TEL AVIV, Israel, Feb. 13, 2018 /PRNewswire/ -- RADCOM Ltd.
(NASDAQ: RDCM), today reported its financial results for the fourth
quarter and fiscal year ended December 31,
2017.
"We were very pleased with our fourth quarter results, which
marked a strong end to the year. In 2017, we successfully executed
our growth strategy and extended our leadership position in NFV
with the signing of another top-tier carrier," commented Mr. Yaron
Ravkaie, RADCOM's CEO. "We entered 2018 with a strong pipeline of
opportunities with other leading global carriers as our hybrid
approach of enabling a path to NFV, and future proofing purchasing
decisions, continues to resonate with customers. Our 2018 revenue
guidance of $43-$47 million reflects the ongoing momentum we see
in our business."
Fourth Quarter 2017 Financial Highlights:
- Revenues: Total revenues for the fourth quarter were
$10.6 million, up 32% compared to
$8.0 million in the fourth quarter of
2016.
- Net Income: GAAP net income for the period was
$2.3 million, or $0.17 per diluted share, compared to a GAAP net
loss of $0.7 million, or $0.06 loss per diluted share for the fourth
quarter of 2016.
- Non-GAAP Net Income: Non-GAAP net income for the period
was $2.7 million, or $0.21 per diluted share, compared to non-GAAP net
income of $0.4 million, or
$0.04 per diluted share for the
fourth quarter of 2016.
Both GAAP and non-GAAP results for the fourth quarter of 2017
included a $1.1 million, or
$0.08 per diluted share, benefit
related to grants from the Israel Innovation Authority (formerly
Office of the Chief Scientist), compared to $552,000, or $0.05
per diluted share, in the fourth quarter of 2016.
- Balance sheet: As of December 31,
2017, the Company had cash, cash equivalents and short-term
bank deposits of $ 62.6 million and
no debt.
Full Year 2017 Financial Highlights:
- Revenues: Total revenues for the full year 2017 were
$37.2 million, up 26% compared to
$29.5 million in the full year
2016.
- Net Income: GAAP net income for the full year 2017 was
$2.9 million, or $0.23 per diluted share, compared to $1.9 million, or $0.18 per diluted share for the full year
2016.
- Non-GAAP Net Income: Non-GAAP net income for the period
was $5.1 million, or $0.41 per diluted share, compared to non-GAAP net
income of $4.8 million, or
$0.44 per diluted share for the full
year 2016.
Both GAAP and non-GAAP results for the full year 2017 included a
$1.6 million, or $0.13 per diluted share, benefit related to
grants from the Israel Innovation Authority (formerly Office of the
Chief Scientist), compared to $1.7
million, or $0.16 per diluted
share, in 2016.
Earnings Conference Call
RADCOM's management will hold an interactive conference call
today at 8:00 AM Eastern Time (15:00
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 February 14,
2018, on RADCOM's website.
About RADCOM
RADCOM (NASDAQ: RDCM) is the leading
expert in probe-based SDN/NFV service assurance for telecom
operators. Providing a critical first step in an operator's NFV
transformation, RADCOM's cloud-native software - MaveriQ - delivers
end-to-end network visibility and customer insights across virtual
and hybrid networks to ensure end-to-end service quality and
customer satisfaction. With an automated, cost-efficient, on-demand
solution RADCOM specializes in assuring next-generation, high
capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV
and others. For more information on how to RADCOMize your network,
today, please visit www.radcom.com, the content of which does not
form a part of this press release.
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 the Company's financial performance. By excluding
non-cash stock-based compensation that has been expensed in
accordance with ASC Topic 718 and non-cash write-off of importation
taxes, the Company's non-GAAP results provide information to both
management and investors that is useful in assessing the Company's
core operating performance and in evaluating and comparing the
Company's 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 and other securities laws. For example, when the Company
discusses its revenue guidance for 2018, pipeline and expected new
projects with new and future customers for the Company as well as
maintaining its leadership position in the market it is using
forward-looking statements. 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 U.S.
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
|
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenues
|
$
10,631
|
|
$
8,037
|
|
$
37,233
|
|
$
29,510
|
|
Cost of
revenues
|
2,660
|
|
2,796
|
|
10,488
|
|
8,982
|
|
Gross
profit
|
7,971
|
|
5,241
|
|
26,745
|
|
20,528
|
|
Research and
development, gross
|
3,055
|
|
2,594
|
|
10,562
|
|
8,047
|
|
Less -
royalty-bearing participation
|
1,132
|
|
552
|
|
1,599
|
|
1,693
|
|
Research and
development, net
|
1,923
|
|
2,042
|
|
8,963
|
|
6,354
|
|
Sales and marketing,
net
|
2,777
|
|
2,917
|
|
10,996
|
|
8,528
|
|
General and
administrative
|
1,042
|
|
1,060
|
|
4,191
|
|
4,523
|
|
Total operating
expenses
|
5,742
|
|
6,019
|
|
24,150
|
|
19,405
|
|
Operating income
(loss)
|
2,229
|
|
(778)
|
|
2,595
|
|
1,123
|
|
Financial income,
net
|
64
|
|
41
|
|
389
|
|
816
|
|
Income (loss) before
taxes
|
2,293
|
|
(737)
|
|
2,984
|
|
1,939
|
|
Taxes on
income
|
(35)
|
|
-
|
|
(83)
|
|
(24)
|
|
Net income
(loss)
|
$
2,258
|
|
$
(737)
|
|
$
2,901
|
|
$
1,915
|
|
Basic net income
(loss) per
ordinary
share
|
$
0.17
|
|
$
(0.06)
|
|
$
0.24
|
|
$
0.18
|
|
Diluted net income
(loss) per
ordinary
share
|
$
0.17
|
|
$
(0.06)
|
|
$
0.23
|
|
$
0.18
|
|
Weighted average
number of
ordinary shares used in
computing basic net income (loss)
per ordinary share
|
13,050,849
|
|
11,548,059
|
|
12,039,176
|
|
10,406,897
|
|
Weighted average
number of
ordinary shares used in
computing diluted net income (loss)
per ordinary share
|
13,339,174
|
|
11,548,059
|
|
12,351,566
|
|
10,779,547
|
|
RADCOM
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL INFORMATION
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
Three months
ended December
31,
|
|
Twelve months
ended December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
GAAP gross
profit
|
$
7,971
|
|
$
5,241
|
|
$
26,745
|
|
$
20,528
|
Stock-based
compensation
|
55
|
|
37
|
|
189
|
|
118
|
Importation tax
write-off
|
-
|
|
388
|
|
-
|
|
388
|
Non-GAAP gross
profit
|
$
8,026
|
|
$
5,666
|
|
$
26,934
|
|
$
21,034
|
|
|
|
|
|
|
|
|
GAAP research and
development, net
|
$
1,923
|
|
$
2,042
|
|
$
8,963
|
|
$
6,354
|
Stock-based
compensation
|
134
|
|
231
|
|
473
|
|
625
|
Non-GAAP research and
development, net
|
$
1,789
|
|
$
1,811
|
|
$
8,490
|
|
$
5,729
|
|
|
|
|
|
|
|
|
GAAP sales and
marketing, net
|
$
2,777
|
|
$
2,917
|
|
$
10,996
|
|
$
8,528
|
Stock-based
compensation
|
105
|
|
75
|
|
499
|
|
199
|
Non-GAAP sales and
marketing, net
|
$
2,672
|
|
$
2,842
|
|
$
10,497
|
|
$
8,329
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
1,042
|
|
$
1,060
|
|
$
4,191
|
|
$
4,523
|
Stock-based
compensation
|
196
|
|
428
|
|
1,055
|
|
1,529
|
Non-GAAP general and
administrative
|
$
846
|
|
$
632
|
|
$
3,136
|
|
$
2,994
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
$
5,742
|
|
$
6,019
|
|
$
24,150
|
|
$
19,405
|
Stock-based
compensation
|
435
|
|
734
|
|
2,027
|
|
2,353
|
Non-GAAP total
operating expenses
|
$
5,307
|
|
$
5,285
|
|
$
22,123
|
|
$
17,052
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
2,229
|
|
$
(778)
|
|
$
2,595
|
|
$
1,123
|
Stock-based
compensation
|
490
|
|
771
|
|
2,216
|
|
2,471
|
Importation tax
write-off
|
-
|
|
388
|
|
-
|
|
388
|
Non-GAAP operating
income
|
$
2,719
|
|
$
381
|
|
$
4,811
|
|
$
3,982
|
|
|
|
|
|
|
|
|
GAAP income (loss)
before taxes on income
|
$
2,293
|
|
$
(737)
|
|
$
2,984
|
|
$
1,939
|
Stock-based
compensation
|
490
|
|
771
|
|
2,216
|
|
2,471
|
Importation tax
write-off
|
-
|
|
388
|
|
-
|
|
388
|
Non-GAAP income before
taxes on income
|
$
2,783
|
|
$
422
|
|
$
5,200
|
|
$
4,798
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
2,258
|
|
$
(737)
|
|
$
2,901
|
|
$
1,915
|
Stock-based
compensation
|
490
|
|
771
|
|
2,216
|
|
2,471
|
Importation tax
write-off
|
-
|
|
388
|
|
-
|
|
388
|
Non-GAAP net
income
|
$
2,748
|
|
$
422
|
|
$
5,117
|
|
$
4,774
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
per diluted share
|
$
0.17
|
|
$
(0.06)
|
|
$
0.23
|
|
$
0.18
|
Stock-based
compensation
|
0.04
|
|
0.07
|
|
0.18
|
|
0.22
|
Importation tax
write-off
|
-
|
|
0.03
|
|
-
|
|
0.04
|
Non-GAAP net income per
diluted share
|
$
0.21
|
|
$
0.04
|
|
$
0.41
|
|
$
0.44
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used to compute diluted net income per share
|
13,339,174
|
|
11,920,521
|
|
12,351,566
|
|
10,779,547
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
|
|
|
|
As
of
|
|
As
of
|
|
December
31,
2017
|
|
December
31,
2016
|
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
22,575
|
|
$
42,886
|
Restricted bank
deposits
|
36
|
|
32
|
Short-term
bank deposits
|
40,000
|
|
-
|
Trade receivables,
net
|
20,266
|
|
4,388
|
Inventories
|
1,199
|
|
623
|
Other receivables
|
2,685
|
|
1,960
|
|
|
|
|
Total Current
Assets
|
86,761
|
|
49,889
|
|
|
|
|
Severance pay
fund
|
3,052
|
|
2,788
|
|
|
|
|
Other long-term
receivables
|
172
|
|
375
|
|
|
|
|
Property and
equipment, net
|
1,924
|
|
1,516
|
|
|
|
|
Total
Assets
|
$
91,909
|
|
$
54,568
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,828
|
|
$
2,820
|
Deferred revenue
|
2,601
|
|
2,593
|
Employee and
payroll accruals
|
4,062
|
|
3,541
|
Other payables and accrued expenses
|
3,428
|
|
2,081
|
|
|
|
|
Total Current
Liabilities
|
11,919
|
|
11,035
|
Long-Term
Liabilities
|
|
|
|
Deferred revenue
|
21
|
|
123
|
Accrued severance
pay
|
3,573
|
|
3,267
|
|
|
|
|
Total Long-Term
Liabilities
|
3,594
|
|
3,390
|
|
|
|
|
Total
Liabilities
|
$
15,513
|
|
$
14,425
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
$
628
|
|
$
523
|
Additional paid-in
capital
|
131,491
|
|
98,283
|
Accumulated other comprehensive loss
|
(2,520)
|
|
(2,559)
|
Accumulated
deficit
|
(53,203)
|
|
(56,104)
|
|
|
|
|
Total Shareholders'
Equity
|
76,396
|
|
40,143
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
91,909
|
|
$
54,568
|
For all investor enquiries, please contact:
Ran Vered
CFO
+972-77-774-5011
ranv@radcom.com
For all media enquiries, please contact:
Mark Rolston
Marketing Manager
+972-77-774-5036
markr@radcom.com
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content:http://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2017-financial-results-300597793.html
SOURCE RADCOM Ltd.