TEL AVIV, Israel, Feb. 12, 2019 /PRNewswire/ -- RADCOM Ltd.
(NASDAQ: RDCM), today reported its financial results for the
fourth quarter and full year ended December
31, 2018.
"During 2018, we delivered successfully on our project
commitments while at the same time generating new opportunities,"
commented Mr. Yaron Ravkaie, RADCOM's CEO. "Although our results
were affected by a slower than expected pace of NFV
transformations, and while market conditions continue to affect our
visibility into when operators will implement their NFV and 5G
plans, we remain confident in the future of NFV and 5G and in our
technological leadership, our solutions and strong industry
recognition. As operators begin to roll out 5G networks,
RADCOM is well positioned as a leading assurance player for NFV,
which will be the foundation for 5G-ready cloud services. The
Company continues to invest in R&D activities, supported by our
healthy balance sheet, to push our innovative technology forward
and continue meeting the needs of our leading customers.
Taking into account market conditions, we are currently providing
revenue guidance for 2019 of $28-$32
million."
Fourth Quarter 2018 Financial Highlights:
- Revenues: Total revenues for the fourth quarter
were $4.0 million, down 62% compared
to $10.6 million in the fourth
quarter of 2017.
- Net Income (loss): GAAP net loss for the period was
$4.1 million, or $0.30 per diluted share, compared to GAAP net
income of $2.3 million, or
$0.17 per diluted share for the
fourth quarter of 2017.
- Non-GAAP Net Income (loss): Non-GAAP net loss for
the period was $3.7 million, or
$0.27 per diluted share, compared to
non-GAAP net income of $2.7 million,
or $0.21 per diluted share for the
fourth quarter of 2017.
- Balance sheet: As of December 31,
2018, the Company had cash and cash equivalents of
$62 million and no debt.
Full Year 2018 Financial Highlights:
- Revenues: Total revenues for the full year 2018 were
$34.1 million, down 8% compared to
$37.2 million in the full year
2017.
- Net Income (loss): GAAP net loss for the full year 2018
was $2.4 million, or $0.18 per diluted share, compared to GAAP net
income of $2.9 million, or
$0.23 per diluted share for the full
year 2017.
- Non-GAAP Net Income (loss): Non-GAAP net loss for
the period was $0.3 million, or
$0.02 per diluted share, compared to
non-GAAP net income of $5.1 million,
or $0.41 per diluted share for the
full year 2017.
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 8:00
AM Eastern Time (3:00 PM
Israel Standard 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): +1-888-407-2553
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay
will be available from February
13th on RADCOM's website.
About RADCOM
RADCOM (NASDAQ: RDCM) is the leading expert in cloud-native
Network Intelligence for telecom operators transitioning to
SDN/NFV. Providing a critical first step in an operator's NFV
transformation, RADCOM's Network Intelligence delivers end-to-end
network visibility from virtual tapping point to network insights.
Comprised of RADCOM Service Assurance, RADCOM Network Visibility,
and RADCOM Network Insights, RADCOM's Network Intelligence
portfolio provides operators with complete visibility across their
virtual and hybrid networks. RADCOM Network Intelligence is
automated, cost-efficient, and provides on-demand
functionality that is specifically designed for the needs of
telecom operators. 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, 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 continued investment in technology to meet the needs
of its clients, the expected role of NFV and the Companby's
solutions in 5G networks, the Company's technological leadership or
industry recognition, the Company's pipeline of opportunities, and
its revenue guidance, 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,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
Revenues
|
$
3,989
|
|
$
10,631
|
|
$
34,050
|
|
$
37,233
|
|
Cost of
revenues
|
1,439
|
|
2,660
|
|
8,866
|
|
10,488
|
|
Gross
profit
|
2,550
|
|
7,971
|
|
25,184
|
|
26,745
|
|
Research and
development, gross
|
4,074
|
|
3,055
|
|
15,503
|
|
10,562
|
|
Less -
royalty-bearing participation
|
366
|
|
1,132
|
|
1,648
|
|
1,599
|
|
Research and
development, net
|
3,708
|
|
1,923
|
|
13,855
|
|
8,963
|
|
Sales and marketing,
net
|
2,701
|
|
2,777
|
|
11,426
|
|
10,996
|
|
General and
administrative
|
744
|
|
1,042
|
|
3,391
|
|
4,191
|
|
Total operating
expenses
|
7,153
|
|
5,742
|
|
28,672
|
|
24,150
|
|
Operating income
(loss)
|
(4,603)
|
|
2,229
|
|
(3,488)
|
|
2,595
|
|
Financial income,
net
|
481
|
|
64
|
|
1,136
|
|
389
|
|
Income (loss) before
taxes on income
|
(4,122)
|
|
2,293
|
|
(2,352)
|
|
2,984
|
|
Taxes on
income
|
(6)
|
|
(35)
|
|
(63)
|
|
(83)
|
|
Net income
(loss)
|
$
(4,128)
|
|
$
2,258
|
|
$
(2,415)
|
|
$
2,901
|
|
Basic net income
(loss) per
ordinary
share
|
$
(0.30)
|
|
$
0.17
|
|
$
(0.18)
|
|
$
0.24
|
|
Diluted net income
(loss) per
ordinary
share
|
$
(0.30)
|
|
$
0.17
|
|
$
(0.18)
|
|
$
0.23
|
|
Weighted average
number of
ordinary shares used in
computing basic net income (loss)
per ordinary share
|
13,719,649
|
|
13,050,849
|
|
13,630,793
|
|
12,039,176
|
|
Weighted average
number of
ordinary shares used in
computing diluted net income (loss)
per ordinary share
|
13,719,649
|
|
13,339,174
|
|
13,630,793
|
|
12,351,566
|
|
RADCOM
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL INFORMATION
|
Unaudited
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
Three months
ended December
31,
|
Twelve months
ended
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP gross
profit
|
$
2,550
|
|
$
7,971
|
|
$
25,184
|
|
$
26,745
|
Stock-based compensation
|
10
|
|
55
|
|
112
|
|
189
|
Non-GAAP gross profit
|
$
2,560
|
|
$
8,026
|
|
$
25,296
|
|
$
26,934
|
GAAP research and development, net
|
$
3,708
|
|
$
1,923
|
|
$
13,855
|
|
$
8,963
|
Stock-based compensation
|
187
|
|
134
|
|
808
|
|
473
|
Non-GAAP research and development, net
|
$
3,521
|
|
$
1,789
|
|
$
13,047
|
|
$
8,490
|
GAAP sales
and marketing, net
|
$
2,701
|
|
$
2,777
|
|
$
11,426
|
|
$
10,996
|
Stock-based compensation
|
115
|
|
105
|
|
698
|
|
499
|
Non-GAAP sales
and marketing, net
|
$
2,586
|
|
$
2,672
|
|
$
10,728
|
|
$
10,497
|
GAAP general and administrative
|
$
744
|
|
$
1,042
|
|
$
3,391
|
|
$
4,191
|
Stock-based compensation
|
101
|
|
196
|
|
503
|
|
1,055
|
Non-GAAP general and administrative
|
$
643
|
|
$
846
|
|
$
2,888
|
|
$
3,136
|
GAAP total operating expenses
|
$
7,153
|
|
$
5,742
|
|
$
28,672
|
|
$
24,150
|
Stock-based compensation
|
403
|
|
435
|
|
2,009
|
|
2,027
|
Non-GAAP total operating expenses
|
$
6,750
|
|
$
5,307
|
|
$
26,663
|
|
$
22,123
|
GAAP operating income (loss)
|
$
(4,603)
|
|
$
2,229
|
|
$
(3,488)
|
|
$
2,595
|
Stock-based compensation
|
413
|
|
490
|
|
2,121
|
|
2,216
|
Non-GAAP operating income (loss)
|
$
(4,190)
|
|
$
2,719
|
|
$
(1,367)
|
|
$
4,811
|
GAAP income (loss) before taxes on
income
|
$
(4,122)
|
|
$
2,293
|
|
$
(2,352)
|
|
$
2,984
|
Stock-based compensation
|
413
|
|
490
|
|
2,121
|
|
2,216
|
Non-GAAP income
(loss) before taxes on income
|
$
(3,709)
|
|
$
2,783
|
|
$
(231)
|
|
$
5,200
|
GAAP net income (loss)
|
$
(4,128)
|
|
$
2,258
|
|
$
(2,415)
|
|
$
2,901
|
Stock-based compensation
|
413
|
|
490
|
|
2,121
|
|
2,216
|
Non-GAAP net income (loss)
|
$
(3,715)
|
|
$
2,748
|
|
$
(294)
|
|
$
5,117
|
GAAP net income (loss)
per diluted share
|
$
(0.30)
|
|
$
0.17
|
|
$
(0.18)
|
|
$
0.23
|
Stock-based compensation
|
0.03
|
|
0.04
|
|
0.16
|
|
0.18
|
Non-GAAP net income
(loss) per diluted share
|
$
(0.27)
|
|
$
0.21
|
|
$
(0.02)
|
|
$
0.41
|
Weighted average number of shares used
to compute diluted net income (loss)
per share
|
13,719,649
|
|
13,339,174
|
|
13,630,793
|
|
12,351,566
|
|
|
|
|
|
|
|
|
RADCOM
Ltd.
Consolidated
Balance Sheets
(thousands of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
December
31,
2018
|
|
December
31,
2017
|
|
(unaudited)
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
61,988
|
|
$
22,575
|
Restricted bank
deposit
|
-
|
|
36
|
Short-term
bank deposit
|
-
|
|
40,000
|
Trade receivables,
net
|
20,381
|
|
20,266
|
Inventories
|
251
|
|
1,199
|
Other receivables
|
1,766
|
|
2,685
|
Total Current
Assets
|
84,386
|
|
86,761
|
Severance pay
fund
|
2,967
|
|
3,052
|
Other long-term
receivables
|
346
|
|
172
|
Property and
equipment, net
|
1,832
|
|
1,924
|
|
|
|
|
Total
Assets
|
$
89,531
|
|
$
91,909
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,559
|
|
$
1,828
|
Deferred revenue
|
266
|
|
2,601
|
Employee and payroll accruals
|
3,420
|
|
4,062
|
Other payables and accrued expenses
|
2,281
|
|
3,428
|
Total Current
Liabilities
|
7,526
|
|
11,919
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Deferred revenue
|
100
|
|
21
|
Accrued severance
pay
|
3,425
|
|
3,573
|
Total
Non-Current Liabilities
|
3,525
|
|
3,594
|
|
|
|
|
Total
Liabilities
|
$
11,051
|
|
$
15,513
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
$
643
|
|
$
628
|
Additional paid-in
capital
|
135,730
|
|
131,491
|
Accumulated other comprehensive loss
|
(2,612)
|
|
(2,520)
|
Accumulated
deficit
|
(55,281)
|
|
(53,203)
|
|
|
|
|
Total Shareholders'
Equity
|
78,480
|
|
76,396
|
Total Liabilities
and Shareholders' Equity
|
$
89,531
|
|
$
91,909
|
For all investor enquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
+1-917-607-8654
msegal@ms-ir.com
Company Contact:
Amir Hai
CFO
+972-77-774-5011
amir.hai@radcom.com
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content:http://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2018-results-300793994.html
SOURCE RADCOM Ltd.