AudioCodes Reports First Quarter 2012 Results

AudioCodes(Nasdaq:AUDC), a leading provider of Voice over IP technologies and Voice Network products, today announced financial results for the first quarter ended March 31, 2012.

The first quarter of 2012 were $32

Revenues for the first quarter of 2012 were $32.3 million compared to $37.2 million for the fourth quarter of 2011 and $41.0 million for the first quarter of 2011.

"AudioCodes' first quarter earnings were below our original forecast and reflected a faster than anticipated decline in our legacy business, a trend we believe will become less significant in the second half of 2012. These lower earnings reflect weakness in sales in North America including, among others, a decline in legacy OEM business and lower than anticipated government and research sales. Aside from these headwinds, we saw continued solid demand for our core networking business line which represents about 80% of our overall business. Favorable product mix contributed to strong gross margin performance while the quarter. Strength in AudioCodes' cash flow from operations for the first quarter was as well favorable, strengthening the balance sheet and allowing us to continue to execute on our active share repurchase program," commented Shabtai Adlersberg, Chairman, President and Chief Executive Officer of AudioCodes.

The landscape for our markets

"As we look out on the landscape for our markets, we continue to see good opportunities in unified communications, the contact center market and IP business communications services. In the first quarter of 2012, we continued to introduce innovative products and services into some of the fastest growing segments of the VoIP (Voice over Internet Protocol) market, just as the Enterprise Session Border Controller space where AudioCodes has seen good momentum in growing sales and was recently ranked among the top three global public providers in a leading independent analysis. On the partner front, we continue to collaborate with market leaders just as Microsoft and their unified communications Lync solution to leverage the long-term possibility we see in the market for communication and collaboration and networked telephony," concluded Mr. Adlersberg.

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 in accordance with 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, nevertheless 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 clients' products and markets; timely product and research 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.

©2012 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.