NEW YORK (TheStreet) -- Shares of AudioCodes Ltd. (AUDC) are higher by 3.8% to $7.11 after the Israeli-based company announced that the Israeli Office of the Chief Scientist approved in principle a three-year program for about $29 million to establish an advanced innovative R&D center for cloud technologies.
The company designs, develops and sells products and services for voice and data over packet networks.
TheStreet Ratings team rates AUDIOCODES LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUDIOCODES LTD (AUDC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AUDC's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although AUDC's debt-to-equity ratio of 0.14 is very low, it is currently higher than that of the industry average. To add to this, AUDC has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
- AUDIOCODES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AUDIOCODES LTD turned its bottom line around by earning $0.10 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus $0.10).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 428.8% when compared to the same quarter one year prior, rising from $0.52 million to $2.77 million.
- The gross profit margin for AUDIOCODES LTD is rather high; currently it is at 59.61%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, AUDC's net profit margin of 7.64% significantly trails the industry average.
- You can view the full analysis from the report here: AUDC Ratings Report