Seeking Alpha

AudioCodes slides following mixed results, guidance reiteration

  • AudioCodes (AUDC -7.2%) used its Q2 CC (transcript) to reiterate guidance for 2014 revenue of $147M-$152M and EPS of $0.18-$0.22; that's in-line with a consensus of $149.9M and $0.20.
  • The company's networking equipment sakes rose 8.3% Q/Q and 15.3% Y/Y, aided by strong enterprise SBC, business router, and IP phone demand. AudioCodes noted its offerings for Microsoft's Lync unified communications platform (previous) and SIP trunk services remain growth drivers.
  • Managed/technical service revenue was also healthy, rising 33.4% Y/Y and making up 22% of revenue. The company admits its technology/legacy products business (12% of revenue) remains a headwind.
  • EPS was pressured by a 14% Y/Y increase in opex to 42.8%. A William Blair analyst pressed AudioCodes on its plans to hit EPS guidance in light of opex growth. CFO Guy Avidan stated continued gross margin gains (along with revenue growth) will help; Q2 GM was 60%, a new record.
  • Q2 results, PR

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Comments (4)
  • Pgman701
    , contributor
    Comments (102) | Send Message
     
    Where's Josh? Nowhere to be found.
    30 Jul 2014, 06:33 AM Reply Like
  • Pgman701
    , contributor
    Comments (102) | Send Message
     
    Now where oh where is Josh?
    30 Jul 2014, 06:34 AM Reply Like
  • austing87
    , contributor
    Comments (3) | Send Message
     
    Analysts just (barely) overestimated Audio's growth on their fastest growing revenue streams. This was not a bad quarter, nor was the reiterated guidance a "miss"... 25% growth over the next few years will beat the pants off of the shorts who had a small victory yesterday. With the shorts in numbers, any piece of news that isn't overtly "positive" will cause a short term collapse, especially considering the percieved added risk of a non-domestic company. Over the next few months/year these guys will all be forced to cover as they are on the inevitable losing side and are playing with borrowed time and money in this stock. And what would josh say? Would any piece addressing this help the situation or just draw more pundits out of the woodworks to spew short-sighted opinions? Don't short this one guys you will get burned sooner rather than later.
    30 Jul 2014, 02:03 PM Reply Like
  • tawse57
    , contributor
    Comments (799) | Send Message
     
    What is the short position on AUDC? Anyone know?
    6 Aug 2014, 06:19 PM Reply Like
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