OR YEHUDA, Israel, April 7, 2025 /PRNewswire/ -- AudioCodes (NASDAQ: AUDC), a leading provider of voice, contact center and conversational AI applications and services for enterprises, today announced that it will release financial results for its First Quarter 2025 on Tuesday, May 6, 2025, before the market open on NASDAQ, reflecting the quarterly period ended March 31, 2025. AudioCodes' financial results will be released over the news wires and will also be posted on its corporate website.On Tuesday, May ...

Revenue Performance - Quarterly revenues decreased by 3.2% year-over-year to $61.6 million; full year 2024 revenues decreased by 0.9% to $242.2 million[1] - Quarterly service revenues increased by 10.9% year-over-year to $34.2 million; full year 2024 service revenues increased by 8.2% to $130.2 million[1] - Total revenues for the year ended December 31, 2024, were $242.176 million, a slight decrease of 0.9% compared to $244.383 million in 2023[30] - Product revenues decreased to $111.966 million in 2024 from $123.991 million in 2023, representing a decline of 9.7%[30] - Service revenues increased to $130.210 million in 2024, up 8.1% from $120.392 million in 2023[30] Profitability - Quarterly GAAP net income was $6.8 million, or $0.22 per diluted share; full year 2024 GAAP net income was $15.3 million, or $0.50 per diluted share[3] - Non-GAAP net income for the fourth quarter was $11.6 million, or $0.37 per diluted share; full year 2024 Non-GAAP net income was $27.3 million, or $0.87 per diluted share[7] - Gross profit for the year was $158.161 million, nearly unchanged from $158.349 million in 2023[30] - Operating income rose to $17.191 million in 2024, an increase of 19.5% compared to $14.424 million in 2023[30] - Net income for the year was $15.311 million, significantly higher than $8.780 million in 2023, marking a 74.5% increase[30] - Basic net earnings per share improved to $0.51 in 2024 from $0.28 in 2023[30] Cash Flow and Assets - Cash and cash equivalents decreased to $93.9 million as of December 31, 2024, from $106.7 million a year earlier[12] - Total current assets increased to $162.876 million in 2024 from $142.661 million in 2023, reflecting a growth of 14.1%[29] - Net cash provided by operating activities for the year ended December 31, 2024, was $35,253,000, up from $14,891,000 in 2023, indicating a 136.5% increase[35] - The company reported a net increase in cash, cash equivalents, and restricted cash of $28,203,000 for the year ended December 31, 2024, compared to $6,011,000 in 2023[36] - The total cash, cash equivalents, and restricted cash at the end of the period was $58,749,000, up from $30,546,000 at the beginning of the period[36] Shareholder Returns - A semi-annual dividend of 18 cents per share was declared, amounting to approximately $5.3 million, payable on March 6, 2025[19] - The company declared a semi-annual dividend of $0.18 per share[30] - Cash dividends paid to shareholders decreased slightly to $10,896,000 in 2024 from $11,399,000 in 2023[36] Share Repurchase and Equity - The company repurchased 634,533 ordinary shares for a total cost of $6.0 million during the quarter[17] - The company purchased treasury shares amounting to $14,328,000 in 2024, compared to $18,259,000 in 2023, indicating a 21.3% reduction[36] - Total shareholders' equity rose to $191.814 million in 2024, up from $188.112 million in 2023, indicating a growth of 2.9%[29] Future Outlook - The company ended 2024 with an Annual Recurring Revenue (ARR) of $65 million, representing 35% year-over-year growth[14] - Microsoft business grew by 13% in the fourth quarter and 6% for the full year 2024, driven by a shift to recurrent revenue sales[14] - The Voice.ai business is expected to grow by 40% to 50% in 2025 due to increasing customer demand for AI-driven applications[15]

Core Viewpoint - AudioCodes Ltd. has filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission, which includes audited financial statements [1] Company Overview - AudioCodes Ltd. is a global leader in unified communications, voice, contact center, and conversational AI services and solutions for enterprises, enhancing customer experience (CX) and employee experience (EX) [3] - The company provides a comprehensive range of products, applications, and SaaS services that ensure seamless interoperability with leading UCaaS and CCaaS platforms, including Microsoft Teams, Webex, Zoom, and Genesys [3] - AudioCodes serves enterprises worldwide, including 65 Fortune 100 companies, to improve productivity, collaboration, business process automation, compliance, and customer interaction [3] Investor Relations - The 2024 Annual Report can be accessed on AudioCodes' website under the "Investor Relations" section, and shareholders can request a hard copy free of charge [1]

Geopolitical and Economic Risks - The ongoing war in Israel, which began on October 7, 2023, could have a material adverse effect on the company's business, financial position, operating results, and cash flow [19]. - The company has not experienced significant damage to its facilities or supply chains since the onset of the conflict, but future impacts remain unpredictable [22]. - Political and military conditions in Israel directly affect the company's operations, with ongoing hostilities potentially impacting production and sales capabilities [111]. - The conflict in Ukraine has resulted in significant sanctions against Russia, which could have material adverse effects on global macroeconomic conditions [106]. - Macroeconomic changes, including geopolitical instability and trade wars, may adversely impact the company's ability to manufacture and sell products, affecting operational results and share prices [107]. - The ongoing trade war between the United States and China has resulted in significant tariffs, including a 25% tariff on $34 billion worth of Chinese goods [95]. - The United States has increased tariffs on imports from China to 60% as of March 2025, which may disrupt supply chains and increase operational costs [96]. - Uncertain economic conditions could lead to reduced consumer spending, adversely affecting sales and liquidity [93]. - The Federal Reserve increased the federal funds rate target range to 5.25% to 5.50% in July 2023, impacting the overall economic environment [82]. Competition and Market Dynamics - The company faces increased competition and reliance on intermediaries, which may affect profitability and control over product selection by end-users [18]. - Intense competition in the industry is expected to increase, with significant merger and acquisition activity leading to greater market concentration among competitors [43]. - The company faces competition from various established players in different product areas, including Oracle, Cisco, and Twilio, which may impact market share [44][46][48]. - OEM customers may prefer to develop their own solutions or use third-party technologies, which could reduce demand for the company's products and negatively impact revenues [41]. - The communications equipment market is characterized by rapid technological innovation and intense competition, requiring frequent updates to products to avoid obsolescence [37]. - The transition to all-IP networks is ongoing, leading to a decline in revenues from media gateway products, which may adversely affect overall operational results [38]. - The shift towards cloud-based software creates challenges, as the company primarily generates revenue from on-premises deployments, potentially impacting short-term revenue recognition [39]. Supply Chain and Component Shortages - There is a significant global shortage of critical components, which may hinder the company's ability to manufacture sufficient quantities to meet market demand [20]. - The reliance on third-party suppliers for key components without long-term agreements poses risks, including potential delays and increased costs if supply is disrupted [61][65]. - Increased demand for telecommunications equipment may lead to component shortages, resulting in longer lead times and reduced margins, adversely affecting operational results [66]. - The semiconductor industry continues to face significant shortages, which could lead to reduced revenues and increased costs for the company if the situation persists [110]. Regulatory and Compliance Challenges - The company is subject to ongoing costs and risks associated with compliance with rapidly changing laws and regulations across multiple jurisdictions [20]. - The company faces potential regulatory risks that could slow the growth of the VoIP telephony market and reduce demand for its products [127]. - Compliance with FCC regulations and similar international regulations may increase operational costs, potentially impacting profitability [127]. - The company is subject to stringent privacy laws, including the GDPR, which can impose fines of up to EUR 20 million or 4% of total worldwide annual turnover for non-compliance [145]. - The company may incur significant costs related to compliance with environmental regulations, which could adversely affect its business operations [138]. - The evolving regulatory environment surrounding AI technologies may impose new obligations that could affect the company's operations and financial results [148]. - The SEC's newly adopted climate-related disclosure rules may require significant additional costs for compliance, including enhanced internal controls and greenhouse gas emissions reporting [160]. Financial Performance and Market Position - The company has a limited order backlog, making quarterly revenues highly dependent on orders received and delivered within that quarter [90]. - The company's gross margin may be negatively impacted by increased manufacturing costs and amortization expenses related to acquisitions [91]. - The company wrote off inventory totaling approximately $4.8 million in 2024 and $1.1 million in 2023 due to excess and obsolete inventory [87]. - The trading price of the company's ordinary shares on Nasdaq has fluctuated from a low of $6.62 to a high of $44.94 between January 1, 2018, and March 11, 2025 [161]. - The market price of the company's ordinary shares may be influenced by factors unrelated to operating results, leading to volatility [163]. - The company has experienced significant fluctuations in quarterly results, which may continue and affect investor expectations and share price [164]. Human Resources and Talent Management - The company’s wage-related expenses in Israel have increased significantly due to a shortage of skilled research and development employees, leading to heightened competition for talent [20]. - In 2023, Israel faced a shortage of qualified technical personnel, which could impact the company's ability to deliver products and services on time [179]. - Rising wages in the technology sector in Israel are expected to continue, potentially increasing labor-related costs for the company [180]. - The company relies heavily on key personnel, including the President and CEO, and any loss of these individuals could materially affect operations [178]. Product Development and Innovation - The company has invested heavily in developing products compatible with Microsoft Teams and other partners, and any changes in these partnerships could adversely affect operations [32]. - The company has invested heavily in product offerings compatible with Microsoft Teams and Skype for Business, adapting to shifts from on-premises to cloud-based solutions [78]. - The growth in the product portfolio necessitates increased support and servicing, potentially raising expenses and affecting operational results [74]. - The company is expanding its AI-related capabilities, including the development of software-based voice productivity solutions through its Voice.AI business line [76]. - The introduction of products with reliability or compatibility issues could lead to reduced revenues and increased product returns [72]. - The company continues to enhance its product portfolio with innovative solutions aimed at improving customer and employee experiences [194]. Strategic Initiatives and Future Outlook - The company plans to continue expanding its international operations, which exposes it to various risks that could affect future growth [20]. - The company may pursue acquisitions to expand its business, but such activities could divert resources and disrupt operations [188]. - The company does not provide quarterly forecasts, which may affect analyst coverage and investor interest in its shares [168]. - AudioCodes has expanded its AudioCodes Live for Microsoft Teams portfolio, offering managed services on a monthly subscription basis to reduce upfront costs for customers [200]. - The Voice.AI business line focuses on content gathering and providing insights using AI and machine learning technologies [204]. - Meeting Insights, an AI-powered solution, automatically generates meeting minutes and integrates with Azure Open AI GPT for enhanced analysis of meeting recordings [206]. - SmartTAP 360° Live is a secure compliance recording solution that captures all types of organizational interactions, including voice and video, and integrates with Microsoft Teams [209]. - Interaction Insights, launched in early 2025, is a new SaaS application designed for data privacy and security, ensuring compliance with GDPR [211]. - AudioCodes offers a managed service for service providers to simplify the creation of multi-tenant Teams offerings, reducing time-to-market for hosted services [203]. - The company has developed a unique service delivery platform, Live Platform, which combines certified solutions for unified communications and contact center environments [196]. - AudioCodes has seen increased demand for recording video content due to the shift to Teams and the Work-from-Home model, driven by compliance requirements [212].

AudioCodes Ltd. (AUDC)  recently enhanced its Meeting Insights solution with the addition of improved capabilities. The latest upgrades include integration with top Customer Relationship Management ("CRM") systems like Salesforce Inc. (CRM) and Dynamics 365, alongside the launch of a new mobile application designed to streamline the process of capturing and summarizing meeting information during face-to-face interactions.AudioCodes’ Meeting Insights is an AI-powered enterprise solution that enables users to ...

Core Insights - AudioCodes has announced that its Voca Conversational Interaction Center (Voca CIC) now supports Microsoft Teams Phone extensibility, enhancing integration between CCaaS and Teams [2][3][6] - The integration aims to provide a seamless experience for contact center operations, ensuring standardized provisioning and reliable connections between customers, agents, and Teams users [3][5][7] Company Overview - AudioCodes is a leading vendor of advanced communications software and products, focusing on digital workplace and customer experience solutions [12] - The company has a long-standing partnership with Microsoft, having supported various enterprise voice solutions over the past decade [4][8] Product Features - Voca CIC is an AI-first, Teams-certified omnichannel contact center built on Azure, designed to unify contact center solutions with Teams communications [3][5] - The new Teams Phone extensibility feature enhances reliability and efficiency, providing a fully Azure-native approach [4][7] - Key advantages include simplified provisioning and management, direct integration with Teams Phone, and access to Azure and AI services for intelligent routing and analytics [7][8] Industry Impact - The announcement of Teams Phone extensibility represents a significant milestone in the evolution of Teams contact center solutions, introduced at Enterprise Connect 2025 [9] - The integration is expected to simplify deployment for customers and enhance customer engagement capabilities using Teams Phone [8][9]

Core Insights - AudioCodes has announced significant enhancements to its Meeting Insights solution, including integration with leading CRM systems like Salesforce and Dynamics 365, and a new mobile app for summarizing meeting information [2][4][7] Group 1: Product Enhancements - The integration with CRM systems aims to capture and utilize customer interaction data more effectively, addressing challenges organizations face in this area [2][3] - The new mobile application allows for recording and summarizing face-to-face meetings without needing UCaaS connectivity, enhancing user flexibility [7] - Meeting Insights now supports automatic synchronization of meeting data from platforms like Microsoft Teams and Zoom, enriching CRM records with detailed meeting information [7] Group 2: Strategic Goals - The integration is designed to minimize manual errors and ensure that CRM updates are based on actual meeting content, thereby improving data accuracy [3] - By enhancing CRM data with rich meeting context, organizations can drive smarter, data-driven decisions and improve overall business productivity [3] - The initial rollout of these features will be available to selected customers, with general availability expected at the beginning of Q2 2025 [4]

Service providers and channel partners can differentiate their offerings to businesses and generate new revenue streams with value-added business services delivered simply and efficiently via Live PlatformOR YEHUDA, Israel, March 12, 2025 /PRNewswire/ --Highlights AudioCodes Live services now include AI-powered applications designed to modernize customer experience (CX) and employee experience (EX) for enterprises Live AI-powered value-added services (VAS) include: Voca CIC – AI-first, omnichannel contact ...

AudioCodes (AUDC) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 54.17%. A quarter ago, it was expected that this communication components company would post earnings of $0.25 per share when it actually produced earnings of $0.16, delivering a surprise of -36%.Over the last four quar ...

Core Insights - AudioCodes reported its financial results for Q4 and full year 2024, showing a slight decline in overall revenues but growth in service revenues and net income [2][3][5]. Financial Performance - Q4 2024 revenues were $61.6 million, a decrease of 3.2% year-over-year from $63.6 million in Q4 2023, while full year revenues were $242.2 million, down 0.9% from $244.4 million in 2023 [3][8]. - Q4 2024 EBITDA was $5.2 million, down from $7.9 million in Q4 2023, but full year EBITDA increased to $21.1 million from $17.0 million in 2023 [3][4]. - Net income for Q4 2024 was $6.8 million, or $0.22 per diluted share, compared to $3.7 million, or $0.12 per diluted share in Q4 2023. Full year net income rose to $15.3 million, or $0.50 per diluted share, from $8.8 million, or $0.28 per diluted share in 2023 [5][6]. Non-GAAP Metrics - On a Non-GAAP basis, Q4 2024 net income was $11.6 million, or $0.37 per diluted share, compared to $8.9 million, or $0.28 per diluted share in Q4 2023. Full year Non-GAAP net income was $27.3 million, or $0.87 per diluted share, up from $25.0 million, or $0.77 per diluted share in 2023 [6][32]. Revenue Breakdown - Service revenues in Q4 2024 increased by 10.9% year-over-year to $34.2 million, while full year service revenues rose by 8.2% to $130.2 million [8]. - The Enterprise UCaaS and CX business accounted for 92% of revenues in Q4, with Microsoft business growing by 13% in the quarter and 6% for the full year [13][14]. Cash Flow and Shareholder Returns - Net cash provided by operating activities was $15.3 million for Q4 and $35.3 million for the full year 2024 [10][11]. - The company repurchased 634,533 ordinary shares for $6.0 million during Q4 2024 and declared a cash dividend of $0.18 per share, totaling approximately $5.3 million [16][19]. Strategic Outlook - The company expects continued growth in recurring revenue, particularly in its Voice.ai and managed services segments, projecting a 40% to 50% growth in AI business applications for 2025 [14][15].