TEL AVIV, Israel, May 4, 2017 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the first quarter ended March 31, 2017.

"We were pleased with our strong first quarter execution highlighted by our relationship with AT&T and with other top tier carriers globally," commented Mr. Yaron Ravkaie, RADCOM's CEO.  "During the quarter, our hybrid approach of enabling a path to NFV and future proofing purchasing decisions continued to resonate with carriers.  Given our visibility for the remainder of the year, we are reiterating our 2017 revenue guidance of $36-$39 million."

First Quarter 2017 Financial Highlights

  • Revenues: Total revenues for the fourth quarter were $8.0 million, up 23% compared to $6.5 million in the first quarter of 2016.
  • Net Income/(Loss): GAAP net loss for the period was $(0.3) million, or a loss of $(0.03) per diluted share, compared to net income of $0.9 million, or $0.10 per diluted share for the first quarter of 2016.
  • Non-GAAP Net Income: Non-GAAP net income for the period was $0.3 million, or $0.02 per diluted share, compared to net income of $1.3 million, or $0.14 per diluted share for the first quarter of 2016.
  • GAAP and non-GAAP results for both the first quarter of 2017 and 2016, included no benefits related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist).
  • Balance sheet: As of March 31, 2017, the Company had cash and cash equivalents of $40.7 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): +1-888-668-9141

From other locations: +972-3-918-0609

For those unable to listen to the call at the time, a replay will be available from May 5th 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, 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 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
 March 31,


2017


2016

Revenues

$     8,040


$     6,547

Cost of revenues

2,022


1,693

Gross profit

6,018


4,854

Research and development, gross

2,488


1,836

Less - royalty-bearing participation

-


-

Research and development, net

2,488


1,836

Sales and marketing, net

2,897


1,527

General and administrative

1,060


871

Total operating expenses

6,445


4,234

Operating (loss) income

(427)


620

Financing income, net

109


289

(loss) Income before taxes

(318)


909

Taxes

(18)


(6)

Net (loss) income

$     (336)


$     903

 

Basic net (loss) income per

    ordinary share

$    (0.03)


$    0.10

Diluted net (loss) income per

     ordinary share

$    (0.03)


$    0.10

 

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

11,650,479


8,729,891

 

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

11,650,479


9,307,539

 

 

RADCOM LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

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






Three months ended
March 31,



2017


2016

GAAP gross profit                 


$    6,018


$    4,854

Stock-based compensation


47


14

Non-GAAP gross profit


6,065


4,868

 

GAAP Research and development, net


2,488


1,836

Stock-based compensation


109


171

Non-GAAP Research and development, net


2,379


1,665

 

GAAP sales and marketing, net


2,897


1,527

Stock-based compensation


128


20

Non-GAAP selling and marketing, net


2,769


1,507

 

GAAP general and administrative


1,060


871

Stock-based compensation


336


232

Non-GAAP general and administrative


724


639

 

GAAP total operating expenses


6,445


4,234

Stock-based compensation


573


423

Non-GAAP total operating expenses


5,872


3,811

 

GAAP operating (loss) income


(427)


620

Stock-based compensation


620


437

Non-GAAP operating income


193


1,057

 

GAAP (loss) income before taxes on income


(318)


909

Stock-based compensation


620


437

Non-GAAP income before taxes on income


302


1,346

 

GAAP net (loss) income


(336)


903

Stock-based compensation


620


437

Non-GAAP net income


284


1,340

 

GAAP Net (loss) income per diluted share


(0.03)


0.10

Stock-based compensation


0.05


0.04

Non-GAAP Net income per diluted share


$     0.02


$     0.14






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


11,952,399


9,307,539

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)






As of


As of


March 31,


December 31,

2017

2016

Current Assets




    Cash and cash equivalents

$ 40,749


$ 42,886

    Restricted bank deposits

34


32

    Trade receivables, net

3,958


4,388

    Inventories

513


623

    Other receivables

1,598


1,960


46,852



Total Current Assets

49,889

Severance pay fund

2,973



2,788

Other long-term receivables

306



375

Property and equipment, net

1,642



1,516

Total Assets

$ 51,773



$ 54,568





Liabilities and Shareholders' Equity




Current Liabilities




    Trade payables

$ 1,291


$ 2,820

    Deferred revenue and advances from customers

1,017


2,593

    Employee and payroll accruals

3,258


3,541

    Other payables and accrued expenses

1,710


2,081


7,276



Total Current Liabilities

11,035

Long-Term Liabilities




    Deferred revenue

143


123

    Accrued severance pay

3,526


3,267


3,669



Total Long-Term Liabilities

3,390





Total Liabilities

10,945


14,425





Shareholders' Equity




    Share capital

525


523

    Additional paid-in capital

99,242


98,283

    Accumulated other comprehensive loss

(2,499)


(2,559)

    Accumulated deficit

(56,440)


(56,104)





 Total Shareholders' Equity

40,828


40,143





Total Liabilities and Shareholders' Equity

$    51,773


$    54,568

 

For all investor inquiries, please contact:
Ran Vered
CFO
+972-77-774-5011
ranv@radcom.com

For all media inquiries, please contact:
Mark Rolston
Marketing Manager
+972-77-774-5036
markr@radcom.com

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radcom-reports-first-quarter-2017-financial-results-300451423.html

SOURCE RADCOM Ltd.

Copyright 2017 PR Newswire

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