TEL AVIV, Israel, October 26 /PRNewswire-FirstCall/ -- - Positive
Momentum Continues: Revenues Up 19% & Net Loss Down 54%
Compared to Q2 2009; Strong Backlog Going Into 2010 RADCOM Ltd.
(RADCOM) (NASDAQ:RDCM) today announced its unaudited financial
results for the third quarter and nine month period ended September
30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090331/342930 ) Financial
Results for the Third Quarter Revenues for the third quarter of
2009 were $3.1 million, up 19% compared with $2.6 million for the
second quarter of 2009, and up 54% compared with the first quarter
of 2009. Revenues for the third quarter of 2008 were $4.4 million.
Net loss for the quarter according to U.S. generally accepted
accounting principles (GAAP) was ($394,000) or $(0.08) per ordinary
share (basic and diluted), a decline of 54% compared with
$(856,000), or $(0.17) per ordinary share (basic and diluted) for
the second quarter of 2009, and a 64% decline compared to $(1.1)
million, or $(0.22) per ordinary share (basic and diluted), for the
third quarter of 2008. The decrease in net loss reflects
cost-cutting programs implemented in 2008, together with the
quarter's higher sales as compared with the first and second
quarters of 2009. Net loss according to GAAP for all quarters
included non-cash share-based compensation expense taken in respect
of Statement of Financial Accounting Standards No. 123 (revised
2004), "Share-Based Payment" ("SFAS 123R"). This share-based
compensation expense totaled $77,000 for the third quarter of 2009,
$73,000 for the second quarter of 2009, $87,000 for the first
quarter of 2009 and $135,000 for the third quarter of 2008. To
provide investors with insight into the Company's underlying
operating results, results are also being presented on a non-GAAP
basis excluding share-based compensation from all periods.
According to this non-GAAP basis, net loss for the third quarter of
2009 was $(317,000), or $(0.06) per ordinary share (basic and
diluted), compared with $(783,000), or $(0.15) per ordinary share
(basic and diluted), for the second quarter of 2009, $(1.4
million), or $(0.28) per ordinary share (basic and diluted), for
the first quarter of 2009, and $(1.0) million, or $(0.19) per
ordinary share (basic and diluted), for the third quarter of 2008.
Comments of Management Commenting on the results, Mr. David
Ripstein, RADCOM's President and CEO, said, "We are pleased to
report that the third quarter was a period of significant progress,
as demonstrated by continued improvement across key financial and
operational parameters. Despite slow sales cycles that continue to
characterize our target markets, we continue to build forward
momentum. This, together with the significant backlog that we built
over the past year, confirms that we are working from a stable
basis and according to a sound strategy. "Repeat sales remain the
largest proportion of our sales, confirming the success of our
customer satisfaction initiatives. We are confident that our
strategy of ongoing investment in developing regions, technology
and customer satisfaction will enable us to continue improving our
results as global telecommunication markets recover and develop."
Financial Results for the Nine Months Ended September 30, 2009
Revenues for the nine months ended September 30, 2009 were $7.7
million compared with $12.6 million for the nine months of 2008. On
an operating basis, the Company generated positive cash flow from
operating activities of $0.8 million during the first nine months
of 2009, which does not include loan principal repayments of $1.0
million, compared to a cash burn of $4.6 million during the first
nine months of 2008. Despite the reduction in sales, the Company
succeeded in reducing its net loss for the period by 28% to $(2.8)
million, or $(0.54) per ordinary share (basic and diluted),
compared with $(3.8) million, or $(0.77) per ordinary share (basic
and diluted), for the first nine months of 2008. The Company has
also presented its net results on a non-GAAP basis excluding
share-based compensation, which totaled $237,000 for the first nine
months of 2009 and $437,000 for the first nine months of 2008. On
such non-GAAP basis, net loss for the first nine months of 2009 was
$(2.5) million, or $(0.49) per ordinary share (basic and diluted),
a decrease of 34% compared with $(3.4) million, or $(0.68) per
ordinary share (basic and diluted), for the first nine months of
2008. 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 equity based
compensation that has been expensed in accordance with SFAS 123R,
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. About RADCOM RADCOM develops,
manufactures, markets and supports innovative network test and
service monitoring solutions for communications service providers
and equipment vendors. The Company specializes in next-generation
Cellular as well as IMS, Voice, Data and VoIP networks. Its
solutions are used in the development and installation of network
equipment and in the maintenance of operational networks. The
Company's products facilitate fault management, network service
performance monitoring and analysis, troubleshooting and
pre-mediation. RADCOM's shares are listed on the NASDAQ Capital
Market under the symbol RDCM. For more information, please visit
http://www.radcom.com/. Risks Regarding Forward-Looking Statements
Certain statements made herein that use the words "estimate,"
"project," "intend," "expect," "'believe" and similar expressions
are intended to identify forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
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 Statements of Operations (1000's of U.S.
dollars, except per share data) Three months ended Nine months
ended September 30, September 30, 2009a 2008b 2009c 2008d
(unaudited)(unaudited)(unaudited)(unaudited) Sales $ 3,115 $ 4,395
$ 7,741 $ 12,641 Cost of sales 1,045 1,741 2,887 4,984 Gross profit
2,070 2,654 4,854 7,657 Research and development, gross 1,046 1,582
3,156 5,229 Less - royalty-bearing participation 480 500 1,265
1,613 Research and development, net 566 1,082 1,891 3,616 Sales and
marketing 1,370 1,971 4,312 5,922 General and administrative 413
584 1,245 1,831 Total operating expenses 2,349 3,637 7,448 11,369
Operating loss (279) (983) (2,594) (3,712) Financing income (loss),
net (115) (124) (157) (84) Net loss (394) (1,107) (2,751) (3,796)
Basic and Diluted net loss per ordinary share $ (0.08) $ (0.22) $
(0.54) $ (0.77) Weighted average number of ordinary shares used in
computing basic and diluted net loss per ordinary share 5,081,707
5,076,217 5,081,521 4,948,703 Note a: The Company's results for the
third quarter of 2009 according to U.S. GAAP include non-cash
share-based compensation expense of $77,,000 allocated as follows:
$3,000 to cost of sales, $17,,000 to research and development,
$26,000 to sales and marketing and $31,000 to general and
administrative. Note b: The Company's results for the third quarter
of 2008 according to U.S. GAAP include non-cash share-based
compensation expense of $135,000 allocated as follows: $5,000 to
cost of sales, $31,000 to research and development, $43,000 to
sales and marketing and $56,000 to general and administrative. Note
c: The Company's results for the first nine months of 2009
according to U.S. GAAP include non-cash share-based compensation
expense of $237,000 allocated as follows: $9,000 to cost of sales,
$60,000 to research and development, $81,000 to sales and marketing
and $87,000 to general and administrative. Note d: The Company's
results for the first nine months of 2008 according to U.S. GAAP
include non-cash share-based compensation expense of $437,000
allocated as follows: $17,000 to cost of sales, $90,000 to research
and development, $135,000 to sales and marketing and $195,000 to
general and administrative. RADCOM Ltd. Consolidated Balance Sheets
(1000's of U.S. dollars) As of As of September 30, December 31,
2009 2008 (unaudited) (unaudited) Current Assets Cash and cash
equivalents 3,076 3,513 Trade receivables, net 3,743 7,118
Inventories 2,708 2,752 Other current assets 827 973 Total Current
Assets 10,354 14,356 Assets held for severance benefits 2,472 2,496
Property and equipment, net 667 989 Total Assets 13,493 17,841
Liabilities and Shareholders' Equity Current Liabilities Trade
payables 1,336 2,121 Current deferred revenue 1,007 1,057 Current
maturities of long-term venture loan 917 1,167 Other payables and
accrued expenses 4,295 3,817 Total Current Liabilities 7,555 8,162
Long-Term Liabilities Long-term deferred revenue 128 277 Venture
loan Less - current maturities 458 1,152 Liability for employees'
severance pay benefits 2,915 3,265 Total Long-Term Liabilities
3,501 4,694 Total Liabilities 11,056 12,856 Shareholders' Equity
Share capital 176 176 Additional paid-in capital 51,444 51,474
Accumulated deficit (49,183) (46,665) Total Shareholders' Equity
2,437 4,985 Total Liabilities and Shareholders' Equity 13,493
17,841 Contact: Jonathan Burgin CFO +972-3-645-5004
http://www.newscom.com/cgi-bin/prnh/20090331/342930DATASOURCE:
Radcom Ltd CONTACT: Contact: Jonathan Burgin, CFO, +972-3-645-5004,
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