AudioCodes Makes Move into Video Following Strong Q1
AudioCodes followed up a positive start to 2020 with the announcement of new video conferencing endpoints to heighten Microsoft Teams meeting experiences
On a recent call regarding the company’s first-quarter briefing with investors, AudioCodes President and CEO Shabtai Adlersberg said, its Q1 revenue had increased by nearly 12 percent year-over-year to $52 million. Aldersberg added, AudioCodes’ quarterly service revenue had increased by 25 percent when compared year-over-year, reaching close to $18 million.
The company’s quarterly unified communications and SIP-related revenue increased more than 20 percent year-over-year, and its quarterly GAAP gross margin percentage reached almost 66 percent. Quarterly GAAP operating margin percentage was 11.8 percent, and its quarterly GAAP net income was $5.3 million ($0.17 per diluted share).
AudioCodes not only had an extraordinary start to the year, but it’s continuing a trend of integrating with the world’s leading unified communication and collaboration platforms. Recently, the enterprise collaboration company added new IP Phone, BYOC, and remote-management tools for Zoom Phone users.
Now, I’m told, the company’s added video solutions for Microsoft Teams. AudioCodes first introduced the RX Suite back in October 2019. The offering initially consisted of a portfolio of meeting room solutions to enhance meeting productivity through high-quality audio conferencing plus a meeting insights app to handle meeting recording, post-meeting analytics, and action item follow up. AudioCodes’ RX suite has a line of conferencing devices that address a wide range of meeting room environments from huddle rooms to boardrooms.
The new RXV80 marks a strategic shift into video conferencing for AudioCodes. It is, I’m told, a vision of two of the world’s top enterprises, AudioCodes, and Dolby. “We jointly developed the new offering with Dolby’s Communications Business Group, marrying ‘superior’ Dolby audio and video quality with AudioCodes expertise in integrating with Microsoft Teams” Nimrode Borovsky, Enterprise General Manager, AudioCodes, told me.
llya Bukshteyn, Partner Director, Microsoft Teams Devices, Microsoft Corp., said in a statement “Collaboration Bars for Microsoft Teams gives our customers a great opportunity to provide a simple and easy-to-use Teams meeting experience in even more spaces across their organizations.”
Tapping deeper into the Microsoft Teams environment, AudioCodes demonstrates once more its dedication to enhanced experiences, expressly as the COVID-19 pandemic’s forced many of us to work at home. Andy Elliot, AudioCodes’ VP of Marketing, added, “This doesn’t mean we need to sacrifice the quality of our Microsoft Teams calls.”
“Experiences must be better (or the same quality) as they were in a traditional office setting, and this partnership with Dolby allows us to ensure that users experience great audio and video quality whether they are in the meeting room or anywhere else”
Microsoft Teams recently hit 75 million daily active users, and there’s been a significant increase in companies scrambling to enable remote-working with the help of various unified communications and collaboration tools, according to a recent report out by Cavell Group that chronicles the impacts of the novel Coronavirus on the business landscape.
Experience, experience, experience. At the end of the day, this is what companies like Microsoft and AudioCodes aim to enhance. And AudioCodes hopes to do so with its new endpoints for Teams users who seek next-level experiences.