TEL AVIV, Israel, Aug. 12, 2019 /PRNewswire/ -- RADCOM
Ltd. (Nasdaq: RDCM) today reported its financial results
for the second quarter ended June 30,
2019.
"We are pleased with our new strategic customer, Rakuten Mobile,
and the multi-year agreement signed with this innovative operator
in Japan. This agreement already
impacted our revenues in the second quarter, and we are delighted
with the progress already made on this pioneering project,"
commented Mr. Yaron Ravkaie, RADCOM's CEO. "Rakuten chose RADCOM
because of our deep NFV expertise, our on-going work, and
partnership with AT&T and our advanced, cutting-edge virtual
technology. This strong vote of confidence in our technology
further cements our position as the leading, most advanced NFV
assurance vendor for operators transitioning to NFV and planning
their 5G rollouts."
Second Quarter 2019 Financial Highlights:
- Revenues: Total revenues for the second quarter
were $8.5 million, down 20% compared
to $10.6 million in the second
quarter of 2018.
- Net Income (loss): GAAP net loss for the period was
$(0.9) million, or $(0.07) per diluted share, compared to GAAP net
income of $0.8 million, or
$0.05 per diluted share for the
second quarter of 2018.
- Non-GAAP Net Income (loss): Non-GAAP net loss for
the period was $(0.4) million, or
$(0.03) per diluted share, compared
to non-GAAP net income of $1.4
million, or $0.10 per diluted
share for the second quarter of 2018.
- Balance sheet: As of June 30,
2019, the Company had cash and cash equivalents and
short-term bank deposits of $58.6
million and no debt.
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 8:00
AM Eastern Daylight Time (3:00
PM Israel Daylight 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 August
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, the expected role of NFV and
the Company's solutions in 5G networks, transition to NFV and
adoption of 5G, the success of the engagement with Rakuten Mobile,
the Company's market position, 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
|
Unaudited
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
Three months
ended
June 30,
|
|
|
Six months
ended
June 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
8,546
|
|
$
|
10,639
|
|
$
|
14,592
|
|
$
|
21,542
|
Cost of
revenues
|
|
2,154
|
|
|
2,877
|
|
|
3,991
|
|
|
5,767
|
Gross
profit
|
|
6,392
|
|
|
7,762
|
|
|
10,601
|
|
|
15,775
|
Research and
development, gross
|
|
4,577
|
|
|
3,752
|
|
|
9,222
|
|
|
7,496
|
Less -
royalty-bearing participation
|
|
412
|
|
|
754
|
|
|
816
|
|
|
754
|
Research and
development, net
|
|
4,165
|
|
|
2,998
|
|
|
8,406
|
|
|
6,742
|
Sales and
marketing
|
|
2,617
|
|
|
3,084
|
|
|
5,063
|
|
|
6,324
|
General and
administrative
|
|
850
|
|
|
992
|
|
|
1,647
|
|
|
1,990
|
Total operating
expenses
|
|
7,632
|
|
|
7,074
|
|
|
15,116
|
|
|
15,056
|
Operating income
(loss)
|
|
(1,240)
|
|
|
688
|
|
|
(4,515)
|
|
|
719
|
Financial income,
net
|
|
341
|
|
|
71
|
|
|
481
|
|
|
373
|
Income (loss) before
taxes on income
|
|
(899)
|
|
|
759
|
|
|
(4,034)
|
|
|
1,092
|
Taxes on
income
|
|
(37)
|
|
|
(2)
|
|
|
(46)
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(936)
|
|
$
|
757
|
|
$
|
(4,080)
|
|
$
|
1,079
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per
ordinary
share
|
$
|
(0.07)
|
|
$
|
0.06
|
|
$
|
(0.30)
|
|
$
|
0.08
|
Diluted net income
(loss) per
ordinary
share
|
$
|
(0.07)
|
|
$
|
0.05
|
|
$
|
(0.30)
|
|
$
|
0.08
|
Weighted average
number of ordinary shares used in
computing basic net income (loss) per ordinary share
|
|
13,762,795
|
|
|
13,600,323
|
|
|
13,756,198
|
|
|
13,549,494
|
Weighted average
number of ordinary shares used in
computing diluted net income (loss) per ordinary share
|
|
13,762,795
|
|
|
13,849,488
|
|
|
13,756,198
|
|
|
13,817,995
|
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
June 30,
|
|
|
Six months ended June
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP gross
profit
|
$
|
6,392
|
|
$
|
7,762
|
|
$
|
10,601
|
|
$
|
15,775
|
Stock-based compensation
|
|
66
|
|
|
37
|
|
|
95
|
|
|
77
|
Non-GAAP gross profit
|
$
|
6,458
|
|
$
|
7,799
|
|
$
|
10,696
|
|
$
|
15,852
|
GAAP research and development, net
|
$
|
4,165
|
|
$
|
2,998
|
|
$
|
8,406
|
|
$
|
6,742
|
Stock-based compensation
|
|
179
|
|
|
203
|
|
|
357
|
|
|
411
|
Non-GAAP research and development, net
|
$
|
3,986
|
|
$
|
2,795
|
|
$
|
8,049
|
|
$
|
6,331
|
GAAP sales
and marketing
|
$
|
2,617
|
|
$
|
3,084
|
|
$
|
5,063
|
|
$
|
6,324
|
Stock-based compensation
|
|
184
|
|
|
233
|
|
|
330
|
|
|
462
|
Non-GAAP sales
and marketing
|
$
|
2,433
|
|
$
|
2,851
|
|
$
|
4,733
|
|
$
|
5,862
|
GAAP general and administrative
|
$
|
850
|
|
$
|
992
|
|
$
|
1,647
|
|
$
|
1,990
|
Stock-based compensation
|
|
96
|
|
|
193
|
|
|
183
|
|
|
392
|
Non-GAAP general and administrative
|
$
|
754
|
|
$
|
799
|
|
$
|
1,464
|
|
$
|
1,598
|
GAAP total operating expenses
|
$
|
7,632
|
|
$
|
7,074
|
|
$
|
15,116
|
|
$
|
15,056
|
Stock-based compensation
|
|
459
|
|
|
629
|
|
|
870
|
|
|
1,265
|
Non-GAAP total operating expenses
|
$
|
7,173
|
|
$
|
6,445
|
|
$
|
14,246
|
|
$
|
13,791
|
GAAP operating income (loss)
|
$
|
(1,240)
|
|
$
|
688
|
|
$
|
(4,515)
|
|
$
|
719
|
Stock-based compensation
|
|
525
|
|
|
666
|
|
|
965
|
|
|
1,342
|
Non-GAAP operating income (loss)
|
$
|
(715)
|
|
$
|
1,354
|
|
$
|
(3,550)
|
|
$
|
2,061
|
GAAP income (loss)
before taxes on income
|
$
|
(899)
|
|
$
|
759
|
|
$
|
(4,034)
|
|
$
|
1,092
|
Stock-based compensation
|
|
525
|
|
|
666
|
|
|
965
|
|
|
1,342
|
Non-GAAP income
(loss) before taxes on income
|
$
|
(374)
|
|
$
|
1,425
|
|
$
|
(3,069)
|
|
$
|
2,434
|
GAAP net
income (loss)
|
$
|
(936)
|
|
$
|
757
|
|
$
|
(4,080)
|
|
$
|
1,079
|
Stock-based compensation
|
|
525
|
|
|
666
|
|
|
965
|
|
|
1,342
|
Non-GAAP net income (loss)
|
$
|
(411)
|
|
$
|
1,423
|
|
$
|
(3,115)
|
|
$
|
2,421
|
GAAP net income
(loss) per diluted share
|
$
|
(0.07)
|
|
$
|
0.05
|
|
$
|
(0.30)
|
|
$
|
0.08
|
Stock-based compensation
|
|
0.04
|
|
|
0.05
|
|
|
0.07
|
|
|
0.10
|
Non-GAAP net income (loss)
per diluted share
|
$
|
(0.03)
|
|
$
|
0.10
|
|
$
|
(0.23)
|
|
$
|
0.18
|
Weighted average number of shares used
to
compute diluted net income
(loss) per share
|
|
13,762,795
|
|
|
13,849,488
|
|
|
13,756,198
|
|
|
13,817,995
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
As
of
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(unaudited)
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
11,260
|
|
$
|
61,988
|
Short-term bank
deposits
|
|
|
47,367
|
|
|
-
|
Trade receivables,
net
|
|
|
21,957
|
|
|
20,381
|
Inventories
|
|
|
702
|
|
|
251
|
Other
receivables
|
|
|
1,564
|
|
|
1,766
|
Total Current
Assets
|
|
|
82,850
|
|
|
84,386
|
Severance pay
fund
|
|
|
3,199
|
|
|
2,967
|
Other long-term
receivables
|
|
|
2,391
|
|
|
346
|
Property and
equipment, net
|
|
|
1,738
|
|
|
1,832
|
Operating lease
right-of-use assets
|
|
|
6,147
|
|
|
-
|
|
Total
Assets
|
|
$
|
96,325
|
|
$
|
89,531
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
Liabilities
|
|
Trade
payables
|
|
$
|
1,765
|
|
$
|
1,559
|
Deferred
revenues
|
|
|
888
|
|
|
266
|
Employee and payroll
accruals
|
|
|
3,559
|
|
|
3,420
|
Operating lease
liabilities
|
|
|
1,176
|
|
|
-
|
Other payables and
accrued expenses
|
|
|
3,228
|
|
|
2,281
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
10,616
|
|
|
7,526
|
|
Long-Term
Liabilities
|
|
|
|
|
|
|
Deferred
revenues
|
|
|
206
|
|
|
100
|
Accrued severance
pay
|
|
|
3,762
|
|
|
3,425
|
Operating lease
liabilities
|
|
|
5,236
|
|
|
-
|
Other long-term
liabilities
|
|
|
1,150
|
|
|
-
|
|
Total Long-Term
Liabilities
|
|
|
10,354
|
|
|
3,525
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
$
|
20,970
|
|
$
|
11,051
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
Share
capital
|
|
$
|
645
|
|
$
|
643
|
Additional paid-in
capital
|
|
|
136,702
|
|
|
135,730
|
Accumulated other
comprehensive loss
|
|
|
(2,631)
|
|
|
(2,612)
|
Accumulated
deficit
|
|
|
(59,361)
|
|
|
(55,281)
|
|
Total
Shareholders' Equity
|
|
|
75,355
|
|
|
78,480
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
96,325
|
|
$
|
89,531
|
For all investor enquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
Company Contact:
Amir Hai
CFO
+972-77-774-5011
amir.hai@radcom.com
View original
content:http://www.prnewswire.com/news-releases/radcom-reports-second-quarter-2019-results-300899898.html
SOURCE RADCOM Ltd.