Shares of AudioCodes (NASDAQ:AUDC) jumped on Monday after the provider of voice-networking and media-processing solutions reported its first-quarter results. AudioCodes beat analyst estimates for both revenue and earnings, and it said it remains on track to meet its targets for the second quarter and the full year. The stock was up 21.4% at 1:15 p.m. EDT today.
AudioCodes reported first-quarter revenue of $52.0 million, up 11.7% year over year and about $1.2 million higher than the average analyst estimate. Services revenue was $17.7 million, up 25.2% from the prior-year period. The company saw strong demand related to the Microsoft Teams ecosystem and work-from-home practices.
Adjusted earnings per share came in at $0.25, up from $0.18 in the prior-year period and $0.02 better than analysts were expecting. The company produced operating cash flow of $6.8 million during the quarter, and it had cash, cash equivalents, and bank deposits totaling $74.2 million as of March 31.
AudioCodes did suffer some problems related to manufacturing its hardware products in China due to the pandemic, but the issues were short-lived. "We were able to quickly recover from the associated delay and were able to ship all of our products as planned during the quarter," CEO Shabtai Adlersberg said.
While there was some disruption during the first quarter, AudioCodes doesn't expect the pandemic to hurt its results. "Based on business activity during the 1Q 20 and past few weeks, we believe that we should be able to meet our original targeted performance plan for the full year and the second quarter," Adlersberg said.
Including Monday's rally, the small-cap stock is now up about 70% over the past year.