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AudioCodes Ltd. (AUDC) Message Board

  • italianex1 italianex1 Aug 5, 2014 8:12 PM Flag

    Wonder how this guy from seeking alpha feels now

    When the institutions come to visit AudioCodes, have one on one meetings and look at the market drivers in voice networks, they'll see that AudioCodes is in a high barrier to entry position and its OTT mobility has high operating leverage and high gross margins that could one day make this company a ten bagger from today's $5.75 per share, in the next 12-24 months. The mobility arm of AudioCodes is the most underestimated and overlooked aspect of AudioCodes' R&D efforts and its product portfolio. At these depressed valuations vs. its direct peer, it's no longer time to sit on your hands, it's time to recognize how important AudioCodes' voice engine is to Wi-Fi mobility and how immensely profitable its business model will be.

    AudioCodes is trading at the same price level it was in November. It is sitting on $36 million more in cash, gross margins are at 2 year highs and inclined to break 60% next quarter; its quarterly revenues are $2 million higher and mobility is now being spoken of on a quantity level in the quarters to come. So what is the value of AudioCodes here vs. the opportunity? AudioCodes is trading at 1 times 2015 revenues less its net cash. Its chief competitor is trading at 2.2 times revenues less cash. In fairness, analysts see Sonus Networks (SONS) having a bigger SBC portfolio and a larger installed base at service providers and as such is deserving of a richer valuation. I believe buying AudioCodes on this recent selloff is the single best buying opportunity in my 2 years of recommending it, as the once thought about mobility play is here as per Comcast, Liberty Media and BT announcing its aggressive plans to build Wi-Fi networks. In buying the shares you're getting expanding margins, increasing revenues and a strong cash position to handle its core UC growth opportunities but you're also getting the upside of an exponential mobility opportunity.

 
AUDC
3.28-0.09(-2.67%)Jun 29 4:00 PMEDT