I see double digits very soon for shares of AUDC!
Agree beatlesandstonesforever! There's a big distinction between telling and selling and I'm afraid Ray is cut from the latter cloth. I cannot believe the patience this BOD and major investors have with him. As you indicated, if you can't move the needle in more than four years with the kind of high octane bull market we've been so entrenched in...than it's probably time to hand the torch and office to someone who can!
Well Ray, imho, your investors can care less if you're proud or not, what they care about is solid leadership and clear-eyed strategic vision and having a CEO who knows a little something about how to execute and make profits and increase shareholder value for his stakeholders. To say you are very proud of your performance in 2014 is insulting to say the very least. Are you proud of the more than 10% decline today in the company's market valuation and share price? Are you proud that the share price is now below where it was a year ago and below where it was even when you became President and CEO of SONS ,,, all mind you during a lengthy period of time that has proved to be one of the strongest bull market rallies in modern history? Everyone's sick and tired of your baseless and meaningless comments and remarks like trust me, how proud you are, how excited you are, how well positioned you are, how this is going to be the year of inflection for growth and profitability, and on and on and on, all with no substance, no execution, and no validation that's positively reflected in actual results. The conference call today was about as exciting as watching paint dry, a total joke, no wonder we're seeing the kind of indiscriminate selling and massive loss of shareholder value today alone. It's time to get in touch with reality and to execute and deliver real-time flawless performance and results that SHAREHOLDERS can be PROUD of, that's what matters!
AUDC is under portfolio accumulation from institutional and retail investors alike as well as internally from the ongoing corporate buyback and share repurchase plan. This stock is extremely undervalued and discounted, imho, which is why management believes this is an attractive time to be buying shares and adding them to the treasury. AUDC is in early stages of major inflection point in growth across the full range of their core high-growth, high margin businesses and are increasingly gaining market share from their competitors and from general industry expansion, growing margins and cost-controlling and streamlining their OpEx adding to their forward-looking net profits and continuing to greatly increase its net cash flow from operations.
Let's roll with AUDC! Shabtai has this company firing high octane on all cylinders of its growth engine!
CEO Shabtai Adlersberg was very transparent in trying to highlight all the catalysts and accelerants that he sees driving AUDC explosive sequential growth in top-line revenues, bottom-line earnings, market share gains, margin expansion and cash flow from all of their core businesses moving forward. They seemed to be ultra conservative in all aspects of their forward-looking guidance to ensure that they meet or beat estimates. The Company has successfully made the transition into a pure play high-growth, high-margin business that is extremely well-positioned and strategically advantaged with the most comprehensive end-to-end networking, VoIP, SBC, NFV, SDN, telephony and networking products, services and solutions in the cloud and second to none with their signature strategic partnership alliances with Microsoft Lync and others to see significant uptake and improvements in earnings results with greater more linear visibility and confidence on a going forward basis.
Based on it's very upbeat and bullish Q4 earnings call and the confidence and improved visibility that Company Management is projecting, together with very compelling chart and technical analysis dynamics, it is my opinion and belief that shares of AUDC are poised to pop and run sharply higher in the weeks, months and quarters that lie ahead while easily surpassing its 52 week high of $9.12 and trading well into double digit range. AUDC is the fastest growing "pure play" industry leader and are extremely well-positioned in the "sweet spot" of enterprise and service provider telephony in VoIP, SBC, NFV, SDN, Mobiilty and networking technologies, seeing very favorable and sustainable continuing growth trends across their core platform of product and services solutions in global customer demand, R&D pipeline, revenues, market share, gross and net operating margins, earnings, and operating cash flow combined with a very favorable and comparable friendly FX environment!
With ultra conservative guidance as admitted by CEO and CFO for FY 2015 EPS of $.26 to $.30 per share profitability and admitting that, if you look at the mid point range of their conservative '15 revenue guidance of say $164,000,000 +/- and confident average gross margins of 60% and a projected modest increase in OpEx of 2% - 3% for 2015 vs 2014, the projected EPS easily exceeds the top end of their full-year guidance. Management's paraphrased response, we wanted to be very conservative in giving full-year guidance so we can make sure we hit our numbers (listen to the conference call). Now with 89% of their total revenues coming from its high-growth, high margin Networking business lines and a small residual portion of only 11% representing its Legacy products and services, combined with continuing and sustainable double digit growth in revenues and even more amplified projected leveraged growth in sustainable bottom line net earnings of 12% to 13% in net margin, continued gains in market share stemming from a first-class high demand product mix of the most comprehensive one-stop best-in-breed networking technologies and solutions including, SBC's, SDN, NFV, VoIP, and its suite of Mobility scalable products and solutions and a robust R&D pipeline for Enterprise and Service Provider customers alike and with Microsoft reporting continued record sequential growth in their Lync-based Office 365 for which AUDC is a primary key strategic partner with MSFT, a reasonable current and comparable market valuation for AUDC imho, is $12 to $15 per share. The company also has a very strong, highly liquid balance sheet with virtually zero debt and more than $87.5 MILLION of Cash and Marketable Securities, is profitable and significantly cash flow generative from operations, and is sequentially and substantially growing revenues and earnings while gaining market share and increasing gross and net operating margins from a very strong and diversified worldwide customer base.
This stock has been held down for too long and is deeply undervalued. As this hidden gem becomes discovered by more institutions and as it becomes more followed, we should see a long overdue and monster recovery unfold in the weeks, months and quarters ahead. AUDC has so many major catalysts and is firing on all cylinders right now. This is a stock that could become a 3x to 4x bagger this year!
With results reported today and the incredible explosive growth trends, widespread global demand across their entire business lines, healthy balance sheet and $85.7 mm of cash, its favorable outlook for cash flow and earnings, market share gains, robust R&D pipeline, favorable FX outlook, and key strategic partnerships AUDC should easily be trading right now at $12-$15! Instituional investos know it and are quietly but aggressively buying and accumulating shares as are management at these ridiculously low prices of under $10 a share through their approved share buyback plan. This stock is poised to gap sharply higher and run as it's valuation corrects and adjusts more in line with its peer group.
Looks like astute investors see the conservative guidance and explosive upside growth and strong demand as they read between the lines from the Q4 conference call. At 2015 earnings conservatively guided at $.30/per share and designed to beat the value of this company + $85.7 million of cash on hand is far north of $15 and more likely in the range of $18-$20, imho. Company has a rich R&D pipeline the most comprehensive mix of best-in-breed lync-based networking products and solutions, rapidly growing market share, top-line revenue growth and margin expansion to at least 60% for 2015 and beyond. Networking is growing very rapidly and has now reached a level of 89% of total gross revenues and strong demand across all of their business lines is driving and propelling growth at a very fast, explosive rate. The company has a plethora of catalysts and drivers and are strategically positioned with a wide competitive advantage and edge to see sustainable explosive growth in revenues, market share and bottom line earnings in 2015 through their key partnerships and massive-scale widespread global demand. Microsoft just reported that there lync-based Office 365 grew its revenues by more than 114% in its latest quarter which bodes extremely well for AUDC with its preferred partnership with Microsoft Lync's ecosystem.
As an analyst pointed out during the Q&A session, if AUDC hits just the mid-range of their full-year 2015 guidance in revenues, based upon a conservative and stable gross margin of 60% and a 2-3% annual increase in 2015 OpEx as compared to 2014, the 2015 business model generates EPS well ahead of the upper end of their stated guidance of $.30 per share. AUDC management agreed with the analyst's observations and model, stating that they are being conservative to make sure they at least meed guidance. With this kind of revenue and earnings growth trajectory combined with the strength of Audiocodes balance sheet and being cash flow generative from operations equipped with a strong foundation of cash on hand of in excess of $85,000,000 as of 12-31-14, in my view, this company should be easily trading in the $12 to $15 per share range right now! A very attractive buying opportunity which is why the company is aggressively proceeding with their share buyback plan at highly discounted current market prices.
The brightest spot in MSFT's Q4 report is its success and momentum in the Cloud and Mobility reporting explosive revenue growth in Office 365 up more than 114% in this past quarter alone! There earnings were and revenues were hit mostly by unfavorable FX issues, which is the opposite for Israeli based AUDC. The future couldn't be any more bright for AUDC in 2015 and beyond. This is one to own for the ages!
Wall Street finally starting to recognize AUDC's phenomenal growth story and huge upside potential! This stock has a very long runway and I believe is grossly undervalued at any price below $10-12 a share!
AUDC's CEO basically said the stock buyback @ these price levels is a "no brainer" and a gift. Says he sees strong and highly visible growth through not 2015 but all the way through 2016! A very upbeat, bullish and impressive presentation by Shabtai that will resonate with the institutional and retail investors and analysts!
With everything firing on all cylinders, with such a favorable economic climate and with there strategic leading position as a unique "pure play" leader in this explosive growth sector, this stock will be red hot for well into the foreseeable future and could easily rally into the mid to high teens very quickly to more comparably align with SONS and others not nearly as well positioned with the product and solutions portfolio, customer base and strategic partners that AUDC enjoys!
AUDC is a fast-growing, excessively undervalued, disruptive game changer in the explosive growth enterprise and service provider SBC, NFV, SDN and red hot Mobility sectors with its globally-leading, best-in-class and most comprehensive suite of products and services and its mushrooming partnership with Microsoft Lync. Watch for exciting news to break in AUDC's upcoming earnings announcement.
Huge announcement yesterday of a mega new disruptive technology product release by AUDC that will further accelerate and be a powerful catalyst and driver of revenue and profitability growth in the quarters and years ahead. At under $4.50 per share, AUDC is very well positioned to see a .substantial and sustainable rally to the double digit range, taking out the recent highs of $9.00 + in the near term, imho. I think AUDC is a phenomenal growth story and buying opportunity for 2015!
Once AUDC closes above $5, we'll see a significant rise in institutional ownership and combined with the company's recently approved aggressive stock buyback program, this stock should sharply surge back above the secondary offering price of $8.00 with sustainable moves higher from there, imho!
Then give your shares away, I'm sure AUDC is more than happy to take them off your hands at these deeply discounted and undervalued prices pursuant to their aggressive stock buyback plan. However, you will regret the sale as you look back at AUDC prices when they are trading sharply higher a bit down the road.
Join forces with AUDC's major share buyback plan approved and announced last week and I don't think you'll be disappointed. AUDC's management team and BOD thinks that its stock is deeply discounted and highly undervalued and in recognition of this investment opportunity have approved a large stock repurchase plan that was 5x the size of the first round buyback, in a bold statement that NOW is the time to BUY!