(By Balaseshan) AudioCodes Ltd. (NASDAQ:AUDC) stock fell more than 5% during premarket trading after the developer of products for voice and data over packet networks plans to restructure its operations, and guided second quarter below Street's view.
The company intends to restructure its operations in order to better align AudioCodes' resources and assets to its core networking and enterprise telephony businesses.
Chief Executive Shabtai Adlersberg said the company is in the process of conducting a full global review of its operations to reduce annual operation expenses, simplify the organization and refine future investments.
The restructuring plan is expected to generate estimated annualized savings of about 10% of the company operating expenses and to be implemented over the next six to nine months.
The company anticipates adjusted loss not to exceed $0.04 per share and revenue of about $31 million, while Street analysts predict a loss of $0.01 per share on revenue of $33.88 million.
During the latest first quarter, the company posted adjusted loss of $827,000 or $0.02 per share, compared to last year's profit of $4.1 million or $0.10 per share. Revenue fell to $32.3 million from $41 million, due to faster than expected decline in its legacy business -- a trend the company believes would become less significant in the second half of 2012.
The company said in the first quarter release that the lower revenues reflect weakness in sales in North America including, among others, a decline in legacy OEM business and lower than anticipated government and technology sales.
AUDC is trading down 3.47% at $1.67 on Wednesday. The stock has been trading between $1.63 and $5.75 for the past 52 weeks. The stock touched a new yearly low.