCI VoIP gateway market, this platform
 employs AudioCodes' Voice over Packet technology currently used in over
 15,000 cPCI and PCI VoIP communication boards in the field.
 
     3) IPM-128 Media processing cPCI that supports 128 channels and provides
 Application Service Providers (ASPs) with the ability to develop and offer
 enhanced voice services to customers, including unified messaging, interactive
 voice response, conferencing and speech recognition.
 
     During the quarter, AudioCodes announced three design wins with Verascape,
 Alcatel and ECI Telecom.  AudioCodes also announced a new partnership with
 Nuance, as a development partner to deliver speech recognition for enhanced
 voice services over packet networks on IPmedia(TM) platforms
     The Company also announced today the resignation of Leon Bialik,
 co-founder of the Company, CTO and Vice President of Engineering of the
 Company since its inception eight years ago.  Mr. Bialik has expressed his
 desire to spend more time with his family and be alleviated of his day-to-day
 involvement with the management of the now 100 strong engineering team and
 expanding product lines.  Mr. Bialik will continue to serve as a director of
 the Company and counsel it on technology matters.
     Mr. Bilaik said: "I have greatly enjoyed the opportunity to play a
 leadership role in AudioCodes.  AudioCodes is and always will be a significant
 part of me.  Now the time has come for me to devote more time to my family and
 other personal interests.  I am very proud of everything that Shabtai and I
 have accomplished together since establishing the Company.  I will, of course,
 continue to be involved in the affairs of the Company and I am confident that
 AudioCodes will continue to maintain its technological leadership."
     Shabtai Adlersberg, President and CEO said: "Leon and I have worked hard
 since 1993 to create a world class technology leading company.  As pioneers in
 the Voice over Packet technology enabling field, we have pride in our
 achievements at AudioCodes.  We are confident that with the strong team
 assembled at AudioCodes, and in the spirit of professionalism created in the
 Company, AudioCodes will continue to play a major role in the emerging Voice
 over Packet market.  I wish to thank Leon for all his hard work and
 contributions throughout all these years.  I don't really see this as a
 goodbye as we will continue to benefit from Leon's counsel."
     The Company also announced that Mr. Eli Nir has been appointed Vice
 President of Engineering.  Mr. Nir has been with the Company since 1996,
 heading the System Software Group in the Company's Research and Development
 team.  Mr. Nir's group was responsible for the development of the AudioCodes'
 TrunkPack(R) VoIP communication boards, TrunkPack(R) Modules and the
 MediaPack(TM) product lines.  From 1996 to 1997, Mr. Nir was a team member in
 the Company's DSP group, which was responsible for the development of various
 speech processing algorithms and Vocoders.  Leon Bialik further commented,
 "Eli and I have worked closely together for the last four years and I am sure
 that the transition will be very smooth."
 
     About AudioCodes
     Founded in 1993, AudioCodes Ltd. (Nasdaq:   AUDC) designs, develops and
 markets enabling technologies and communication system components for voice
 over packet networks.  The company is a market leader in voice compression
 technology and the key originator of the ITU G.723.1 standard for the emerging
 IP Telephony market.  AudioCodes' product line includes leading-edge VoIP
 communication boards, VoIP media gateway modules, VoP chip processors, media
 gateway subsystems and communications software.  Its customers-the leading
 global telecom and datacom OEMs including Alcatel S.A., Cisco Systems, Inc.,
 Clarent Corporation, Lucent Technologies, Siemens and VocalTec Communications
 -- all feature AudioCoded(TM) equipment.  AudioCodes' international
 headquarters and R&D facilities are located in Yehud, Israel, with US
 headquarters in San Jose, California.  For more information on AudioCodes,
 please visit the company Web site at http://www.audiocodes.com.
 
     Statements concerning AudioCodes' business outlook or future economic
 performance; anticipated revenues, expenses or other financial items; product
 introductions and plans and objectives related thereto; and statements
 concerning assumptions made or expectations as to any future events,
 conditions, performance or other matters, are "forward-looking statements" as
 that term is defined under U.S. Federal securities laws.  Forward-looking
 statements are subject to various risks, uncertainties and other factors that
 could cause actual results to differ materially from those stated in such
 statements.  These risks, uncertainties and factors include, but are not
 limited to: the effect of global economic conditions in general and conditions
 in AudioCodes' industry and target markets in particular; shifts in supply and
 demand; market acceptance of new products and continuing products' demand; the
 impact of competitive products and pricing on AudioCodes' and its customers'
 products and markets; timely product and technology development/upgrades and
 the ability to manage changes in market conditions as needed; and other
 factors detailed in AudioCodes' filings with the Securities and Exchange
 Commission.  AudioCodes assumes no obligation to update the information in
 this release.
 
     AudioCodes(TM), AC(TM), NetCoder(R), TrunkPack(R), VoicePacketizer(TM),
 MediaPack(TM) and IPmedia(TM) are trademarks or registered trademarks of
 AudioCodes Limited and its affiliated companies.
 
     Note relating to number of shares: All share and per share data for all
 periods presented have been retroactively adjusted to reflect the two-for-one
 stock split effected as of October 6, 2000.
 
                                AUDIOCODES LTD.
 
     CONSOLIDATED BALANCE SHEET
     U.S. dollars in thousands
 
                                                 December 31,      March 31,
     ASSETS                                              2000           2001
 
     CURRENT ASSETS
     Cash, cash equivalents and
      Short-term deposits                            $145,173       $137,184
     Trade receivables                                 11,582         12,136
     Other receivables and prepaid expenses             1,730          2,072
     Inventories                                       10,714         13,031
 
     Total current assets                             169,199        164,423
 
     SEVERANCE PAY FUND                                 1,201          1,311
 
     FIXED ASSETS, NET                                  3,329          3,710
 
     INVESTMENTS                                          600            600
 
     Total assets                                    $174,329       $170,044
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
     Trade payables                                    $7,923         $4,398
     Other payables and accrued expenses               15,157         11,918
 
     Total current liabilities                         23,080         16,316
 
     ACCRUED SEVERANCE PAY                              1,529          1,730
 
     Total shareholders' equity                       149,720        151,998
 
     Total liabilities and shareholders' equity      $174,329       $170,044
 
                                AUDIOCODES LTD.
 
     CONSOLIDATED STATEMENT OF OPERATIONS
     U.S. dollars in thousands, except per share data
 
                                                         Three months ended
                                                               March 31,
                                                         2000           2001
 
     Revenues                                         $12,720        $13,554
 
     Cost of revenues                                   4,931          5,576
 
     Gross profit                                       7,789          7,978
     Operating expenses
     Research and development                           1,853          3,493
     Sales and marketing                                1,949          3,364
     General and administrative                           580            994
 
     Total operating expenses                           4,382          7,851
 
     Operating income                                   3,407            127
     Financial income                                   1,774          2,062
 
     Income before income taxes                         5,181          2,189
     Income taxes                                         156             22
 
     Net income                                       $ 5,025        $ 2,167
 
     Diluted earnings per share                        $ 0.12         $ 0.05
 
     Number of shares for diluted
      earnings per share (in thousands)                42,930         42,436
 
     Contact:  Mike Lilo, V.P. Finance & CFO  of AudioCodes Ltd.,
 +972-3-539-4000, mikel@audiocodes.com; Magda Gagliano of Ruder Finn, Inc.,
 212-593-6319, gaglianom@ruderfinn.com, for AudioCodes Ltd.
 
 

SOURCE AudioCodes Ltd.
    YEHUD, Israel, April 18 /PRNewswire/ -- AudioCodes Ltd. (Nasdaq:   AUDC), a
 leading provider of IP Telephony and voice over packet technologies, today
 announced financial results for the first quarter ended March 31, 2001.  Net
 revenues for the first quarter ended March 31, 2001 were US$13.6 million, an
 increase of 6.6 percent compared with revenues of US$12.7 million for the
 first quarter ended March 31, 2000.  Net income for the first quarter was
 US$2.2 million compared with a net income of US$5.0 million for the same
 period last year.  Diluted earnings per share were US$0.05 compared with
 diluted earnings per share of US$0.12 for the first quarter ended
 March 31, 2000.
     "AudioCodes, like other telecom equipment manufacturers, was affected this
 quarter by the slowdown in global telecom market capital spending.  As a
 result, we have witnessed a substantial decrease in the purchases of our
 products from our OEM customers," said Shabtai Adlersberg, President and CEO
 of AudioCodes Ltd.  "Despite a less favorable climate in 2001, we remain
 confident in the substantial opportunities for voice over packet technologies
 in the next coming years and in the value of AudioCodes' technology, product
 lines and ability to provide leadership in this market.  Our current focus is
 on building the Company and it's customer base through design wins and
 investment in infrastructure in order to secure our position in the market and
 be prepared for renewed demand."
     During the quarter, AudioCodes continued its focus on integrated, fully
 featured voice over packet hardware platforms for OEMs for the access,
 enterprise, media processing and 3G wireless networks.  Among other
 achievements, AudioCodes enjoyed success in winning new customers for its
 TrunkPack(R) module product line, mainly due to the robust, feature rich, and
 field proven VoIP processing platform that is deployed in millions of lines in
 the field.  AudioCodes continued expansion of the Company's product offerings
 by introducing the following products:
 
     1) Second generation of MediaPack(TM) analog media gateway products for
 OEM's, targeting the enterprise and the access marketplace with three separate
 stand alone devices which support 4-24 analog ports that enable smooth
 migration from legacy PBX enterprise environments to LAN Telephony and access
 to VoIP networks.
 
     2) TrunkPack(R) 1610 carrier class high density CompactPCI IP Telephony
 board that supports 16 E1/T1 telephony trunks with a feature rich design
 supporting a variety of PSTN signaling and Voice over IP (VoIP) call controls.
 Providing the highest density in the cPCI VoIP gateway market, this platform
 employs AudioCodes' Voice over Packet technology currently used in over
 15,000 cPCI and PCI VoIP communication boards in the field.
 
     3) IPM-128 Media processing cPCI that supports 128 channels and provides
 Application Service Providers (ASPs) with the ability to develop and offer
 enhanced voice services to customers, including unified messaging, interactive
 voice response, conferencing and speech recognition.
 
     During the quarter, AudioCodes announced three design wins with Verascape,
 Alcatel and ECI Telecom.  AudioCodes also announced a new partnership with
 Nuance, as a development partner to deliver speech recognition for enhanced
 voice services over packet networks on IPmedia(TM) platforms
     The Company also announced today the resignation of Leon Bialik,
 co-founder of the Company, CTO and Vice President of Engineering of the
 Company since its inception eight years ago.  Mr. Bialik has expressed his
 desire to spend more time with his family and be alleviated of his day-to-day
 involvement with the management of the now 100 strong engineering team and
 expanding product lines.  Mr. Bialik will continue to serve as a director of
 the Company and counsel it on technology matters.
     Mr. Bilaik said: "I have greatly enjoyed the opportunity to play a
 leadership role in AudioCodes.  AudioCodes is and always will be a significant
 part of me.  Now the time has come for me to devote more time to my family and
 other personal interests.  I am very proud of everything that Shabtai and I
 have accomplished together since establishing the Company.  I will, of course,
 continue to be involved in the affairs of the Company and I am confident that
 AudioCodes will continue to maintain its technological leadership."
     Shabtai Adlersberg, President and CEO said: "Leon and I have worked hard
 since 1993 to create a world class technology leading company.  As pioneers in
 the Voice over Packet technology enabling field, we have pride in our
 achievements at AudioCodes.  We are confident that with the strong team
 assembled at AudioCodes, and in the spirit of professionalism created in the
 Company, AudioCodes will continue to play a major role in the emerging Voice
 over Packet market.  I wish to thank Leon for all his hard work and
 contributions throughout all these years.  I don't really see this as a
 goodbye as we will continue to benefit from Leon's counsel."
     The Company also announced that Mr. Eli Nir has been appointed Vice
 President of Engineering.  Mr. Nir has been with the Company since 1996,
 heading the System Software Group in the Company's Research and Development
 team.  Mr. Nir's group was responsible for the development of the AudioCodes'
 TrunkPack(R) VoIP communication boards, TrunkPack(R) Modules and the
 MediaPack(TM) product lines.  From 1996 to 1997, Mr. Nir was a team member in
 the Company's DSP group, which was responsible for the development of various
 speech processing algorithms and Vocoders.  Leon Bialik further commented,
 "Eli and I have worked closely together for the last four years and I am sure
 that the transition will be very smooth."
 
     About AudioCodes
     Founded in 1993, AudioCodes Ltd. (Nasdaq:   AUDC) designs, develops and
 markets enabling technologies and communication system components for voice
 over packet networks.  The company is a market leader in voice compression
 technology and the key originator of the ITU G.723.1 standard for the emerging
 IP Telephony market.  AudioCodes' product line includes leading-edge VoIP
 communication boards, VoIP media gateway modules, VoP chip processors, media
 gateway subsystems and communications software.  Its customers-the leading
 global telecom and datacom OEMs including Alcatel S.A., Cisco Systems, Inc.,
 Clarent Corporation, Lucent Technologies, Siemens and VocalTec Communications
 -- all feature AudioCoded(TM) equipment.  AudioCodes' international
 headquarters and R&D facilities are located in Yehud, Israel, with US
 headquarters in San Jose, California.  For more information on AudioCodes,
 please visit the company Web site at http://www.audiocodes.com.
 
     Statements concerning AudioCodes' business outlook or future economic
 performance; anticipated revenues, expenses or other financial items; product
 introductions and plans and objectives related thereto; and statements
 concerning assumptions made or expectations as to any future events,
 conditions, performance or other matters, are "forward-looking statements" as
 that term is defined under U.S. Federal securities laws.  Forward-looking
 statements are subject to various risks, uncertainties and other factors that
 could cause actual results to differ materially from those stated in such
 statements.  These risks, uncertainties and factors include, but are not
 limited to: the effect of global economic conditions in general and conditions
 in AudioCodes' industry and target markets in particular; shifts in supply and
 demand; market acceptance of new products and continuing products' demand; the
 impact of competitive products and pricing on AudioCodes' and its customers'
 products and markets; timely product and technology development/upgrades and
 the ability to manage changes in market conditions as needed; and other
 factors detailed in AudioCodes' filings with the Securities and Exchange
 Commission.  AudioCodes assumes no obligation to update the information in
 this release.
 
     AudioCodes(TM), AC(TM), NetCoder(R), TrunkPack(R), VoicePacketizer(TM),
 MediaPack(TM) and IPmedia(TM) are trademarks or registered trademarks of
 AudioCodes Limited and its affiliated companies.
 
     Note relating to number of shares: All share and per share data for all
 periods presented have been retroactively adjusted to reflect the two-for-one
 stock split effected as of October 6, 2000.
 
                                AUDIOCODES LTD.
 
     CONSOLIDATED BALANCE SHEET
     U.S. dollars in thousands
 
                                                 December 31,      March 31,
     ASSETS                                              2000           2001
 
     CURRENT ASSETS
     Cash, cash equivalents and
      Short-term deposits                            $145,173       $137,184
     Trade receivables                                 11,582         12,136
     Other receivables and prepaid expenses             1,730          2,072
     Inventories                                       10,714         13,031
 
     Total current assets                             169,199        164,423
 
     SEVERANCE PAY FUND                                 1,201          1,311
 
     FIXED ASSETS, NET                                  3,329          3,710
 
     INVESTMENTS                                          600            600
 
     Total assets                                    $174,329       $170,044
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
     Trade payables                                    $7,923         $4,398
     Other payables and accrued expenses               15,157         11,918
 
     Total current liabilities                         23,080         16,316
 
     ACCRUED SEVERANCE PAY                              1,529          1,730
 
     Total shareholders' equity                       149,720        151,998
 
     Total liabilities and shareholders' equity      $174,329       $170,044
 
                                AUDIOCODES LTD.
 
     CONSOLIDATED STATEMENT OF OPERATIONS
     U.S. dollars in thousands, except per share data
 
                                                         Three months ended
                                                               March 31,
                                                         2000           2001
 
     Revenues                                         $12,720        $13,554
 
     Cost of revenues                                   4,931          5,576
 
     Gross profit                                       7,789          7,978
     Operating expenses
     Research and development                           1,853          3,493
     Sales and marketing                                1,949          3,364
     General and administrative                           580            994
 
     Total operating expenses                           4,382          7,851
 
     Operating income                                   3,407            127
     Financial income                                   1,774          2,062
 
     Income before income taxes                         5,181          2,189
     Income taxes                                         156             22
 
     Net income                                       $ 5,025        $ 2,167
 
     Diluted earnings per share                        $ 0.12         $ 0.05
 
     Number of shares for diluted
      earnings per share (in thousands)                42,930         42,436
 
     Contact:  Mike Lilo, V.P. Finance & CFO  of AudioCodes Ltd.,
 +972-3-539-4000, mikel@audiocodes.com; Magda Gagliano of Ruder Finn, Inc.,
 212-593-6319, gaglianom@ruderfinn.com, for AudioCodes Ltd.
 
 SOURCE  AudioCodes Ltd.