TEL-AVIV, Israel, Feb. 14, 2017 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM) today reported its financial results for
the fourth quarter and fiscal year ended December 31, 2016.
"The fourth quarter marked a strong end to a great year for the
Company, highlighted by our ability to reach the high-end of our
guidance range," commented Mr. Yaron
Ravkaie, RADCOM's CEO. "In 2016, we made great
progress with our top-tier customer deployments, continued our
engagement with other leading global carriers, and focused on
preparing the company for future growth by boosting our senior
management team and ramping up our engineering capabilities.
We believe we have laid a solid foundation during 2016 to continue
our momentum, as evidenced by our initial 2017 revenue guidance
range of $36-$39 million."
Fourth Quarter 2016 Financial Highlights
- Revenues: Total revenues for the fourth quarter
were $8.0 million, up 196% compared
to $2.7 million in the fourth quarter
of 2015.
- Net Loss: GAAP net loss for the period was approximately
$0.7 million, or $0.06 loss per diluted share, compared to a loss
of $2.1 million, or $0.25 loss per diluted share for the fourth
quarter of 2015.
- Non-GAAP Net Income/(Loss): Non-GAAP net income
for the period was approximately $0.4
million, or $0.04 per diluted
share, compared to a loss of $(1.6)
million, or $(0.19) per
diluted share for the fourth quarter of 2015.
Both GAAP and non-GAAP results for the fourth quarter of 2016
included a $552,000, or $0.05 per diluted share, benefit related to
grants from the Israel Innovation Authority (formerly Office of the
Chief Scientist) compared to $576,000, or $0.07
per diluted share, in the fourth quarter of 2015.
- Balance sheet: As of December 31,
2016, the Company had cash and cash equivalents of
$42.9 million and no
debt.
Full Year 2016 Financial Highlights
- Revenues: Total revenues for the full year 2016
were $29.5 million, up 58% compared
to $18.7 million in the full year
2015.
- Net Income/(Loss): GAAP net income for the full year
2016 was approximately $1.9 million,
or $0.18 per diluted share, compared
to a loss of $(923,000), or
$(0.11) per diluted share for the
full year 2015.
- Non-GAAP Net Income: Non-GAAP net income for the
period was approximately $4.8 million
or $0.44 per diluted share, for the
full year 2016, compared to $656,000,
or $0.07 per diluted share for the
full year 2015.
Both GAAP and non-GAAP results for the full year 2016 included a
$1.7 million, or $0.16 per diluted share, benefit related to
grants from the Israel Innovation Authority compared to
$1.6 million, or $0.18 per diluted share, in 2015.
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
15th 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
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, inventory
write-off 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 momentum and 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
|
|
Twelve months
ended
|
|
December
31,
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Sales
|
$
8,037
|
|
$
2,715
|
|
$
29,510
|
|
$
18,673
|
|
Cost of
sales
|
2,796
|
|
1,137
|
|
8,982
|
|
4,326
|
|
Gross
profit
|
5,241
|
|
1,578
|
|
20,528
|
|
14,347
|
|
Research and
development, gross
|
2,594
|
|
1,620
|
|
8,047
|
|
6,071
|
|
Less -
royalty-bearing participation
|
552
|
|
576
|
|
1,693
|
|
1,582
|
|
Research and
development, net
|
2,042
|
|
1,044
|
|
6,354
|
|
4,489
|
|
Sales and marketing,
net
|
2,917
|
|
2,054
|
|
8,528
|
|
7,834
|
|
General and
administrative
|
1,060
|
|
652
|
|
4,523
|
|
2,393
|
|
Total operating
expenses
|
6,019
|
|
3,750
|
|
19,405
|
|
14,716
|
|
Operating income
(loss)
|
(778)
|
|
(2,172)
|
|
1,123
|
|
(369)
|
|
Financial income
(expense), net
|
41
|
|
48
|
|
816
|
|
(433)
|
|
Income (loss) before
taxes
|
(737)
|
|
(2,124)
|
|
1,939
|
|
(802)
|
|
Taxes on
income
|
-
|
|
-
|
|
(24)
|
|
(121)
|
|
Net income
(loss)
|
$
(737)
|
|
$
(2,124)
|
|
$
1,915
|
|
$
(923)
|
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.18
|
|
$
(0.11)
|
|
Basic net income
(loss) per
|
|
ordinary
share
|
|
Diluted net income
(loss) per
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.18
|
|
$
(0.11)
|
|
ordinary
share
|
|
11,548,059
|
|
8,665,019
|
|
10,406,897
|
|
8,572,681
|
|
Weighted average
number of
|
|
ordinary shares used in
|
|
computing basic net income
(loss) per ordinary share
|
|
11,548,059
|
|
8,665,019
|
|
10,779,547
|
|
8,572,681
|
|
Weighted average
number of
|
|
ordinary shares used in
|
|
computing diluted net income
(loss) per ordinary share
|
|
RADCOM
LTD.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL INFORMATION
|
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
December
31,
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
GAAP gross
profit
|
5,241
|
|
1,578
|
|
20,528
|
|
14,347
|
|
Stock-based compensation
|
37
|
|
4
|
|
118
|
|
33
|
|
Importation tax write-off
|
388
|
|
-
|
|
388
|
|
-
|
|
Inventory write-off
|
-
|
|
170
|
|
-
|
|
170
|
|
Non-GAAP gross
profit
|
5,666
|
|
1,752
|
|
21,034
|
|
14,550
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development, net
|
2,042
|
|
1,044
|
|
6,354
|
|
4,489
|
|
Stock-based compensation
|
231
|
|
96
|
|
625
|
|
529
|
|
Non-GAAP Research and
development, net
|
1,811
|
|
948
|
|
5,729
|
|
3,960
|
|
|
|
|
|
|
|
|
|
GAAP sales and
marketing, net
|
2,917
|
|
2,054
|
|
8,528
|
|
7,834
|
|
Stock-based compensation
|
75
|
|
54
|
|
199
|
|
380
|
|
Non-GAAP sales and
marketing, net
|
2,842
|
|
2,000
|
|
8,329
|
|
7,454
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
1,060
|
|
652
|
|
4,523
|
|
2,393
|
|
Stock-based compensation
|
428
|
|
194
|
|
1,529
|
|
467
|
|
Non-GAAP general and
administrative
|
632
|
|
458
|
|
2,994
|
|
1,926
|
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
6,019
|
|
3,750
|
|
19,405
|
|
14,716
|
|
Stock-based compensation
|
734
|
|
344
|
|
2,353
|
|
1,376
|
|
Non-GAAP total
operating expenses
|
5,285
|
|
3,406
|
|
17,052
|
|
13,340
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
(778)
|
|
(2,172)
|
|
1,123
|
|
(369)
|
|
Stock-based compensation
|
771
|
|
348
|
|
2,471
|
|
1,409
|
|
Importation tax write-off
|
388
|
|
-
|
|
388
|
|
|
|
Inventory write-off
|
-
|
|
170
|
|
-
|
|
170
|
|
Non-GAAP operating
income (loss)
|
381
|
|
(1,654)
|
|
3,982
|
|
1,210
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
before taxes on income
|
(737)
|
|
(2,124)
|
|
1,939
|
|
(802)
|
|
Stock-based compensation
|
771
|
|
348
|
|
2,471
|
|
1,409
|
|
Importation tax write-off
|
388
|
|
-
|
|
388
|
|
|
|
Inventory write-off
|
-
|
|
170
|
|
-
|
|
170
|
|
Non-GAAP income
(loss) before taxes on income
|
422
|
|
(1,606)
|
|
4,798
|
|
777
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
(737)
|
|
(2,124)
|
|
1,915
|
|
(923)
|
|
Stock-based compensation
|
771
|
|
348
|
|
2,471
|
|
1,409
|
|
Importation tax write-off
|
388
|
|
-
|
|
388
|
|
|
|
Inventory write-off
|
-
|
|
170
|
|
-
|
|
170
|
|
Non-GAAP net
income
|
422
|
|
(1,606)
|
|
4,774
|
|
656
|
|
|
|
|
|
|
|
|
|
GAAP Net income per
diluted share
|
(0.06)
|
|
(0.25)
|
|
0.18
|
|
(0.11)
|
|
Stock-based compensation
|
0.07
|
|
0.04
|
|
0.22
|
|
0.16
|
|
Importation tax write-off
|
0.03
|
|
-
|
|
0.04
|
|
-
|
|
Inventory write-off
|
-
|
|
0.02
|
|
-
|
|
0.02
|
|
Non-GAAP Net income
per diluted share
|
0.04
|
|
(0.19)
|
|
0.44
|
|
0.07
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used to compute
|
11,920,521
|
|
8,665,019
|
|
10,779,547
|
|
9,117,767
|
|
diluted net income
(loss) per share
|
|
RADCOM
Ltd.
|
|
Consolidated
Balance Sheets
|
|
(thousands of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
December
31,
|
|
December
31,
|
|
2016
|
2015
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
42,886
|
|
8,727
|
|
Restricted bank
deposits
|
32
|
|
32
|
|
Trade receivables,
net
|
4,388
|
|
3,684
|
|
Inventories
|
623
|
|
1,532
|
|
Other receivables
|
1,960
|
|
2,087
|
|
|
|
|
|
Total Current
Assets
|
49,889
|
16,062
|
|
Severance pay
fund
|
|
|
|
|
2,788
|
3,181
|
|
Other long-term
receivables
|
|
|
|
|
375
|
508
|
|
Property and
equipment, net
|
|
|
|
|
1,516
|
384
|
|
Total
Assets
|
|
|
|
|
54,568
|
20,135
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade payables
|
2,820
|
|
1,465
|
|
Deferred revenue and advances from customers
|
2,593
|
|
931
|
|
Employee and payroll
accruals
|
3,541
|
|
2,533
|
|
Other payables and accrued expenses
|
2,081
|
|
1,490
|
|
|
|
|
|
Total Current
Liabilities
|
11,035
|
6,419
|
|
Long-Term
Liabilities
|
|
|
|
|
Deferred revenue
|
123
|
|
197
|
|
Accrued severance
pay
|
3,267
|
|
3,656
|
|
|
|
|
|
Total Long-Term
Liabilities
|
3,390
|
3,853
|
|
|
|
|
|
Total
Liabilities
|
14,425
|
|
10,272
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share capital
|
523
|
|
372
|
|
Additional paid-in capital
|
98,283
|
|
70,270
|
|
Accumulated other
comprehensive loss
|
(2,559)
|
|
(2,760)
|
|
Accumulated deficit
|
(56,104)
|
|
(58,019)
|
|
Total
Shareholders' Equity
|
|
|
|
|
40,143
|
9,863
|
|
54,568
|
|
20,135
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
|
|
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-fourth-quarter-and-full-year-2016-financial-results-300406938.html
SOURCE RADCOM Ltd.