TEL AVIV, Israel, Aug. 11, 2020 /PRNewswire/ --
- Second quarter revenues of $9.2
million
- Cash, cash equivalents and short-term bank deposits
of $66 million and no debt
- Reiterating 2020 revenue guidance range of $35-$38
million
RADCOM Ltd. (Nasdaq: RDCM) today reported its
financial results for the second quarter ended June 30, 2020.
"We are pleased by our second quarter performance, which was in
line with our full-year growth plans as we increased revenues, and
improved our bottom line while continuing to invest in R&D,"
commented Eyal Harari, RADCOM's CEO.
"Despite the challenges of COVID-19, we were able to further our
technological capabilities for 5G while following regional health
guidelines to keep our employees and customers safe. At the same
time, the telecom industry continued to move forward with 5G
rollouts."
"We were excited to announce last week the launch of RADCOM ACE
– our Automated, Containerized, End-To-End assurance solution for
5G networks. This product launch is the culmination of research and
development investments made over the last few years and our
virtualization expertise, which we gained through working with
leading operators worldwide. RADCOM ACE enables operators to
integrate assurance into their cloud platforms and automate 5G
network operations using artificial intelligence (AI)-driven
insights. As 5G implementations continue, operators will need
real-time, customer-centric insights of the network, which will
require operators to upgrade their existing service assurance
solutions to cloud-native offerings that are designed from the
ground up for 5G networks. To that end, RADCOM ACE is already being
trialed at some of the most advanced cloud-native networks
worldwide."
"We believe that RADCOM is well-positioned to take advantage of
5G opportunities as the market evolves, and more operators migrate
their networks to 5G. We believe that our strong cash position and
balance sheet enable us to continue growing and investing in our
innovative solutions, despite the uncertainty caused by the
COVID-19 pandemic. Based on the current industry conditions and our
visibility, we are reiterating our full-year 2020 revenue guidance
range of $35 million to $38 million."
Second Quarter 2020 Financial Highlights:
- Total revenues for the second quarter were $9.2 million, compared to $8.5 million in the second quarter of 2019.
- GAAP net loss for the second quarter decreased to $0.2 million, or $0.01 per diluted share, compared to a GAAP net
loss of $0.9 million, or $0.07 per diluted share for the second quarter of
2019.
- Non-GAAP net income for the period is $0.2 million, or $0.02 per diluted share, compared to a non-GAAP
net loss of $0.4 million, or loss of
$0.03 per diluted share for the
second quarter of 2019.
- As of June 30, 2020, the Company
had cash and cash equivalents and short-term bank deposits of
$66 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, the
expected transition to and roll out of 5G networks and other market
trends, the Company's market position, potential growth, the
potential in the RADCOM ACE product, the Company's expectations
regarding the impact of 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
|
|
Six months
ended
|
June
30,
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues
|
$
9,159
|
|
$
8,546
|
|
$
17,487
|
|
$
14,592
|
Cost of
revenues
|
2,143
|
|
2,154
|
|
5,252
|
|
3,991
|
Gross
profit
|
7,016
|
|
6,392
|
|
12,235
|
|
10,601
|
Research and
development, gross
|
4,710
|
|
4,577
|
|
9,500
|
|
9,222
|
Less -
royalty-bearing participation
|
572
|
|
412
|
|
572
|
|
816
|
Research and
development, net
|
4,138
|
|
4,165
|
|
8,928
|
|
8,406
|
Sales and
marketing
|
2,281
|
|
2,617
|
|
4,734
|
|
5,063
|
General and
administrative
|
906
|
|
850
|
|
1,929
|
|
1,647
|
Total operating
expenses
|
7,325
|
|
7,632
|
|
15,591
|
|
15,116
|
Operating
loss
|
(309)
|
|
(1,240)
|
|
(3,356)
|
|
(4,515)
|
Financial income,
net
|
150
|
|
341
|
|
320
|
|
481
|
Loss before taxes on
income
|
(159)
|
|
(899)
|
|
(3,036)
|
|
(4,034)
|
Taxes on
income
|
(21)
|
|
(37)
|
|
(53)
|
|
(46)
|
|
|
|
|
|
|
|
|
Net loss
|
$
(180)
|
|
$
(936)
|
|
$
(3,089)
|
|
$
(4,080)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per
|
$
(0.01)
|
|
$
(0.07)
|
|
$
(0.22)
|
|
$
(0.30)
|
ordinary
share
|
|
13,930,021
|
|
13,762,795
|
|
13,902,927
|
|
13,756,198
|
Weighted average
number of
ordinary shares
used in computing basic and diluted net loss per ordinary
share
|
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
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP gross
profit
|
$
7,016
|
|
$
6,392
|
|
$
12,235
|
|
$
10,601
|
Stock-based
compensation
|
14
|
|
66
|
|
42
|
|
95
|
Non-GAAP gross
profit
|
$
7,030
|
|
$
6,458
|
|
$
12,277
|
|
$
10,696
|
GAAP research and
development, net
|
$
4,138
|
|
$
4,165
|
|
$
8,928
|
|
$
8,406
|
Stock-based
compensation
|
251
|
|
179
|
|
418
|
|
357
|
Non-GAAP research and
development, net
|
$
3,887
|
|
$
3,986
|
|
$
8,510
|
|
$
8,049
|
GAAP sales and
marketing
|
$
2,281
|
|
$
2,617
|
|
$
4,734
|
|
$
5,063
|
Stock-based
compensation
|
44
|
|
184
|
|
187
|
|
330
|
Non-GAAP sales and
marketing
|
$
2,237
|
|
$
2,433
|
|
$
4,547
|
|
$
4,733
|
GAAP general and
administrative
|
$
906
|
|
$
850
|
|
$
1,929
|
|
$
1,647
|
Stock-based
compensation
|
102
|
|
96
|
|
287
|
|
183
|
Non-GAAP general and
administrative
|
$
804
|
|
$
754
|
|
$
1,642
|
|
$
1,464
|
GAAP total operating
expenses
|
$
7,325
|
|
$
7,632
|
|
$
15,591
|
|
$
15,116
|
Stock-based
compensation
|
397
|
|
459
|
|
892
|
|
870
|
Non-GAAP total
operating expenses
|
$
6,928
|
|
$
7,173
|
|
$
14,699
|
|
$
14,246
|
GAAP operating
loss
|
$
(309)
|
|
$
(1,240)
|
|
$
(3,356)
|
|
$
(4,515)
|
Stock-based
compensation
|
411
|
|
525
|
|
934
|
|
965
|
Non-GAAP operating
income (loss)
|
$
102
|
|
$
(715)
|
|
$
(2,422)
|
|
$
(3,550)
|
GAAP loss before taxes
on income
|
$
(159)
|
|
$
(899)
|
|
$
(3,036)
|
|
$
(4,034)
|
Stock-based
compensation
|
411
|
|
525
|
|
934
|
|
965
|
Non-GAAP income (loss)
before taxes on income
|
$
252
|
|
$
(374)
|
|
$
(2,102)
|
|
$
(3,069)
|
GAAP net
loss
|
$
(180)
|
|
$
(936)
|
|
$
(3,089)
|
|
$
(4,080)
|
Stock-based
compensation
|
411
|
|
525
|
|
934
|
|
965
|
Non-GAAP net income
(loss)
|
$
231
|
|
$
(411)
|
|
$
(2,155)
|
|
$
(3,115)
|
GAAP net loss per
diluted share
|
$
(0.01)
|
|
$
(0.07)
|
|
$
(0.22)
|
|
$
(0.30)
|
Stock-based
compensation
|
0.03
|
|
0.04
|
|
0.07
|
|
0.07
|
Non-GAAP net income
(loss) per diluted share
|
$
0.02
|
|
$
(0.03)
|
|
$
(0.15)
|
|
$
(0.23)
|
Weighted average number
of shares used to compute diluted net income (loss) per
share
|
14,329,385
|
|
13,762,795
|
|
13,902,927
|
|
13,756,198
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
June
30,
|
|
December
31,
|
2020
|
2019
|
|
(unaudited)
|
|
(audited)
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
8,234
|
|
$
6,201
|
Short-term bank
deposits
|
57,779
|
|
63,080
|
Trade receivables,
net
|
12,109
|
|
11,039
|
Inventories
|
742
|
|
1,356
|
Other accounts receivable
and prepaid expenses
|
1,353
|
|
1,536
|
|
80,217
|
|
83,212
|
Total Current
Assets
|
|
|
|
|
Non-Current
Assets
|
|
|
|
Severance pay
fund
|
3,356
|
|
3,365
|
Other long-term
receivables
|
1,695
|
|
2,314
|
Property and
equipment, net
|
1,543
|
|
1,669
|
Operating lease
right-of-use assets
|
5,064
|
|
5,842
|
|
11,658
|
|
13,190
|
Total
Non-Current Assets
|
|
|
|
|
Total
Assets
|
$
91,875
|
|
$
96,402
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,951
|
|
$
2,452
|
Deferred revenues and advances from customers
|
840
|
|
828
|
Employee and
payroll accruals
|
3,767
|
|
4,132
|
Operating lease liabilities
|
1,173
|
|
1,263
|
Other liabilities and accrued expenses
|
3,594
|
|
4,050
|
|
11,325
|
|
12,725
|
Total Current
Liabilities
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Deferred revenues
|
75
|
|
100
|
Accrued severance
pay
|
4,025
|
|
3,904
|
Operating lease liabilities
|
4,213
|
|
4,967
|
Other liabilities and accrued expenses
|
523
|
|
836
|
|
8,836
|
|
9,807
|
Total
Non-Current Liabilities
|
|
|
|
|
Total
Liabilities
|
$
20,161
|
|
$
22,532
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
$
655
|
|
$
648
|
Additional paid-in
capital
|
138,896
|
|
137,969
|
Accumulated other comprehensive loss
|
-2,635
|
|
-2,634
|
Accumulated
deficit
|
-65,202
|
|
-62,113
|
|
|
|
|
Total
Shareholders' Equity
|
71,714
|
|
73,870
|
|
$
91,875
|
|
$
96,402
|
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
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content:http://www.prnewswire.com/news-releases/radcom-reports-second-quarter-2020-results-301109773.html
SOURCE RADCOM Ltd.