TEL AVIV, Israel, May 12, 2020 /PRNewswire/ -- RADCOM
Ltd. (Nasdaq: RDCM) today reported its financial results
for the first quarter ended March 31,
2020.
Commenting on the results, Eyal
Harari, RADCOM's CEO said: "We are pleased with
our progress this quarter as we continued to enhance our
virtualized technology and deliver on our customer commitments
without interruption, despite the spread of COVID-19. This progress
included playing an important role in Rakuten Mobile's commercial
launch of its greenfield, fully virtualized network in Japan last month.
"Our first-quarter revenues were in line with our expectations
with little impact from the COVID-19 global pandemic. Our expenses
in this quarter were impacted by one-time hardware component
expenses related to one of our projects as well as delayed
grants. Though there is uncertainty due to COVID-19 and its
global economic impacts that could affect sales cycles, we are
well-positioned with a strong balance sheet, multi-year contracts
with industry-leading customers, and a belief that the telecom
market will remain resilient. Based on current industry conditions
and our visibility, we are reaffirming our 2020 revenue guidance
range of $35 million to $38 million.
"We are proud of the major role we played in Rakuten Mobile's
commercial launch of the world's first fully virtualized mobile
network. The use of our technology in this groundbreaking project
further cements our position as the leading, most advanced
cloud-native assurance vendor for operators building new
virtualized platforms for the launch of 5G. RADCOM's innovative
offerings helped Rakuten Mobile launch this new virtualized network
and ensured the delivery of superior customer experience. We
believe our continued work with them is a testament to our market
leadership and advanced solutions and that our experience and
expertise will be valuable as more and more operators transition to
5G.
"We continue to believe in 5G and the underlying virtualized
solutions needed for this technology transition. During the
quarter, we focused on 5G in research and development to enhance
our 5G offering while also deploying the initial phase of 5G with
one of our customers. Despite current market conditions, we expect
the telecom industry to continue to move forward with planned
rollouts of 5G networks.
"As a company, our top priority has been the health and welfare
of our employees. We efficiently implemented secure work-from-home
arrangements for all employees, allowing them to continue our
product development activities and to support our customers without
interruption. We continue to follow local and regional guidelines
regarding safe distancing and stay-at-home policies. We are
encouraged by our organization's flexibility during these difficult
times."
First Quarter 2020 Financial Highlights:
- Revenues: Total revenues for the first quarter were
$8.3 million, compared to
$6.0 million in the first quarter of
2019.
- Net loss: GAAP net loss for the quarter decreased
to $2.9 million, or $0.21 per diluted share, compared to a GAAP net
loss of $3.1 million, or $0.23 per diluted share for the first quarter of
2019.
- Non-GAAP net loss: Non-GAAP net loss for the period
decreased to $2.4 million, or
$0.17 per diluted share, compared to
a non-GAAP net loss of $2.7 million,
or $0.20 per diluted share for the
first quarter of 2019.
- Balance sheet: As of March 31,
2020, the Company had cash and cash equivalents and
short-term bank deposits of $63.3
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): +1-888-407-2553
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay
will be available on RADCOM's website later the same day.
About RADCOM
RADCOM (Nasdaq: RDCM) is the leading expert in 5G ready
cloud-native, network intelligence solutions for telecom operators
transitioning to 5G. RADCOM Network Intelligence consists of RADCOM
Network Visibility, RADCOM Service Assurance, and RADCOM Network
Insights. The RADCOM Network Intelligence suite offers intelligent,
container-based, on-demand solutions to deliver 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 and cutting edge techniques based on 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 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 investment in technology and R&D, maintaining
technological leadership and delivering real value for early
adopters, the expected transition to and rollout of 5G networks,
the Company's market position, and leadership, the resiliency of
the telecom market, the Company's expectation to be well-positioned
to handle uncertainties and other impacts due to COVID-19 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
March 31,
|
|
2020
|
|
2019
|
Revenues
|
$
8,328
|
|
$
6,046
|
Cost of
revenues
|
3,109
|
|
1,837
|
Gross
profit
|
5,219
|
|
4,209
|
Research and
development, gross
|
4,790
|
|
4,645
|
Less -
royalty-bearing participation
|
-
|
|
404
|
Research and
development, net
|
4,790
|
|
4,241
|
Sales and
marketing
|
2,453
|
|
2,446
|
General and
administrative
|
1,023
|
|
797
|
Total operating
expenses
|
8,266
|
|
7,484
|
Operating
loss
|
(3,047)
|
|
(3,275)
|
Financial income,
net
|
170
|
|
140
|
Loss before taxes on
income
|
(2,877)
|
|
(3,135)
|
Taxes on
income
|
(32)
|
|
(9)
|
Net loss
|
$
(2,909)
|
|
$
(3,144)
|
Basic and diluted net
loss per
ordinary
share
|
$
(0.21)
|
|
$
(0.23)
|
Weighted average
number of
ordinary shares used in
computing basic and diluted
net loss per ordinary share
|
13,875,833
|
|
13,749,528
|
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 March
31,
|
|
2020
|
|
2019
|
GAAP gross
profit
|
$
5,219
|
|
$
4,209
|
Stock-based compensation
|
29
|
|
29
|
Non-GAAP gross profit
|
$
5,248
|
|
$
4,238
|
GAAP Research and development, net
|
$
4,790
|
|
$
4,241
|
Stock-based compensation
|
167
|
|
178
|
Non-GAAP Research and development, net
|
$
4,623
|
|
$
4,063
|
GAAP sales
and marketing
|
$
2,453
|
|
$
2,446
|
Stock-based compensation
|
143
|
|
146
|
Non-GAAP sales
and marketing
|
$
2,310
|
|
$
2,300
|
GAAP general and administrative
|
$
1,023
|
|
$
797
|
Stock-based compensation
|
185
|
|
87
|
Non-GAAP general and administrative
|
$
838
|
|
$
710
|
GAAP total operating expenses
|
$
8,266
|
|
$
7,484
|
Stock-based compensation
|
495
|
|
411
|
Non-GAAP total operating expenses
|
$
7,771
|
|
$
7,073
|
GAAP operating loss
|
$
(3,047)
|
|
$
(3,275)
|
Stock-based compensation
|
524
|
|
440
|
Non-GAAP operating loss
|
$
(2,523)
|
|
$
(2,835)
|
GAAP loss before taxes on income
|
$
(2,877)
|
|
$
(3,135)
|
Stock-based compensation
|
524
|
|
440
|
Non-GAAP loss before taxes on income
|
$
(2,353)
|
|
$
(2,695)
|
GAAP net
loss
|
$
(2,909)
|
|
$
(3,144)
|
Stock-based compensation
|
524
|
|
440
|
Non-GAAP net loss
|
$
(2,385)
|
|
$
(2,704)
|
GAAP net loss per diluted share
|
$
(0.21)
|
|
$
(0.23)
|
Stock-based compensation
|
0.04
|
|
0.03
|
Non-GAAP net loss
per diluted share
|
$
(0.17)
|
|
$
(0.20)
|
Weighted average number of shares used
to
compute diluted net loss per share
|
13,875,833
|
|
13,749,528
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
March
31,
2020
|
|
December
31,
2019
|
|
(unaudited)
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
4,766
|
|
$
6,201
|
Short-term bank
deposits
|
58,526
|
|
63,080
|
Trade receivables,
net
|
12,732
|
|
11,039
|
Inventories
|
431
|
|
1,356
|
Other accounts
receivable and prepaid expenses
|
1,405
|
|
1,536
|
|
|
|
|
Total Current
Assets
|
77,860
|
|
83,212
|
|
|
|
|
Non-Current
Assets
|
|
|
|
Severance pay
fund
|
3,233
|
|
3,365
|
Other long-term
receivables
|
1,985
|
|
2,314
|
Property and
equipment, net
|
1,612
|
|
1,669
|
Operating lease
right-of-use assets
|
5,426
|
|
5,842
|
Total
Non-Current Assets
|
12,256
|
|
13,190
|
|
|
|
|
Total
Assets
|
$
90,116
|
|
$
96,402
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,288
|
|
$
2,452
|
Deferred revenues and advances from customers
|
559
|
|
828
|
Employee and
payroll accruals
|
3,359
|
|
4,132
|
Operating lease liabilities
|
1,182
|
|
1,263
|
Other liabilities and accrued expenses
|
3,087
|
|
4,050
|
Total Current
Liabilities
|
9,475
|
|
12,725
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Deferred revenues
|
96
|
|
100
|
Accrued severance
pay
|
3,929
|
|
3,904
|
Operating lease liabilities
|
4,453
|
|
4,967
|
Other liabilities and accrued expenses
|
679
|
|
836
|
Total Non-Current Liabilities
|
9,157
|
|
9,807
|
|
|
|
|
Total
Liabilities
|
$
18,632
|
|
$
22,532
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
$
654
|
|
$
648
|
Additional paid-in
capital
|
138,487
|
|
137,969
|
Accumulated other comprehensive loss
|
(2,635)
|
|
(2,634)
|
Accumulated
deficit
|
(65,022)
|
|
(62,113)
|
|
|
|
|
Total Shareholders'
Equity
|
71,484
|
|
73,870
|
Total
Liabilities and Shareholders' Equity
|
$
90,116
|
|
$
96,402
|
Contact Details:
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
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SOURCE RADCOM Ltd.