AudioCodes(AUDC) - 2024 Q4 - Annual Report

Revenue Performance - Quarterly revenues decreased by 3.2% year-over-year to $61.6 million; full year 2024 revenues decreased by 0.9$242.2 million[1] - Quarterly service revenues increased by 10.9% year-over-year to $34.2 million; full year 2024 service revenues increased by 8.2$130.2 million[1] - Total revenues for the year ended December 31, 2024, were $242.176 million, a slight decrease of 0.9$244.383 million in 2023[30] - Product revenues decreased to $111.966 million in 2024 from$123.991 million in 2023, representing a decline of 9.7%[30] - Service revenues increased to $130.210 million in 2024, up 8.1$120.392 million in 2023[30] Profitability - Quarterly GAAP net income was $6.8 million, or$0.22 per diluted share; full year 2024 GAAP net income was $15.3 million, or$0.50 per diluted share[3] - Non-GAAP net income for the fourth quarter was $11.6 million, or$0.37 per diluted share; full year 2024 Non-GAAP net income was $27.3 million, or$0.87 per diluted share[7] - Gross profit for the year was $158.161 million, nearly unchanged from$158.349 million in 2023[30] - Operating income rose to $17.191 million in 2024, an increase of 19.5$14.424 million in 2023[30] - Net income for the year was $15.311 million, significantly higher than$8.780 million in 2023, marking a 74.5% increase[30] - Basic net earnings per share improved to $0.51 in 2024 from$0.28 in 2023[30] Cash Flow and Assets - Cash and cash equivalents decreased to $93.9 million as of December 31, 2024, from$106.7 million a year earlier[12] - Total current assets increased to $162.876 million in 2024 from$142.661 million in 2023, reflecting a growth of 14.1%[29] - Net cash provided by operating activities for the year ended December 31, 2024, was $35,253,000, up from$14,891,000 in 2023, indicating a 136.5% increase[35] - The company reported a net increase in cash, cash equivalents, and restricted cash of $28,203,000 for the year ended December 31, 2024, compared to$6,011,000 in 2023[36] - The total cash, cash equivalents, and restricted cash at the end of the period was $58,749,000, up from$30,546,000 at the beginning of the period[36] Shareholder Returns - A semi-annual dividend of 18 cents per share was declared, amounting to approximately $5.3 million, payable on March 6, 2025[19] - The company declared a semi-annual dividend of$0.18 per share[30] - Cash dividends paid to shareholders decreased slightly to $10,896,000 in 2024 from$11,399,000 in 2023[36] Share Repurchase and Equity - The company repurchased 634,533 ordinary shares for a total cost of $6.0 million during the quarter[17] - The company purchased treasury shares amounting to$14,328,000 in 2024, compared to $18,259,000 in 2023, indicating a 21.3$191.814 million in 2024, up from $188.112 million in 2023, indicating a growth of 2.9$65 million, representing 35% year-over-year growth[14] - Microsoft business grew by 13% in the fourth quarter and 6% for the full year 2024, driven by a shift to recurrent revenue sales[14] - The Voice.ai business is expected to grow by 40% to 50% in 2025 due to increasing customer demand for AI-driven applications[15]