Wednesday, network product provider AudioCodes Ltd. (AUDC) reported a fourth-quarter net loss compared to a profit in the year-ago period primarily due to impairment of goodwill and long-lived assets.
The Lod, Israel-based company reported a fourth-quarter net loss of $86.66 million or $2.16 per share compared to a profit of $1.04 million or $0.02 per share in the corresponding quarter last year.
During the fourth-quarter, the company reported an impairment of goodwill and long-lived assets of $85.02 million compared to none in the similar period last year.
Excluding items, Non-GAAP net income for the quarter declined to $0.78 million or $0.02 per share from $3.65 million or $0.08 per share in the comparable period of fiscal year 2007.On average, four analysts polled by Thomson Reuters estimated earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 9.5% to $38.75 million from $42.84 in the fourth quarter of fiscal year 2007. Analysts estimated revenues of $40.78 million for the quarter. Revenues for the fourth quarter of 2008 do not include $1.7 million of revenues which were recorded as unpaid deferred revenues as a result of the Nortel Group seeking creditor protection in January 2009.
Total operating expenses for the quarter increased to $106.08 million from $23.34 million in the comparable period of fiscal year 2007.
Net Income tax for the fourth-quarter of fiscal year 2008 declined to $25,000 from $0.22 million in the corresponding period of fiscal year 2007.
Cash flow from operating activities was $9.4 million in the fourth quarter of 2008 compared to $9.0 million in the fourth quarter last year.
NSC, an Israeli based company engaged in speech recognition, reported fourth quarter revenues of $83,000 and a net loss of $625,000. AudioCodes owned 56.6% of the outstanding share capital of NSC or 51.0% of the share capital of NSC on a fully diluted basis. AudioCodes included $73,000 of NSC revenues in AudioCodes' revenues for the fourth quarter. AudioCodes stated that NSC results will be fully consolidated into the formers income statement in 2009.
During the fourth quarter, the company repurchased approximately $51.5 million in principal amount of its 2% Senior Convertible Notes due 2024 for a total cost, including accrued interest, of $50.2 million. AudioCodes issued $125.0 million in principal amount of these notes in November 2004.
For the fiscal year 2008, net loss widened to $81.34 million or $1.97 per share from $3.89 million or $0.09 per share in the corresponding period last year.
Excluding items, non-GAAP net income for the full year 2008 increased to $12.28 million or $0.29 per share from $8.32 million or $0.19 per share in the similar period of fiscal year 2007.
Revenues for the fiscal year 2008 increased 10.4% to $174.74 million from $158.24 million in the full year 2007.
AudioCodes closed Wednesday's trading at $1.56, down $0.07 or 4.29% on a volume of 58,402 shares on the Nasdaq.
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