TEL-AVIV, Israel, April 24, 2013 /PRNewswire/ --
RADCOM Ltd. (NASDAQ: RDCM) today announced its
financial results for the first quarter ended March 31, 2013.
In $ thousands Q1 2013 Q1 2012 Change
Revenues $4,573 $4,179 9%
Gross margin 66% 63%
Net loss $(594) $(2,034) (71)%
Net loss (non-GAAP) $(512) $(1,859) (72)%
Cash flow $327 $(390)
Results for the First Quarter of
2013: Revenues for the first quarter increased
by 9% to $4.6 million compared with
$4.2 million in the first quarter of
2012. This is on track with the Company's turnaround plan aimed at
delivering significant top-line and bottom-line growth in 2013.
Gross margin for the quarter rose to 66% from 63% in the first
quarter of 2012, and operating expenses were down 21%
year-over-year, reflecting the significant cost reductions put into
place during the second half of 2012.
With higher revenues, a stronger gross margin and lower
expenses, the Company was able to slash its net loss for the
quarter by 71% to ($594,000), or
($0.09) per ordinary share (basic and
diluted), from $(2.0 million), or
$(0.32) per ordinary share (basic and
diluted), in the first quarter of 2012.
On a non-GAAP basis, net loss for the quarter decreased by 72%
to $(512,000), or ($0.08) per ordinary share (basic and diluted)
from $(1.9 million), or $(0.29) per ordinary share (basic and diluted),
in the first quarter of 2012.
Comments of Management
Commenting on the results, David
Ripstein, RADCOM's CEO, said, "We are pleased with the
results of the first quarter, our second straight period of
significant improvement. The rise in our revenues and generation of
positive cash flow, both of which are in line with our turnaround
plan, position us to deliver on our forecast of strong growth for
2013."."
Mr. Ripstein continued, "As reported last quarter, we continue
to benefit from our unique solutions for monitoring data and LTE
networks. With no end in sight to the network pressures being
created by the explosion in online traffic, infrastructure upgrade
projects of all types are being fast-tracked, and there is a clear
understanding of the need for monitoring and Customer Experience
solutions. Having improved our delivery execution, a number of
previously-delayed projects with key customers are now moving
forward, helping us transform our strong backlog into recognizable
revenues. In parallel, we are excited about a number of sales
opportunities, and one highly strategic order from a large LTE
operator for whom the availability of our new network optimization
solution (QiSolve) was a major decision factor, confirming our
confidence about its potential to become a new revenue driver. In
addition, we are beginning to take advantage of opportunities that
are arising as a result of our recently-formed joint ventures."
Mr. Ripstein concluded, "Taken as a whole, we are moving forward
according to our plan and optimistic about our ability to deliver
strong growth in 2013."
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 April 25th 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
March 31,
2013 2012
(unaudited) (unaudited)
Sales $ 4,573 $ 4,179
Cost of sales 1,535 1,547
Gross profit 3,038 2,632
Research and development, gross 1,451 1,675
Less - royalty-bearing participation 390 225
Research and development, net 1,061 1,450
Sales and marketing 1,987 2,505
General and administrative 487 519
Total operating expenses 3,535 4,474
Operating loss (497) (1,842)
Financing expenses, net (97) (72)
Net loss before taxes on income (594) (1,914)
Taxes on income - (120)
Net loss $ (594) $ (2,034)
Basic and diluted net loss per ordinary Share $ (0.09) $ (0.32)
Weighted average number of
ordinary shares used in
computing basic and diluted net
loss per ordinary share 6,475,231 6,425,013
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,
2013 2012
(unaudited) (unaudited)
GAAP net loss $(594) $(2,034)
Stock-based compensation (1) 82 175
Non-GAAP net loss $(512) $(1,859)
Non-GAAP loss per share (diluted) $(0.08) $(0.29)
Number of shares used in computing
Non-GAAP loss per share (diluted) 6,475,231 6,425,013
(1) Stock-based compensation:
Cost of sales - 6
Research and development 6 68
Selling and marketing 6 58
General and administrative 70 43
82 175
RADCOM Ltd.
Consolidated Balance Sheets
(1000's of U.S. dollars)
As of As of
March 31, December 31,
2013 2012
(unaudited) (audited)
Current Assets
Cash and cash equivalents 795 1,474
Restricted cash 1,756 1,452
Trade receivables, net 3,543 3,292
Inventories 6,314 6,736
Other receivables 2,817 2,685
Total Current Assets 15,225 15,639
Severance pay fund 3,264 3,090
Property and equipment, net 305 268
Total Assets 18,794 18,997
Liabilities and Shareholders' Equity
Current Liabilities
Short term bank credit - 1,058
Short term loans 1,545 1,527
Trade payables 1,801 1,920
Deferred revenue and advances from
Customers 3,250 1,996
Employee and payroll accruals 1,944 2,100
Other payables and accrued expenses 2,035 1,844
Total Current Liabilities 10,575 10,445
Long-Term Liabilities
Deferred revenue 26 37
Accrued severance pay 3,693 3,518
Total Long-Term Liabilities 3,719 3,555
Total Liabilities 14,294 14,000
Shareholders' Equity
Share capital 252 251
Additional paid-in capital 61,563 61,470
Accumulated other comprehensive loss (319) (322)
Accumulated deficit (56,996) 56,402)
Total Shareholders' Equity 4,500 4,997
Total Liabilities and Shareholders'
Equity 18,794 18,997
Contact:
Gilad Yehudai
CFO
+972-77-774-5060
gilady@radcom.com
.
SOURCE RADCOM Ltd