Date: 21/10/2010

AudioCodes reports a revenue of $38.3 million in 3rd Quarter 2010

AudioCodes Ltd. has reported a revenue of $38.3 million for the third quarter of 2010 compared to $36.5 million for the second quarter of 2010 and $32.1 million for the third quarter of 2009.

Net income in accordance with U.S. generally accepted accounting principles (GAAP) was $2.9 million, or $0.07 per diluted share, for the third quarter of 2010 compared to net income of $2.1 million, or $0.05 per diluted share, for the second quarter of 2010, and a net loss of $79,000, or $0.00 per share, for the third quarter of 2009.

Non-GAAP net income for the third quarter of 2010 was $3.6 million, or $0.09 per diluted share, compared to $2.8 million, or $0.07 per diluted share, for the second quarter of 2010, and $1.6 million, or $0.04 per diluted share, for the third quarter of 2009.

"I am pleased to announce another strong quarter of sequential and year-over-year revenue and net income growth. Our financial performance underscores our execution of our strategic initiative to migrate from a pure play VoIP gateway focus to a global provider of converged VoIP and data solutions for service providers and enterprises," said Shabtai Adlersberg, Chairman of the Board, President and CEO of AudioCodes. "AudioCodes has put in place a number of new growth opportunities for our business which are starting to ramp up as we look ahead to 2011 and beyond. These include our Mobile VoIP solutions which are expected to enable us to emerge as an early leader in mobile VoIP clients for the smartphone market and our Enterprise Session Border Controllers which are seeing solid demand. We continue to launch leading edge products including our recently announced All-In-One Multimedia Home Gateway that provides service integration for the broadband home user, an increasingly important feature for our service provider customers. Overall, we continue to focus on financial execution, supported by our solid balance sheet, healthy cash flows from operations and a strict focus on maintaining an efficient operating expense base," concluded Mr. Adlersberg