0001144204-18-021955.txt : 20180424 0001144204-18-021955.hdr.sgml : 20180424 20180424094041 ACCESSION NUMBER: 0001144204-18-021955 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180424 FILED AS OF DATE: 20180424 DATE AS OF CHANGE: 20180424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AUDIOCODES LTD CENTRAL INDEX KEY: 0001086434 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30070 FILM NUMBER: 18770363 BUSINESS ADDRESS: STREET 1: 1 HAYARDEN STREET CITY: AIRPORT CITY, LOD, ISRAEL STATE: L3 ZIP: 70151 BUSINESS PHONE: 97239764000 MAIL ADDRESS: STREET 1: PO BOX 255 CITY: BEN GURION AIRPORT STATE: L3 ZIP: 70100 6-K 1 tv491739_6k.htm FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

For the Month of April 2018

 

Commission file number 0-30070

 

AUDIOCODES LTD.

(Translation of registrant’s name into English)

 

1 Hayarden Street • Airport City, Lod 7019900 • ISRAEL

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x                   Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

 

  

On April 24, 2018, AudioCodes Ltd. (the “Registrant”) issued a press release announcing financial results for the first quarter of 2018, and other matters. A copy of this press release is attached hereto as Exhibit 1 and incorporated by reference herein.

 

The information set forth in (a) the first, second, third and sixth paragraphs following the heading “Details” and the two paragraphs following the caption “Share Buy Back Program” of, and (b) the condensed consolidated balance sheets, condensed consolidated statements of operations and condensed consolidated statement of cash flows contained in, the press release attached as Exhibit 1 to this Report on Form 6-K are hereby incorporated by reference into (i) the Registrant’s Registration Statement on Form S-8, File No. 333-11894; (ii) the Registrant’s Registration Statement on Form S-8, File No. 333-13268; (iii) the Registrant’s Registration Statement on Form S-8, File No. 333-105473; (iv) the Registrant’s Registration Statement on Form S-8, File No. 333-144825; (v) the Registrant’s Registration Statement on Form S-8, File No. 333-160330; (vi) the Registrant’s Registration Statement on Form S-8, File No. 333-170676; (vii) the Registrant’s Registration Statement on Form S-8, File No. 333-190437; and (viii) the Registrant’s Registration Statement on Form S-8, File No. 333-210438.

 

2 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  AUDIOCODES LTD.  
  (Registrant)    
       
       
       
  By: /s/ NIRAN BARUCH  
    Niran Baruch  
    Vice President Finance and  
    Chief Financial Officer  

 

 

Dated: April 24, 2018

 

3 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
1   Press release, dated April 24, 2018, announcing financial results for the first quarter of 2018, and other matters.

 

 

 

 

EX-1 2 tv491739_ex1.htm EXHIBIT 1

 

Exhibit 1

 

  AudioCodes Press Release

 

Company Contacts   IR Agency Contact

Niran Baruch,
VP Finance & Chief Financial Officer

AudioCodes

Tel: +972-3-976-4000
Niran.baruch@audiocodes.com

Shirley Nakar,
Director, Investor Relations
AudioCodes

Tel: +972-3-976-4000

shirley@audiocodes.com

Philip Carlson

KCSA Strategic

Communications

Tel: +1-212-896-1233

audc@kcsa.com

 

 

AudioCodes Reports First Quarter 2018 Results

 

Lod, Israel – April 24, 2018 - AudioCodes (NASDAQ: AUDC) Press Release

 

First Quarter Highlights

 

·Quarterly revenues increased by 13.5% year-over-year to $42.4 million;

 

·Quarterly service revenues increased by 20.2% year-over-year to $13.7 million;

 

·Revenues related to UC-SIP business increased more than 30% compared to the first quarter of 2017;

 

·Quarterly GAAP gross margin was 64.0%; quarterly Non-GAAP gross margin was 64.5%;

 

·Quarterly GAAP operating margin was 7.0%; quarterly Non-GAAP operating margin was 9.1%;

 

·Cash flow from operating activities was $8.3 million;

 

·Quarterly GAAP net income was $2.4 million, or $0.08 per diluted share, Quarterly Non-GAAP net income was $3.9 million, or $0.13 per diluted share;

 

·AudioCodes repurchased 1 million of its ordinary shares during the quarter at an aggregate cost of $7.2 million.

  

 

 Page 1 of 9

 AudioCodes Press Release

 

Details

 

AudioCodes, a leading vendor of advanced voice networking and media processing solutions for the digital workplace, today announced financial results for the first quarter ended March 31, 2018.

 

Revenues for the first quarter of 2018 were $42.4 million compared to $41.4 million for the fourth quarter of 2017 and $37.4 million for the first quarter of 2017.

 

Net income was $2.4 million, or $0.08 per diluted share, for the first quarter of 2018 compared to $1.3 million, or $0.04 per diluted share, for the comparable period last year.

 

On a Non-GAAP basis, net income was $3.9 million, or $0.13 per diluted share, for the first quarter of 2018 compared to $2.5 million, or $0.07 per diluted share, for the comparable period last year.

 

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Active Communications Europe; and (iv) non-cash deferred tax benefit or expenses. A reconciliation of net income 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.

 

Net cash provided by operating activities was $8.3 million for the first quarter of 2018. Cash and cash equivalents, long- and short-term bank deposits and long- and short-term marketable securities were $60.1 million as of March 31, 2018 compared to $58.7 million as of December 31, 2017. The increase in cash and cash equivalents, long- and short-term bank deposits and long- and short-term marketable securities was the result of operating activities offset, in part, by the use of cash for the continued repurchasing of the Company’s ordinary shares pursuant to its share repurchase program.

 

"We are pleased to report improved financial results for the first quarter 2018,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. "In the first quarter of 2018 we continued to strengthen our Enterprise Voice business and enhance our leadership position in this space. Continuing the strong trend of the fourth quarter of 2017, we achieved record financial results in our revenues, net income and gross margin. We also achieved higher operating margin for our Enterprise Voice operation. Our services business performed well in the quarter with revenues higher by 20% on a year over year basis. Looking forward, we expect to continue our growth in 2018, continue to generate strong cash flow from operating activities and invest in future offerings."

 

 

 Page 2 of 9

 AudioCodes Press Release

 

“The performance of our UC-SIP business was noteworthy, reaching a revenue level that’s more than 50% of our total revenues. We continued to execute on our strategic plan, and grew sales of UC-SIP by more than 30% compared to the year ago quarter. Our performance continues to rely primarily on collaboration with our application and system integration partners worldwide, as well as on winning enterprise voice deployments and service provider network transformation projects. Additionally, we saw new opportunities developing in our Voice.AI business,” concluded Mr. Adlersberg.

 

Share Buy Back Program

 

As of March 31, 2018, AudioCodes had acquired an aggregate of 16.7 million of its ordinary shares since August 2014 for an aggregate consideration of $87 million. During the quarter ended March 31, 2018, AudioCodes acquired 1 million of its ordinary shares under its share repurchase program for a total consideration of approximately $7.2 million.

 

In November 2017, AudioCodes received court approval in Israel to purchase up to an aggregate of $20 million of additional ordinary shares pursuant to its share repurchase program. As of March 31, 2018, $9.5 million remained available to the Company for repurchasing shares under this court approval. The current court approval for share repurchases will expire on May 27, 2018.

 

Conference Call & Web Cast Information

 

AudioCodes will conduct a conference call at 8:00 A.M., Eastern Time today to discuss the Company's first quarter and full year of 2017 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:

 

United States Participants: +1 (877) 407-0778

 

International Participants: +1 (201) 689-8565

 

The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby

 

Follow AudioCodes’ social media channels:

 

AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.

 

 

 Page 3 of 9

 AudioCodes Press Release

 

To download AudioCodes’ investor relations app, which offers access to its SEC filings, press releases, videos, audiocasts and more, please visit Apple's App Store for the iPhone and iPad or Google Play for Android mobile devices.

  

 

About AudioCodes

 

AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a leading vendor of advanced voice networking and media processing solutions for the digital workplace. AudioCodes enables enterprises and service providers to build and operate all-IP voice networks for unified communications, contact centers, and hosted business services. AudioCodes offers a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.

 

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 need for additional financing; the ability to satisfy covenants in the Company’s loan agreements; 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.

 

©2018 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice and CloudBond 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

 

 

 Page 4 of 9

 AudioCodes Press Release

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

   March 31,   December 31, 
   2018   2017 
   (Unaudited)   (Audited) 
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents  $21,701   $24,235 
Short-term and restricted bank deposits   7,741    2,739 
Short-term marketable securities and accrued interest   14,485    7,087 
Trade receivables, net   21,670    22,059 
Other receivables and prepaid expenses   6,665    4,693 
Inventories   17,534    16,563 
           
Total current assets   89,796    77,376 
           
LONG-TERM ASSETS:          
Long-term and restricted bank deposits  $3,907   $4,207 
Long-term marketable securities   12,220    20,475 
Deferred tax assets   6,101    6,685 
Severance pay funds   19,718    20,138 
           
Total long-term assets   41,946    51,505 
           
PROPERTY AND EQUIPMENT, NET   3,769    3,835 
           
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET   38,028    38,222 
           
Total assets  $173,539   $170,938 
           
LIABILITIES AND EQUITY          
           
CURRENT LIABILITIES:          
Current maturities of long-term bank loans  $2,539   $2,519 
Trade payables   5,801    5,639 
Other payables and accrued expenses   19,779    20,786 
Deferred revenues   22,081    16,417 
           
Total current liabilities   50,200    45,361 
           
LONG-TERM LIABILITIES:          
Accrued severance pay  $20,855   $21,228 
Long-term bank loans   5,643    6,237 
Deferred revenues and other liabilities   6,945    5,731 
           
Total long-term liabilities   33,443    33,196 
           
Total equity   89,896    92,381 
           
Total liabilities and equity  $173,539   $170,938 

 

 

 Page 5 of 9

 AudioCodes Press Release

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except shares and per share data

 

   Three months ended 
   March 31, 
   2018   2017 
   (Unaudited) 
Revenues:          
Products  $28,763   $26,008 
Services   13,662    11,369 
           
Total Revenues   42,425    37,377 
           
Cost of revenues:          
Products   11,895    11,159 
Services   3,371    2,902 
           
Total Cost of revenues   15,266    14,061 
           
Gross profit   27,159    23,316 
           
Operating expenses:          
Research and development, net   8,633    7,154 
Selling and marketing   12,988    12,035 
General and administrative   2,581    2,161 
           
Total operating expenses   24,202    21,350 
           
Operating income   2,957    1,966 
Financial income (expenses), net   243    (69)
           
Income before taxes on income   3,200    1,897 
Taxes on income, net   (766)   (602)
           
Net income  $2,434   $1,295 
           
Basic net earnings per share  $0.08   $0.04 
           
Diluted net earnings per share  $0.08   $0.04 
           
Weighted average number of shares used in computing basic net earnings per share (in thousands)   29,159    31,986 
           
Weighted average number of shares used in computing diluted net earnings per share (in thousands)   30,349    33,037 

 

 

 Page 6 of 9

 AudioCodes Press Release

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

U.S. dollars in thousands, except per share data

 

   Three months ended 
   March 31, 
   2018   2017 
   (Unaudited) 
           
GAAP net income  $2,434   $1,295 
           
GAAP net earnings per share  $0.08   $0.04 
           
Cost of revenues:          
Share-based compensation (1)   39    25 
Amortization expenses (2)   174    174 
    213    199 
Research and development, net:          
Share-based compensation (1)   113    95 
Deferred payments expenses (3)   -    11 
    113    106 
           
Selling and marketing:          
Share-based compensation (1)   274    263 
Amortization expenses (2)   15    30 
    289    293 
General and administrative:          
Share-based compensation (1)   269    155 
           
Income taxes:          
Deferred tax (4)   584    430 
           
Non-GAAP net income  $3,902   $2,478 
Non-GAAP diluted net earnings per share  $0.13   $0.07 

  

(1)Share-based compensation expenses related to options and restricted share units granted to employees and others.
(2)Excluding amortization of intangible assets related to the acquisitions of Mailvision and Active Communications Europe assets.
(3)Excluding expenses related to deferred payments in connection with the acquisition of Active Communications Europe.
(4)Non-cash deferred tax expenses.

 

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.

 

 

 Page 7 of 9

 AudioCodes Press Release

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 

   Three months ended 
   March 31, 
   2018   2017 
   (Unaudited) 
Cash flows from operating activities:          
Net income  $2,434   $1,295 
Adjustments required to reconcile net income or loss to net cash provided by operating activities:          
Depreciation and amortization   540    655 
Amortization of marketable securities premiums and accretion of discounts, net   103    161 
Increase in accrued severance pay, net   47    196 
Share-based compensation expenses   695    538 
Decrease (increase) in accrued interest and exchange rate effect of loans, marketable securities and bank deposits   15    (3)
Decrease in long- term deferred tax assets   563    409 
Decrease in trade receivables, net   389    1,056 
Increase in other receivables and prepaid expenses   (1,734)   (3,452)
Increase in inventories   (971)   (107)
Increase (decrease) in trade payables   162    (2,564)
Decrease in other payables and accrued expenses   (1,081)   (54)
Increase in deferred revenues   7,124    2,730 
           
Net cash provided by operating activities   8,286    860 
           
Cash flows from investing activities:          
Proceeds from redemption of marketable securities   727    - 
Purchase of property and equipment   (280)   (463)
           
Net cash provided by (used in) investing activities   447    (463)

 

 

 Page 8 of 9

 AudioCodes Press Release

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 

   Three months ended 
   March 31, 
   2018   2017 
   (Unaudited) 
           
Cash flows from financing activities:          
Purchase of treasury stock   (7,224)   (7,332)
Repayment of bank loans   (636)   (985)
Payment related to the acquisition of ACS   (151)   - 
Proceeds from issuance of shares upon exercise of options and warrants   1,446    1,286 
           
Net cash used in financing activities   (6,565)   (7,031)
           
Net increase (decrease) in cash, cash equivalents, and restricted cash   2,168    (6,634)
           
Cash, cash equivalents and restricted cash at beginning of period   31,181    33,152 
           
Cash, cash equivalents and restricted cash at end of period  $33,349   $26,518 

 

 

 Page 9 of 9

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