Technology
OneConnect Announces Second Quarter and First Half 2024 Unaudited Financial Results
Published
2 years agoon
By
Net Margin of Continuing Operations to Shareholders Improved to -2.4%
Net Margin of Continuing and Discontinued Operations[1] to Shareholders Improved to 35.1%
SHENZHEN, China, Aug. 16, 2024 /PRNewswire/ — OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT and HKEX: 6638), a leading technology-as-a-service provider for the financial services industry in China, today announced its unaudited financial results for the second quarter and half year ended June 30, 2024.
Second Quarter 2024 Financial Highlights
Revenue from continuing operations was RMB692 million, compared to RMB939 million for the same period of the prior year.Gross margin of continuing operations was 36.6%, compared to 37.5% for the same period of the prior year; non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% for the same period of the prior year.Net loss from continuing operations attributable to shareholders was RMB17 million, compared to RMB41 million for the same period of the prior year. Net margin of continuing operations to shareholders improved to -2.4% from -4.4% for the same period last year.Net loss from continuing operations per basic and diluted ADS was RMB-0.46, compared to RMB-1.13 during the same period last year.Net profit from continuing and discontinued operations attributable to shareholders was RMB243 million, primarily due to the gains derived from the disposal of virtual banking business, compared to net loss of RMB82 million for the same period of the prior year. Net margin of continuing and discontinued operations to shareholders improved by 43.8ppt to 35.1% compared to -8.7% during the same period last year.Earnings from continuing and discontinued operations per basic and diluted ADS was RMB6.70, compared to RMB-2.25 during the same period last year.
[1] As previously reported, the Company completed the disposal of its virtual bank business (the “discontinued operations”) to Lufax Holding Ltd (“Lufax”) for a consideration of HK$933 million in cash on April 2, 2024. As a result of the disposal, the historical financial results of the Virtual Banking Business segment have been reflected as the “discontinued operations” in the Company’s condensed consolidated interim financial information and the historical financial results of the remaining business of the Company have been reflected as the “continuing operations” in the Company’s condensed consolidated interim financial information of the first half of 2024 and of the comparative period in 2023.
In RMB’000, except percentages
and per ADS amounts
Three Months Ended
Six Months Ended
June 30
YoY
June 30
YoY
2024
2023
2024
2023
Continuing operations
Revenue
Revenue from Ping An Group
401,084
580,795
-30.9 %
822,880
1,117,649
-26.4 %
Revenue from Lufax[1]
54,463
73,142
-25.5 %
112,719
144,499
-22.0 %
Revenue from third-party customers[2]
236,952
285,222
-16.9 %
480,170
570,837
-15.9 %
Total
692,499
939,159
-26.3 %
1,415,769
1,832,985
-22.8 %
Gross profit
253,379
352,385
525,782
687,042
Gross margin
36.6 %
37.5 %
37.1 %
37.5 %
Non-IFRS gross margin
38.8 %
40.0 %
39.4 %
40.1 %
Operating loss
(39,154)
(38,226)
(105,502)
(116,368)
Operating margin
-5.7 %
-4.1 %
-7.5 %
-6.3 %
Net loss from continuing operations
attributable to shareholders
(16,789)
(41,170)
(70,485)
(113,649)
Net margin of continuing operations to
shareholders
-2.4 %
-4.4 %
-5.0 %
-6.2 %
Net loss from continuing operations per
ADS[3], basic and diluted
(0.46)
(1.13)
(1.94)
(3.13)
Net profit/(loss) from continuing and
discontinued operations attributable to
shareholders
243,348
(81,592)
139,014
(190,465)
Net margin of continuing and
discontinued operations to shareholders
35.1 %
-8.7 %
9.8 %
-10.4 %
Earnings/(loss) from continuing and
discontinued operations per ADS[3],
basic and diluted
6.70
(2.25)
3.83
(5.24)
[1] Reference is made to announcements made by Lufax dated July 3, 2024 and July 30, 2024, upon the completion of the allotment and issuance of new Lufax shares under the Lufax Script Dividend Scheme described therein, Lufax will become an indirect non-wholly-owned subsidiary of Ping An Group and the financial results of Lufax Group will be consolidated into the consolidated financial statements of Ping An Group.
[2] Third-party customers refer to each customer with revenue contribution of less than 5% of the Company’s total revenue in the relevant period. These customers are a key focus of the Company’s diversification strategy.
[3] In RMB. Each ADS represents 30 ordinary shares.
Chairman, CEO and CFO Comments
Mr. Chongfeng Shen, Chairman of the Board and Chief Executive Officer, commented, “During the first half of 2024, we achieved encouraging results in overseas markets and improved our bottom-line despite the year-over-year decrease in revenue. Throughout this time, we focused on our strategic goal of achieving mid-term profitability by upgrading and integrating products, deepening customer engagement, and expanding our presence in overseas markets. Consequently, our high-value products, protected by high barriers to entry, gained broader appeal from customers, reflected in the 14.8% year-over-year increase in revenue from third-party overseas customers in our continuing operations during the first half of the year. We completed the disposal of our non-core virtual banking business to focus on our core businesses, and continued to implement disciplined expense control measures. As a result, we recorded net profit from continuing operations and discontinued operations during the first half of the year while further cost reductions continued to narrow our loss from continuing operations.”
“Despite our recent decision to gradually phase out the FinCloud business starting in July 2024, we maintain our strategic focus and will continue to empower the digital transformation of financial institutions and enterprises through our three main businesses: digital banking, digital insurance, and the Gamma platform. Leveraging our customer insights, industry expertise, and artificial intelligence technologies, we will further optimize our products, services, and solutions, and expand our premium-plus customer base. At the same time, we will explore broader overseas markets and expand our ecosystem to drive third-party revenue growth to ensure long-term healthy development.”
Mr. Yongtao Luo, Chief Financial Officer, commented, “Since the start of this year, our focus on improving resource and capital allocation efficiency has generated solid results. We completed the sale of our virtual banking business to refocus resources on our core businesses, resulting in a one-time gain recognized from the disposal in the amount of RMB260 million. This contributed to our net profit from continuing and discontinued operations attributable to shareholders of RMB139 million during the first half of the year, compared to a net loss of RMB190 million for the prior year period. Excluding gains from the sale of virtual banking business, net loss from continuing operations attributable to shareholders also narrowed significantly, falling 59.2% year-over-year and 68.7% sequentially during the second quarter, and 38.0% year-over-year to RMB70 million during the first half of the year. This significant narrowing of our losses from the continuing operation was primarily due to our ROI-oriented approach in managing expenses. In the first half of 2024, adjusted gross margin of continuing operations remained healthy at 39.4%, with operating expenses for continuing operations falling by 21.9% year-over-year. Looking ahead, we will leverage our ample cash position to drive research and development and accelerate innovation in the digital economy as we continue to implement disciplined cost control measures. We are confident this will enable us to grow our market share both domestically and internationally, ultimately achieving sustainable profitability.”
Revenue from Continuing Operations Breakdown
Three Months Ended
Six Months Ended
In RMB’000, except percentages
June 30
YoY
June 30
YoY
2024
2023
2024
2023
Implementation
168,627
233,089
-27.7 %
326,086
443,023
-26.4 %
Transaction-based and support revenue
Business origination services
9,940
32,081
-69.0 %
22,775
81,127
-71.9 %
Risk management services
61,031
72,574
-15.9 %
126,514
150,317
-15.8 %
Operation support services
131,329
249,040
-47.3 %
265,391
471,585
-43.7 %
Cloud services platform
289,109
322,373
-10.3 %
607,416
614,620
-1.2 %
Post-implementation support services
14,427
13,308
8.4 %
29,348
25,649
14.4 %
Others
18,036
16,694
8.0 %
38,239
46,664
-18.1 %
Sub-total for transaction-based and support
revenue
523,872
706,070
-25.8 %
1,089,683
1,389,962
-21.6 %
Total Revenue from Continuing Operations
692,499
939,159
-26.3 %
1,415,769
1,832,985
-22.8 %
Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products. Implementation revenue decreased by 27.7% year-over-year to RMB169 million during the second quarter of 2024, mainly due to a decline in demand for implementation of financial services systems domestically. Revenue from business origination services decreased by 69.0% year-over-year to RMB10 million during the second quarter of 2024, primarily due to a decline in transaction volumes from loan origination systems under digital credit management solutions. Revenue from risk management services decreased by 15.9% year-over-year to RMB61 million during the second quarter of 2024, mainly due to a decline in transaction volumes from banking related risk analytic solutions. Revenue from operation support services decreased by 47.3% year-over-year to RMB131 million during the second quarter of 2024, primarily due to a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor. Revenue from cloud services platform decreased by 10.3% year-over-year to RMB289 million during the second quarter of 2024, primarily due to reduced demand of cloud services.
Three Months Ended
Six Months Ended
In RMB’000, except percentages
June 30
YoY
June 30
YoY
2024
2023
2024
2023
Digital Banking segment
100,279
235,332
-57.4 %
261,832
494,069
-47.0 %
Digital Insurance segment
127,091
190,587
-33.3 %
258,977
367,244
-29.5 %
Gamma Platform segment
465,129
513,240
-9.4 %
894,960
971,671
-7.9 %
Total Revenue from Continuing
Operations
692,499
939,159
-26.3 %
1,415,769
1,832,985
-22.8 %
Revenue from Gamma Platform segment in the second quarter of 2024 decreased by 9.4% to RMB465 million from RMB513 million during the same period last year, primarily due to reduced demand of cloud services. Revenue from Digital Banking segment decreased by 57.4% to RMB100 million in the second quarter of 2024 from RMB235 million during the same period last year, mainly due to a decline in transaction volumes from business origination and risk management services, reflecting our continuing effort to phase out lower-value products. Revenue from Digital Insurance segment decreased by 33.3% to RMB127 million in the second quarter of 2024 from RMB191 million during the same period last year, primarily due a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor.
Second Quarter 2024 Financial Results
Revenue from Continuing Operations
Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products.
Cost of Revenue from Continuing Operations
Cost of revenue from continuing operations in the second quarter of 2024 decreased by 25.2% to RMB439 million from RMB587 million during the same period last year, in-line with the decrease in revenue.
Gross Profit from Continuing Operations
Gross profit from continuing operations in the second quarter of 2024 decreased to RMB253 million from RMB352 million during the same period last year. Gross margin of continuing operations declined slightly to 36.6%, compared to 37.5% in the prior year. Non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% in the prior year. For a reconciliation of the Company’s IFRS and non-IFRS gross margin, please refer to “Reconciliation of IFRS and Non-IFRS Results for continuing operations (Unaudited).”
Operating Loss and Expenses from Continuing Operations
Total operating expenses from continuing operations in the second quarter of 2024 decreased to RMB296 million from RMB402 million during the same period last year. As a percentage of revenue, total operating expenses from continuing operations decreased by 0.1ppt to 42.7% from 42.8% during the same period last year.
Research and Development expenses from continuing operations in the second quarter of 2024 decreased to RMB186 million from RMB252 million in the prior year, mainly due to a decrease in personnel costs and the ROI-oriented approach we are taking to manage research and development projects. As a percentage of revenue, research and development expenses from continuing operations slightly increased to 26.9% from 26.8% in the prior year.Sales and Marketing expenses from continuing operations in the second quarter of 2024 decreased to RMB44 million from RMB57 million in the prior year, mainly due to a decrease in personnel costs as we enhance sales efficiency and capabilities. As a percentage of revenue, sales and marketing expenses from continuing operations were 6.4%, compared to 6.1% in the prior year.General and Administrative expenses from continuing operations in the second quarter of 2024 decreased to RMB66 million from RMB93 million in the prior year. As a percentage of revenue, general and administrative expenses from continuing operations decreased to 9.5% from 9.9% during the same period last year, primarily due to a decrease in personnel costs.
Operating loss from continuing operations in the second quarter of 2024 increased slightly to RMB39 million from RMB38 million during the same period last year. Operating margin of continuing operations was -5.7%, compared to -4.1% in the prior year.
Net Loss from Continuing Operations Attributable to Shareholders
Net loss from continuing operations attributable to OneConnect’s shareholders in the second quarter of 2024 decreased by 59.2% to RMB17 million from RMB41 million during the same period last year. Net loss from continuing operations attributable to OneConnect’s shareholders per basic and diluted ADS decreased to RMB-0.46, compared to RMB-1.13 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.
Net Profit from Continuing and Discontinued Operations Attributable to Shareholders
Net profit from continuing and discontinued operations attributable to OneConnect’s shareholders in the second quarter of 2024 was RMB243 million, compared to net loss of RMB82 million during the same period last year, which was primarily due to the gains derived from the disposal of virtual banking business. Earnings from continuing and discontinued operations attributable to OneConnect’s shareholders per basic and diluted ADS increased to RMB6.70, compared to RMB-2.25 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.
Cash Flow
For the second quarter of 2024, net cash used in operating activities was RMB183 million, net cash generated from investing activities was RMB224 million of which RMB723 million was generated from the disposal of virtual banking business, and net cash used in financing activities was RMB29 million.
Conference Call Information
Date/Time
Friday, August 16, 2024 at 8:00 a.m., U.S. Eastern time
Friday, August 16, 2024 at 8:00 p.m., Hong Kong time
Online registration
https://www.netroadshow.com/events/login?show=1b2c1d6f&confId=69140
The financial results and an archived transcript will be available at OneConnect’s investor relations website at ir.ocft.com.
About OneConnect
OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for financial services industry. The Company integrates extensive financial services industry expertise with market-leading technology to provide technology applications and technology-enabled business services to financial institutions. The integrated solutions and platform the Company provides include digital banking solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company’s solutions enable its customers’ digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.
The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco-system. In addition, the Company has successfully exported its technology solutions to overseas financial institutions.
For more information, please visit ir.ocft.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to comply with existing or future laws and regulations related to data protection or data security; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship and engagement with Ping An Group and its related parties, which are its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; litigation and negative publicity surrounding China-based companies listed in the U.S.; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Use of Unaudited Non-IFRS Financial Measures
The unaudited consolidated financial information is prepared in accordance with IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) . Non-IFRS measures are used in gross profit and gross margin, adjusted to exclude non-cash items, which consist of amortization of intangible assets recognized in cost of revenue, depreciation of property and equipment recognized in cost of revenue, and share-based compensation expenses recognized in cost of revenue. OneConnect’s management regularly review non-IFRS gross profit and non-IFRS gross margin to assess the performance of our business. By excluding non-cash items, these financial metrics allow OneConnect’s management to evaluate the cash conversion of one dollar revenue on gross profit. OneConnect uses these non-IFRS financial measures to evaluate its ongoing operations and for internal planning and forecasting purposes. OneConnect believes that non-IFRS financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar financial information. OneConnect also believes that presentation of the non-IFRS financial measures provides useful information to its investors regarding its results of operations because it allows investors greater transparency to the information used by OneConnect’s management in its financial and operational decision making so that investors can see through the eyes of the OneConnect’s management regarding important financial metrics that the management uses to run the business as well as allowing investors to better understand OneConnect’s performance. However, non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly-titled non-IFRS measures used by other companies. In light of the foregoing limitations, you should not consider non-IFRS financial measure in isolation from or as an alternative to the financial measure prepared in accordance with IFRS. Whenever OneConnect uses a non-IFRS financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with IFRS. You are encouraged to review the related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures. For more information on non-IFRS financial measures, please see the table captioned “Reconciliation of IFRS and non-IFRS results (Unaudited)” set forth at the end of this press release.
Contacts
Investor Relations:
OCFT IR Team
OCFT_IR@ocft.com
Media Relations:
OCFT PR Team
pub_jryztppxcb@pingan.com.cn
ONECONNECT
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
2024
2023
RMB’000
RMB’000
RMB’000
RMB’000
Continuing operations
Revenue
692,499
939,159
1,415,769
1,832,985
Cost of revenue
(439,120)
(586,774)
(889,987)
(1,145,943)
Gross profit
253,379
352,385
525,782
687,042
Research and development expenses
(186,457)
(251,893)
(399,640)
(528,039)
Selling and marketing expenses
(44,068)
(56,828)
(92,568)
(116,030)
General and administrative expenses
(65,507)
(92,904)
(146,027)
(173,117)
Net impairment losses on financial and
contract assets
(9,543)
(8,739)
(23,233)
(32,804)
Other income, gains or loss–net
13,042
19,753
30,184
46,580
Operating loss
(39,154)
(38,226)
(105,502)
(116,368)
Finance income
19,346
5,726
29,686
11,516
Finance costs
(3,710)
(5,312)
(7,988)
(11,453)
Finance income – net
15,636
414
21,698
63
Share of gain of associate and joint venture –
net
–
–
–
7,157
Impairment charges on associate
–
–
–
(7,157)
Loss before income tax
(23,518)
(37,812)
(83,804)
(116,305)
Income tax benefit/(expense)
2,435
(7,274)
2,346
(5,402)
Loss from continuing operations
(21,083)
(45,086)
(81,458)
(121,707)
Profit/(loss) from discontinued operations
260,137
(40,422)
209,499
(76,816)
Profit/(loss) for the period
239,054
(85,508)
128,041
(198,523)
Profit/(loss) attributable to:
– Owners of the Company
243,348
(81,592)
139,014
(190,465)
– Non-controlling interests
(4,294)
(3,916)
(10,973)
(8,058)
239,054
(85,508)
128,041
(198,523)
Other comprehensive income/(loss), net of
tax:
Items that may be subsequently reclassified to
profit or loss
– Foreign currency translation differences
(3,979)
(1,660)
(2,645)
(4,863)
– Exchange differences on translation of
discontinued operations
–
33,884
177
22,233
– Changes in the fair value of debt instruments
measured at fair value through other
comprehensive income of discontinued
operations
–
4,781
6,056
1,057
– Disposal of subsidiaries
18,237
–
18,237
–
Item that will not be reclassified subsequently
to profit or loss
– Foreign currency translation differences
11,866
74,846
13,808
44,191
Other comprehensive income for the period,
net of tax
26,124
11,851
35,633
62,618
Total comprehensive income/(loss) for the
period
265,178
26,343
163,674
(135,905)
Total comprehensive income/(loss)
attributable to:
– Owners of the Company
269,472
30,259
174,647
(127,847)
– Non-controlling interests
(4,294)
(3,916)
(10,973)
(8,058)
265,178
26,343
163,674
(135,905)
Total comprehensive income/(loss)
attributable to owners of the Company
arises from:
– Continuing operations
9,335
32,016
(41,085)
(74,321)
– Discontinued operations
260,137
(1,757)
215,732
(53,526)
269,472
30,259
174,647
(127,847)
Loss from continuing operations per share
attributable to the owners of the Company
(expressed in RMB per share)
– Basic and diluted
(0.02)
(0.04)
(0.06)
(0.10)
Loss from continuing operations per ADS
attributable to the owners of the Company
(expressed in RMB per share)
– Basic and diluted
(0.46)
(1.13)
(1.94)
(3.13)
Earnings/(loss) per share attributable to the
owners of the Company
(expressed in RMB per share)
– Basic and diluted
0.23
(0.07)
0.13
(0.17)
Earnings/(loss) per ADS attributable to the
owners of the Company
(expressed in RMB per share)
– Basic and diluted
6.70
(2.25)
3.83
(5.24)
ONECONNECT
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30
December 31
2024
2023
RMB’000
RMB’000
ASSETS
Non–current assets
Property and equipment
65,832
85,076
Intangible assets
340,483
471,371
Deferred tax assets
768,398
768,276
Financial assets measured at fair value through
other comprehensive income
3,204
1,372,685
Restricted cash and time deposits over three
months
200
5,319
Prepayments and other receivables
6,962
6,663
Total non-current assets
1,185,079
2,709,390
Current assets
Trade receivables
930,258
710,669
Contract assets
79,941
95,825
Prepayments and other receivables
898,296
905,691
Financial assets measured at amortized cost from
virtual bank
–
3,081
Financial assets measured at fair value through
other comprehensive income
–
853,453
Financial assets measured at fair value through
profit or loss
640,431
925,204
Derivative financial assets
52,750
38,008
Restricted cash and time deposits over three
months
469,405
447,564
Cash and cash equivalents
1,438,886
1,379,473
Total current assets
4,509,967
5,358,968
Total assets
5,695,046
8,068,358
EQUITY AND LIABILITIES
EQUITY
Share capital
78
78
Shares held for share option scheme
(149,544)
(149,544)
Other reserves
11,027,689
10,989,851
Accumulated losses
(7,734,600)
(7,873,614)
Equity attributable to equity owners of the
Company
3,143,623
2,966,771
Non-controlling interests
(29,952)
(18,979)
Total equity
3,113,671
2,947,792
LIABILITIES
Non–current liabilities
Trade and other payables
14,379
28,283
Contract liabilities
12,901
17,126
Deferred tax liabilities
520
2,079
Total non–current liabilities
27,800
47,488
Current liabilities
Trade and other payables
2,008,719
1,981,288
Payroll and welfare payables
267,881
385,908
Contract liabilities
134,192
138,563
Short-term borrowings
142,783
251,732
Customer deposits
–
2,261,214
Other financial liabilities from virtual bank
–
54,373
Total current liabilities
2,553,575
5,073,078
Total liabilities
2,581,375
5,120,566
Total equity and liabilities
5,695,046
8,068,358
ONECONNECT
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
2024
2023
RMB’000
RMB’000
RMB’000
RMB’000
Net cash used in operating
activities
(182,757)
(19,650)
(297,993)
(632,914)
Net cash generated from/(used in)
investing activities
224,450
(108,947)
480,298
298,119
Net cash used in financing
activities
(28,821)
(44,480)
(129,792)
(88,901)
Net increase/(decrease) in cash and
cash equivalents
12,872
(173,077)
52,513
(423,696)
Cash and cash equivalents at the
beginning of the period
1,420,891
1,420,891
1,379,473
1,907,776
Effects of exchange rate changes
on cash and cash equivalents
5,123
46,159
6,900
35,433
Cash and cash equivalents at the
end of period
1,438,886
1,519,513
1,438,886
1,519,513
ONECONNECT
RECONCILIATION OF IFRS AND NON-IFRS RESULTS
FOR CONTINUING OPERATIONS
(Unaudited)
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
2024
2023
RMB’000
RMB’000
RMB’000
RMB’000
Gross profit from continuing operations
253,379
352,385
525,782
687,042
Gross margin of continuing operations
36.6 %
37.5 %
37.1 %
37.5 %
Non-IFRS adjustment
Amortization of intangible assets recognized in cost
of revenue
13,686
21,374
29,228
43,583
Depreciation of property and equipment recognized
in cost of revenue
1,056
1,469
2,208
2,823
Share-based compensation expenses recognized in
cost of revenue
334
894
562
1,330
Non-IFRS gross profit from continuing operations
268,455
376,122
557,780
734,778
Non-IFRS gross margin of continuing operations
38.8 %
40.0 %
39.4 %
40.1 %
View original content:https://www.prnewswire.com/news-releases/oneconnect-announces-second-quarter-and-first-half-2024-unaudited-financial-results-302224276.html
SOURCE OneConnect Financial Technology Co., Ltd.
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Technology
AudioCodes Reports Third Quarter 2026 Results
Published
31 minutes agoon
November 4, 2026By
OR YEHUDA, Israel, Nov. 4, 2026 /PRNewswire/ —
Third Quarter Highlights
Quarterly revenues increased by 4.2% year-over-year to $64.1 million;Quarterly services revenues increased by 19.9% year-over-year to $37.1 million;GAAP results:
– Quarterly GAAP gross margin was 65.7%;
– Quarterly GAAP operating margin was 5.3%;
– Quarterly GAAP net income was $3.6 million, or $0.15 per diluted share;Non-GAAP results:
– Quarterly Non-GAAP gross margin was 65.8%;
– Quarterly Non-GAAP operating margin was 7.4%;
– Quarterly Non-GAAP net income was $4.0 million, or $0.16 per diluted share;Net cash provided by operating activities was $4.1 million for the quarter;AudioCodes repurchased 1,517,568 of its ordinary shares during the quarter at an aggregate cost of $15.1 million.
Details
AudioCodes (NASDAQ: AUDC) (the “Company”), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the third quarter ended September 30, 2026.
Revenues for the third quarter of 2026 were $64.1 million compared to $61.5 million for the third quarter of 2025.
Net income was $3.6 million, or $0.15 per diluted share, for the third quarter of 2026 compared to net income of $2.7 million, or $0.10 per diluted share, for the third quarter of 2025.
On a non-GAAP basis, net income was $4.0 million, or $0.16 per diluted share, for the third quarter of 2026 compared to $4.9 million, or $0.17 per diluted share, for the third quarter of 2025.
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin exclude: (i) share-based compensation expenses and (ii) amortization expenses related to intangible assets. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures are provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities was $4.1 million for the third quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $47.1 million as of September 30, 2026, compared to $75.7 million as of December 31, 2025. The decrease in cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments was primarily the result of the use of cash for the continued repurchase of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during each of the first and third quarters of 2026. This was partially offset by cash generated from operating activities.
“I am pleased to report strong financial results and continued business momentum for the third-quarter 2026. Our solid financial results demonstrate progress in our strategic transformation of AudioCodes into a voice AI-driven cloud software and services company,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
“Third-quarter results were driven by continued momentum in our two key growth pillars: the Live suite of managed services for UCaaS and CX, and our VoiceAI business. Combined annual recurring revenue (ARR) for these segments reached $87 million, up 16% year over year. Our Microsoft Teams business continued to grow with sustained momentum, growing 4% year over year.
“Our UCaaS and CX connectivity business, which now accounts for more than 85% of our overall business, has remained resilient, with a promising outlook for 2027.
“Building on revenue growth earlier this year, our VoiceAI business grew 50% in the first three quarters of 2026 year-over-year, reflecting strong, broad-based demand across the portfolio. During the quarter, VoiceAI Connect and Live Hub continued to achieve record bookings, supported by a growing pipeline, new customer wins, and significant expansion among existing customers. Revenue from Voca CIC, our Microsoft Teams-certified contact center solution, grew more than 40% year over year during the quarter. Meeting Insights and Mia Edge, our enterprise-grade meeting intelligence solutions for cloud and on-premises environments, also gained traction, with revenue growing more than 100% during this quarter compared with the same period a year earlier.
“Overall, we achieved our operational and financial targets for the third quarter period. The ongoing investments in Live services and VoiceAI have significantly contributed to our success and position us favorably for continued healthy top-line growth throughout the rest of 2026 and 2027,” concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
On August 4, 2026, the Company declared a cash dividend of 20 cents per share. The dividend, in the aggregate amount of approximately $4.8 million, was paid on September 3, 2026, to all of the Company’s shareholders of record on August 19, 2026.
In September 2026, the Company received court approval in Israel to purchase up to an aggregate amount of $30 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through March 9, 2027.
During the quarter ended September 30, 2026, the Company acquired 1,517,568 of its ordinary shares under its share repurchase program for a total consideration of $15.1 million.
As of September 30, 2026, the Company had $26.7 million available under this approval for the repurchase of shares and/or declaration of cash dividends.
As of September 30, 2026, the total outstanding shares of the Company were 23,296,828.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company’s third quarter of 2026 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers:
United States Participants: 888–506-0062
International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.
Follow AudioCodes’ social media channels:
AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube.
About AudioCodes
AudioCodes Ltd. (NASDAQ: AUDC) (TASE: AUDC) is a global leader in enterprise voice and VoiceAI business solutions. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward.
For more information on AudioCodes, visit http://www.audiocodes.com.
Statements concerning AudioCodes’ business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements” as the term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular, including governmental undertakings to address such conditions; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes’ and its customers’ products and markets; timely product and technology development, upgrades, the advent of artificial intelligence, and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes’ financing agreements; possible impacts and disruptions from AudioCodes’ acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes’ business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and any other factors described in AudioCodes’ filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release.
©2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30,
December 31,
2026
2025
(Unaudited)
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 41,991
$ 45,282
Short-term bank deposits
252
239
Short-term marketable securities
2,520
27,350
Trade receivables, net
64,553
67,358
Other receivables and prepaid expenses
13,357
19,064
Inventories
24,926
22,032
Total current assets
147,599
181,325
LONG-TERM ASSETS:
Long-term Trade receivables
$ 12,150
$ 13,065
Long-term financial investments
2,372
2,790
Deferred tax assets
6,501
7,773
Operating lease right-of-use assets
30,491
30,077
Severance pay funds
22,227
21,163
Total long-term assets
73,741
74,868
PROPERTY AND EQUIPMENT, NET
29,679
29,248
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET
40,054
37,579
Total assets
$ 291,073
$ 323,020
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables
$ 10,849
$ 6,416
Other payables and accrued expenses
29,584
30,284
Deferred revenues
40,017
38,243
Short-term operating lease liabilities
7,122
6,635
Total current liabilities
87,572
81,578
LONG-TERM LIABILITIES:
Accrued severance pay
$ 18,609
$ 18,278
Deferred revenues and other liabilities
25,414
20,517
Long-term operating lease liabilities
32,084
31,348
Total long-term liabilities
76,107
70,143
Total shareholders’ equity
127,394
171,299
Total liabilities and shareholders’ equity
$ 291,073
$ 323,020
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Nine months ended
Three months ended
September 30,
September 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Revenues:
Products
$ 83,545
$ 86,896
$ 27,037
$ 30,606
Services
105,700
96,103
37,107
30,941
Total Revenues
189,245
182,999
64,144
61,547
Cost of revenues:
Products
30,667
33,086
10,507
11,150
Services
33,958
31,370
11,503
10,112
Total Cost of revenues
64,625
64,456
22,010
21,262
Gross profit
124,620
118,543
42,134
40,285
Operating expenses:
Research and development, net
40,801
39,087
13,447
13,188
Selling and marketing
61,867
57,318
21,203
18,942
General and administrative
12,018
11,832
4,112
4,094
Total operating expenses
114,686
108,237
38,762
36,224
Operating income
9,934
10,306
3,372
4,061
Financial income (expenses), net
(898)
586
1,243
64
Income before taxes on income
9,036
10,892
4,615
4,125
Taxes on income, net
(2,968)
(3,838)
(977)
(1,393)
Net income
$ 6,068
$ 7,054
$ 3,638
$ 2,732
Basic net earnings per share
$ 0.24
$ 0.24
$ 0.15
$ 0.10
Diluted net earnings per share
$ 0.24
$ 0.24
$ 0.15
$ 0.10
Weighted average number of shares used in
computing basic net earnings per share (in
thousands)
25,197
28,858
23,939
28,169
Weighted average number of shares used in
computing diluted net earnings per share (in
thousands)
25,716
29,356
24,504
28,672
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands, except per share data
Nine months ended
Three months ended
September 30,
September 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Gross profit
$ 124,620
$ 118,543
$ 42,134
$ 40,285
Gross margin
65.9 %
64.8 %
65.7 %
65.5 %
Share-based compensation (1)
215
319
62
94
Amortization expenses (2)
–
366
–
122
Non-GAAP gross profit
124,835
119,228
42,196
40,501
Non-GAAP gross margin
66.0 %
65.2 %
65.8 %
65.8 %
Operating income
$ 9,934
$ 10,306
$ 3,372
$ 4,061
Operating margin
5.2 %
5.6 %
5.3 %
6.6 %
Share-based compensation (1)
4,193
4,901
1,382
1,625
Amortization expenses (2)
19
399
–
133
Non-GAAP operating income
14,146
15,606
4,754
5,819
Non-GAAP operating margin
7.5 %
8.5 %
7.4 %
9.5 %
Net income
$ 6,068
$ 7,054
$ 3,638
$ 2,732
Net earnings per share
$ 0.24
$ 0.24
$ 0.15
$ 0.10
Share-based compensation (1)
4,193
4,901
1,382
1,625
Amortization expenses (2)
19
399
–
133
Exchange rate differences (3)
1,329
1,310
(1,059)
392
Non-GAAP net income
$ 11,609
$ 13,664
$ 3,961
$ 4,882
Non-GAAP diluted net earnings per share
$ 0.44
$ 0.45
$ 0.16
$ 0.17
Weighted average number of shares used in computing
Non-GAAP diluted net earnings per share (in thousands)
26,447
30,094
25,191
29,437
(1) Share-based compensation expenses related to options and restricted share units granted to employees and others.
(2) Amortization expenses related to intangible assets.
(3) Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and
liabilities in non-dollar denominated currencies.
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.
The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies.
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Nine months ended
Three months ended
September 30,
September 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$ 6,068
$ 7,054
$ 3,638
$ 2,732
Adjustments required to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
3,386
3,096
1,174
1,183
Amortization of marketable securities premiums and
accretion of discounts, net
136
312
14
115
Decrease (increase) in accrued severance pay, net
(733)
(714)
342
(790)
Share-based compensation expenses
4,193
4,901
1,382
1,625
Decrease in deferred tax assets, net
1,206
708
516
401
Cash financial loss (income), net
571
37
164
15
Decrease in operating lease right-of-use assets
3,649
3,292
1,386
1,093
Decrease (increase) in operating lease liabilities
(2,840)
(133)
(2,466)
(555)
Decrease (increase) in trade receivables, net
3,720
(10,373)
(3,041)
(7,237)
Decrease (increase) in other receivables and prepaid
expenses
3,213
(6,464)
2,730
(2,020)
Decrease (increase) in inventories
(3,054)
7,261
(1,188)
2,285
Increase in trade payables
4,161
2,761
1,278
2,674
Decrease (increase) in other payables and accrued
expenses
(8,170)
7,027
(4,020)
277
Increase in deferred revenues
7,491
6,471
2,171
2,256
Net cash provided by operating activities
22,997
25,236
4,080
4,054
Cash flows from investing activities:
Proceeds from short-term deposits
(13)
(23)
3
(5)
Proceeds from financial investments
134
243
12
65
Proceeds from maturity of marketable securities
24,827
5,200
7,450
2,000
Purchase of financial investments
(135)
(442)
–
–
Purchase of property and equipment
(3,355)
(4,830)
(1,059)
(1,571)
Net cash provided by investing activities
21,458
148
6,406
489
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Nine months ended
Three months ended
September 30,
September 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Cash flows from financing activities:
Purchase of treasury shares
(37,669)
(24,514)
(15,121)
(12,696)
Cash dividends paid to shareholders
(10,077)
(10,934)
(4,788)
(5,608)
Proceeds from issuance of shares upon exercise of options
–
240
–
67
Net cash used in financing activities
(47,746)
(35,208)
(19,909)
(18,237)
Net increase (decrease) in cash and cash equivalents
(3,291)
(9,824)
(9,423)
(13,694)
Cash and cash equivalents at beginning of period
45,282
58,749
51,414
62,619
Cash and cash equivalents at end of period
$ 41,991
$ 48,925
$ 41,991
$ 48,925
Company Contact
Niran Baruch,
Chief Financial Officer
AudioCodes
Tel: +972-3-976-4000
niran.baruch@audiocodes.com
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SOURCE AudioCodes
Technology
AWS launches “Semarak AI Malaysia”, a national program to bring AI tools to government officers, students, and local software companies
Published
31 minutes agoon
November 4, 2026By
AWS is investing to put Amazon Quick, the AI built for work, in the hands of up to 445,000 government officers — supporting Malaysia’s nation-building agenda by giving public-sector teams practical, hands-on experience applying agentic AI to everyday workGovTech Malaysia launches GovHub, powered by Kiro, for developers to bring engineering rigor to agentic development, starting with a 500-developer pilot in 2026, with a goal to reach 4,000 by 2028Over 3,000 polytechnic students and lecturers set a national record by building agentic AI solutions in Malaysia’s largest AI competition using Kiro, AWS’s engineering agent
KUALA LUMPUR, Malaysia, Nov. 4, 2026 /PRNewswire/ — Amazon Web Services (AWS), an Amazon.com, Inc. company (NASDAQ: AMZN), today launched “Semarak AI Malaysia” at AWS Cloud and AI Day Kuala Lumpur, a flagship national program that equips Malaysia’s government officers, students, software companies, and communities with the AI tools and skills to build their own solutions.
Semarak AI Malaysia is organized around three pillars: AI Negara for the public sector, AI Ekonomi for businesses, and AI Rakyat for communities. Semarak AI Malaysia focuses on the step after initial AI adoption: equipping more Malaysians with the access and skills to build with AI themselves.
“For Malaysia to lead in the regional AI economy, we need a workforce and a software industry that can build, not just consume, AI technology. Through Semarak AI Malaysia, AWS is building on its MYR29.2 billion commitment to Malaysia to turn that ambition into reality. This program starts with our civil servants and students, and extends to our software companies so they can develop AI solutions that serve Malaysian businesses and compete across the region,” said YB Datuk Seri Johari Abdul Ghani, Minister of Investment, Trade and Industry.
AI Negara: Equipping government officers to build AI services that drive better citizen outcomes
GovTech Malaysia, Ministry of Digital (Kementerian Digital), is launching GovHub, powered by Kiro, through JDN’s AI-as-a-Service (AIaaS) platform. The phase one pilot starts with 500 developers in 2026, with a goal to onboard 4,000 developers by 2028. Kiro uses spec-driven development to turn developers’ prompts into structured specifications for requirements, design, and implementation — giving AI all the context it needs before writing a line of code, so developers build what they want in fewer tries. To complement the tools knowledge workers use to build, AWS is investing to put Amazon Quick, the AI built for work, in the hands of up to 445,000 government officers; also through JDN’s AIaaS platform. Officers can use Quick to tackle higher-order tasks such as analyzing procurement data, synthesizing policy research across agencies, and surfacing patterns in large datasets.
AI Ekonomi: Giving Malaysian businesses the AI tools to compete and grow
Since the AWS Asia Pacific (Kuala Lumpur) Region launched in 2024, software companies in Malaysia building on AWS have grown their cloud and AI workloads by an average of approximately 30% between 2024-2025. These companies build the industry-specific applications that banks, retailers, manufacturers, hotels, logistics firms, and public agencies run every day. Malaysia-based software company MOCHI Technologies, for example, is building on AWS to help more than 1,000 small and medium-sized enterprises manage marketing, customer relationships, HR, and operations through a single AI-native platform. Supporting the growth of companies like MOCHI is central to the Semarak AI Malaysia program.
The Sarawak SaaS Accelerator (SaSAR), a collaboration between AWS and the Sarawak Digital Economy Corporation (SDEC), is designed to grow this pipeline of software companies in Malaysia. The program works with software companies to build AI products on AWS while SDEC matches them with Sarawak businesses looking to adopt AI solutions. The pilot cohort graduated over 20 software companies representing high-growth sectors in the Sarawakian economy spanning agriculture, automotive, and medical. Graduates received AWS cloud credits and technical mentorship from AWS, business-building guidance from SDEC, and have since established collaborations with government agencies, energy providers, and enterprise partners across Sarawak to drive adoption of their AI products. One early proof of concept involves an AI-enabled software testing solution designed to help organizations test and validate applications, including mobile applications, across various industries. The solution is undergoing validation with pilot users to refine its capabilities ahead of wider deployment.
Recognizing that local partners are crucial to deepen AI adoption at scale, AWS is also working with GD XCHANGE, the solutions arm of last-mile logistics provider GDEX, and AWS distributor VSTECS, to put AI tools directly into the hands of the thousands of SMEs GDEX already serves across e-commerce, retail, and manufacturing. Through the program, eligible SMEs receive six months of complimentary access to Quick and Kiro following an AI readiness assessment, equipping them with AI assistants for everyday business tasks. The collaboration aims to onboard 10,000 SMEs by 2028. One retail SME is already using Quick and Kiro to automate competitor-price tracking and demand forecasting, responding to market shifts in hours instead of weeks.
AI Rakyat: Building AI skills in Malaysian communities
AWS is strengthening Malaysia’s AI talent pipeline at the polytechnic and community college level, building on a collaboration with the Ministry of Higher Education (MOHE)’s Jabatan Pendidikan Politeknik dan Kolej Komuniti (JPPKK). Over 3,000 students and lecturers from polytechnics and community colleges nationwide set a new national milestone in the Malaysia Book of Records for the largest participation in an agentic AI competition through the POLYCC Agentic AI League 2026. Kiro was selected as the competition’s primary coding tool, enabling students with no programming background to engage with agentic AI concepts in natural language. AWS has also adopted its first school in Malaysia under the government’s Sekolah Angkat MADANI program: Sekolah Kebangsaan Datuk Keramat (1) in Kuala Lumpur. AWS will upgrade the school’s digital and STEM facilities, train teachers to deliver coding and robotics lessons, and run hands-on activities in drone technology and digital safety for students.
“When the public sector leads in building with AI, it becomes the lighthouse for the rest of the country. That’s what Semarak AI Malaysia is designed to do; equip civil servants, software companies, and students with the tools to build their own AI solutions. Every ministry, every developer, and every student who builds with AI raises the bar for what’s next.” said Hussein Mohd Ali, Country Manager, Malaysia, AWS.
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Technology
Corero Network Security Accelerates International Growth with Strategic Investment in Regional Leadership and Partnerships
Published
31 minutes agoon
November 4, 2026By
New leadership appointments strengthen EMEA and APAC operations as Corero builds on commercial momentum and industry recognition.
LONDON, Nov. 4, 2026 /PRNewswire/ — Corero Network Security (AIM: CNS) (OTCQX: DDOSF), the distributed denial of service (“DDoS”) protection specialists and champion of adaptive, real-time service availability, today announced continued investment in its European and international operations, expanding regional leadership, technical expertise, and channel resources to accelerate partner-led growth across Europe, the Middle East, Africa, and Asia-Pacific.
As part of this expansion, Corero appointed Michael Woduschegg as General Manager and Field CTO, EMEA/APAC, bringing extensive industry experience and technical leadership. Corero will also add a Director of EMEA Channels in December to strengthen partner relationships and accelerate regional go-to-market initiatives.
“International growth requires more than entering new markets. It requires investing in the people, expertise, and partnerships that make sustainable success possible,” said Carl Herberger, Chief Executive Officer at Corero Network Security. “By strengthening local leadership and technical resources, we’re positioning Corero and our partners to capitalize on growing demand for cyber resiliency and real-time DDoS protection.”
Corero’s expansion is backed by strong performance and partner success. Q3 2026 order intake grew 50% year-over-year, fueled by channel-led wins across Europe, Latin America, and Asia-Pacific. That partner success also earned Corero and UK Servers, a provider of high-speed dedicated servers, colocation, cloud solutions and high availability cloud internet services, a finalist spot in the Best Technology Partnership category at the 2026 ISPA UK Awards.
“Our partners are central to Corero’s growth, and we’re committed to reinvesting in their success,” said Michelle Ragusa-McBain, Global Channel Chief at Corero Network Security. “Michael’s appointment and new EMEA channel leadership strengthen the support we provide, from technical enablement to joint go-to-market initiatives. When our partners grow, Corero grows.”
Corero will continue expanding strategic alliances, strengthening regional partnerships, and investing in sales and technical resources to support sustainable international growth.
About Corero Network Security
Corero Network Security is a leading provider of DDoS protection solutions, specializing in automatic detection and protection solutions with network visibility, analytics, and reporting tools. Corero’s technology protects against external and internal DDoS threats in complex edge and subscriber environments, ensuring internet service availability. With operational centers in Marlborough, Massachusetts, USA, and Edinburgh, UK, Corero is headquartered in London and listed on the London Stock Exchange’s AIM market (ticker: CNS) and the US OTCQX Market (OTCQX: DDOSF).
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/corero-network-security-accelerates-international-growth-with-strategic-investment-in-regional-leadership-and-partnerships-302928246.html
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