• Second quarter revenues of $8.5 million
  • Selected by Rakuten Mobile to assure the world's first fully virtualized cloud-native mobile network 
  • Cash, cash equivalents and short-term bank deposits of $58.6 million and no debt
  • Increasing 2019 revenue guidance range to $30-$33 million 

 

TEL AVIV, Israel, Aug. 12, 2019 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the second quarter ended June 30, 2019.

"We are pleased with our new strategic customer, Rakuten Mobile, and the multi-year agreement signed with this innovative operator in Japan. This agreement already impacted our revenues in the second quarter, and we are delighted with the progress already made on this pioneering project," commented Mr. Yaron Ravkaie, RADCOM's CEO. "Rakuten chose RADCOM because of our deep NFV expertise, our on-going work, and partnership with AT&T and our advanced, cutting-edge virtual technology. This strong vote of confidence in our technology further cements our position as the leading, most advanced NFV assurance vendor for operators transitioning to NFV and planning their 5G rollouts."

 

Second Quarter 2019 Financial Highlights:

  • Revenues: Total revenues for the second quarter were $8.5 million, down 20% compared to $10.6 million in the second quarter of 2018
  • Net Income (loss): GAAP net loss for the period was $(0.9) million, or $(0.07) per diluted share, compared to GAAP net income of $0.8 million, or $0.05 per diluted share for the second quarter of 2018
  • Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $(0.4) million, or $(0.03) per diluted share, compared to non-GAAP net income of $1.4 million, or $0.10 per diluted share for the second quarter of 2018
  • Balance sheet: As of June 30, 2019, the Company had cash and cash equivalents and short-term bank deposits of $58.6 million and no debt

 

Earnings Conference Call:

RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Daylight Time (3:00 PM Israel Daylight 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 August 13th 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 continued investment in technology, the expected role of NFV and the Company's solutions in 5G networks, transition to NFV and adoption of 5G, the success of the engagement with Rakuten Mobile, the Company's market position, and its revenue guidance, 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
Unaudited

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

 

 
 

Three months ended
June 30,

   

Six months ended
June 30,

   

2019

   

2018

   

2019

   

2018

                       

Revenues

 

$8,546

 

 

$10,639

 

 

$14,592

 

 

$21,542

Cost of revenues

 

2,154

   

2,877

   

3,991

   

5,767

Gross profit

 

6,392

   

7,762

   

10,601

   

15,775

Research and development, gross

 

4,577

   

3,752

   

9,222

   

7,496

Less - royalty-bearing participation

 

412

   

754

   

816

   

754

Research and development, net

 

4,165

   

2,998

   

8,406

   

6,742

Sales and marketing

 

2,617

   

3,084

   

5,063

   

6,324

General and administrative

 

850

   

992

   

1,647

   

1,990

Total operating expenses

 

7,632

   

7,074

   

15,116

   

15,056

Operating income (loss)

 

(1,240)

   

688

   

(4,515)

   

719

Financial income, net

 

341

   

71

   

481

   

373

Income (loss) before taxes on income

 

(899)

   

759

   

(4,034)

   

1,092

Taxes on income

 

(37)

   

(2)

   

(46)

   

(13)

                       

Net income (loss)

 

$(936)

 

 

$757

 

 

$(4,080)

 

 

$1,079

                       

Basic net income (loss) per

ordinary share

 

$(0.07)

 

 

$0.06

 

 

$(0.30)

 

 

$0.08

Diluted net income (loss) per

ordinary share

 

$(0.07)

 

 

$0.05

 

 

$(0.30)

 

 

$0.08

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

 

13,762,795

   

13,600,323

   

13,756,198

   

13,549,494

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

 

13,762,795

   

13,849,488

   

13,756,198

   

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, 

   

2019

 

2018

 

2019

 

2018

GAAP gross profit

 

$6,392

 

 

$7,762

 

 

$10,601

 

 

$15,775

Stock-based compensation

 

66

   

37

   

95

   

77

Non-GAAP gross profit

 

$6,458

 

 

$7,799

 

 

$10,696

 

 

$15,852

GAAP research and development, net

 

$4,165

 

 

$2,998

 

 

$8,406

 

 

$6,742

Stock-based compensation

 

179

   

203

   

357

   

411

Non-GAAP research and development, net

 

$3,986

 

 

$2,795

 

 

$8,049

 

 

$6,331

GAAP sales and marketing

 

$2,617

 

 

$3,084

 

 

$5,063

 

 

$6,324

Stock-based compensation

 

184

   

233

   

330

   

462

Non-GAAP sales and marketing

 

$2,433

 

 

$2,851

 

 

$4,733

 

 

$5,862

GAAP general and administrative

 

$850

 

 

$992

 

 

$1,647

 

 

$1,990

Stock-based compensation

 

96

   

193

   

183

   

392

Non-GAAP general and administrative

 

$754

 

 

$799

 

 

$1,464

 

 

$1,598

GAAP total operating expenses

 

$7,632

 

 

$7,074

 

 

$15,116

 

 

$15,056

Stock-based compensation

 

459

   

629

   

870

   

1,265

Non-GAAP total operating expenses

 

$7,173

 

 

$6,445

 

 

$14,246

 

 

$13,791

GAAP operating income (loss)

 

$(1,240)

 

 

$688

 

 

$(4,515)

 

 

$719

Stock-based compensation

 

525

   

666

   

965

   

1,342

Non-GAAP operating income (loss)

 

$(715)

 

 

$1,354

 

 

$(3,550)

 

 

$2,061

GAAP income (loss) before taxes on income

 

$(899)

 

 

$759

 

 

$(4,034)

 

 

$1,092

Stock-based compensation

 

525

   

666

   

965

   

1,342

Non-GAAP income (loss) before taxes on income

 

$(374)

 

 

$1,425

 

 

$(3,069)

 

 

$2,434

GAAP net income (loss)

 

$(936)

 

 

$757

 

 

$(4,080)

 

 

$1,079

Stock-based compensation

 

525

   

666

   

965

   

1,342

Non-GAAP net income (loss)

 

$(411)

 

 

$1,423

 

 

$(3,115)

 

 

$2,421

GAAP net income (loss) per diluted share

 

$(0.07)

 

 

$0.05

 

 

$(0.30)

 

 

$0.08

Stock-based compensation

 

0.04

   

0.05

   

0.07

   

0.10

Non-GAAP net income (loss) per diluted share

 

$(0.03)

 

 

$0.10

 

 

$(0.23)

 

 

$0.18

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

 

13,762,795

   

13,849,488

   

13,756,198

   

13,817,995

 

 

 

RADCOM Ltd.
Consolidated Balance Sheets

(thousands of U.S. dollars) 

 

   

As of
June 30,
2019

 

As of
December 31,
2018

   

(unaudited)

   

Current Assets

 

Cash and cash equivalents

 

 

$11,260

 

 

$61,988

Short-term bank deposits

   

47,367

   

-

Trade receivables, net

   

21,957

   

20,381

Inventories

   

702

   

251

Other receivables

   

1,564

   

1,766

Total Current Assets

   

82,850

   

84,386

Severance pay fund

   

3,199

   

2,967

Other long-term receivables

   

2,391

   

346

Property and equipment, net

   

1,738

   

1,832

Operating lease right-of-use assets

   

6,147

   

-

 

Total Assets

 

 

$96,325

 

 

$89,531

 

Liabilities and Shareholders' Equity

 
 

Current Liabilities 

 

Trade payables 

 

 

$1,765

 

 

$1,559

Deferred revenues

   

888

   

266

Employee and payroll accruals

   

3,559

   

3,420

Operating lease liabilities

   

1,176

   

-

Other payables and accrued expenses 

   

3,228

   

2,281

             

Total Current Liabilities

   

10,616

   

7,526

 

Long-Term Liabilities

           

Deferred revenues

   

206

   

100

Accrued severance pay

   

3,762

   

3,425

Operating lease liabilities

   

5,236

   

-

Other long-term liabilities

   

1,150

   

-

 

Total Long-Term Liabilities

   

10,354

   

3,525

             

Total Liabilities

 

 

$20,970

 

 

$11,051

 

Shareholders' Equity

           

Share capital

 

 

$645

 

 

$643

Additional paid-in capital

   

136,702

   

135,730

Accumulated other comprehensive loss

   

(2,631)

   

(2,612)

Accumulated deficit

   

(59,361)

   

(55,281)

 

Total Shareholders' Equity

   

75,355

   

78,480

 

Total Liabilities and Shareholders' Equity

 

 

$96,325

 

 

$89,531

 

 

 

 

For all investor enquiries, please contact: 

Investor Relations: 
Miri Segal 
MS-IR LLC 
917-607-8654 
msegal@ms-ir.com  


Company Contact: 
Amir Hai 
CFO 
+972-77-774-5011 
amir.hai@radcom.com