RADCOM Reports Third Quarter 2019 Results

Date : 11/07/2019 @ 12:00PM
Source : PR Newswire (US)
Stock : Radcom Ltd (RDCM)
Quote : 6.28  0.28 (4.67%) @ 9:10PM

RADCOM Reports Third Quarter 2019 Results

Radcom (NASDAQ:RDCM)
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TEL AVIV, Israel, Nov. 7, 2019 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the third quarter ended September 30, 2019.

"We are pleased to announce that RADCOM's revenue grew 10% over the previous quarter. We have experienced steady growth this year, reflecting the continued progress we are making with our advanced virtual technology as well as the success of our agreements with Rakuten Mobile, AT&T, and other customers," commented Mr. Yaron Ravkaie, RADCOM's CEO. "We are encouraged by the traction we are gaining due to our technological expertise, evidenced by our increasing customer base, which includes multi-year agreements with Rakuten Mobile and now VimpelCom, one of the leading operators in Russia. These partnerships are providing us with enhanced, multi-year visibility into the Company's revenue stream."

Third Quarter 2019 Financial Highlights:

  • Revenues: Total revenues for the third quarter were $9.4 million, up 10% compared to $8.5 million in the third quarter of 2018.   
  • Net Income (loss): GAAP net loss for the period was $(1.7) million, or $(0.12) per diluted share, compared to GAAP net income of $0.6 million, or $0.05 per diluted share for the third quarter of 2018. 
  • Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $(1.0) million, or $(0.07) per diluted share, compared to non-GAAP net income of $1.0 million, or $0.07 per diluted share for the third quarter of 2018.   
  • Balance sheet: As of September 30, 2019, the Company had cash and cash equivalents and short-term bank deposits of $68.1 million and no debt.

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Standard 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 November 8th on RADCOM's website.

About RADCOM

RADCOM (Nasdaq: RDCM) is the leading expert in cloud-native, container-based network intelligence solutions for telecom operators transitioning to NFV and 5G. Powered by RADCOM's patented I.C.O.N technology, the RADCOM Network Intelligence suite delivers Intelligent, Container-based, On-demand, Network Analysis from the RAN to the Core for 5G assurance, utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. Utilizing cutting edge technology such as AI and machine learning, these solutions work in harmony to provide operators an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. 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, 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 continuing progress and continuing traction in its business and technology, its increasing customer base, its visibility and revenue stream, 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
September 30,


Nine months ended
September 30,


2019


2018


2019


2018

Revenues

$       9,389


$       8,519


$     23,981


$     30,061

Cost of revenues

3,283


1,660


7,274


7,427

Gross profit

6,106


6,859


16,707


22,634

Research and development, gross

4,699


3,933


13,921


11,429

Less - royalty-bearing participation

597


528


1,413


1,282

Research and development, net

4,102


3,405


12,508


10,147

Sales and marketing

2,758


2,401


7,821


8,725

General and administrative

1,064


657


2,711


2,647

Total operating expenses

7,924


6,463


23,040


21,519

Operating income (loss)

(1,818)


396


(6,333)


1,115

Financial income, net

217


282


698


655

Income (loss) before taxes on income

(1,601)


678


(5,635)


1,770

Taxes on income

(59)


(44)


(105)


(57)









Net income (loss)

$        (1,660)


$          634


$       (5,740)


$       1,713









Basic net income (loss) per

ordinary share

$          (0.12)


$         0.05


$         (0.42)


$      0.13

Diluted net income (loss) per

ordinary share

$          (0.12)


$         0.05


$         (0.42)


$      0.12

 

Weighted average number of 
 ordinary shares used in computing basic net income
(loss) per ordinary share

13,797,115


13,701,844


13,769,987


13,600,849

 

Weighted average number of       
ordinary shares used in computing diluted net income
(loss) per ordinary share

13,797,115


13,916,306


13,769,987


13,851,324

 

 

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 
September 30,


Nine months ended
September 30,


2019


2018


2019


2018

GAAP gross profit                                                                                                                                           

$       6,106


$       6,859


$      16,707


$      22,634

Stock-based compensation

61


25


156


102

Non-GAAP gross profit

$       6,167


$       6,884


$      16,863


$      22,736

 

GAAP research and development, net

$       4,102


$       3,405


$      12,508


$      10,147

Stock-based compensation

211


210


568


621

Non-GAAP research and development, net

$       3,891


$       3,195


$      11,940


$       9,526

 

GAAP sales and marketing

$       2,758


$       2,401


$       7,821


$       8,725

Stock-based compensation

148


121


478


583

Non-GAAP sales and marketing

$       2,610


$       2,280


$       7,343


$       8,142

 

GAAP general and administrative

$       1,064


$          657


$        2,711


$        2,647

Stock-based compensation

252


10


435


402

Non-GAAP general and administrative

$          812


$          647


$        2,276


$        2,245

 

GAAP total operating expenses

$       7,924


$       6,463


$      23,040


$       21,519

Stock-based compensation

611


341


1,481


1,606

Non-GAAP total operating expenses

$       7,313


$       6,122


$     21,559


$       19,913

 

GAAP operating income (loss)

$    (1,818)


$          396


$     (6,333)


$       1,115

Stock-based compensation

672


366


1,637


1,708

Non-GAAP operating income (loss)

$    (1,146)


$          762


$     (4,696)


$       2,823

 

GAAP income (loss) before taxes on income

$    (1,601)


$          678


$     (5,635)


$       1,770

Stock-based compensation

672


366


1,637


1,708

Non-GAAP income (loss) before taxes on income

$       (929)


$       1,044


$     (3,998)


$       3,478

 

GAAP net income (loss)

$    (1,660)


$          634


$     (5,740)


$       1,713

Stock-based compensation

672


366


1,637


1,708

Non-GAAP net income (loss)

$       (988)


$       1,000


$     (4,103)


$       3,421

 

GAAP net income (loss) per diluted share

$      (0.12)


$         0.05


$       (0.42)


$         0.12

Stock-based compensation

0.05


0.02


0.12


0.12

Non-GAAP net income (loss) per diluted share

$       (0.07)


$         0.07


$       (0.30)


$        0.24

Weighted average number of shares used to compute diluted net
income (loss) per share

13,797,115


13,916,306


13,769,987


13,851,324

 

 

RADCOM Ltd.


Consolidated Balance Sheets


(thousands of U.S. dollars)





As of


As of



September 30,


December 31,


2019

2018



(unaudited)




Current Assets





     Cash and cash equivalents

$                9,504


$               61,988


     Short-term bank deposits

58,626


-


     Trade receivables, net

13,473


20,381


     Inventories

1,203


251


     Other receivables

1,561


1,766



84,367




Total Current Assets

84,386







Non-Current Assets





Severance pay fund

3,336


2,967


Other long-term receivables

2,365


346


Property and equipment, net

1,619


1,832


Operating lease right-of-use assets

5,861


-



13,181


5,145


Total  Non-Current Assets







Total Assets

$              97,548


$               89,531







Liabilities and Shareholders' Equity










Current Liabilities





       Trade payables

$                  3,143


$                 1,559


    Deferred revenues

1,048


266


       Employee and payroll accruals

3,940


3,420


    Operating lease liabilities

1,198


-


    Other payables and accrued expenses

3,813


2,281



13,142


7,526


Total Current Liabilities







Non-Current Liabilities





    Deferred revenues

100


100


    Accrued severance pay       

3,926


3,425


    Operating lease liabilities

5,024


-


    Other long-term liabilities

993


-



10,043


3,525


Total  Non-Current Liabilities







Total Liabilities

$                 23,185


$               11,051







Shareholders' Equity





     Share capital

$                      647


$                    643


     Additional paid-in capital

137,378


135,730


        Accumulated other comprehensive loss

(2,641)


(2,612)


     Accumulated deficit

(61,021)


(55,281)







Total Shareholders' Equity

74,363


78,480



$                 97,548


$               89,531


Total Liabilities and Shareholders' Equity







 

For all investor inquiries, 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

Cision View original content:http://www.prnewswire.com/news-releases/radcom-reports-third-quarter-2019-results-300953773.html

SOURCE RADCOM Ltd.

Copyright 2019 PR Newswire

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