RADCOM Returns to Positive Momentum in Q4: Revenues of $5.2M
Returns Company to Operating Profit (Non-GAAP); Strong Bookings
Build Backlog to $20M
TEL-AVIV, Israel, January 29, 2013 /PRNewswire/ --
RADCOM Ltd. (RADCOM) (NASDAQ:
RDCM) today announced its financial results for the fourth
quarter and full year ended December 31,
2012.
In $ thousands Q4 2012 Q3 2012
Revenues $5,152 $3,030
Gross margin 64.2% 57%
Operating loss $(201) $(1,803)
Operating income (loss)
(non-GAAP) $73 $(1,677)
Net loss $(332) $(1,810)
Net loss (non-GAAP) $(58) $(1,684)
Results for the Fourth Quarter of
2012: Revenues for the quarter totaled
$5.2 million, a 70%
increase compared with $3.0 million
in the third quarter. Revenues for the fourth quarter of 2011
were $7.0 million.
The strong bookings received during the quarter (with an above-1
book-to-bill ratio) enabled the Company to increase its backlog to
a near-record $19.7 million. The
majority of the new bookings are fast-path expansion orders
initiated by existing customers with shorter time frames and more
expedited sign-off terms, on average, than initial orders. This,
coupled with the fact that most of the projects in the Company's
backlog have now reached an advanced execution stage, improves the
Company's visibility regarding its ability to deliver significant
revenue growth in 2013.
The Company's net loss for the quarter was ($332,000), or ($0.05) per ordinary share (basic and diluted),
reflecting the higher revenues and lower expenses, countered by
financial expenses and an inventory write-off of approximately
$200,000. This was a significant
improvement from the Company's net loss of $(1.8 million), or $(0.28) per ordinary share (basic and diluted),
recorded in the third quarter of 2012. Net income for the fourth
quarter of 2011 was $64,000, or
$0.01 per share.
During the fourth quarter, the Company completed its cost
reduction program. As a result, the Company was able to return
to profitability on a non-GAAP operating basis, delivering
non-GAAP operating income of $73,000
for the fourth quarter of 2012, compared with a non-GAAP operating
loss of $(1.7 million) in the third
quarter of 2012. This operating income included the impact of the
inventory write-off, without which the Company would have recorded
non-GAAP operating income of more than $250,000.
On a non-GAAP basis, the Company achieved near-break-even with a
net loss of $(58,000), or
($0.01) per ordinary share (basic and
diluted) for the fourth quarter of 2012, compared with $(1.7 million), or $(0.26) per ordinary share (basic and diluted),
for the third quarter of 2012, and a net income of $268,000, or $0.o4
per ordinary share (basic and diluted), for the fourth quarter of
2011.
Comments of Management
Commenting on the results, David
Ripstein, RADCOM's CEO, said, "We are pleased to report that
we have returned to significant forward momentum, with our results
benefitting from the market's strong need for Customer Experience
solutions in an era of unprecedented network congestion."
"The quarter was another period of exceedingly strong bookings,
especially from existing Tier-One customers, who have already
received significant value from our Customer Experience solutions.
In fact, we now have an active customer base of over 60 customers,
many of whom continue to build new capabilities into their RADCOM
deployments as they roll out new LTE networks and next-generation
services. We are particularly excited by their initial reaction to
our new QiSolve offering, a powerful SON (Self Organizing
Network)-type solution that automatically identifies cell
congestion in real time and intelligently helps to optimize network
efficiency. This emerging market area has recently received
confirmation through a major acquisition carried out by one of the
industry's largest networks players, and we believe it can become a
future growth driver to RADCOM as well."
Mr. Ripstein continued, "Equally important, our business
continues to migrate to quality. With a higher proportion of sales
from top-tier and repeat customers, we have been able to achieve
better payment terms on average, and to accelerate the revenue
recognition process in many cases. This, together with the cost
reductions that we have achieved over the past three quarters,
enables us to project accelerated growth in the year to come."
"As such, we are very optimistic as we move into 2013. With a
near-record backlog, high-potential new products,
stronger-than-ever interest in our solutions, a smooth-working
global organization and a lean operating model, we are positioned
to generate significant top-line and bottom-line growth in 2013 and
beyond."
Results for the Full Year 2012: For the full year
2012, the Company's revenues totaled $15.8
million compared with $22.0
million for 2011. The decline reflected the effect of the
market slowdown on the Company's performance throughout 2012,
countered partially by its return to growth during the fourth
quarter.
The Company reported a net loss for 2012 of $(6.0 million), or $(o.93) per ordinary share
(basic and diluted), compared with $(1.9
million), or $(o.30) per ordinary share (basic and diluted),
for 2011. Non-GAAP net loss for 2012 was $(5.3 million), or $(0.83) per diluted share, compared with
$(1.1 million), or ($(0.17) diluted per share for 2011.
The Company revised its operating results for the quarter ended
March 31, 2012, reducing the revenues
related primarily to a sale to a distributor which was subsequently
put on hold by the distributor's end-customer for reasons unrelated
to RADCOM. The effect of the adjustment was to reduce the
revenue for the first quarter of the year by $1.4 million to $4.2 million and to increase the
period's net loss by $1.2 million to $2.0
million. All comparative information in this release is on a
revised basis.
Earnings Conference Call
RADCOM's management will hold an interactive conference call
today at 9:00 AM Eastern Time (16:00
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 January
30th on RADCOM's website.
About RADCOM
RADCOM provides innovative service assurance solutions for
communications service providers and equipment vendors. RADCOM
specializes in solutions for next-generation networks, both
wireless and wireline. RADCOM's comprehensive, carrier-strength
solutions are used to prevent service provider revenue leakage and
to enable management of customer care. RADCOM's products facilitate
fault management, network service performance analysis,
troubleshooting and pre-mediation with an OSS/BSS. 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 stock-based compensation that has been expensed
in accordance with ASC Topic 718, 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 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. 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 share and per share
data)
Three months ended Twelve months ended
December 31, December 31,
2012 2011 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Audited)
Sales $ 5,152 $ 7,004 $ 15,786 $ 21,987
Cost of sales 1,842 2,110 6,182 6,680
Gross profit 3,310 4,894 9,604 15,307
Research and
development, gross 1,500 1,534 6,102 5,866
Less - royalty-bearing
participation 427 229 1,567 1,235
Research and development,
net 1,073 1,305 4,535 4,631
Sales and marketing 1,781 2,716 8,515 9,962
General and administrative 657 513 2,107 2,234
Total operating expenses 3,511 4,534 15,157 16,827
Operating income (loss) (201) 360 (5,553) (1,520)
Financing expenses, net (131) (296) (314) (384)
Taxes on Income - - (120) -
Net income (loss) (332) 64 (5,987) (1,904)
Basic net income (loss)
per ordinary Share $ (0.05) $ 0.01 $ (0.93) $ (0.30)
Diluted net income
(loss) per ordinary share $ (0.05) $ 0.01 $ (0.93) $ (0.30)
Weighted average number of
ordinary shares used in
computing basic net income
(loss) per ordinary share 6,449,780 6,398,885 6,442,068 6,367,560
Weighted average number of
ordinary shares used in
computing diluted net income
(loss) per ordinary share 6,449,780 6,708,515 6,442,068 6,367,560
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 Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net
income (loss) $(332) $64 $(5,987) $(1,904)
Stock-based
compensation
(1) 274 204 672 824
Non-GAAP net
income (loss) $(58) $268 $(5,315) $(1,080)
Non-GAAP
earnings
(loss) per
share
(diluted) ($0.01) $0.04 $(0.83) $(0.17)
Number of
shares used in
computing
Non-GAAP
earnings
(loss) per
share
(diluted) 6,449,780 6,708,515 6,442,068 6,367,560
(1)
Stock-based
compensation:
Cost of sales 1 4 14 27
Research and
development 61 41 205 218
Selling and
marketing 33 34 167 231
General and
administrative 179 125 286 348
274 204 672 824
RADCOM Ltd.
Consolidated Balance Sheets
(1000's of U.S. dollars)
As of As of
December 31, December 31,
2012 2011
(Unaudited) (Audited)
Current Assets
Cash and cash equivalents 1,474 2,901
Short term deposits 1,452 -
Trade receivables, net 3,292 5,389
Inventories 6,736 6,590
Other receivables 2,685 3,490
Total Current Assets 15,639 18,370
Severance pay fund 3,090 2,674
Property and equipment, net 268 301
Total Assets 18,997 21,345
Liabilities and Shareholders' Equity
Current Liabilities
Short term bank credit 1,058 -
Short term loans 1,527 -
Trade payables 1,920 2,703
Employee and payroll accruals 2,018 2,087
Deferred revenue and advances from
customers 2,100 894
Other payables and accrued expenses 1,822 2,016
Total Current Liabilities 10,445 7,700
Long-Term Liabilities
Deferred revenue 37 161
Accrued severance pay 3,518 3,092
Total Long-Term Liabilities 3,555 3,253
Total Liabilities 14,000 10,953
Shareholders' Equity
Share capital 251 250
Additional paid-in capital 61,469 60,754
Accumulated other comprehensive loss (322) (197)
Accumulated deficit (56,401) (50,415)
Total Shareholders' Equity 4,997 10,392
Total Liabilities and Shareholders'
Equity 18,997 21,345
Contact:
Gilad Yehudai
CFO
+1(972) 77-774-5060
gilady@radcom.com
SOURCE Radcom Ltd