Strong Bookings Confirm RADCOM's Positioning TEL-AVIV, Israel,
February 2 /PRNewswire-FirstCall/ -- RADCOM Ltd. (RADCOM)
(NASDAQ:RDCM) today announced its financial results for the fourth
quarter and full-year period ended December 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090331/342930 ) Financial
Results for the Fourth Quarter Revenues for the fourth quarter of
2009 were $4.2 million, up 61% compared with $2.6 million for the
fourth quarter 2008, and up 34% compared with $3.1 million in the
third quarter of 2009. Net income for the quarter according to U.S.
generally accepted accounting principles (GAAP) was $102,000 or
$0.02 per ordinary share (basic and diluted) compared to a net loss
of $(2.0) million, or $(0.39) per ordinary share (basic and
diluted), for the fourth quarter of 2008 and ($394,000) or $(0.08)
per ordinary share (basic and diluted), for the third quarter of
2009. The quarter's net income reflects higher revenues from sales
in all territories. To provide investors with insight into the
Company's underlying operating results, financial results are also
being presented on a non-GAAP basis excluding share-based
compensation expenses and change in fair value of warrants from all
periods. According to this non-GAAP basis, the Company recorded net
income of $245,000, or $0.05 per ordinary share (diluted) for the
fourth quarter of 2009, compared with a net loss of $(1.9) million,
or $(0.37) per ordinary share (basic and diluted) for the fourth
quarter of 2008, and $(219,000), or $(0.04) per ordinary share
(basic and diluted), for the third quarter of 2009 as more fully
described in the consolidated statements of operations below.
Comments of Management Commenting on the results, Mr. David
Ripstein, RADCOM's President and CEO, said, "We are proud to report
a breakthrough quarter that has enabled us to achieve profitability
for the quarter and positive operating cash flow for the year as a
whole. These very satisfying results are a continuation of the
sales trends and strategic progress which we have been reporting
throughout 2009. "During the fourth quarter, we achieved
particularly strong bookings as well as sales, with a rising
percentage attributable to top-tier customers. We believe that our
growing success and steadily improving results are sending us three
clear messages: 1) that major service providers have begun to view
performance monitoring as critical for their ability to maintain
service quality in the face of spiraling network traffic levels; 2)
that RADCOM's solutions have earned a reputation as the market's
'benchmark standard' that address the service provider's true pain
points; and 3) that our strategy and execution methodology have
been correct and are now bearing fruit." Mr. Ripstein concluded,
"As such, we feel very well positioned as we begin to move forward.
We are entering 2010 with an encouraging backlog and a strong
pipeline of potential sales. The fact that our expense structure is
lean enhances our ability to generate profits. Most important, our
strategies of focusing on customer satisfaction, high-potential
target markets and technology leadership have proven themselves
during difficult times. As such, with winds of market recovery in
the air, we feel very optimistic and continue working to fulfill
our potential." Financial Results for the Full Year Ended December
31, 2009 Revenues for 2009 were $11.9 million compared with $15.2
million in 2008. On an operating basis, the Company generated
positive cash flow from operating activities of $0.9 million during
2009, which does not include loan principal repayments of $1.2
million, compared to a cash burn of $4.6 million during 2008.
Despite the reduction in sales, the Company succeeded in reducing
its net loss for the period by 54% to $(2.6) million, or $(0.52)
per ordinary share (basic and diluted), compared with $(5.8)
million, or $(1.16) per ordinary share (basic and diluted), for
2008. Net loss for 2009 on a non-GAAP basis was $(2.2) million, or
$(0.43) per ordinary share (diluted), a decrease of 59% compared
with $(5.3) million, or $(1.05) per ordinary share (diluted), for
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 ASC Topic
718 and change in fair value of warrants that has been expensed in
accordance with ASC 815-40, 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
(According to US GAAP) (1000's of U.S. dollars, except per share
data) Three months ended December 31, 2009 2008 (unaudited)
(unaudited) Sales $ 4,177 $ 2,597 Cost of sales 1,172 1,041 Gross
profit 3,005 1,556 Research and development, gross 1,067 1,277 Less
- royalty-bearing participation 368 500 Research and development,
net 699 777 Sales and marketing 1,523 1,564 General and
administrative 398 987 Total operating expenses 2,620 3,328
Operating income (loss) 385 (1,772) Financing loss, net (283) (225)
Net income (loss) 102 (1,997) Net income (loss) per ordinary share
(basic and diluted) $ 0.02 $ (0.39) Weighted average number of
ordinary shares used in computing basic net (loss) income per
ordinary share 5,083,641 5,081,426 Weighted average number of
ordinary shares used in computing diluted net (loss) income per
ordinary share 5,275,328 5,081,426 TABLE CONTINUES... Twelve months
ended December 31, 2009 2008 (unaudited) (unaudited) Sales $ 11,918
$ 15,238 Cost of sales 4,059 6,025 Gross profit 7,859 9,213
Research and development, gross 4,223 6,506 Less - royalty-bearing
participation 1,633 2,113 Research and development, net 2,590 4,393
Sales and marketing 5,835 7,486 General and administrative 1,643
2,818 Total operating expenses 10,068 14,697 Operating income
(loss) (2,209) (5,484) Financing loss, net (440) (309) Net income
(loss) (2,649) (5,793) Net income (loss) per ordinary share (basic
and diluted) $ (0.52) $ (1.16) Weighted average number of ordinary
shares used in computing basic net (loss) income per ordinary share
5,081,986 4,995,586 Weighted average number of ordinary shares used
in computing diluted net (loss) income per ordinary share 5,081,986
4,995,586 . 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 Year Ended December 31, December 31,
2009 2008 2009 2008 (unaudited) (unaudited) (unaudited) (unaudited)
GAAP net income (loss) $102 ($1,997) ($2,649) ($5,793) Stock-based
compensation (1) 35 93 272 530 Change in fair value of warrants 108
- 215 - Non-GAAP net income (loss) $245 ($1,904) ($2,162) ($5,263)
Non-GAAP earnings (losses) per share (diluted) $0.05 ($0.37)
($0.43) ($1.05) Number of shares used in computing Non-GAAP
earnings (losses) per share (diluted) 5,275,328 5,081,426 5,081,986
4,995,586 (1) Stock-based compensation: Cost of sales 3 1 16 18
Research and development 2 24 53 114 Selling and marketing 5 42 86
177 General and administrative 25 26 117 221 TOTAL 35 93 272 530
RADCOM Ltd. Consolidated Balance Sheets (1000's of U.S. dollars) As
of As of December 31, December 31, 2009 2008 (unaudited)
(unaudited) Current Assets Cash and cash equivalents 3,274 3,513
Trade receivables, net 3,610 7,118 Inventories 2,879 2,752 Other
current assets 607 973 Total Current Assets 10,370 14,356 Assets
held for severance benefits 2,495 2,496 Property and equipment, net
575 989 Total Assets 13,440 17,841 Liabilities and Shareholders'
Equity Current Liabilities Trade payables 1,117 2,121 Current
deferred revenue 478 1,057 Current maturities of long-term venture
loan 1,022 1,167 Other payables and accrued expenses 4,781 3,817
Total Current Liabilities 7,398 8,162 Long-Term Liabilities
Long-term deferred revenue 85 277 Long-term loan net of current
maturities 170 1,152 Other Long-term liabilities 248 - Liability
for employees' severance pay benefits 2,899 3,265 Total Long-Term
Liabilities 3,402 4,694 Total Liabilities 10,800 12,856
Shareholders' Equity Share capital 177 176 Additional paid-in
capital 51,544 51,474 Accumulated deficit (49,081) (46,665) Total
Shareholders' Equity 2,640 4,985 Total Liabilities and
Shareholders' Equity 13,440 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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