Group 1: Earnings Performance - AudioCodes reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, and an increase from $0.16 per share a year ago [1] - The company posted revenues of $60.3 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 0.62% and up from $60.02 million year-over-year [1] - Over the last four quarters, AudioCodes has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [1] Group 2: Stock Performance and Market Comparison - AudioCodes shares have declined approximately 12.4% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [2] - The current Zacks Rank for AudioCodes is 3 (Hold), indicating expected performance in line with the market in the near future [3] Group 3: Future Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $61.58 million, and for the current fiscal year, it is $0.93 on revenues of $245.08 million [4] - The Communication - Components industry is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [4]

Exhibit 1 codes AudioCodes Press Release P R E S S R E L E A S E Company Contacts Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 niran.baruch@audiocodes.com Roger L. Chuchen, VP, Investor Relations AudioCodes Tel: 732-764-2552 roger.chuchen@audiocodes.com AudioCodes Reports Second Quarter 2024 Results and Declares SemiAnnual Dividend of 18 cents per share Or Yehuda, Israel – July 30, 2024 - AudioCodes (NASDAQ: AUDC) Press Release Second Quarter Highlights · Quarterly revenues increase ...

Core Insights - AudioCodes reported a 0.5% year-over-year increase in quarterly revenues to $60.3 million for Q2 2024, with service revenues rising by 12.3% to $32 million [1][2] - The company achieved a GAAP net income of $3.8 million, or $0.12 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in Q2 2023 [2][19] - Non-GAAP net income for Q2 2024 was $5.5 million, or $0.18 per diluted share, up from $5.1 million, or $0.16 per diluted share, in the same quarter last year [2][19] Financial Performance - GAAP gross margin for the quarter was 65.5%, while non-GAAP gross margin was slightly higher at 65.8% [1][2] - GAAP operating margin stood at 8.2%, with non-GAAP operating margin at 11.9% [1][2] - EBITDA for Q2 2024 was reported at $6.2 million (GAAP) and $8.3 million (non-GAAP), compared to $2.9 million and $6.2 million respectively in Q2 2023 [2][19] Cash Flow and Shareholder Returns - The company used $2.9 million in net cash for operating activities during the quarter [4] - AudioCodes repurchased 116,453 ordinary shares for a total cost of $1.2 million during Q2 2024 [1][8] - A cash dividend of $0.18 per share was declared, amounting to approximately $5.5 million, payable on August 29, 2024 [9][10] Business Segments and Growth - The Microsoft Teams business grew by 3.3% year-over-year, with Live managed services increasing by about 35% year-over-year, reaching an ARR of $56 million [5][6] - The Conversational AI business saw over 50% growth year-over-year, driven by demand for innovation in unified communications and customer experience [6][7] - The company is on track to meet its full-year ARR target range of $64-$70 million, representing an average growth rate of approximately 40% compared to 2023 [5][6] Strategic Initiatives - AudioCodes is focusing on cost rationalization initiatives to support long-term top-line growth and margin expansion [7] - The company has made notable progress in new Conversational AI activities, including solutions for Microsoft Teams and SaaS recording [6][7]

AudioCodes leads the enterprise SBC market for the third year running with a 23.1% worldwide revenue share for 2023 LOD, Israel, May 15, 2024 /PRNewswire/ -- Highlights Research firm Omdia ranked AudioCodes as the market leader for 2023 with a worldwide revenue share of 23.1% in its Enterprise SBCs and VoIP Gateways Market Tracker – 4Q23 and CY23 Analysis and 2024–28 Forecast AudioCodes was also ranked by Omdia as the top vendor in the same category for 4Q23 with a 26.8% share AudioCodes Mediant SBCs are c ...

AudioCodes Ltd. (NASDAQ:AUDC) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants Roger Chuchen - Vice President, Investor Relations Shabtai Adlersberg - President and Chief Executive Officer Niran Baruch - Vice President of Finance and Chief Financial Officer Conference Call Participants Samad Samana - Jefferies Ryan MacWilliams - Barclays Ryan Koontz - Needham & Company Operator Good morning everyone and welcome to the AudioCodes First Quarter 2024 Earnings Conference Call. At thi ...

AudioCodes (AUDC) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15%. A quarter ago, it was expected that this communication components company would post earnings of $0.24 per share when it actually produced earnings of $0.28, delivering a surprise of 16.67%.Over the last four quar ...

Maskot/DigitalVision via Getty Images Introduction I wanted to take a look at AudioCodes Ltd. (NASDAQ:AUDC) and how it performed throughout the years given that the company is about to report its Q1 earnings, the company's profitability, and efficiency took a nosedive since the peak of the pandemic, however, a transition to a software-service-based company has the potential to revitalize the company in the long run. The question is if the management can execute. Nevertheless, the risk/reward seems to be ent ...

LOD, Israel, April 3, 2024 /PRNewswire/ -- AudioCodes (NASDAQ: AUDC), a leading vendor of advanced communications software, products and productivity solutions for the digital workplace, today announced that it will release financial results for its First quarter 2024 on Tuesday, May 07, 2024, before the market open on NASDAQ, reflecting the quarterly period ended March 31, 2024. AudioCodes' financial results will be released over the news wires and will also be posted on its corporate website. On Tuesday, ...

Product and Service Offerings - AudioCodes expanded its AudioCodes Live for Microsoft Teams portfolio, offering three subscription-based services: Live Teams Essentials, Live Teams Pro, and Live Teams Premium, aimed at simplifying Microsoft Teams integration for enterprise customers [98]. - The company introduced the AudioCodes Live Platform for Microsoft Teams, a managed service for service providers that reduces time-to-market for hosted Teams services, available in three variants: Hosted Essentials, Hosted Essentials+, and Hosted Pro [100]. - AudioCodes' Voice.AI business line focuses on AI and machine learning to provide insights and predictions based on gathered content, enhancing customer service experiences [102]. - The SmartTAP 360° Live solution captures and indexes all types of organizational interactions, integrating with Microsoft Teams for compliance recording and offering analytics features like sentiment analysis and keyword detection [103]. - The Voca CIC contact center solution integrates conversational AI with Microsoft Teams, allowing for a unified communications experience and enhancing customer interaction capabilities [106]. - Meeting Insights, an AI-powered solution, automates meeting content recording and analysis, providing summaries and action items, and is built on a new multi-tenant SaaS platform [110]. - AudioCodes continued to enhance its SBCs for security and capacity in cloud environments, adding video support for WebRTC Gateway [111]. - The company launched a new video collaboration bar for Microsoft Teams, catering to the increased demand for video solutions in remote work settings [111]. - AudioCodes developed a generic analytics platform based on Azure Synapse capabilities to provide insights and predictions from Microsoft Teams call data [112]. - AudioCodes is focusing on expanding its voice and AI capabilities to penetrate the contact center market, particularly with Microsoft Teams integration [125]. - The AudioCodes Live Platform for Microsoft Teams is expected to gain traction, offering subscription-based services without the need for capital investments [126]. - AudioCodes Live Platform is a SaaS solution that facilitates seamless migration to UCaaS solutions like Microsoft Teams and Zoom Phone, reducing initial investment for service providers [146]. Financial Performance - Total revenues decreased by 11.2% to $244.4 million in 2023 from $275.1 million in 2022 [192]. - Revenues from product sales decreased by 24.5% to $124.0 million, accounting for 50.7% of total revenues, down from 59.7% in 2022 [192]. - Revenues from service sales increased by 8.7% to $120.4 million, representing 49.3% of total revenues, up from 40.3% in 2022 [192]. - Gross profit margin slightly decreased to 64.8% in 2023 from 65.0% in 2022 [191]. - Operating income fell to $14.4 million, or 5.9% of total revenues, compared to $31.3 million, or 11.4% in 2022 [191]. - Net income decreased to $8.8 million, representing 3.6% of total revenues, down from 10.3% in 2022 [191]. - Cash and cash equivalents decreased to $106.7 million as of December 31, 2023, down from $124.3 million in 2022 [196]. - Operating activities generated approximately $14.9 million in cash in 2023, compared to $8.3 million in 2022 [200]. - Cash used in financing activities was $28.9 million in 2023, primarily for share repurchases of $18.3 million and cash dividends of $11.4 million [201]. Market Trends and Strategy - The demand for cloud UC services continued to grow in 2023, driven by the migration of businesses to cloud solutions, although at a slower rate compared to the pandemic [118]. - The contact center market is rapidly evolving, with increased automation and remote work capabilities, leading to a demand for omnichannel engagement solutions [119]. - The transition to all-IP networks is accelerating, with telecom operators completing migrations and seeking to replace legacy systems [121]. - The company anticipates increased sales of software-based solutions, although this may lead to lower revenues from hardware products [206]. - Demand for technology products is decreasing as customers migrate to integrated solutions, adversely affecting sales [206]. Research and Development - Research and development expenses were $57.169 million, or 23.4% of total revenues, compared to 21.8% in 2022 [191]. - The company has invested significantly in development to comply with Microsoft's requirements for unified communication solutions [181]. - The company received approximately $7.3 million in grants from the IIA for research and development projects related to its Israeli subsidiaries [204]. - The obligation to pay royalties to the IIA amounts to 3% to 5% of revenues from sales of products developed with IIA grants, contingent on actual sales [204]. - As of December 31, 2023, 330 employees were engaged in research and development on a full-time basis [204]. Employee and Executive Compensation - Total direct remuneration for the 16 key executives in 2023 was approximately $4.3 million, including $0.5 million allocated for pension and retirement benefits [216]. - Yehuda Herscovici, VP Products, received total compensation of $978,250, which includes a base salary of $210,772 and share-based compensation of $651,703 [213]. - Shabtai Adlersberg, President and CEO, had total compensation of $3,213,852, comprising a salary of $358,403 and share-based compensation of $2,091,942 [214]. - The company granted 287,500 options and RSUs in 2023, with an average exercise price of $2.09 [217]. - The total number of employees was 950, a decrease of 1.65% from 966 in 2022 [231]. - Research and development employees numbered 330, down from 339 in 2022, indicating a reduction of 2.65% [232]. Corporate Governance and Compliance - The company has not included a provision in its articles of association regarding the independence criteria for directors, as it complies with Nasdaq and SEC regulations [221]. - The audit committee consists of four members, including three independent directors, with Joseph Tenne designated as the "audit committee financial expert" [223]. - The compensation committee, which includes all outside directors, is responsible for recommending executive compensation policies and monitoring their implementation [226]. - The company adopted a Clawback Policy in August 2023, requiring the return of incentive compensation in case of financial statement restatements, approved by shareholders on October 24, 2023 [268]. Shareholder Information - As of March 20, 2024, Shabtai Adlersberg holds 4,600,253 shares, representing 15.2% of the ordinary shares [236]. - Major shareholders include Shabtai Adlersberg with 4,705,253 shares (15.5%), Leon Bialik with 2,311,704 shares (7.6%), and Senvest Management, LLC with 2,543,368 shares (8.4%) [243]. - The company received court approval in 2023 to pay dividends and repurchase shares despite the lack of statutory profits, valid until June 18, 2024 [254]. Taxation and Legal Compliance - The corporate tax rate in Israel is 23% effective from January 1, 2018, with potential reductions for companies qualifying as Industrial Companies [280]. - Non-residents of Israel can freely convert amounts received in Israeli currency from ordinary shares into non-Israeli currencies, subject to applicable taxes [277]. - The company waived its Beneficiary Enterprise status starting from the 2019 tax year [285]. - Tax deductions for R&D expenditures are allowed if approved by the relevant Israeli government ministry [287].

Core Insights - AudioCodes has introduced an omnichannel experience for its Voca Conversational Interaction Center (CIC), integrating email and webchat with existing voice capabilities to enhance customer interactions [1][2][4] - The Voca CIC is designed to provide a seamless customer experience across multiple channels from a single-screen Microsoft Teams contact center built in Azure [2][3] - This new feature allows agents to multitask effectively, managing their availability across different channels, thus ensuring that digital interactions receive equal attention as voice interactions [4][3] Company Overview - AudioCodes is a leading vendor of advanced communications software and solutions, enabling enterprises to build and operate all-IP voice networks for unified communications and contact centers [8] - The company is recognized for its innovative products and services, which are utilized by large multinational enterprises and tier-1 operators globally [8] Product Features - Voca CIC is an AI-first, Microsoft-certified contact center with Azure-native integration, allowing for rapid deployment and scalability [3][6] - The platform features a unique channel-specific status bar that automatically directs customer interactions to agents based on their availability and capacity [4][3] - AudioCodes offers a 30-day free trial of Voca CIC, allowing potential customers to evaluate its capabilities quickly [6]