TEL AVIV, Israel, Aug. 12, 2021 /PRNewswire/ -- RADCOM Ltd.
(NASDAQ: RDCM) today reported its financial results for the
second quarter ended June 30,
2021.
Eyal Harari, RADCOM's Chief
Executive Officer, commented, "We ended the second quarter with
revenues of $9.8 million, which
represents an eighth consecutive quarter of year-over-year revenue
growth. We continued to execute the Company strategy and invest in
our advanced 5G cloud technology as we engage in a significantly
higher number of sales opportunities. Additionally, we secured
several meaningful orders from our existing customer base during
the quarter, increasing our visibility into the second half of
2021.
"As announced in May, we were selected by a top-tier LATAM
operator during the second quarter to provide our assurance
platform – RADCOM ACE. This order covers the operator's 4G network
with the expectation of expanding to their 5G network in the
future. We continue to see increased momentum in the 5G market
worldwide, with more and more operators launching initial 5G
services and tender processes looking for 5G assurance.
"Last week, we introduced an innovative Artificial Intelligence
(AI) solution as part of RADCOM ACE, as we continue to advance our
cloud technology while expanding our 5G assurance capabilities and
enhancing our AI-driven insights. Our AI solution analyzes millions
of data sessions in real-time and can reveal underlying network
faults not otherwise quickly identified in 5G networks. This helps
operators overcome the challenges of operating complex networks and
helps ensure the quality of revenue-generating 5G services.
"5G is at the early stages of the journey, but it's an exciting
time to be in the telecom industry. 5G momentum is building, which
we believe will create additional growth opportunities. We are
already engaged in multiple opportunities at different stages of
the sales cycle and work within the 5G ecosystem to increase our
pipeline. As more operators transition to 5G, we expect the demand
for next-generation assurance solutions to increase."
Based on our current visibility, we reiterate the full year 2021
revenue guidance of $39-41
million.
Second Quarter 2021 Financial Highlights:
- Total revenues for the second quarter were $9.8 million, compared to $9.2 million in the second quarter of 2020
- GAAP net loss for the second quarter was $1.1 million, or $0.08 per diluted share, compared to a GAAP net
loss of $0.2 million, or $0.01 per diluted share for the second quarter of
2020, resulting from increased investment in research and
development as well as sales and marketing
- Non-GAAP net loss for the period was $0.3 million, or a loss of $0.02 per diluted share, compared to a non-GAAP
net income of $0.2 million, or an
income of $0.02 per diluted share for
the second quarter of 2020
- As of June 30, 2021, the Company
had cash and cash equivalents and short-term bank deposits of
$64.9 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 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): +1-866-652-8972
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
at https://radcom.com/investor-relations/.
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
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," " 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
sales opportunities, increasing its visibility into the second half
of 2021, its potential expansion with a top-tier LATAM operator,
increased momentum in the 5G market worldwide, expanding its 5G
assurance capabilities and enhancing its AI-driven insights, its
growth opportunities and pipeline, the demand for next-generation
assurance solutions built for the cloud and 5G-ready 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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
$9,756
|
|
$9,159
|
|
$18,896
|
|
$17,487
|
Cost of
revenues
|
2,466
|
|
2,143
|
|
4,833
|
|
5,252
|
Gross
profit
|
7,290
|
|
7,016
|
|
14,063
|
|
12,235
|
Research and
development, gross
|
5,226
|
|
4,710
|
|
10,330
|
|
9,500
|
Less -
royalty-bearing participation
|
70
|
|
572
|
|
138
|
|
572
|
Research and
development, net
|
5,156
|
|
4,138
|
|
10,192
|
|
8,928
|
Sales and
marketing
|
2,566
|
|
2,281
|
|
5,156
|
|
4,734
|
General and
administrative
|
1,007
|
|
906
|
|
2,000
|
|
1,929
|
Total operating
expenses
|
8,729
|
|
7,325
|
|
17,348
|
|
15,591
|
Operating
loss
|
(1,439)
|
|
(309)
|
|
(3,285)
|
|
(3,356)
|
Financial income,
net
|
382
|
|
150
|
|
500
|
|
320
|
Loss before taxes on
income
|
(1,057)
|
|
(159)
|
|
(2,785)
|
|
(3,036)
|
Taxes on
income
|
(40)
|
|
(21)
|
|
(58)
|
|
(53)
|
|
|
|
|
|
|
|
|
Net loss
|
($1,097)
|
|
($180)
|
|
($2,843)
|
|
($3,089)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per
|
($0.08)
|
|
($0.01)
|
|
($0.20)
|
|
($0.22)
|
ordinary
share
|
|
14,131,634
|
|
13,930,021
|
|
14,089,010
|
|
13,902,927
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP gross
profit
|
$7,290
|
|
$7,016
|
|
$14,063
|
|
$12,235
|
Stock-based
compensation
|
38
|
|
14
|
|
82
|
|
42
|
Non-GAAP gross
profit
|
$7,328
|
|
$7,030
|
|
$14,145
|
|
$12,277
|
|
$5,156
|
|
$4,138
|
|
$10,192
|
|
$8,928
|
GAAP research and
development, net
|
Stock-based
compensation
|
324
|
|
251
|
|
593
|
|
418
|
Non-GAAP research and
development, net
|
$4,832
|
|
$3,887
|
|
$9,599
|
|
$8,510
|
|
$2,566
|
|
$2,281
|
|
$5,156
|
|
$4,734
|
GAAP sales and
marketing
|
Stock-based
compensation
|
265
|
|
44
|
|
484
|
|
187
|
Non-GAAP sales and
marketing
|
$2,301
|
|
$2,237
|
|
$4,672
|
|
$4,547
|
|
$1,007
|
|
$906
|
|
$2,000
|
|
$1,929
|
GAAP general and
administrative
|
Stock-based
compensation
|
166
|
|
102
|
|
349
|
|
287
|
Non-GAAP general and
administrative
|
$841
|
|
$804
|
|
$1,651
|
|
$1,642
|
|
$8,729
|
|
$7,325
|
|
$17,348
|
|
$15,591
|
GAAP total operating
expenses
|
Stock-based
compensation
|
755
|
|
397
|
|
1,426
|
|
892
|
Non-GAAP total
operating expenses
|
$7,974
|
|
$6,928
|
|
$15,922
|
|
$14,699
|
|
($1,439)
|
|
($309)
|
|
($3,285)
|
|
($3,356)
|
GAAP operating
loss
|
Stock-based
compensation
|
793
|
|
411
|
|
1,508
|
|
934
|
Non-GAAP operating
income (loss)
|
($646)
|
|
$102
|
|
($1,777)
|
|
($2,422)
|
|
($1,057)
|
|
($159)
|
|
($2,785)
|
|
($3,036)
|
GAAP loss before
taxes on income
|
Stock-based
compensation
|
793
|
|
411
|
|
1,508
|
|
934
|
Non-GAAP income
(loss) before taxes on income
|
($264)
|
|
$252
|
|
($1,277)
|
|
($2,102)
|
|
($1,097)
|
|
($180)
|
|
($2,843)
|
|
($3,089)
|
GAAP net
loss
|
Stock-based
compensation
|
793
|
|
411
|
|
1,508
|
|
934
|
Non-GAAP net income
(loss)
|
($304)
|
|
$231
|
|
($1,335)
|
|
($2,155)
|
|
($0.08)
|
|
($0.01)
|
|
($0.20)
|
|
($0.22)
|
GAAP net loss per
diluted share
|
Stock-based
compensation
|
0.06
|
|
0.03
|
|
0.11
|
|
0.07
|
Non-GAAP net income
(loss) per diluted share
|
($0.02)
|
|
$0.02
|
|
($0.09)
|
|
($0.15)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used to compute diluted net income (loss) per
share
|
14,131,634
|
|
14,329,385
|
|
14,089,010
|
|
13,902,927
|
|
|
|
|
|
|
|
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
June
30,
|
|
December
31,
|
2021
|
2020
|
|
(unaudited)
|
|
(audited)
|
Current
Assets
|
|
|
|
Cash and cash equivalents
|
$6,696
|
|
$13,548
|
Short-term bank deposits
|
58,162
|
|
55,413
|
Trade receivables, net
|
13,604
|
|
12,446
|
Inventories
|
876
|
|
540
|
Other accounts receivable and prepaid expenses
|
1,628
|
|
1,437
|
|
80,966
|
|
83,384
|
Total Current
Assets
|
|
|
|
|
Non-Current
Assets
|
|
|
|
Severance pay fund
|
3,861
|
|
3,814
|
Other long-term receivables
|
1,584
|
|
2,185
|
Property and equipment, net
|
1,256
|
|
1,311
|
Operating lease right-of-use assets
|
2,361
|
|
2,945
|
|
9,062
|
|
10,255
|
Total
Non-Current Assets
|
|
|
|
|
Total
Assets
|
$90,028
|
|
$93,639
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$2,045
|
|
$1,592
|
Deferred revenues and advances from customers
|
1,309
|
|
3,149
|
Employee and
payroll accruals
|
4,391
|
|
4,414
|
Operating lease liabilities
|
962
|
|
1,028
|
Other liabilities and accrued expenses
|
4,678
|
|
4,721
|
|
13,385
|
|
12,725
|
Total Current
Liabilities
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Deferred revenues
|
-
|
|
26
|
Accrued severance
pay
|
4,437
|
|
4,473
|
Operating lease liabilities
|
1,467
|
|
2,008
|
Other liabilities and accrued expenses
|
78
|
|
209
|
|
5,982
|
|
6,716
|
Total
Non-Current Liabilities
|
|
|
|
|
Total
Liabilities
|
$19,367
|
|
$21,620
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
$667
|
|
$657
|
Additional paid-in
capital
|
141,627
|
|
140,129
|
Accumulated other comprehensive loss
|
(2,685)
|
|
(2,662)
|
Accumulated
deficit
|
(68,948)
|
|
(66,105)
|
|
|
|
|
Total
Shareholders' Equity
|
70,661
|
|
72,019
|
|
$90,028
|
|
$93,639
|
Total Liabilities
and Shareholders' Equity
|
|
|
|
|
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SOURCE RADCOM Ltd.