AudioCodes Beats On Q2 Earnings, Posts Growth Across Every Vertical, Declares Dividend

AudioCodes Ltd AUDC reported second-quarter FY21 revenue growth of 13.2% year-on-year to $60.6 million, beating the analyst consensus of $60.07 million.
Product revenue rose 3.9% Y/Y to $37.8 million, while Services revenue grew 32.8% Y/Y to $22.8 million.
The gross margin expanded around 270 basis points to 69.4%.
The operating margin expanded 20 basis points to 16.7%.
The non-GAAP EPS of $0.37 beat the analyst consensus of $0.36.
It generated $17.1 million in operating cash flow. The company repurchased shares worth $7.1 million.
It held $191.9 million in cash and equivalents as of June 30, 2021.
It received court approval in Israel to purchase up to $35 million of additional shares. The board declared a cash dividend of $0.17 per share, aggregating to $5.5 million.
AudioCodes continued to enjoy solid business momentum in its enterprise activities related to the UCaaS and Contact Center markets.
The UCaaS business grew over 20% Y/Y, and the contact center business rose above 25% Y/Y. The Enterprise Business rose over 20% Y/Y.
Strength in professional and managed services offerings drove service operations growth of over 25% Y/Y. The revenue for Voice.ai operations grew above 100% Y/Y.
It continues to enhance technological solutions for real-time cloud communications and transition products into software as service solutions.
Price action: AUDC shares closed lower by 1.24% at $31.89 on Monday.

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