AudioCodes slides following mixed results, guidance reiteration

|About: AudioCodes Ltd. (AUDC)|By:, SA News Editor

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