AudioCodes Has Good Quarter

Rich Tehrani : Communications and Technology Blog - Tehrani.com
Rich Tehrani
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AudioCodes Has Good Quarter

Cisco made a big splash with their earnings news today and subsequently it may be worth pointing out Audiocodes too released great numbers with growth on a year over year of 15.5%.
 
“AudioCodes’ second quarter financial results were highlighted by our return to sequential revenue growth coupled with continued strength in our networking business,” the company’s chairman, president and CEO, Shabtai Adlersberg, said in a statement to the press.
 
Adlersberg continued: “Underscoring our strong performance was our ability to generate $2.7 million of net cash from our operating activities. During the quarter we made solid progress towards increasing operating efficiencies and initiated a company wide cost reduction program aimed at improving bottom line performance during the second half of 2007 and beyond.”
 
Many of the AudioCodes partners I speak with are extremely happy with the partnerships they enjoy with the company. I have never heard a negative comment about AudioCodes and in this business this is unusual.
 
The one area the company has enormous potential to exploit is the tremendous arsenal of new technologies they have acquired from the likes of Netrake, CTI Squared and Nuera.
 
Purchasing so many companies in various telecom spaces so rapidly is certainly a big undertaking for any organization but over time if they can get each of these businesses to fire on all or even most cylinders, the company’s growth should be far greater than 15.5%.
 
This assumes the core network equipment and gateway markets continue to be solid. I have no reason to believe this won’t be the case and in addition AudioCodes is doing something very smart by diversifying into other areas.
 
Much of the company’s revenue was once dependant on communications equipment providers but now that Audiocodes is a more serious player in the service provider market, they are in a position to have a second revenue stream which should provide cushion if one of the markets was to soften for some reason.


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