·         Q4 Revenues up 32% Year-Over-Year to $10.6 million

·         2017 full year Revenues up 26% Year-Over-Year to a record of $37.2 million

·         Cash, cash equivalents and short-term bank deposits of $62.6 million and No Debt 

 

TEL AVIV, Israel – February 13, 2018 − RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the fourth quarter and fiscal year ended December 31, 2017.

 

“We were very pleased with our fourth quarter results, which marked a strong end to the year. In 2017, we successfully executed our growth strategy and extended our leadership position in NFV with the signing of another top-tier carrier,” commented Mr. Yaron Ravkaie, RADCOM’s CEO. “We entered 2018 with a strong pipeline of opportunities with other leading global carriers as our hybrid approach of enabling a path to NFV, and future proofing purchasing decisions, continues to resonate with customers. Our 2018 revenue guidance of $43-$47 million reflects the ongoing momentum we see in our business.”

 

Fourth Quarter 2017 Financial Highlights:

  • Revenues: Total revenues for the fourth quarter were $10.6 million, up 32% compared to $8.0 million in the fourth quarter of 2016. 
  • Net Income: GAAP net income for the period was $2.3 million, or $0.17 per diluted share, compared to a GAAP net loss of $0.7 million, or $0.06 loss per diluted share for the fourth quarter of 2016.
  • Non-GAAP Net Income: Non-GAAP net income for the period was $2.7 million, or $0.21 per diluted share, compared to non-GAAP net income of $0.4 million, or $0.04 per diluted share for the fourth quarter of 2016.

Both GAAP and non-GAAP results for the fourth quarter of 2017 included a $1.1 million, or $0.08 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist), compared to $552,000, or $0.05 per diluted share, in the fourth quarter of 2016.

  • Balance sheet: As of December 31, 2017, the Company had cash, cash equivalents and short-term bank deposits of $ 62.6 million and no debt. 

 

Full Year 2017 Financial Highlights:

  • Revenues: Total revenues for the full year 2017 were $37.2 million, up 26% compared to $29.5 million in the full year 2016. 
  • Net Income: GAAP net income for the full year 2017 was $2.9 million, or $0.23 per diluted share, compared to $1.9 million, or $0.18 per diluted share for the full year 2016.
  • Non-GAAP Net Income:  Non-GAAP net income for the period was $5.1 million, or $0.41 per diluted share, compared to non-GAAP net income of $4.8 million, or $0.44 per diluted share for the full year 2016.

Both GAAP and non-GAAP results for the full year 2017 included a $1.6 million, or $0.13 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist), compared to $1.7 million, or $0.16 per diluted share, in 2016.

 

 

 

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 14, 2018, on RADCOM's website.

 

##

 

For all investor enquiries, please contact:

Ran Vered

CFO

+972-77-774-5011

ranv@radcom.com   

 

For all media enquiries, please contact:

Mark Rolston

Marketing Manager

+972-77-774-5036

markr@radcom.com   

 

About RADCOM

RADCOM (NASDAQ: RDCM) is the leading expert in probe-based SDN/NFV service assurance for telecom operators. Providing a critical first step in an operator's NFV transformation, RADCOM's cloud-native software - MaveriQ - delivers end-to-end network visibility and customer insights across virtual and hybrid networks to ensure end-to-end service quality and customer satisfaction. With an automated, cost-efficient, on-demand solution RADCOM specializes in assuring next-generation, high capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV and others. For more information on how to RADCOMize your network, today, please visit www.radcom.com, the content of which does not form a part of this press release.

 

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 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 revenue guidance for 2018, pipeline and expected new projects with new and future customers for the Company as well as maintaining its leadership position in the market it is using forward-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

December 31,

 

 

Twelve months ended

December 31,

 

 

2017

 

2016

 

2017

 

2016

Revenues

$10,631

 

$8,037

 

$37,233

 

$29,510

Cost of revenues

2,660

 

2,796

 

10,488

 

8,982

Gross profit

7,971

 

5,241

 

26,745

 

20,528

Research and development, gross

3,055

 

2,594

 

10,562

 

8,047

Less - royalty-bearing participation

1,132

 

552

 

1,599

 

1,693

Research and development, net

1,923

 

2,042

 

8,963

 

6,354

Sales and marketing, net

2,777

 

2,917

 

10,996

 

8,528

General and administrative

1,042

 

1,060

 

4,191

 

4,523

Total operating expenses

5,742

 

6,019

 

24,150

 

19,405

Operating income (loss)

2,229

 

(778)

 

2,595

 

1,123

Financial income, net

64

 

41

 

389

 

816

Income (loss) before taxes

2,293

 

(737)

 

2,984

 

1,939

Taxes on income

(35)

 

-

 

(83)

 

(24)

Net income (loss)

$2,258

 

$(737)

 

$2,901

 

$1,915

Basic net income (loss) per

ordinary share

 

$0.17

 

 

$(0.06)

 

 

$0.24

 

 

$0.18

Diluted net income (loss) per

ordinary share

 

$0.17

 

 

$(0.06)

 

 

$0.23

 

 

$0.18

Weighted average number of 

ordinary shares used in

computing basic net income (loss)     
per ordinary share

 

 

 

13,050,849

 

 

 

 

11,548,059

 

 

 

 

12,039,176

 

 

 

 

10,406,897

Weighted average number of 

ordinary shares used in

computing diluted net income (loss)

per ordinary share

 

 

 

13,339,174

 

 

 

 

11,548,059

 

 

 

 

12,351,566

 

 

 

 

10,779,547

 

 

RADCOM LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

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

 

 

Three months ended  
December 31,  

 

 

Twelve months ended
December 31,

 

 

2017

 

2016

 

2017

 

2016

GAAP gross profit

$7,971

 

$5,241

 

$26,745

 

$20,528

Stock-based compensation

55

 

37

 

189

 

118

Importation tax write-off

-

 

388

 

-

 

388

Non-GAAP gross profit

$8,026

 

$5,666

 

$26,934

 

$21,034

GAAP research and development, net

$1,923

 

$2,042

 

$8,963

 

$6,354

Stock-based compensation

134

 

231

 

473

 

625

Non-GAAP research and development, net

$1,789

 

$1,811

 

$8,490

 

$5,729

GAAP sales and marketing, net

$2,777

 

$2,917

 

$10,996

 

$8,528

Stock-based compensation

105

 

75

 

499

 

199

Non-GAAP sales and marketing, net

$2,672

 

$2,842

 

$10,497

 

$8,329

GAAP general and administrative

$1,042

 

$1,060

 

$4,191

 

$4,523

Stock-based compensation

196

 

428

 

1,055

 

1,529

Non-GAAP general and administrative

$846

 

$632

 

$3,136

 

$2,994

GAAP total operating expenses

$5,742

 

$6,019

 

$24,150

 

$19,405

Stock-based compensation

435

 

734

 

2,027

 

2,353

Non-GAAP total operating expenses

$5,307

 

$5,285

 

$22,123

 

$17,052

GAAP operating income (loss)

$2,229

 

$(778)

 

$2,595

 

$1,123

Stock-based compensation

490

 

771

 

2,216

 

2,471

Importation tax write-off

-

 

388

 

-

 

388

Non-GAAP operating income  

$2,719

 

$381

 

$4,811

 

$3,982

GAAP income (loss) before taxes on income

$2,293

 

$(737)

 

$2,984

 

$1,939

Stock-based compensation

490

 

771

 

2,216

 

2,471

Importation tax write-off

-

 

388

 

-

 

388

Non-GAAP income before taxes on income

$2,783

 

$422

 

$5,200

 

$4,798

GAAP net income (loss)

$2,258

 

$(737)

 

$2,901

 

$1,915

Stock-based compensation

490

 

771

 

2,216

 

2,471

Importation tax write-off

-

 

388

 

-

 

388

Non-GAAP net income

$2,748

 

$422

 

$5,117

 

$4,774

GAAP net income (loss) per diluted share

$0.17

 

$(0.06)

 

$0.23

 

$0.18

Stock-based compensation

0.04

 

0.07

 

0.18

 

0.22

Importation tax write-off

-

 

0.03

 

-

 

0.04

Non-GAAP net income per diluted share

$0.21

 

$0.04

 

$0.41

 

$0.44

Weighted average number of shares used to compute diluted net income per share

13,339,174

 

11,920,521

 

12,351,566

 

10,779,547

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)

       
 

As of

 

As of

 

December 31,

2017

 

December 31,

2016

Current Assets

     

     Cash and cash equivalents

$22,575

 

$42,886

     Restricted bank deposits

36

 

32

        Short-term bank deposits

40,000

 

-

     Trade receivables, net

20,266

 

4,388

     Inventories

1,199

 

623

     Other receivables

2,685

 

1,960

Total Current Assets

86,761

 

49,889

Severance pay fund

3,052

 

2,788

Other long-term receivables

172

 

375

Property and equipment, net

1,924

 

1,516

Total Assets

$91,909

 

$54,568

Liabilities and Shareholders' Equity

     

Current Liabilities

     

       Trade payables

$1,828

 

$2,820

    Deferred revenue

2,601

 

2,593

       Employee and payroll accruals

4,062

 

3,541

    Other payables and accrued expenses

3,428

 

2,081

Total Current Liabilities

11,919

 

11,035

Long-Term Liabilities

     

    Deferred revenue

21

 

123

    Accrued severance pay       

3,573

 

3,267

Total Long-Term Liabilities

3,594

 

3,390

Total Liabilities

$15,513

 

$14,425

Shareholders' Equity

     

     Share capital

$628

 

$523

     Additional paid-in capital

131,491

 

98,283

        Accumulated other comprehensive loss

(2,520)

 

(2,559)

     Accumulated deficit

(53,203)

 

(56,104)

Total Shareholders' Equity

76,396

 

40,143

Total Liabilities and Shareholders' Equity

$91,909

 

$54,568