TEL-AVIV, Israel, Aug. 3, 2016 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM) today reported its financial results for
the second quarter and first half ended June
30, 2016.
In $
thousands
|
Q2
2016
|
Q2
2015
|
H1
2016
|
H1
2015
|
Revenues
|
$7,200
|
$4,837
|
$13,747
|
$11,191
|
Gross
margin
|
70%
|
75%
|
72%
|
79%
|
Net
profit
|
$1,747
|
$203
|
$2,650
|
$640
|
Net profit
(non-GAAP)
|
$1,997
|
$605
|
$3,337
|
$1,426
|
Cash &
equivalents
|
$46,468
|
$9,916
|
$46,468
|
$9,916
|
Financial Results
Second Quarter:
Revenues for the second quarter were $7.2
million, up 49% compared to $4.8
million in the second quarter of 2015, and up 10% compared
to $6.5 million in the first quarter
of 2016.
Net income for the period, determined in accordance with U.S.
GAAP, totaled $1.7 million, or
$0.17 per diluted share, compared to
$203,000, or $0.02 per diluted share for the second quarter of
2015, and $0.10 per diluted share in
the first quarter of 2016. On a non-GAAP basis, net income
totaled $2.0 million, or $0.20 per diluted share, compared to $605,000, or $0.07
per diluted share for the second quarter of 2015, and $0.14 per diluted share in the first quarter of
2016. Both GAAP and non-GAAP results for the second quarter
of 2016 included a $0.8 million or
$0.07 per diluted share, benefit
related to grants from the Office of the Chief Scientist compared
to $0.2 million or $0.02 per diluted share in the second quarter of
2015.
As of June 30, 2016, the Company's
balance of cash and cash equivalents totaled a record $46.5 million compared to $8.7 million at the end of 2015 and $25.5 million at the end of the first
quarter.
First Half of 2016: Revenues for the first six
months of 2016 increased by 23% to $13.7
million compared to $11.2
million in the first half of 2015.
GAAP net income for the period totaled $2.6 million, or $0.27 per diluted share, compared to $640,000, or $0.07
per diluted share in the first half of 2015. On a non-GAAP basis,
net income for the period totaled $3.3
million, or $0.34 per diluted
share compared to $1.4 million, or
$0.16 per diluted share recorded in
the first half of 2015.
Comments of Management
"AT&T's recent public
announcement that it is using RADCOM's innovative technology to
support its shift to network virtualization highlights the strong
technological leadership of our game-changing MaveriQ product
suite. We are on track in implementing the current contract and
have recently signed a product expansion, as well as a multi-year
maintenance agreement that further strengthens our long-term
relationship," commented Mr. Yaron
Ravkaie, RADCOM's CEO. "As a vital component of AT&T's
NFV transformation, we are positioned to continue innovating and
extending our technologies, in line with our strategic plan, and
have already added cutting-edge new capabilities to our MaveriQ
solution. We believe this new functionality will be critical for
the success of any large-scale network virtualization, further
positioning RADCOM as the go-to NFV service assurance vendor. With
this recent public announcement and AT&T's endorsement, we are
accelerating our engagements with additional top-tier
carriers."
Mr. Yaron Ravkaie concluded, "We
are reiterating our 2016 revenue guidance range of $28-$29.5 million, up 50%-58% compared with 2015.
The combination of our best-of-breed MaveriQ suite, growing
pipeline of opportunities and significantly strengthened balance
sheet positions the Company to scale and grow to a whole new
level."
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 9:00
AM Eastern Time (16:00 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 August
4th 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 MaveriQ software continuously monitors
network performance and quality-of-service, enabling CSPs to
optimize the subscriber user experience. 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
http://www.radcom.com. 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
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 our financial performance. By excluding non-cash
stock-based compensation that has been expensed in accordance with
ASC Topic 718, our non-GAAP results provide information to both
management and investors that is useful in assessing our core
operating performance and in evaluating and comparing our 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
2016 revenue guidance range, expected opportunities, pipeline and
growth and deployment, extension of relationships with AT&T and
becoming the go-to solution for NFV operators 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
United States 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
|
(1000's of U.S. dollars, except share and per share
data)
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Sales
|
$ 7,200
|
|
$ 4,837
|
|
$ 13,747
|
|
$ 11,191
|
Cost of
sales
|
2,136
|
|
1,216
|
|
3,829
|
|
2,354
|
Gross
profit
|
5,064
|
|
3,621
|
|
9,918
|
|
8,837
|
Research and development,
gross
|
1,632
|
|
1,433
|
|
3,468
|
|
3,071
|
Less - royalty-bearing
participation
|
756
|
|
148
|
|
756
|
|
148
|
Research and development,
net
|
876
|
|
1,285
|
|
2,712
|
|
2,923
|
Sales and marketing,
net
|
1,732
|
|
1,546
|
|
3,259
|
|
3,587
|
General and
administrative
|
1,156
|
|
565
|
|
2,027
|
|
1,206
|
Total operating
expenses
|
3,764
|
|
3,396
|
|
7,998
|
|
7,716
|
Operating
income
|
1,300
|
|
225
|
|
1,920
|
|
1,121
|
Financing income (expense),
net
|
447
|
|
78
|
|
736
|
|
(374)
|
Income before
taxes
|
1,747
|
|
303
|
|
2,656
|
|
747
|
Taxes
|
-
|
|
100
|
|
6
|
|
107
|
|
|
|
|
|
|
|
|
Net
profit
|
$ 1,747
|
|
$ 203
|
|
$ 2,650
|
|
$ 640
|
|
|
|
|
|
|
|
|
Basic net income
per
ordinary
share
|
$ 0.18
|
|
$ 0.02
|
|
$0.28
|
|
$ 0.08
|
Diluted net income
per
ordinary
share
|
$ 0.17
|
|
$ 0.02
|
|
$0.27
|
|
$ 0.07
|
Weighted average number
of
ordinary shares used
in
computing basic net
income
per ordinary
share
|
9,875,268
|
|
8,537,377
|
|
9,322,930
|
|
8,501,254
|
Weighted average number
of
ordinary shares used
in
computing diluted net
income
per ordinary
share
|
10,117,835
|
|
9,093,008
|
|
9,733,037
|
|
9,066,624
|
RADCOM
Ltd.
Consolidated Balance
Sheets
(1000's of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
June
30,
2016
|
|
December
31,
2015
|
|
(unaudited)
|
|
(audited)
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
46,468
|
|
$
8,727
|
Restricted cash
deposits
|
32
|
|
32
|
Trade
receivables
|
1,020
|
|
3,684
|
Inventories
|
1,850
|
|
1,532
|
Other
receivables
|
2,967
|
|
2,087
|
Total Current
Assets
|
52,337
|
|
16,062
|
Severance pay
fund
|
3,240
|
|
3,181
|
Other long-term
receivables
|
627
|
|
508
|
Property and equipment,
net
|
685
|
|
384
|
Total
Assets
|
$
56,889
|
|
$
20,135
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,825
|
|
$
1,465
|
Deferred revenue and advances
from customers
|
8,110
|
|
931
|
Employee and payroll
accruals
|
3,628
|
|
2533
|
Other payables and accrued
expenses
|
1,944
|
|
1,490
|
Total Current
Liabilities
|
15,507
|
|
6,419
|
Long-Term
Liabilities
|
|
|
|
Deferred
revenue
|
129
|
|
197
|
Accrued severance
pay
|
3,876
|
|
3,656
|
Total Long-Term
Liabilities
|
4,005
|
|
3,853
|
|
|
|
|
Total
Liabilities
|
19,512
|
|
10,272
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
$510
|
|
$372
|
Additional paid-in
capital
|
94,791
|
|
70,270
|
Accumulated
other comprehensive
loss
|
(2,555)
|
|
(2,760)
|
Accumulated
deficit
|
(55,369)
|
|
(58,019)
|
Total Shareholders'
Equity
|
37,377
|
|
9,863
|
Total Liabilities and Shareholders'
Equity
|
$
56,889
|
|
$
20,135
|
RADCOM
Ltd.
|
RECONCILIATION OF GAAP
TO NON-GAAP FINANCIAL
INFORMATION
|
(1000's of U.S. dollars,
except share and per share
data)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
1,747
|
|
$
203
|
|
$
2,650
|
|
$
640
|
Stock-based compensation
(1)
|
250
|
|
402
|
|
687
|
|
786
|
Non-GAAP net
income
|
$
1,997
|
|
$
605
|
|
$
3,337
|
|
$
1,426
|
Non-GAAP net income per
share (basic)
|
$
0.20
|
|
$
0.07
|
|
$
0.36
|
|
$
0.17
|
Non-GAAP net income per
share (diluted)
|
$
0.20
|
|
$
0.07
|
|
$
0.34
|
|
$
0.16
|
|
|
|
|
|
|
|
|
Number of shares used in
computing Non-GAAP earnings per share
(basic)
|
9,875,268
|
|
8,537,377
|
|
9,322,930
|
|
8,501,254
|
Number of shares used in
computing Non-GAAP earnings per share
(diluted)
|
10,117,835
|
|
9,093,008
|
|
9,733,037
|
|
9,066,624
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
sales
|
27
|
|
13
|
|
42
|
|
22
|
Research and
development
|
69
|
|
159
|
|
239
|
|
324
|
Sales and
marketing
|
31
|
|
133
|
|
51
|
|
224
|
General and
administrative
|
123
|
|
97
|
|
355
|
|
216
|
|
250
|
|
402
|
|
687
|
|
786
|
Contact:
Ran Vered, CFO
(+972)77-774-5011
ranv@radcom.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/radcom-reports-q2--h1-2016-financial-results-300308339.html
SOURCE RADCOM Ltd