Audiocodes presents a 10% growth in revenue and an 80% increase in net profit

Audiocodes, a provider of advanced voice networks and media processing solutions for a digital work environment, announced its financial results for the third quarter of 2020, with a 10% growth in revenue and an 80% increase in net profit (Non-GAAP) compared to the corresponding quarter last year. The company topped analysts' forecasts in the top and bottom line. The company will likely post updated forecasts as part of the conference call this afternoon.
Revenues in the third quarter of 2020 amounted to approximately $ 56.6 million, an increase of approximately 10% compared to approximately $ 51.4 million in the corresponding quarter last year and above analysts' forecasts of approximately $ 55.6 million. Quarterly revenue from services totaled $ 19.6 million, an increase of 19.9% ​​over the same quarter last year and quarterly revenue from the UC-SIP business grew by 20% over the same quarter last year.
Net income (GAAP) in the third quarter of 2020 was $ 7 million, or 20 cents per share, compared to net income of $ 4.4 million, or 14 cents per share, in the corresponding quarter.
Non-GAAP net income in the third quarter was $ 13.3 million, or 38 cents a share, compared to a net income of $ 7.4 million, or 24 cents a share, in the same quarter last year. Analysts expected earnings of about 31 cents a share.
The gross profit margin (GAAP) was approximately 67.1% in the third quarter of 2020, compared with approximately 62.9% in the corresponding quarter. On a non-GAAP basis, the gross profit margin was approximately 67.4% in the third quarter of 2020.
Saturn Adlersberg, President and CEO of Audiocodes: "" We are pleased to report a record quarter in business and financial results for the third quarter of 2020. The work-from-home (WFH) trend has become the new norm in business and industry in recent months, and tools in collaboration ( Collaboration) plays a key role in many organizations' programs in improving their business efficiency and competitiveness in the markets in which they operate.This trend has driven the accelerated transition of many companies to the digital workspace, a trend that creates an opportunity for us to participate in accelerated digital development and use of digital collaboration tools.
"As a result, we have experienced a growing demand for our products and good business momentum in most areas of the company's operations, especially in the UCaaS and service centers. Strong business momentum combined with improved efficiency has led to further improvement in our financial performance compared to last year." At the rate of gross profit and the rate of operating profit, and an increase in net profit of more than 75% compared with the third quarter of 2019. "
"During the quarter we continued to experience increased activity and a growing demand for the Microsoft Teams Collaboration solution. Continuing the trend of previous quarters, we continued to advance in the Voice.ai business, which includes the Meeting Insights solution for summarizing conversations in the organization, the voice.ai gateway solution that allows connection Voice to virtual agents, and demand for Voca technologies where we have seen a growing demand for the use of artificial intelligence in conversations. Looking ahead, we expect the positive trends in WFH and Collaboration to continue in the coming years.We plan to continue investing in future UCaaS market products The investment for our shareholders, "Adlersberg concluded.