AudioCodes Ltd. (AUDC) plunges on Q1 revenue warning

AudioCodes (NASDAQ: AUDC) shares fell 14% in pre-open trading Monday after the company announced that revenues for the first quarter of 2023 are anticipated to be lower than previously estimated internally when the company provided guidance for the full year in February 2023. Based on initial analysis, we now believe financial results to be as follows:

• Revenues in the first quarter are now expected to be in the range of $58.5 million to $60 million, approximately 10% to 12% lower than the first quarter of 2022.
• Non-GAAP diluted net income per share for the first quarter of 2023 is expected to be in the range of $0.07 to $0.09.
• Net cash provided by operating activities for the first quarter 2023 is expected to be in the range of $2 million to $3 million.

Mr. Shabtai Adlersberg, President and CEO of AudioCodes, said: "Our first quarter results were impacted by general uncertainty in key global economies affecting customers' spending decisions, with demand weakness concentrated mainly in the EMEA region. In addition, we saw North America service providers more tightly manage their inventories, which contributed to revenue decline. We intend to revise our outlook and guidance for 2023 at the time of our first quarter 2023 financial results conference call scheduled for May 9, 2023 as well as announce our plans to align our operating expenses for the year to our current business environment."

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