AudioCodes (AUDC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.30 million, or $ 0.04 a share in the quarter, against a net loss of $0.22 million, or $0.01 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.48 million, or $0.07 a share compared with $1.56 million or $0.04 a share, a year ago. Revenue during the quarter grew 7.53 percent to $37.38 million from $34.76 million in the previous year period. Gross margin for the quarter expanded 206 basis points over the previous year period to 62.38 percent. Total expenses were 94.74 percent of quarterly revenues, down from 97.52 percent for the same period last year. This has led to an improvement of 278 basis points in operating margin to 5.26 percent.
Operating income for the quarter was $1.97 million, compared with $0.86 million in the previous year period.
"We are pleased to report solid financial results for the first quarter of 2017," said Shabtai Adlersberg, president and chief executive officer of AudioCodes. “Our financial performance was in line with our guidance for the full year, and with our strategic plan to grow the UC-SIP business at an annual rate of 15% to 20%.” Mr. Adlersberg continued "The global trend of migrating voice services to all-IP, and the continued growth in the unified communications, UCaaS, SIP trunking and contact centers markets have all contributed to our strong business performance. Underlining the strength in our voice networking business, the first quarter of 2017 was the third quarter in a row in which gateway revenues grew, reversing the declining trend of gateway revenues that was experienced in 2015 and the first half of 2016."
Operating cash flow drops significantly
AudioCodes has generated cash of $0.85 million from operating activities during the quarter, down 68.56 percent or $ 1.86 million, when compared with the last year period. The company has spent $0.45 million cash to meet investing activities during the quarter as against cash inflow of $1.04 million in the last year period.
The company has spent $7.03 million cash to carry out financing activities during the quarter as against cash outgo of $6.09 million in the last year period.
Cash and cash equivalents stood at stood at $17.72 million as at Mar. 31, 2017.
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