Rodman & Renshaw Reiterates Outperform Rating on AudioCodes

Rodman & Renshaw is out with a research report this afternoon, where it reiterates its Market Outperform rating on AudioCodes

; it has a $6.00 price target on the stock. The R&R analysts cited the company's recent earnings results, which were weak. 3Q11 revenues were down 13% quarter over quarter and up 12% year over year, to $36.0 million. Non GAAP EPS came in at $0.01. These results were below R&R's expectation of $39.5mn/ $0.10. Gross margins contracted 50bps to 59.3%, due to product mix. As for valuation, the analysts remarked, “We are lowering our revenue expectation for FY11 from $163.5mn to $158.6mn. Non-GAAP EPS is expected at $0.30 compared to prior forecast of $0.44. For 4Q, we expect revenues and non-GAAP EPS of $40mn/$0.08 compared to our prior forecasts of $41.4mn/$0.10.”