Shares of Audiocodes (AUDC), an Israeli provider of Voice over IP (VOIP) technology, are surging on the heels of a strong earnings report. The company reported record earnings, an indicated strong growth for the remainder of this year as well as for 2009.

This small VOIP company has long been overlooked by the financial community, but the fundamentals make this an interesting play for long-term investors.

The company has a PEG of less than 0.6, and has over $137 million in cash and cash equivalents. Audiocodes has a market-cap of $177, which means that it’s trading at a discount to revenues as well. Throw in a 4,000,000 share buyback and this could be a sleeper.

Investors should be aware that for the last 3.5 years, shares in Audiocodes have gone in just one direction, straight down. With that being said, today’s report, potentially, maybe the jump-start needed to break the downward spiral, and be the catalyst to help propel shares going forward.

Disclosure: Author’s fund has no position in AUDC, fund has no position in any other stock mentioned as of 4/30/08.

Please see our Disclaimer HERE.

Last 5 posts by Aaron Katsman

• Humm…Weren’t We Told A Weak Shekel Will Increase Exports? - November 13th, 2008
• Surprise Bank of Israel Rate Cut Signals Trouble Ahead - November 11th, 2008
• BOI Head Fischer is Now Worried? - November 9th, 2008
• Welcome to Wall Street Prez. Obama - November 6th, 2008
• Don’t Become Emotionally Attached to Your Stocks - November 5th, 2008