AudioCodes Reports Fourth Quarter and Full Year 2012 Results

AudioCodes Reports Fourth Quarter and Full Year 2012 Results

LOD, Israel, Jan. 30, 2013 (GLOBE NEWSWIRE) -- AudioCodes (Nasdaq:AUDC), a
leading provider of Voice over IP (VoIP) technologies, products and services,
today announced financial results for the fourth quarter and full year ended
December 31, 2012.

Revenues for the fourth quarter of 2012 were $32.8 million, compared to $31.4
million for the third quarter of 2012, and $37.2 million for the fourth
quarter of 2011. Revenues were $127.5 million in 2012 compared to $155.8
million in 2011.

Net income in accordance with U.S. generally accepted accounting principles
(GAAP) was, $524,000, or $0.01 per diluted share, for the fourth quarter of
2012, compared to a GAAP net loss of $1.1 million, or ($0.03) per diluted
share, for the third quarter of 2012, and GAAP net income of $670,000, or
$0.02 per diluted share, for the fourth quarter of 2011.

The Company reported a GAAP net loss of $4.2 million, or ($0.11) per diluted
share, in 2012 compared to GAAP net income of $7.2 million, or $0.17 per
diluted share, in 2011.

Non-GAAP net income for the fourth quarter of 2012 was $1.1 million, or $0.03
per diluted share, compared to a non-GAAP net loss of $419,000, or ($0.01) per
diluted share, for the third quarter of 2012, and non-GAAP net income of $1.4
million, or $0.04 per diluted share, for the fourth quarter of 2011.

The Company reported a non-GAAP net loss of $1.5 million, or ($0.04) per
diluted share, in 2012 compared to non-GAAP net income of $10.8 million, or
$0.26 per diluted share, in 2011.

Non-GAAP net income (loss) excludes: (i) stock-based compensation expenses;
and (ii) amortization expenses related to intangible assets. A reconciliation
of net income (loss) on a GAAP basis to a non-GAAP basis is provided in the
tables that accompany the condensed consolidated financial statements
contained in this press release.

Positive cash flow from operations for the fourth quarter of 2012 totaled $8.2
million. Cash and cash equivalents, bank deposits and marketable securities
were $58.5 million as of December 31, 2012, compared to $54.1 million as of
September 30, 2012 and $75.6 million as of December 31, 2011. The
year-over-year net decrease in cash balances was primarily related to cash
used for stock repurchases and the reduction in the Company's accounts payable
outstanding as well as $10.2 million used for the repayment of loans.

In October 2011, the Company's Board of Directors authorized a program to
repurchase up to 4.0 million of the Company's Ordinary Shares, NIS 0.01
nominal (par) value. During 2012, the Company repurchased a total of
approximately 2.76 million of its ordinary shares at an aggregate cost of
approximately $6.7 million. As of October 1, 2012, the authorized stock
repurchase program was completed, with AudioCodes having repurchased 3.96
million of its ordinary shares at an aggregate cost of approximately $10.7
million.

"We are pleased to report a second consecutive quarter of improved financial
performance underlined by sequential growth in revenue, return to
profitability and substantial improvement in cash flow from operations," said
Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
"Growth in our networking business was driven primarily by higher product
sales and services in the areas of Unified Communication and
EnterpriseSession Border Controllers applications, both representing
strategic directions for us. Investments made with our global partners over
the past few years continue to contribute in a meaningful way to our return to
growth and our leadership in the industry. These investments also provide
further strength and support to our expected success in coming years."

"As we look ahead to 2013, AudioCodes stands well positioned to extend its
presence within the multi-billion dollar markets for Unified Communications,
Contact Centers and Business Services. We believe that our leadership in the
Microsoft Lync voice eco-system, as the only single-source provider for
Microsoft partners for end-to-end voice product and services solutions, is a
clear competitive advantage within one of the most attractive segments of the
communications sector. With the recent launch of our 'AudioCodes One Voice for
Microsoft Lync' offering, we are simplifying and accelerating voice-enablement
of Lync implementations with a complete portfolio of products and services,
including, among others, IP Phones, Media Gateways, Enterprise Session Border
Controllers (E-SBCs), Survivable Branch Appliances (SBAs) and Session
Experience Manager (SEM), as well as complete network management and
assessment tools, support and professional services," concluded Mr.
Adlersberg.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 9:00 A.M., Eastern Time today to
discuss the Company's fourth quarter and full year 2012 operating performance,
financial results and outlook. The conference call will be simultaneously Web
cast. Investors are invited to listen to the call live via Web cast at the
AudioCodes corporate website at www.audiocodes.com.

About AudioCodes

AudioCodes Ltd. (Nasdaq:AUDC) designs, develops and sells advanced Voice over
IP (VoIP) and converged VoIP and Data networking products and applications to
Service Providers and Enterprises. AudioCodes is a VoIP technology market
leader focused on converged VoIP and data communications and its products are
deployed globally in Broadband, Mobile, Enterprise networks and Cable. The
Company provides a range of innovative, cost-effective products including
Media Gateways, Multi-Service Business Routers, Session Border Controllers
(SBC), Residential Gateways, IP Phones, Media Servers and Value Added
Applications. AudioCodes' underlying technology, VoIPerfectHD(TM), relies on
AudioCodes' leadership in DSP, voice coding and voice processing technologies.
AudioCodes' High Definition (HD) VoIP technologies and products provide
enhanced intelligibility and a better end user communication experience in
Voice communications. For more information on AudioCodes, visit
http://www.audiocodes.com.

Statements concerning AudioCodes' business outlook or future economic
performance; 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 the demand for
existing products; 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; possible disruptions from acquisitions; the ability of
AudioCodes to successfully integrate the products and operations of acquired
companies into AudioCodes' business; and other factors detailed in AudioCodes'
filings with the U.S. Securities and Exchange Commission. AudioCodes assumes
no obligation to update the information in this release.

©2013 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP
Sounds Better, IPmedia, Mediant, MediaPack, OSN, SmartTAP, VMAS, VoIPerfect,
VoIPerfectHD, Your Gateway To VoIP and 3GX are trademarks or registered
trademarks of AudioCodes Limited. All other products or trademarks are
property of their respective owners. Product specifications are subject to
change without notice.

                        Summary financial data follows

AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
                                                                
                                                    December 31, December 31,
                                                    2012         2011
                                                    Unaudited    Audited
ASSETS                                                           
                                                                
CURRENT ASSETS:                                                  
Cash and cash equivalents                           $15,219      $28,257
Short-term and restricted bank deposits              10,330       14,008
Short-term marketable securities and accrued         7,966        345
interest
Trade receivables, net                               24,413       30,923
Other receivables and prepaid expenses              7,274        7,077
Inventories                                         16,797       20,415
Total current assets                                 81,999       101,025
                                                                
LONG-TERM INVESTMENTS:                                           
Long-term and restricted bank deposits               $9,251       $9,120
Long-term marketable securities                      15,762       23,823
Investments in an affiliated company                 1,084        1,251
Deferred tax assets                                 3,565        2,600
Severance pay funds                                 15,772       15,410
Total long-term assets                               45,434       52,204
                                                                
PROPERTY AND EQUIPMENT, NET                          3,619        3,368
                                                                
GOODWILLAND INTANGIBLE ASSETS, NET                  34,952       36,080
                                                                
Total assets                                         $166,004     $192,677
                                                                
LIABILITIES AND EQUITY                                           
                                                    
CURRENT LIABILITIES:                                             
Current maturities of long-term bank loans          $8,436       $10,243
Trade payables                                       6,817        12,362
Other payables and accrued expenses                  15,062       18,102
Deferred revenues                                    5,086        5,235
Total current liabilities                            35,401       45,942
                                                                
LONG-TERM LIABILITIES:                                           
Accrued severance pay                                $16,284      $16,106
Long-term bank loans                                 14,477       22,912
Senior convertible notes                             353          353
Deferred revenues and other liabilities             1,192        1,345
Totallong-term liabilities                          32,306       40,716
                                                                
Total equity                                         98,297       106,019
Total liabilities and equity                         $166,004     $192,677


AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                                                                  
                                                                  
                                     Year ended          Three months ended
                                     December 31,        December 31,
                                     2012        2011      2012      2011
                                     (Unaudited) (Audited) (Unaudited)
Revenues                              $127,490    $155,827  $32,806   $37,223
Cost of revenues                      54,294      64,145    14,100    15,208
Gross profit                         73,196      91,682    18,706    22,015
Operating expenses:                                                
Research and development, net         28,677      32,150    6,231     8,241
Selling and marketing                 40,040      43,248    9,721     10,763
General and administrative            8,214       9,028     1,733     2,174
Total operating expenses              76,931      84,426    17,685    21,178
Operating income (loss)               (3,735)     7,256     1,021     837
Financial income (expenses), net      453         423       87        (93)
Income (loss) before taxes on income  (3,282)     7,679     1,108     744
Taxes on income, net                  (541)       (238)     (257)     (45)
Equity in losses of an affiliated     (354)       (277)     (327)     (29)
companies
Net income (loss)                     $(4,177)    $7,164    $524      $670
Basic net earnings (loss) per share  $(0.11)     $0.17     $0.01     $0.02
Diluted net earnings (loss) per       $(0.11)     $0.17     $0.01     $0.02
share
Weighted average number of shares
used in computing basic net earnings  39,125      41,438    37,931    41,092
(loss) per share (in thousands)
Weighted average number of shares
used in computing diluted net         39,125      41,935    38,169    41,411
earnings (loss) per share (in
thousands)


AUDIOCODES LTD. AND ITS SUBSIDIARIES
NON-GAAP PROFORMA STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                                                              
                                                              
                           Year ended              Three months ended
                           December 31,            December 31,          
                           2012         2011         2012        2011
                           (Unaudited)               (Unaudited)
Revenues                    $127,490     $155,827     $32,806     $37,223
Cost of revenues (1) (2)    53,409       62,994       13,889      14,969
Gross profit               74,081       92,833       18,917      22,254
Operating expenses:                                            
Research and development,   28,247       31,624       6,103       8,120
net (1)
Selling and marketing (1)   39,299       41,981       9,592       10,508
(2)
General and administrative  7,613        8,325        1,587       2,015
(1)
Total operating expenses    75,159       81,930       17,282      20,643
Operating income (loss)     (1,078)      10,903       1,635       1,611
Financial income            453          423          87          (93)
(expenses), net
Income (loss) before taxes  (625)        11,326       1,722       1,518
on income
Taxes on income, net        (541)        (238)        (257)       (45)
Equity in losses of an      (354)        (277)        (327)       (29)
affiliated companies
Net income (loss)           $(1,520)     $10,811      $1,138      $1,444
Diluted net earnings (loss) $(0.04)      $0.26        $0.03       $0.04
per share
Weighted average number of
shares used in computing    39,125       42,371       38,375      41,716
diluted net earnings (loss)
per share (in thousands)
                                                              
                                                              
(1) Excluding stock-based compensation expenses related to options and
restricted stock units granted to employees and others.
(2) Excluding amortization of intangible assets related to the
acquisitions of Nuera, Netrake and CTI Squared.
                                                              
Note: Non-GAAP measures should be considered in addition to, and not as a
substitute for, the results prepared in accordance with GAAP. The Company
believes that non-GAAP information is useful because it can enhance the
understanding of its ongoing economic performance and therefore uses
internally this non-GAAP information to evaluate and manage its operations.
The Company has chosen to provide this information to investors to enable
them to perform comparisons of operating results in a manner similar to how
the Company analyzes its operating results and because many comparable
companies report this type of information.


AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
U.S. dollars in thousands, except per share data
                                                               
                                                               
                          Year ended               Three months ended
                          December 31,             December 31,
                          2012          2011         2012         2011
                          (Unaudited)                (Unaudited)
                                                               
GAAP net income (loss)     $(4,177)      $7,164       $524         $670
                                                               
GAAP net earnings (loss)   $(0.11)       $0.17        $0.01        $0.02
per share
                                                               
Cost of revenues:                                               
Stock-based compensation   61            130          5            33
(1)
Amortization expenses (2)  824           1,021        206          206
                          885           1,151        211          239
Research and development, net:                                   
Stock-based compensation   430           526          128          121
(1)
                                                               
Selling and marketing:                                          
Stock-based compensation   437           963          53           179
(1)
Amortization expenses (2)  304           304          76           76
                          741           1,267        129          255
General and administrative:                                      
Stock-based compensation   601           703          146          159
(1)
                                                               
Non-GAAP net income (loss) $(1,520)      $10,811      $1,138       $1,444
Non-GAAP Diluted net       $(0.04)       $0.26        $(0.03)      $0.04
earnings (loss) per share
                                                               
                                                               
                                                               
(1) Stock-based compensation expenses related to options and restricted stock
units granted to employees and others.
(2) Amortization of intangible assets related to the acquisitions of Nuera,
Netrake and CTI Squared.
                                                               
Note: Non-GAAP measures should be considered in addition to, and not as a
substitute for, the results prepared in accordance with GAAP. The Company
believes that non-GAAP information is useful because it can enhance the
understanding of its ongoing economic performance and therefore uses
internally this non-GAAP information to evaluate and manage its operations.
The Company has chosen to provide this information to investors to enable them
to perform comparisons of operating results in a manner similar to how the
Company analyzes its operating results and because many comparable companies
report this type of information.


AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
                                                                 
                                                                 
                                    Year ended          Three months ended
                                    December 31,        December 31,
                                    2012        2011      2012      2011
                                    (Unaudited) (Audited) (Unaudited)
Cash flows from operating                                
activities:
Net income (loss)                    $(4,177)    $7,164    $524      $670
Adjustments required to reconcile
net income to net cash provided by                                
operating activities:
Depreciation and amortization        2,883       3,239     747       717
Amortization of marketable
securities premiums and accretion of 436         416       109       110
discounts, net
Equity in losses of affiliated
company and interest on loans to     350         277       336       29
affiliated company
Increase (decrease) in accrued       (184)       (86)      125       (36)
severance pay, net
Stock-based compensation expenses    1,529       2,323     332       492
Decrease (increase) in accrued
interest on marketable securities,   4           (182)     (1)       (1)
bank deposits and structured notes
Increase in long- term deferred tax  (965)       (339)     (965)     (339)
assets
Decrease (increase) in trade         6,510       (4,602)   2,491     924
receivables, net
Decrease (increase) in other         1,106       (716)     3,514     681
receivables and prepaid expenses
Decrease (increase) in inventories   3,618       (4,136)   1,935     (1,959)
Increase (decrease) in trade         (5,545)     (1,157)   153       1,313
payables
Increase (decrease) in deferred      485         1,978     200       (67)
revenues
Increase (decrease) in other         (3,054)     (5,464)   (1,265)   1,478
payables and accrued expenses
                                                                 
Net cash provided by (used in)       2,996       (1,285)   8,235     4,012
operating activities
                                                        
Cash flows from investing                                
activities:
Purchase of marketable securities    --          (24,402)  --      --
Short-term deposits, net             3,678       (183)     377       16,552
Net loans provided to affiliated     (183)       (211)     (111)     (211)
company
Investments in long-term deposits    (131)       (9,120)   --        (9,120)
Proceeds from long-term bank         --          --        850       --
deposits
Purchase of property and equipment  (2,006)     (1,579)   (162)     (316)
Net cash provided by (used in)       1,358       (35,495)  954       6,905
investing activities


AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
U.S. dollars in thousands
                                                                 
                                                                 
                                    Year ended          Three months ended
                                    December 31,        December 31,
                                    2012        2011      2012      2011
                                    (Unaudited) (Audited) (Unaudited)
Cash flows from financing                                
activities:
Purchase of treasury stock           (6,917)     (3,812)   (618)     (3,812)
Proceeds from long-term bank loans   --          24,005    --        5,255
Repayment of long-term bank loans   (10,242)    (6,600)   (2,866)   (2,100)
Payment for acquisition of NSC       (336)       (278)     --        --
non-controlling interest
Proceeds from issuance of shares
upon exercise of options, warrants   103         1,411     68        28
and employee stock purchase plan
                                                                 
Net cash provided by (used in)       (17,392)    14,726    (3,416)   (629)
financing activities
                                                                 
Increase (decrease) in cash and cash (13,038)    (22,054)  5,773     10,288
equivalents
Cash and cash equivalents at the     28,257      50,311    9,446     17,969
beginning of the period
                                                                 
Cash and cash equivalents at the end $15,219     $28,257   $15,219   $28,257
of the period

CONTACT: Company Contacts
         Guy Avidan,
         VP Finance & CFO
         AudioCodes
         Tel: +972-3-976-4000
         guy.avidan@audiocodes.com
        
         Shirley Nakar,
         Director, Investor Relations
         AudioCodes
         Tel: +972-3-976-4000
         shirley@audiocodes.com
        
         IR Agency Contact
         Erik Knettel,
         Grayling
         Tel: +1-646-284-9415
         erik.knettel@grayling.com