AudioCodes Receives Approval for Extension of Share Repurchase Program

Rhea-AI Summary

AudioCodes (NASDAQ: AUDC) has received court approval to repurchase up to an additional $30 million of its Ordinary Shares, valid until July 19, 2021. The buyback will be funded from available working capital, with the option to declare dividends instead. Purchases may occur in open market transactions or via private negotiations, depending on market conditions. The repurchase program does not mandate the acquisition of a specific number of shares and can be suspended or discontinued at any time.

Positive

• Court approval for a $30 million share repurchase program enhances shareholder value.
• Flexible use of funds allows for dividends in addition to share buybacks.

Negative

• No assurance that share repurchases or dividends will be executed.
• Dependence on market conditions may hinder timely execution of the buyback.

LOD, Israel, Jan. 21, 2021 /PRNewswire/ --

Details

AudioCodes (NASDAQ: AUDC), a leading vendor of advanced communications software, products and productivity solutions for the digital workplace, today announced that it has received Israeli court approval to repurchase up to an additional $30 million ("Permitted Amount") of its Ordinary Shares, NIS 0.01 nominal value. The share repurchases will be funded from available working capital. The court approval also permits the Company to use any portion of the Permitted Amount to declare a dividend, instead of effecting share repurchases, during the period covered by the court approval. The approval is valid through July 19, 2021.

Any share purchases may take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors. Such purchases will be made in accordance with all applicable securities laws and regulations. For all or a portion of the authorized repurchase amount, AudioCodes may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase program does not require AudioCodes to acquire a specific number of shares, and may be suspended from time to time or discontinued.

The court approval does not commit the Company to repurchase any shares or declare any cash dividends, and there can be no assurance that the Company will decide to effect repurchases or declare cash dividends payable to its shareholders.

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About AudioCodes

AudioCodes Ltd. (NASDAQ: AUDC) (TASE: AUDC) is a leading vendor of advanced communications software, products and productivity solutions for the digital workplace. AudioCodes enables enterprises and service providers to build and operate all-IP voice networks for unified communications, contact centers, and hosted business services. AudioCodes offers a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.

For more information on AudioCodes, visit http://www.audiocodes.com.

Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company's loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; and other factors detailed in AudioCodes' filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

©2021 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience and CloudBond are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.

Company Contact
Niran Baruch,
VP Finance & Chief Financial Officer
AudioCodes
Tel: +972-3-976-4000
niran.baruch@audiocodes.com

Shirley Nakar - Orgad
Director, Investor Relations
AudioCodes
Tel: +972-3-976-4000
shirley@audiocodes.com

IR Agency Contact
Brett Maas, Managing Director
Hayden IR
Tel: +1-646-536-7331
brett@haydenir.com

 

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SOURCE AudioCodes

FAQ

What is the total amount approved for share repurchase by AudioCodes (AUDC)?

AudioCodes has received approval to repurchase up to $30 million of its Ordinary Shares.

Until when is the share repurchase program valid for AudioCodes (AUDC)?

The approval for the share repurchase program is valid until July 19, 2021.

Can AudioCodes (AUDC) declare dividends instead of repurchasing shares?

Yes, the court approval allows AudioCodes to declare a dividend instead of repurchasing shares.

What factors may affect AudioCodes' (AUDC) share repurchase timing?

Repurchases will depend on market conditions, share price, trading volume, and other factors.

Does AudioCodes (AUDC) have to buy back all approved shares?

No, the repurchase program does not require AudioCodes to acquire a specific number of shares.