Israel's AudioCodes expects boost from new R&D center

AIRPORT CITY Wed May 21, 2014 6:53am EDT

AIRPORT CITY Israel May 18 (Reuters) - Israel's AudioCodes expects a new, state-funded research and development centre it is building to improve its cloud computing portfolio and increase its market share in the coming years.

It also sees strong revenue in 2014, mostly due to a jump in sales of voice networking products coming from its partnerships with Microsoft and Broadsoft, said the company's chief executive, Shabtai Adlersberg.

The company, which makes voice over internet protocol (VoIP) and data networking products used in broadband, mobile, cable and enterprise networks, competes with giants like Cisco and Oracle in the field of unified communications.

It won a three-year grant last month to build a 100 million shekel ($28.7 million) facility in the desert city of Beersheba, where the government is investing heavily to create a high-tech hub.

"The Beersheba center will allow us to expand and develop new technologies and make the transition to cloud communication. It will impact all our operations," Adlersberg told Reuters.

He expects to recruit 100 new engineers.

"I think that we will already see the payoff in 2015. This means more advanced solutions, and of course we believe we will increase our market share," he said.

In the shorter term, sales this year are expected to jump to $150 million from $137 million in 2013.

In 2013 AudioCodes sold $20 million in products and services that supplement Microsoft's Lync communications platform and Adlersberg said this should grow 40 percent in 2014.

He also expects revenue from session border controllers to reach $20 million, and with a boost from the R&D centre, he sees the company moving up in the market.

Mobile devices bring new opportunities, Adlersberg said. Starting in 2015 he expects revenue from products now in development for mobility and voice recognition. AudioCodes acquired the assets of MailVision, a developer of mobile voice applications, last year to boost its operations in the field.

"The company is investing and believes mobility will become a substantial growth engine starting in 2015," he said. ($1 = 3.4821 Israeli Shekels) (Editing by Tova Cohen)

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