AudioCodes (AUDC) has reported a 4,336.61 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $16.24 million, or $0.45 a share in the quarter, compared with $0.37 million, or $0.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.43 million, or $0.26 a share compared with $5.90 million or $0.14 a share, a year ago.
Revenue during the quarter grew 4.16 percent to $145.57 million from $139.76 million in the previous year period. Gross margin for the quarter expanded 145 basis points over the previous year period to 60.69 percent. Total expenses were 94.67 percent of quarterly revenues, down from 98.06 percent for the same period last year. This has led to an improvement of 339 basis points in operating margin to 5.33 percent.
Operating income for the quarter was $7.75 million, compared with $2.71 million in the previous year period.
"We are pleased to report strong financial results for the fourth quarter and the full 2016 year," said Shabtai Adlersberg, president and chief executive officer of AudioCodes. "In 2016, we continued to execute on our strategic goal of growing the UC-SIP business. We are pleased to report that we grew UC-SIP revenues to more than $55 million in 2016, an increase of more than 20% compared to 2015. We are confident in our ability to continue this growth and are planning to reach $100 million in annual revenues from this business within the next three years. Additionally, the global trend to move to All-IP between now and 2025 has increased demand for gateways. In line with this trend, our gateway revenues increased in the second half of 2016 compared to the first half of the year. We are encouraged by the momentum of these two business lines which now comprise above 90% of our quarterly revenues."
Operating cash flow declines
AudioCodes has generated cash of $6.69 million from operating activities during the year, down 13.17 percent or $1.02 million, when compared with the last year.
The company has spent $0.29 million cash to meet investing activities during the year as against cash outgo of $4.36 million in the last year.
The company has spent $1.29 million cash to carry out financing activities during the year as against cash inflow of $0.42 million in the last year period.
Cash and cash equivalents stood at $24.34 million as on Dec. 31, 2016, up 28.75 percent or $5.44 million from $18.91 million on Dec. 31, 2015.
Debt moves up
AudioCodes has witnessed an increase in total debt over the last one year. It stood at $11.94 million as on Dec. 31, 2016, up 5.05 percent or $0.57 million from $11.37 million on Dec. 31, 2015.
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