Benzinga | Apr 27, 2021 07:38AM EDT

AudioCodes Shares Are Trading Higher On Upbeat Q1 Results, Dividend Hike

* Advanced communications software, products, and productivity solutions vendor AudioCodes Ltd (NASDAQ: AUDC) reported first-quarter FY21 revenue growth of 13.1% year-on-year to $58.8 million, exceeding analyst estimate of $57.98 million.

* Product revenue rose 7.8% to $37 million, and Services revenue increased 23.3% to $21.8 million.

* The UCaaS business and contact center business expanded over 15% and 20% year-over-year, CEO Shabtai Adlersberg said. The two businesses contributed over 80% of the Q1 revenue, added Adlersberg. He aims for a Voice.ai revenue of $10 million based on organic growth in the coming two years.

* Non-GAAP gross margin expanded 260 basis points to 68.7%. Non-GAAP operating margin expanded 730 basis points to 22.5%.

* Non-GAAP EPS rose 48% to $0.37, beating the consensus estimate of $0.33.

* AudioCodes held $182.5 million in cash and equivalents as of Mr. 31, 2021. It generated $13 million in operating cash flow.

* AudioCodes declared a cash dividend of $0.16 per share, representing a 23.1% hike. The company paid an aggregate dividend of $5.3 million on Mar. 4, 2021. It bought back 0.35 million shares at $10.3 million in Q1.

* Price action: AUDC shares traded higher by 3.77% at $31.92 in the premarket session on the last check Tuesday.