Red or Green lights for the Israeli High tech?

26 July, 2016

Three Israeli high-tech companies published their Q2 reports today – AudioCodes, Checkpoint and Mobileye. All the three reported an increase in revenues. The positive day was dampened by mobileye’s announcement that the partnership with Tesla is history as well as by less positive future forecasts by Check Point

AudioCodes, Check Point and Mobileye reported increase in revenues, alaong concerns for future sales

MobilEye ADAS chip

Three Israeli high tech companies published their earnings reports for Q2 2014 today: VoIP solutions provider AudioCodes; Cyber security market leader Check Point, and most intriguing of all, ADAS developer pioneer MobilEye. Though the tree companies have little in common, their reports did have something in common today – they all showed an increase in revenues.

Tesla announcement shadowed MobilEye report 

MOBILEYEThe Israeli ADAS developers stock plunged by more than 10%, even though the company has reported a dazzling 58% increase in revenues year over year, to $83.5 million in Q2 2016. The reason for this somewhat unnatural response to a very positive report was an announcement made by MobilEye, stating that the company’s cooperation with Tesla has ended.  Mobileye’s announcement has shook investor confidence, already shaky following a series of mysterious accidents involving Tesla cars. It remains to be seen if the stock will regain a positive course in near future.

MobilEye has recently joined forces with Intel and Daimler – the three companies intend to develop a fully autonomous car by 2021. The strategic cooperation together with the increasing commercial success bodes well for the Israeli company.

Check Point’s dark outlook

Check Point CEO Gil Shwed
Check Point CEO Gil Shwed

Israeli cyber security market leader Check Point has concluded a positive quarter as well. The company has reported a 7% increase in revenues in Q2 2016. The security solutions provider’s revenues totaled $423 million compared to $395 million in the same quarter last year. The positive results were much better than the forecasts for a $421.5 million figure. Nevertheless, the security software developer has lowered its 2016 earnings outlook, due to a change in sales strategy.

The company’s stock, which initially hiked following the positive earnings report dived in the hours since the publishing of the new, dim outlook.

AudioCodes sales jumped 11% in Q2

AudioCodes, the smallest of the three Israeli high tech companies discussed here was also the one less burdened by dramatic announcements and dim forecasts. The VoIP solutions provider revenues increased by 11% in Q2 to $35.9 million compared to $32.4 million in the same quarter last year. More importantly, the company has reported a net profit of $721K compared to a $1.9 million loss the same quarter last year.

AudioCodes concludes a positive quarter in which UC-SIP solutions sales have risen by 25%. The company has signed a lucrative contract for the supply of MSBR routers to Deutsch Telecom which has restored confidence in Israeli VoIP solutions provider.

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