TEL-AVIV, Israel, April 26, 2010 /PRNewswire-FirstCall/ -- RADCOM
Ltd. (RADCOM) (NASDAQ: RDCM) today announced its unaudited
financial results for the first quarter ended March 31, 2010.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090331/342930 )
Financial Results
Revenues for the first quarter of 2010 were $4.4 million, a 120% increase compared with
$2.0 million for the first quarter of
2009, and a 5% increase compared with $4.2
million for the fourth quarter of 2009. The Company also
achieved strong bookings for the quarter.
Net income for the quarter according to U.S. generally accepted
accounting principles (GAAP) was $51,000, or $0.01
per ordinary share (basic and diluted) compared to a net loss of
$(1.5) million, or $(0.30) per ordinary share (basic and diluted),
for the first quarter of 2009, and net income of $102,000, or $0.02
per share (basic and diluted), for the fourth quarter of 2009. Net
income was impacted by a $200,000
financial expense which derived from the mark-to-market of
outstanding warrants, an activity triggered by the significant
appreciation of RADCOM's share price during the quarter.
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
$284,000, or $0.05 per ordinary share (diluted) for the first
quarter of 2010, compared with a net loss of $(1.4) million, or $(0.27) per ordinary share (diluted) for the
first quarter of 2009. This represented a 16% increase compared
with the Company's net income for the fourth quarter of 2009, which
totaled $245,000, or $0.05 per ordinary share (diluted).
Comments of Management
Commenting on the results, Mr. David
Ripstein, RADCOM's President and CEO, said, "We are very
pleased to report another period of strong positive momentum in
line with our work plan. During the quarter, we delivered another
sequential increase in revenues and non-GAAP profits, while also
achieving strong bookings that enhanced an already healthy
backlog."
Mr. Ripstein continued, "Demand for our solutions is increasing,
primarily due to rising usage of smart phone devices, like the
iPhone, and its effect on network performance. In this environment,
operators are investing in RADCOM solutions. Our optimization tools
decrease the need for operators to make substantial additional
capital expenditures while still enabling them to maintain the same
high level of customer service and satisfaction."
Mr. Ripstein concluded, "We believe this positive momentum
confirms our long-term strategies and our 'read' of the market.
With rising demand, a healthy backlog, a growing list of top-tier
reference accounts and market-leading solutions, we feel
well-positioned to generate further growth in 2010."
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.
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.
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
March 31,
2010 2009
(unaudited) (unaudited)
Sales (1) $ 4,438 $ 2,018
Cost of sales 1,502 790
Gross profit 2,936 1,228
Research and development, gross 1,048 1,062
Less - royalty-bearing participation 419 400
Research and development, net 629 662
Sales and marketing 1,501 1,514
General and administrative 414 416
Total operating expenses 2,544 2,592
Operating income (loss) 392 (1,364)
Financing loss, net (341) (137)
Net income (loss) 51 (1,501)
Net income (loss) per ordinary share
(basic and diluted) $ 0.01 $ (0.30)
Weighted average number of
ordinary shares used in
computing basic net (loss) income
per ordinary share 5,087,209 5,081,426
Weighted average number of
ordinary shares used in
computing diluted net (loss)
income per ordinary share 5,285,455 5,081,426
(1) The Company elected to adopt ASU No. 2009-14, "Certain
Revenue Arrangements That Include Software Elements." This ASU
changes the accounting model for revenue arrangements that include
both tangible products and software elements that are "essential to
the functionality," and scopes these products out of previous
software revenue guidance. The Company also elected to adopt ASU
No. 2009-13, "Multiple-Deliverable Revenue Arrangements." This ASU
establishes the accounting and reporting guidance for arrangements
including multiple revenue-generating activities. This ASU provides
amendments to the criteria for separating deliverables, and
measuring and allocating arrangement consideration to one or more
units of accounting. The Company has elected early adoption of
these standards, beginning January 1,
2010. Had the Company adopted these standards in Q1 2009 it
would not have had a material effect on the Company's condensed
consolidated financial statements for that period.
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
March 31,
2010 2009
(unaudited) (unaudited)
GAAP net income (loss) $51 ($1,501)
Stock-based compensation
(1) 33 87
Change in fair value of
warrants 200 21
Non-GAAP net income
(loss) $284 ($1,393)
Non-GAAP earnings
(losses) per share
(diluted) $0.05 ($0.27)
Number of shares used in
computing Non-GAAP
earnings (losses) per
share (diluted) 5,285,455 5,081,426
(1) Stock-based
compensation:
Cost of sales 2 3
Research and development 4 23
Selling and marketing 5 31
General and
administrative 22 30
33 87
RADCOM Ltd.
Consolidated Balance Sheets
(1000's of U.S. dollars)
As of As of
March 31, December 31,
2010 2009
(unaudited) (unaudited)
Current Assets
Cash and cash equivalents 2,142 3,274
Trade receivables, net 4,795 3,610
Inventories 2,635 2,879
Other current assets 916 607
Total Current Assets 10,488 10,370
Severence Pay Fund 2,457 2,495
Property and equipment, net 479 575
Total Assets 13,424 13,440
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables 1,327 1,117
Deferred revenue 811 478
Current maturities of long-term loan 510 1,022
Other payables and accrued expenses 4,444 4,781
Total Current Liabilities 7,092 7,398
Long-Term Liabilities
Deferred revenue 249 85
Long-term loan net of current maturities 43 170
Warrants related to long term loan 448 248
Accrued severance pay 2,867 2,899
Total Long-Term Liabilities 3,607 3,402
Total Liabilities 10,699 10,800
Shareholders' Equity
Share capital 178 177
Additional paid-in capital 51,577 51,544
Accumulated deficit (49,030) (49,081)
Total Shareholders' Equity 2,725 2,640
Total Liabilities and Shareholders' Equity 13,424 13,440
Contact:
Jonathan Burgin
CFO
+972-3-645-5004
jonathanb@radcom.com
SOURCE RADCOM Ltd