Q1 Revenues up 23% Year-Over-Year to $8.0 million

Cash and Cash Equivalents of $40.7 million and No Debt as of March 31, 2017

 

TEL-AVIV, Israel – May 4, 2017-- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the first quarter ended March 31, 2017.

 

“We were pleased with our strong first quarter execution highlighted by our relationship with AT&T and with other top tier carriers globally,” commented Mr. Yaron Ravkaie, RADCOM’s CEO.  “During the quarter, our hybrid approach of enabling a path to NFV and future proofing purchasing decisions continued to resonate with carriers.  Given our visibility for the remainder of the year, we are reiterating our 2017 revenue guidance of $36-$39 million.”

 

First Quarter 2017 Financial Highlights

  • Revenues: Total revenues for the first quarter were $8.0 million, up 23% compared to $6.5 million in the first quarter of 2016.  

 

  • Net Income/(Loss): GAAP net loss for the period was $(0.3) million, or a loss of $(0.03) per diluted share, compared to net income of $0.9 million, or $0.10 per diluted share for the first quarter of 2016.

 

  • Non-GAAP Net Income:  Non-GAAP net income for the period was $0.3 million, or $0.02 per diluted share, compared to net income of $1.3 million, or $0.14 per diluted share for the first quarter of 2016.

 

GAAP and non-GAAP results for both the first quarter of 2017 and 2016, included no benefits related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist).

 

  • Balance sheet: As of March 31, 2017, the Company had cash and cash equivalents of $40.7 million and no debt.   

 

 

 

 

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 May 5th on RADCOM's website.

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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, 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 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    
   March 31,    
  2017   2016
Revenues $8,040    $6,547 
Cost of revenues 2,022   1,693
Gross profit 6,018   4,854
Research and development, gross 2,488   1,836
Less - royalty-bearing participation -    -  
Research and development, net 2,488   1,836
Sales and marketing, net 2,897   1,527
General and administrative 1,060   871
Total operating expenses 6,445   4,234
Operating (loss) income -427   620
Financing income, net 109   289
(loss) Income before taxes -318   909
Taxes -18   -6
Net (loss) income ($336)   $903 
       
Basic net (loss) income per      
ordinary share
  ($0.03)
 
    $0.10 
Diluted net (loss) income per ($0.03)   $0.10 
ordinary share      
       
Weighted average number of       
    ordinary shares used in      
    computing basic net income (loss) per ordinary share 11,650,479   8,729,891
       
Weighted average number of       
    ordinary shares used in      
    computing diluted net income (loss) per ordinary share 11,650,479   9,307,539

 

 

 

RADCOM LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

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

  Three months ended       
  March 31,                     
  2017   2016
GAAP gross profit                                                                                                                                            $6,018    $4,854 
Stock-based compensation 47   14
Non-GAAP gross profit 6,065   4,868
    2,488   1,836
GAAP Research and development, net        
Stock-based compensation 109   171
Non-GAAP Research and development, net 2,379   1,665
    2,897   1,527
GAAP sales and marketing, net        
Stock-based compensation 128   20
Non-GAAP selling and marketing, net 2,769   1,507
    1,060   871
GAAP general and administrative        
Stock-based compensation 336   232
Non-GAAP general and administrative 724   639
    6,445   4,234
GAAP total operating expenses        
Stock-based compensation 573   423
Non-GAAP total operating expenses 5,872   3,811
    -427   620
GAAP operating (loss) income        
Stock-based compensation 620   437
Non-GAAP operating income 193   1,057
    -318   909
GAAP (loss) income before taxes on income        
Stock-based compensation 620   437
Non-GAAP income before taxes on income 302   1,346
    -336   903
GAAP net (loss) income        
Stock-based compensation 620   437
Non-GAAP net income 284   1,340
    -0.03   0.1
GAAP Net (loss) income per diluted share        
Stock-based compensation 0.05   0.04
Non-GAAP Net income per diluted share $0.02    $0.14 
Weighted average number of shares used to compute diluted net earnings per share      
     
11,952,399   9,307,539

 

 

RADCOM Ltd.      
Consolidated Balance Sheets      
(thousands of U.S. dollars)      
  As of   As of
  March 31,   December 31,
  2017   2016
Current Assets      
     Cash and cash equivalents $40,749    $42,886 
     Restricted bank deposits 34   32
     Trade receivables, net 3,958   4,388
     Inventories 513   623
     Other receivables 1,598   1,960
       
Total Current Assets 46,852   49,889
Severance pay fund 2,973   2,788
       
Other long-term receivables 306  

 375

       
Property and equipment, net 1,642   1,516
       
Total Assets $51,773    $54,568
       
                               
Liabilities and Shareholders' Equity      
Current Liabilities      
      Trade payables $1,291    $2,820 
    Deferred revenue and advances from customers 1,017   2,593
       Employee and payroll accruals 3,258   3,541
    Other payables and accrued expenses 1,710   2,081
       
Total Current Liabilities 7,276   11,035
Long-Term Liabilities      
    Deferred revenue 143   123
    Accrued severance pay        3,526   3,267
       
Total Long-Term Liabilities
  3,669
  3,390
       
Total Liabilities 10,945   14,425
       
Shareholders' Equity      
     Share capital 525   523
     Additional paid-in capital 99,242   98,283
       Accumulated other comprehensive loss -2,499   -2,559
     Accumulated deficit -56,440   -56,104
Total Shareholders' Equity 40,828  
  40,143
       
       
Total Liabilities and Shareholders' Equity $51,773    $54,568