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.