Q2 Revenues up 19% Year-Over-Year to $10.6 million

Cash, cash equivalents and short-term bank deposit of $71.4 million and No Debt 

 

TEL AVIV, Israel, Aug. 7, 2018 - RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the second quarter ended June 30, 2018.

 

"Our solid second quarter results highlight the strength of our continued focus on top-tier network transformations and the ongoing demand for our NFV solutions as operators prepare their 5G-ready clouds," commented Mr. Yaron Ravkaie, RADCOM's CEO. "The Company is focused on supporting top-tier carriers as they accelerate their network virtualization transformations to prepare for 5G rollouts. Based on our current outlook, we are reiterating our 2018 revenue guidance of $43-$47 million."

 

 

Second Quarter 2018 Financial Highlights:

  • Revenues: Total revenues for the second quarter were $10.6 million, up 19% compared to $8.9 million in the second quarter of 2017
  • Net Income/(Loss): GAAP net income for the period was $0.8 million, or $0.05 per diluted share, compared to GAAP net loss of $(0.2) million, or a loss of $(0.02) per diluted share for the second quarter of 2017
  • Non-GAAP Net Income: Non-GAAP net income for the period was $1.4 million, or $0.10 per diluted share, compared to non-GAAP net income of $0.4 million, or $0.03 per diluted share for the second quarter of 2017
  • GAAP and non-GAAP results for the second quarter of 2018 included $754,000, or $0.05 per diluted share, related to grants from the Israel Innovation Authority, compared to $312,000, or $0.03 per diluted share, in the second quarter of 2017
  • Balance sheet: As of June 30, 2018, the Company had cash, cash equivalents and short-term bank deposit of $71.4 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): + 1-866-229-7198

From other locations: +972-3-918-0687

For those unable to listen to the call at the time, a replay will be available from August 8, 2018, on RADCOM's website.

 

 

About RADCOM

RADCOM (NASDAQ: RDCM) is the leading expert in cloud-native Network Intelligence for telecom operators transitioning to SDN/NFV. Providing a critical first step in an operator's NFV transformation, RADCOM's Network Intelligence delivers end-to-end network visibility from virtual tapping point to network insights. Comprised of RADCOM Service Assurance, RADCOM Network Visibility and RADCOM Network Insights, RADCOM's Network Intelligence portfolio provides operators with complete visibility across their virtual and hybrid networks. RADCOM Network Intelligence is automated, cost-efficient, and provides on-demand functionality that is specifically designed for the needs of telecom operators. 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, 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, and expected demand for the Company's NFV solutions, the trend of preparing for 5G-ready cloud and the future success of the Company's approach and its differentiation from competitors and the Company's pipeline, 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 Statement of Operations

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

 

 

 

Three months ended June 30,

 

 

 

       Six months ended June 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Revenues

$10,639

 

$8,917

 

$21,542

 

$16,957

Cost of revenues

2,877

 

2,643

 

5,767

 

4,665

Gross profit

7,762

 

6,274

 

15,775

 

12,292

Research and development, gross

3,752

 

2,739

 

7,496

 

5,227

Less - royalty-bearing participation

754

 

312

 

754

 

312

Research and development, net

2,998

 

2,427

 

6,742

 

4,915

Sales and marketing, net

3,084

 

2,989

 

6,324

 

5,886

General and administrative

992

 

1,098

 

1,990

 

2,158

Total operating expenses

7,074

 

6,514

 

15,056

 

12,959

Operating income (loss)

688

 

(240)

 

719

 

(667)

Financial income, net

71

 

41

 

373

 

150

Income (loss) before taxes on income

759

 

(199)

 

1,092

 

(517)

Taxes on income

(2)

 

(5)

 

(13)

 

(23)

               

Net income (loss)

$757

 

$(204)

 

$1,079

 

$(540)

               

Basic net income (loss) per ordinary share

$0.06

 

$(0.02)

 

$0.08

 

$(0.05)

Diluted net income (loss) per ordinary share

$0.05

 

$(0.02)

 

$0.08

 

$(0.05)

 

Weighted average number of 

ordinary shares used in computing basic
net income (loss) per ordinary share

13,600,323

 

11,695,750

 

13,549,494

 

11,673,240

 

Weighted average number of ordinary
shares used in computing diluted net
income (loss) per ordinary share

13,849,488

 

11,695,750

 

13,817,995

 

 

 

RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited

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

 

 

 
 

Three months ended June 30,

 

   Six months ended June 30,

       
 

2018

 

2017

 

2018

 

2017

GAAP gross profit                                                                                                                             

7,762

 

6,274

 

15,775

 

12,292

Stock-based compensation

37

 

20

 

77

 

67

Non-GAAP gross profit

7,799

 

6,294

 

15,852

 

12,359

 

GAAP research and development, net

2,998

 

2,427

 

6,742

 

4,915

Stock-based compensation 

203

 

133

 

411

 

242

Non-GAAP research and development, net

2,795

 

2,294

 

6,331

 

4,673

 

GAAP sales and marketing, net

3,084

 

2,989

 

6,324

 

5,886

Stock-based compensation

233

 

144

 

462

 

272

Non-GAAP sales and marketing, net

2,851

 

2,845

 

5,862

 

5,614

 

GAAP general and administrative

992

 

1,098

 

1,990

 

2,158

Stock-based compensation

193

 

323

 

392

 

659

Non-GAAP general and administrative

799

 

775

 

1,598

 

1,499

 

GAAP total operating expenses

7,074

 

6,514

 

15,056

 

12,959

Stock-based compensation

629

 

600

 

1,265

 

1,173

Non-GAAP total operating expenses

6,445

 

5,914

 

13,791

 

11,786

 

GAAP operating income (loss)

688

 

(240)

 

719

 

(667)

Stock-based compensation

666

 

620

 

1,342

 

1,240

Non-GAAP operating income

1,354

 

380

 

2,061

 

573

 

GAAP income (loss) before taxes on income

759

 

(199)

 

1,092

 

(517)

Stock-based compensation

666

 

620

 

1,342

 

1,240

Non-GAAP income before taxes on income

1,425

 

421

 

2,434

 

723

 

GAAP net income (loss)

757

 

(204)

 

1,079

 

(540)

Stock-based compensation

666

 

620

 

1,342

 

1,240

Non-GAAP net income

1,423

 

416

 

2,421

 

700

 

GAAP net income (loss) per diluted share

0.05

 

(0.02)

 

0.08

 

(0.05)

Stock-based compensation

0.05

 

0.05

 

0.10

 

0.11

Non-GAAP net income per diluted share 

0.10

 

0.03

 

0.18

 

0.06

 

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

13,849,488

 

12,032,429

 

13,817,995

 

11,992,539

 

 

RADCOM Ltd.
Consolidated Balance Sheets

(thousands of U.S. dollars) 

 

 

 

As of June 30, 2018

(unaudited)

 

     As of December 31, 3017

Current Assets

     

Cash and cash equivalents

$31,438

 

$22,575

Restricted bank deposit 

-

 

36

Short-term bank deposit

40,000

 

40,000

Trade receivables, net

14,393

 

20,266

Inventories 

119

 

1,199

Other receivables

2,635

 

2,685

Total Current Assets

88,585

 

86,761

Severance pay fund

     

3,009

3,052

Other long-term receivables

     

312

172

Property and equipment, net

     

1,917

1,924

       

Total Assets

$93,823

 

$91,909

       

Liabilities and Shareholders' Equity

     

Current Liabilities 

     

Trade payables 

$1,879

 

$1,828

Deferred revenues 

1,021

 

2,601

Employee and payroll accruals 

4,052

 

4,062

Other payables and accrued expenses 

2,275

 

3,428

 

9,227

 

11,919

Total Current Liabilities

Long-Term Liabilities 

     

Deferred revenues

100

 

21

Accrued severance pay        

3,513

 

3,573

 

3,613

 

3,594

Total Long-Term Liabilities

       

Total Liabilities

$12,840

 

$15,513

       

Shareholders' Equity 

     

Share capital 

$640

 

$628

Additional paid-in capital 

134,734

 

131,491

Accumulated other comprehensive loss

(2,604)

 

(2,520)

Accumulated deficit 

(51,787)

 

(53,203)

       

Total Shareholders' Equity

80,983

 

76,396

 

$93,823

 

$91,909

Total Liabilities and Shareholders' Equity

 

 

 

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