AudioCodes' Net Loss Widens

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On May 5, 2009, AudioCodes(AUDC) reported that its net loss widened during Q1 FY09 on the back of a double-digit decline in revenue. Net loss stood at $3.10 million or $0.07 per share compared with a loss of $416,000 or $0.01 per share in Q1 FY08. Excluding one time items, AUDC swung to a net loss of $1.61 million or $0.04 per share compared to a profit of $3.08 million or $0.07 per share in the comparable quarter of the last year. The latest quarterly consensus estimate was a loss of $0.01 per share.

Total revenue plunged 33.0% to $29.30 million from $43.74 million in Q1 FY08 due to the downturn in the global economy and the challenging environment. Furthermore, a total of $1.70 million of sales to the Nortel Group was recorded as unpaid deferred revenues as of March 31, 2009, of which less than $100,000 were recorded in Q1 FY09. Cash and cash equivalents, short- and long-term marketable securities, and short- and long-term bank deposits at the end of Q1 FY09 were $113.50 million, down 17.51% from $137.60 million at the end of Q1 FY08.

Gross margin contracted 34 basis points to 55.94% from 56.28% a year ago. Research and development expenses, selling and marketing expenses, and general and administrative expenses slipped 19.8%, 25.5%, and 17.9% to $8.21 million, $8.61 million, and $2.05 million, respectively. AudioCodes unveiled a Multimedia Search Server (MSS), which is specifically designed for enterprise level applications and provides a highly accurate and scalable multimedia search and indexing process. Furthermore, the company's MSS will help enable simple searching and indexing of video clips and multimedia files for enterprise content management applications.

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