HERZLIYA, Israel, May 11 /PRNewswire-FirstCall/ -- VocalTec
Communications Ltd. (Nasdaq: VOCL), a global provider of VoIP and
convergence solutions for communications service providers, today
reported results for the first quarter ended March 31, 2010.
Revenues for the first quarter of 2010 were $1.7 million, an increase of 63% over the
$1.0 million reported in the first
quarter of 2009, resulting from growth in product sales.
Gross margin for the first quarter of 2010 was 61% compared with
64% for the first quarter of 2009.
The non-GAAP financial measures included below exclude the
amortization of intangible assets and share based compensation
expenses, which amounted to $0.2
million in the quarter.
On a non-GAAP basis, operating expenses in the first quarter of
2010 were $2.1 million compared with
$1.9 million in the first quarter of
2009. The increase in operating expenses was primarily attributed
to expenses relating to the new mobile activity as a result of the
Outsmart acquisition.
On a non-GAAP basis, operating loss for the first quarter of
2010 was $1.0 million compared to a
non-GAAP operating loss of $1.2
million in the first quarter of 2009.
On a non-GAAP basis, net loss for the first quarter of 2010 was
$1.1 million or $0.19 per share, compared with a non-GAAP net
loss of $1.1 million, or $0.17 per share, in the first quarter of
2009.
Net loss on a GAAP basis for the first quarter of 2010 was
$1.3 million or $0.22 per share, compared with a net loss of
$1.5 million, or $0.21 per share, in the first quarter of 2009. In
the first quarter of 2010, amortization of intangible assets and
share based compensation expenses amounted to $0.03 per share.
As of March 31, 2010, the Company
had net cash and cash equivalents, short-term bank deposits and
restricted cash on the balance sheet, in the amount of $8.9 million, or $1.51 per share.
Commenting on the results, Ido Gur, VocalTec's President and
CEO, said, "Our first quarter 2010 results marks a strong year over
year improvement in revenues, and we believe is a good start to
2010. Our expenses increased during the quarter due to our
increased investment in our new mobile activity in which we see
significant potential. As the year progresses and we realize many
of the synergies of our recent acquisition, we plan our quarterly
operating expenses to fall to the 2009 levels."
Mr. Gur continued, "We are on track to achieve accelerated
growth in our 2010 revenues compared to 2009, and we remain focused
on our goal of sustained profitability. In parallel to our ongoing
activity, we are investing in our ability to capitalize on mobile
VoIP, which represents a significant growth market for us. Based on
feedback from potential customers, we see strong interest in our
current mobile VoIP offering, increasing our confidence level in
our strategic direction."
Conference Call
Mr. Ido Gur, President and CEO of VocalTec, invites investors to
participate in a conference call scheduled for later today,
Tuesday, May 11, 2010. The conference
call will be held at 9:00am ET. On
the call, VocalTec's management will review and discuss the results
and will be available to answer questions.
To participate, please call one of the following
teleconferencing numbers, 5 minutes before the conference call
commences. If you are unable to connect using the toll-free
numbers, please try the international dial-in number.
US Dial-in Number: 1 866 860 9642
ISRAEL Dial-in Number: 03 918 0644
INTERNATIONAL Dial-in Number: +972 3 918 0664
For those unable to listen to the live call, a replay of the
call will be available from a link in the investor relations
section of VocalTec's website, at: www.vocaltec.com
About VocalTec
VocalTec Communications (NasdaqCM: VOCL) is a global
provider of carrier-class Voice-over-IP and Convergence solutions
for fixed and wireless service providers. A pioneer in VoIP
technology since 1994, VocalTec develops and markets an extensive
VoIP offering including VoIP peering, VoIP
trunking, SIP to SS7, Softswitch and Mobile
VoIP Solutions enabling the flexible deployment of
next-generation networks (NGNs). Partnering with prominent system
integrators and equipment manufacturers, VocalTec serves an
installed base of dozens of leading carriers worldwide. VocalTec is
led by a management team comprised of respected industry
veterans.
Visit our website at http://www.vocaltec.com
Check out our blog at http://blog.vocaltec.com/
Follow us on Twitter at http://twitter.com/vocaltec
Forward Looking Statements
This press release contains historical information and
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995 with respect to the
business, financial condition and results of operations of
VocalTec. The words "believe," "expect," "intend," "plan," "should"
and similar expressions are intended to identify forward-looking
statements. Such statements reflect the current views, assumptions
and expectations of the Company with respect to future events and
are subject to risks and uncertainties. Many factors could cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including, among others, changes in the
telecommunications and VoIP markets and in general economic and
business conditions, loss of key customers and unpredictable sales
cycles, competitive pressures, market acceptance of new products,
inability to meet efficiency and cost reduction objectives, changes
in business strategy and various other factors, both referenced and
not referenced in this press release. Various risks and
uncertainties may affect the Company and its results of operations,
as described in reports filed by the Company with the Securities
and Exchange Commission from time to time. Should one or more of
these or other risks or uncertainties materialize, or should any
underlying assumptions prove incorrect, actual results may vary
materially from those described herein as anticipated, believed,
estimated, expected, intended, planned or projected. The Company
does not intend or assume any obligation to update these
forward-looking statements.
Contacts:
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VocalTec
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CCG Investor
Relations
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Yair Golan
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Kenny Green
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+972 9 970 3803
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(646) 201-9246
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yair@vocaltec.com
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vocaltec@ccgisrael.com
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VOCALTEC
COMMUNICATIONS LTD.
CONSOLIDATED
STATEMENT OF OPERATIONS
Reconciliation
of GAAP to non GAAP results *
All data
in thousands of U.S. dollars
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Three
months ended
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Three
months ended
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March
31,
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March
31,
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2010
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2009
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GAAP
results
(as
reported)
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GAAP
results
(as
reported)
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Sales
|
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Products
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1,294
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541
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Services
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385
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490
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1,679
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1,031
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Cost of
sales
|
|
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Products
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540
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245
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Services
|
116
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124
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656
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369
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Amortization
of intangible assets
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-
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-
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656
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369
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Gross
profit
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1,023
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662
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Operating
Expenses
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Research
and development, net.
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730
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757
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Selling
and marketing
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1,024
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865
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General
and administrative
|
486
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606
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Amortization
of intangible assets
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15
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6
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Total
Operating Expenses
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2,255
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2,234
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Operating
loss
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(1,232)
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(1,572)
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Other
Income
|
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Financial
Income (expense), net
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(53)
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108
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Net
incomet (loss) before income taxes
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(1,285)
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(1,464)
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Income
taxes (tax benefit)
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Net
loss
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(1,285)
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(1,464)
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GAAP net
loss
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(1,285)
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(1,464)
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Adjustments
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Impairment
of goodwill
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Amortization
of intangible assets
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included
in cost of sales
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-
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-
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included
in operating expenses
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15
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6
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Equity
based compensation expense
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included
in cost of sales
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4
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5
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included
in research and development
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56
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93
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included
in sales and marketing
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47
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61
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included
in general and administrative
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69
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|
166
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Non-GAAP
net loss
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(1,094)
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(1,133)
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*To
supplement our consolidated financial statement presented in
accordance with generally accepted accounting principles (GAAP), we
use NON-GAAP measures of operating results, net income, which are
adjusted from results based on GAAP to exclude the expense we
recorded for share-based compensation and amortization of
intangible assets. These NON-GAAP financial measures are provided
to enhance overall understanding
of our current financial performance and our prospects for the
future. Specifically, we believe the NON-GAAP results provide
useful information to both management and investors as these NON-
GAAP results exclude matters that we believe are not indicative of
our core operating results. Further, these NON-GAAP results are one
of the primary indicators management uses for assessing our
performance, allocating resources and planning and forecasting
future periods. These measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results. These
NON-GAAP measures may be different than the NON-GAAP measures used
by other companies.
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VOCALTEC
COMMUNICATIONS
CONSOLIDATED
BALANCE
(In
thousands of U.S. dollars)
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March
31
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December
31
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2010
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2009
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Current
Assets
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Cash and
Cash equivalents
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2,102
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7,510
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Short
term deposits
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6,723
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3,049
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Restricted
cash
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54
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23
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Trade
receivables, net
|
165
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199
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Unbilled
receivables
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838
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Other
receivables
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816
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459
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Severance
pay funds
|
76
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-
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Inventories
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175
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63
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Work in
progress
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378
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762
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Total
Current Assets
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11,327
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12,065
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Severance
pay funds
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752
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826
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Equipment
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477
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487
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Intangible
assets, net
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461
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480
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Total
Assets
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13,017
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13,858
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Current
Liabilities
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Trade
payable
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787
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851
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Accrued
expenses
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2,045
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2,053
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Accrued
severance pay
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76
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-
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Deferred
revenues
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1,624
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1,313
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Total
Current Liabilities
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4,532
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4,217
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Long
Term Liabilities
|
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Accrued
severance pay
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963
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|
1,030
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Other
long term liabilities
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103
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|
107
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Total
Long Term
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1,066
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|
1,137
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Total
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5,598
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5,354
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Shareholders
Equity
|
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Share
capital
|
218
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|
216
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Additional
paid-in capital
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96,018
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95,820
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Treasury
stock
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(669)
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(669)
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Accumulated
deficit
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(88,148)
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(86,863)
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Total
Shareholders Equity
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7,419
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8,504
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Total
Liabilities and Shareholders Equity
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13,017
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13,858
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SOURCE VocalTec Communications Ltd.