AudioCodes Reports Fourth Quarter and Full Year 2023 Results and Declares Semi-Annual Dividend of 18 cents per share

Financial Performance - Quarterly revenues increased by 3.2% sequentially to $63.6 million, while full year 2023 revenues decreased by 11.2% to $244.4 million [1][2] - Quarterly service revenues of $30.9 million accounted for 48.6% of total revenues, with full year 2023 service revenues increasing by 8.7% to $120.4 million [1][2] - GAAP net income for the fourth quarter was $3.7 million, or $0.12 per diluted share, compared to $4.3 million, or $0.14 per diluted share in the prior quarter [1][2] - Full year 2023 GAAP net income was $8.8 million, or $0.28 per diluted share, down from $28.5 million, or $0.88 per diluted share in 2022 [2][3] Non-GAAP Results - Non-GAAP net income for the fourth quarter was $8.9 million, or $0.28 per diluted share, compared to $8.3 million, or $0.25 per diluted share in the prior quarter [3] - Full year 2023 Non-GAAP net income was $25.0 million, or $0.77 per diluted share, down from $45 million, or $1.35 per diluted share in 2022 [3] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $9.3 million for the fourth quarter and $14.9 million for the full year [4][5] - The company repurchased 595,583 ordinary shares during the quarter at a total cost of $6.3 million [1][9] - A cash dividend of 18 cents per share was declared, amounting to approximately $5.5 million, payable on March 6, 2024 [10][11] Business Segments and Growth Areas - The enterprise segment accounted for roughly 90% of business in the fourth quarter, with Microsoft-related business growing 5% year-over-year [6] - Teams-related business grew 10% year-over-year, while AudioCodes Live managed services saw an ARR growth of 50% year-over-year, ending the quarter at $48 million [6] - Customer experience (CX) operations grew over 40% year-over-year in the fourth quarter, with conversational AI bookings growing over 50% [7] Operational Efficiency - Non-GAAP gross margin improved to 67.6%, while non-GAAP operating margin reached 16.9% in the quarter [8] - The company is focusing on transitioning to a subscription and recurring sales model, aiming for revenue growth and improved profitability in 2024 [8]