- Revenue grew 13% year-over-year to $12 million
- GAAP Net income of $0.6
million
- Non-GAAP Net income of $1.8
million
TEL
AVIV, Israel, May 10, 2023
/PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced
financial results for the first quarter ended March 31, 2023.
"We continued our strong momentum from 2022 into the first
quarter of 2023 with a revenue increase of 13% compared to the same
quarter last year, a fifteenth consecutive quarter of
year-over-year growth. Our solid performance and careful expense
management improved all our profitability key performance
indicators (KPIs). We also introduced some new product use cases
built using advanced artificial intelligence (AI) for 5G, commented
RADCOM's Chief Executive Officer Eyal
Harari.
Mr. Harari continued, "We significantly improved our
profitability this quarter, tripling our non-GAAP net income
compared to the first quarter of 2022 and achieving a 15% non-GAAP
net margin (5% on a GAAP basis). In addition, our GAAP
profitability reached a four-year high, driven by solid team
execution and increased revenues.
"As previously announced during the quarter, we signed an
agreement with a new customer in North
America, expanding our market share and leveraging our
success with the recent customers we secured in 2022. We believe
this encouraging momentum will continue as operators look to our
advanced cloud technology and AI-powered analytics to reduce
operational expenses and streamline operations through
automation.
"We also completed the acquisition of the assets of Continual
Ltd. We believe adding Continual's advanced mobility experience
analytics, and intellectual property, will enrich our 5G assurance
solution and create new opportunities for RADCOM in top-tier
customers like Vodafone.
Mr. Harari concluded, "Based on our current visibility,
innovative assurance solutions, and overall market opportunity, we
believe all the foundations are in place for a strong 2023. We are
reiterating our full-year 2023 revenue guidance of $50 - $53
million."
First quarter 2023 financial highlights:
- Total revenues for the first quarter were $12.0 million, compared to $10.6 million in the first quarter of 2022.
- GAAP net income for the first quarter was $0.6 million, or $0.04 per diluted share, compared to a GAAP net
loss of $0.6 million, or $0.04 per diluted share for the first quarter of
2022.
- Non-GAAP net income for the first quarter was $1.8 million, or $0.12 per diluted share, compared to a non-GAAP
net income of $0.6 million or
$0.04 per diluted share for the first
quarter of 2022.
- As of March 31, 2023, the Company
had cash, cash equivalents, and short-term bank deposits of
$77.9 million and no debt.
Earnings Conference Call
RADCOM's management will hold an interactive conference call today
at 8:00 am Eastern Time (3:00 pm Israel 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: +972-3-918-0644
For those unable to listen to the call, a replay of the
conference call will be available a few hours later in the investor
relations section on the Company'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:
Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@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 with
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
full-year 2023 revenue guidance, its momentum, the potential to
leverage Continual's technology and products to benefit RADCOM with
Vodafone and other customers, and its opportunities, 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
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,
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
12,023
|
|
$
10,624
|
Cost of
revenues
|
3,348
|
|
2,837
|
Gross profit
|
8,675
|
|
7,787
|
Research and
development, gross
|
4,769
|
|
5,559
|
Less - royalty-bearing
participation
|
262
|
|
218
|
Research and
development, net
|
4,507
|
|
5,341
|
Sales and
marketing
|
3,313
|
|
2,905
|
General and
administrative
|
1,229
|
|
1,021
|
Total operating
expenses
|
9,049
|
|
9,267
|
Operating
loss
|
(374)
|
|
(1,480)
|
Financial income,
net
|
1,026
|
|
947
|
Income (loss) before
taxes on income
|
652
|
|
(533)
|
Taxes on
income
|
(31)
|
|
(59)
|
|
|
|
|
Net income
(loss)
|
$
621
|
|
$
(592)
|
|
|
|
|
Basic and diluted net
income (loss) per
ordinary
share
|
$
0.04
|
|
$
(0.04)
|
Weighted average number
of
ordinary shares used in computing basic net loss per
ordinary share
|
14,891,425
|
|
14,321,861
|
Weighted average number
of
ordinary shares used in computing diluted
net loss per ordinary share
|
15,569,410
|
|
14,321,861
|
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,
|
|
2023
|
|
2022
|
GAAP gross
profit
|
$
8,675
|
|
$
7,787
|
Stock-based compensation
|
89
|
|
92
|
Non-GAAP
gross profit
|
$
8,764
|
|
$
7,879
|
GAAP research and
development, net
|
$
4,507
|
|
$
5,341
|
Stock-based compensation
|
545
|
|
611
|
Non-GAAP
research and development, net
|
$
3,962
|
|
$
4,730
|
GAAP sales and
marketing
|
$
3,313
|
|
$
2,905
|
Stock-based compensation
|
308
|
|
307
|
Non-GAAP
sales and marketing
|
$
3,005
|
|
$
2,598
|
GAAP general and
administrative
|
$
1,229
|
|
$
1,021
|
Stock-based compensation
|
265
|
|
196
|
Non-GAAP
general and administrative
|
$
964
|
|
$
825
|
GAAP total operating
expenses
|
$
9,049
|
|
$
9,267
|
Stock-based compensation
|
1,118
|
|
1,114
|
Non-GAAP
total operating expenses
|
$
7,931
|
|
$
8,153
|
GAAP operating
loss
|
$
(374)
|
|
$
(1,480)
|
Stock-based compensation
|
1,207
|
|
1,206
|
Non-GAAP
operating income (loss)
|
$
833
|
|
$
(274)
|
GAAP income (loss)
before taxes on income
|
$
652
|
|
$
(533)
|
Stock-based compensation
|
1,207
|
|
1,206
|
Non-GAAP
income before taxes on income
|
$
1,859
|
|
$
673
|
GAAP net income
(loss)
|
$
621
|
|
$
(592)
|
Stock-based compensation
|
1,207
|
|
1,206
|
Non-GAAP net
income
|
$
1,828
|
|
$
614
|
GAAP net income
(loss) per diluted share
|
$
0.04
|
|
$
(0.04)
|
Stock-based compensation
|
0.08
|
|
0.08
|
Non-GAAP net income
per diluted share
|
$
0.12
|
|
$
0.04
|
|
|
|
|
Weighted average number
of shares used to compute diluted net income (loss) per
share
|
15,569,410
|
|
14,775,554
|
RADCOM Ltd.
Consolidated Balance Sheets (thousands of U.S.
dollars)
|
|
As of
|
|
As of
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(unaudited)
|
|
(audited)
|
Current Assets
|
|
|
|
Cash and cash equivalents
|
$
9,727
|
|
$
9,527
|
Short-term bank deposits
|
68,155
|
|
64,130
|
Trade receivables, net
|
11,953
|
|
11,074
|
Inventories
|
407
|
|
795
|
Other accounts receivable and prepaid expenses
|
2,068
|
|
1,928
|
Total Current Assets
|
92,310
|
|
87,454
|
|
|
|
|
Non-Current Assets
|
|
|
|
Long-term bank deposits
|
-
|
|
4,002
|
Severance pay fund
|
3,315
|
|
3,524
|
Other long-term receivables
|
2,131
|
|
2,557
|
Property and equipment, net
|
945
|
|
1,010
|
Operating lease right-of-use assets
|
2,144
|
|
2,457
|
Total Non-Current Assets
|
8,535
|
|
13,550
|
|
|
|
|
Total Assets
|
$
100,845
|
|
$
101,004
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
Trade
payables
|
$
1,865
|
|
$
2,708
|
Deferred revenues and advances from customers
|
6,884
|
|
7,037
|
Employee and payroll accruals
|
4,519
|
|
5,198
|
Operating lease liabilities
|
968
|
|
1,024
|
Other liabilities and accrued expenses
|
7,167
|
|
6,829
|
Total Current Liabilities
|
21,403
|
|
22,796
|
|
|
|
|
Non-Current Liabilities
|
|
|
|
Accrued severance
pay
|
3,750
|
|
3,973
|
Operating lease liabilities
|
1,131
|
|
1,452
|
Total Non-Current Liabilities
|
4,881
|
|
5,425
|
|
|
|
|
Total Liabilities
|
$
26,284
|
|
$
28,221
|
|
|
|
|
Shareholders' Equity
|
|
|
|
Share capital
|
$
720
|
|
$
706
|
Additional paid-in
capital
|
149,803
|
|
148,610
|
Accumulated other comprehensive loss
|
(2,958)
|
|
(2,908)
|
Accumulated
deficit
|
(73,004)
|
|
(73,625)
|
|
|
|
|
Total Shareholders' Equity
|
74,561
|
|
72,783
|
Total Liabilities and Shareholders'
Equity
|
$
100,845
|
|
$
101,004
|
View original
content:https://www.prnewswire.com/news-releases/radcom-reports-first-quarter-2023-results-301820737.html
SOURCE RADCOM Ltd.