EX-12.1 6 v359393_ex12-1.htm EXHIBIT 12.1

 

Exhibit 12.1

 

AUDIOCODES LTD.

 

STATEMENT REGARDING COMPUTATION OF

RATIO OF EARNINGS TO FIXED CHARGES

 

The following table sets forth the computation of our ratio of earnings to fixed charges for the periods indicated. The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings from continuing operations before income tax and extraordinary items plus fixed charges.  For the purposes of computing the ratio of earnings to fixed charges, earnings consist of pretax income (loss) from continuing operations plus fixed charges.

 

   Year Ended December 31,   Nine Months
Ended
September 30,		 
   2008   2009   2010   2011   2012   2013 
Computation of Earnings:                              
Pretax Income (loss) from continuing operations  $(82,703)  $(2,928)  $10,343   $7,679   $(3,282)  $1,629 
Add:                              
Fixed charges  $9,125   $5,830   $1,626   $1,823   $2,508   $1,553 
                               
Adjusted earnings  $(73,578)  $2,902   $11,969   $9,502   $(774)  $3,182 
                               
Computation of Fixed charges:                              
Interest expense  $2,947   $1,866   $318   $346   $900   $482 
Amortization of discount relating to indebtedness  $4,868   $2,828   $0   $0   $0   $0 
Interest portion  of operating lease expenses (d)  $1,310   $1,136   $1,308   $1,477   $1,608   $1,071 
                               
Total fixed charges  $9,125   $5,830   $1,626   $1,823   $2,508   $1,553 
                               
Ratio of earnings to fixed charges   (8.06)(a)   0.50(b)   7.36    5.21    (0.31)(c)   2.05 

 

(a)           Due to the loss recorded in 2008, the ratio coverage was less than 1:1.  We would have needed to generate additional earnings of approximately $83 million to achieve coverage of 1:1 in 2008.

(b)           Due to the loss recorded in 2009, the ratio coverage was less than 1:1.  We would have needed to generate additional earnings of approximately $3 million to achieve coverage of 1:1 in 2009.

(c)           Due to the loss recorded in 2012, the ratio coverage was less than 1:1.  We would have needed to generate additional earnings of approximately $3 million to achieve coverage of 1:1 in 2012.

(d)           Rents included in the computation consist of 31% of rental expense which we believe to be a conservative estimate of an interest factor in our operating leases, which are not material.