Q4 Revenues up 196% Year-Over-Year to $8.0 million

Full Year 2016 Revenues up 58% Year-Over-Year to $29.5 million

Cash and Cash Equivalents of $42.9 million and No Debt as of December 31, 2016

 

TEL-AVIV, Israel – February 14, 2017-- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2016.

 

“The fourth quarter marked a strong end to a great year for the Company, highlighted by our ability to reach the high-end of our guidance range,” commented Mr. Yaron Ravkaie, RADCOM’s CEO.  “In 2016, we made great progress with our top-tier customer deployments, continued our engagement with other leading global carriers, and focused on preparing the company for future growth by boosting our senior management team and ramping up our engineering capabilities.  We believe we have laid a solid foundation during 2016 to continue our momentum, as evidenced by our initial 2017 revenue guidance range of $36-$39 million.”

 

Fourth Quarter 2016 Financial Highlights

  • Revenues: Total revenues for the fourth quarter were $8.0 million, up 196% compared to $2.7 million in the fourth quarter of 2015.  

 

  • Net Loss: GAAP net loss for the period was approximately $0.7 million, or $0.06 loss per diluted share, compared to a loss of $2.1 million, or $0.25 loss per diluted share for the fourth quarter of 2015.

 

  • Non-GAAP Net Income/(Loss):  Non-GAAP net income for the period was approximately $0.4 million, or $0.04 per diluted share, compared to a loss of $(1.6) million, or $(0.19) per diluted share for the fourth quarter of 2015.

 

Both GAAP and non-GAAP results for the fourth quarter of 2016 included a $552,000, or $0.05 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $576,000, or $0.07 per diluted share, in the fourth quarter of 2015.

 

  • Balance sheet: As of December 31, 2016, the Company had cash and cash equivalents of $42.9 million and no debt.   

 

Full Year 2016 Financial Highlights

  • Revenues: Total revenues for the full year 2016 were $29.5 million, up 58% compared to $18.7 million in the full year 2015.  

 

  • Net Income/(Loss): GAAP net income for the full year 2016 was approximately $1.9 million, or $0.18 per diluted share, compared to a loss of $(923,000), or $(0.11) per diluted share for the full year 2015.

 

  • Non-GAAP Net Income:  Non-GAAP net income for the period was approximately $4.8 million or $0.44 per diluted share, for the full year 2016, compared to $656,000, or $0.07 per diluted share for the full year 2015.

 

Both GAAP and non-GAAP results for the full year 2016 included a $1.7 million, or $0.16 per diluted share, benefit related to grants from the Israel Innovation Authority compared to $1.6 million, or $0.18 per diluted share, in 2015.

 

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (15:00 Israel Time) to discuss the results and to answer participants' questions. To join the call, please call one of the following numbers approximately five minutes before the call is scheduled to begin:

From the US (toll-free): + 1-888-668-9141

From other locations: +972-3-918-0609

For those unable to listen to the call at the time, a replay will be available from February 15th on RADCOM's website.

##

About RADCOM

RADCOM (NASDAQ: RDCM) is a first-mover and leading provider of NFV-ready service assurance and customer experience management solutions for Communications Service Providers (CSPs). RADCOM’s software - MaveriQ - continuously monitors network performance and quality of services, to optimize user experience for CSPs’ subscribers. RADCOM specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS and others. MaveriQ enables CSPs to smoothly migrate their networks to NFV by assuring physical, NFV-based and hybrid networks. For more information, please visit www.radcom.com.

 

 

Non-GAAP Information

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company’s financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, inventory write-off and  non-cash write-off of importation taxes, the Company’s non-GAAP results provide information to both management and investors that is useful in assessing the Company’s core operating performance and in evaluating and comparing the Company’s results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods.  The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.


Risks Regarding Forward-Looking Statements

Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “'believe”, "may", "might", "predict", "potential", "anticipate", "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its momentum and revenue guidance for 2017 it is using foward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in the demand for the Company’s products, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.

      RADCOM LTD.        
      Consolidated Statements of Operations        
                                            (thousands of U.S. dollars, except share and per share data)    
               
Three months ended   Twelve months ended
 December 31,   December 31,
  2016   2015   2016   2015
Sales  $8,037   $2,715   $29,510   $18,673
Cost of sales 2,796   1,137   8,982   4,326
Gross profit  5,241   1,578   20,528   14,347
Research and development, gross 2,594   1,620   8,047   6,071
Less - royalty-bearing participation 552   576   1,693   1,582
Research and development, net 2,042   1,044   6,354   4,489
Sales and marketing, net 2,917   2,054   8,528   7,834
General and administrative  1,060   652   4,523   2,393
Total operating expenses 6,019   3,750   19,405   14,716
Operating income (loss) -778   -2,172   1,123   -369
Financial income (expense), net 41   48   816   -433
Income (loss) before taxes -737   -2,124   1,939   -802
Taxes on income -   -   -24   -121
Net income (loss) ($737)   ($2,124)   $1,915   ($923)
  ($0.06)   ($0.25)   $0.18   ($0.11)
Basic net income (loss) per  ordinary share 
 
Diluted net income (loss) per  ordinary share ($0.06)   ($0.25)   $0.18   ($0.11)
 
  11,548,059   8,665,019   10,406,897   8,572,681
Weighted average number of  
ordinary shares used in
computing basic net income (loss)  per ordinary share
  11,548,059   8,665,019   10,779,547   8,572,681
Weighted average number of  
ordinary shares used in
computing diluted net income  (loss) per ordinary share

 

RADCOM LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(thousands of U.S. dollars, except share and per share data)

 

  Three months ended     Twelve months ended
December 31,                December 31,               
  2016   2015   2016   2015
GAAP gross profit                                                                                                                                             5,241   1,578   20,528   14,347
Stock-based compensation 37   4   118   33
Importation tax write-off 388   -   388   -
Inventory write-off -   170   -   170
Non-GAAP gross profit 5,666   1,752   21,034   14,550
  2,042   1,044   6,354   4,489
GAAP Research and development, net
Stock-based compensation 231   96   625   529
Non-GAAP Research and development, net 1,811   948   5,729   3,960
  2,917   2,054   8,528   7,834
GAAP sales and marketing, net
Stock-based compensation 75   54   199   380
Non-GAAP sales and marketing, net 2,842   2,000   8,329   7,454
  1,060   652   4,523   2,393
GAAP general and administrative
Stock-based compensation 428   194   1,529   467
Non-GAAP general and administrative 632   458   2,994   1,926
  6,019   3,750   19,405   14,716
GAAP total operating expenses
Stock-based compensation 734   344   2,353   1,376
Non-GAAP total operating expenses 5,285   3,406   17,052   13,340
  -778   -2,172   1,123   -369
GAAP operating income (loss)
Stock-based compensation 771   348   2,471   1,409
Importation tax write-off 388   -   388    
Inventory write-off -   170   -   170
Non-GAAP operating income (loss)  381   -1,654   3,982   1,210
  -737   -2,124   1,939   -802
GAAP income (loss) before taxes on income
Stock-based compensation 771   348   2,471   1,409
Importation tax write-off 388   -   388    
Inventory write-off -   170   -   170
Non-GAAP income (loss) before taxes on income 422   -1,606   4,798   777
  -737   -2,124   1,915   -923
GAAP net income (loss)
Stock-based compensation 771   348   2,471   1,409
Importation tax write-off 388   -   388    
Inventory write-off -   170   -   170
Non-GAAP net income 422   -1,606   4,774   656
  -0.06   -0.25   0.18   -0.11
GAAP Net income per diluted share
Stock-based compensation 0.07   0.04   0.22   0.16
Importation tax write-off 0.03   -   0.04   -
Inventory write-off -   0.02   -   0.02
Non-GAAP Net income per diluted share 0.04   -0.19   0.44   0.07
Weighted average number of shares used to compute diluted net income (loss) per share              
           
11,920,521 8,665,019   10,779,547   9,117,767

 

 

RADCOM Ltd.

Consolidated Balance Sheets

 

(thousands of U.S. dollars)

 

  As of   As of
  December 31,   December 31,
2016 2015
Current Assets      
     Cash and cash equivalents 42,886   8,727
     Restricted bank deposits 32   32
     Trade receivables, net 4,388   3,684
     Inventories  623   1,532
     Other receivables 1,960   2,087
       
Total Current Assets 49,889 16,062
Severance pay fund      
2,788 3,181
Other long-term receivables      
375 508
Property and equipment, net      
1,516 384
Total Assets      
54,568 20,135
                                 
Liabilities and Shareholders' Equity      
Current Liabilities       
      Trade payables  2,820   1,465
    Deferred revenue and advances from customers 2,593   931
       Employee and payroll accruals  3,541   2,533
    Other payables and accrued expenses  2,081   1,490
       
Total Current Liabilities 11,035 6,419
Long-Term Liabilities       
    Deferred revenue 123   197
    Accrued severance pay         3,267   3,656
       
Total Long-Term Liabilities 3,390 3,853
       
Total Liabilities 14,425   10,272
       
Shareholders' Equity       
Share capital  523   372
Additional paid-in capital 98,283   70,270
Accumulated other comprehensive loss -2,559   -2,760
Accumulated deficit -56,104   -58,019
Total Shareholders' Equity      
40,143 9,863
  54,568   20,135
 
Total Liabilities and Shareholders' Equity