TEL AVIV, Israel, Aug. 7, 2018 /PRNewswire/ -- RADCOM Ltd.
(NASDAQ: RDCM), today reported its financial results for the second
quarter ended June 30, 2018.
"Our solid second quarter results highlight the strength of our
continued focus on top-tier network transformations and the ongoing
demand for our NFV solutions as operators prepare their 5G-ready
clouds," commented Mr. Yaron Ravkaie, RADCOM's CEO. "The Company is
focused on supporting top-tier carriers as they accelerate their
network virtualization transformations to prepare for 5G rollouts.
Based on our current outlook, we are reiterating our 2018 revenue
guidance of $43-$47 million."
Second Quarter 2018 Financial Highlights:
- Revenues: Total revenues for the second quarter were
$10.6 million, up 19% compared to
$8.9 million in the second quarter of
2017.
- Net Income/(Loss): GAAP net income for the period was
$0.8 million, or $0.05 per diluted share, compared to GAAP net
loss of $(0.2) million, or a loss of
$(0.02) per diluted share for the
second quarter of 2017.
- Non-GAAP Net Income: Non-GAAP net income for the period
was $1.4 million, or $0.10 per diluted share, compared to non-GAAP net
income of $0.4 million, or
$0.03 per diluted share for the
second quarter of 2017.
- GAAP and non-GAAP results for the second quarter of 2018
included $754,000, or $0.05 per diluted share, related to grants from
the Israel Innovation Authority, compared to $312,000, or $0.03
per diluted share, in the second quarter of 2017.
- Balance sheet: As of June 30,
2018, the Company had cash, cash equivalents and short-term
bank deposit of $71.4 million and no
debt.
Earnings Conference Call
RADCOM's management will hold an interactive conference call
today at 8:00 AM Eastern Time (15:00
Israel 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): +1-866-229-7198
From other locations: +972-3-918-0687
For those unable to listen to the call at the time, a replay
will be available from August 8,
2018, on RADCOM's website.
About RADCOM
RADCOM (NASDAQ: RDCM) is the leading expert in cloud-native
Network Intelligence for telecom operators transitioning to
SDN/NFV. Providing a critical first step in an operator's NFV
transformation, RADCOM's Network Intelligence delivers end-to-end
network visibility from virtual tapping point to network insights.
Comprised of RADCOM Service Assurance, RADCOM Network Visibility
and RADCOM Network Insights, RADCOM's Network Intelligence
portfolio provides operators with complete visibility across their
virtual and hybrid networks. RADCOM Network Intelligence is
automated, cost-efficient, and provides on-demand functionality
that is specifically designed for the needs of telecom operators.
RADCOM specializes in assuring next-generation, high capacity
networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV and others.
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 revenue guidance for 2018, and expected demand for
the Company's NFV solutions, the trend of preparing for 5G-ready
cloud and the future success of the Company's approach and its
differentiation from competitors and the Company's pipeline, 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
Statement of Operations
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
10,639
|
|
$
8,917
|
|
$
21,542
|
|
$
16,957
|
Cost of
revenues
|
2,877
|
|
2,643
|
|
5,767
|
|
4,665
|
Gross
profit
|
7,762
|
|
6,274
|
|
15,775
|
|
12,292
|
Research and
development, gross
|
3,752
|
|
2,739
|
|
7,496
|
|
5,227
|
Less -
royalty-bearing participation
|
754
|
|
312
|
|
754
|
|
312
|
Research and
development, net
|
2,998
|
|
2,427
|
|
6,742
|
|
4,915
|
Sales and marketing,
net
|
3,084
|
|
2,989
|
|
6,324
|
|
5,886
|
General and
administrative
|
992
|
|
1,098
|
|
1,990
|
|
2,158
|
Total operating
expenses
|
7,074
|
|
6,514
|
|
15,056
|
|
12,959
|
Operating income
(loss)
|
688
|
|
(240)
|
|
719
|
|
(667)
|
Financial income,
net
|
71
|
|
41
|
|
373
|
|
150
|
Income (loss) before
taxes on income
|
759
|
|
(199)
|
|
1,092
|
|
(517)
|
Taxes on
income
|
(2)
|
|
(5)
|
|
(13)
|
|
(23)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
757
|
|
$
(204)
|
|
$
1,079
|
|
$
(540)
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per
ordinary
share
|
$
0.06
|
|
$
(0.02)
|
|
$
0.08
|
|
$
(0.05)
|
Diluted net income
(loss) per
ordinary
share
|
$
0.05
|
|
$
(0.02)
|
|
$
0.08
|
|
$
(0.05)
|
|
Weighted average
number of
ordinary shares used
in computing basic
net income (loss) per ordinary share
|
13,600,323
|
|
11,695,750
|
|
13,549,494
|
|
11,673,240
|
|
Weighted average
number of ordinary
shares used in computing diluted net
income (loss) per ordinary share
|
13,849,488
|
|
11,695,750
|
|
13,817,995
|
|
11,673,240
|
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP gross
profit
|
7,762
|
|
6,274
|
|
15,775
|
|
12,292
|
Stock-based
compensation
|
37
|
|
20
|
|
77
|
|
67
|
Non-GAAP gross
profit
|
7,799
|
|
6,294
|
|
15,852
|
|
12,359
|
|
GAAP research and
development, net
|
2,998
|
|
2,427
|
|
6,742
|
|
4,915
|
Stock-based
compensation
|
203
|
|
133
|
|
411
|
|
242
|
Non-GAAP research and
development, net
|
2,795
|
|
2,294
|
|
6,331
|
|
4,673
|
|
GAAP sales and
marketing, net
|
3,084
|
|
2,989
|
|
6,324
|
|
5,886
|
Stock-based
compensation
|
233
|
|
144
|
|
462
|
|
272
|
Non-GAAP sales and
marketing, net
|
2,851
|
|
2,845
|
|
5,862
|
|
5,614
|
|
GAAP general and
administrative
|
992
|
|
1,098
|
|
1,990
|
|
2,158
|
Stock-based
compensation
|
193
|
|
323
|
|
392
|
|
659
|
Non-GAAP general and
administrative
|
799
|
|
775
|
|
1,598
|
|
1,499
|
|
GAAP total operating
expenses
|
7,074
|
|
6,514
|
|
15,056
|
|
12,959
|
Stock-based
compensation
|
629
|
|
600
|
|
1,265
|
|
1,173
|
Non-GAAP total
operating expenses
|
6,445
|
|
5,914
|
|
13,791
|
|
11,786
|
|
GAAP operating income
(loss)
|
688
|
|
(240)
|
|
719
|
|
(667)
|
Stock-based
compensation
|
666
|
|
620
|
|
1,342
|
|
1,240
|
Non-GAAP operating
income
|
1,354
|
|
380
|
|
2,061
|
|
573
|
|
GAAP income (loss)
before taxes on income
|
759
|
|
(199)
|
|
1,092
|
|
(517)
|
Stock-based
compensation
|
666
|
|
620
|
|
1,342
|
|
1,240
|
Non-GAAP income before
taxes on income
|
1,425
|
|
421
|
|
2,434
|
|
723
|
|
GAAP net income
(loss)
|
757
|
|
(204)
|
|
1,079
|
|
(540)
|
Stock-based
compensation
|
666
|
|
620
|
|
1,342
|
|
1,240
|
Non-GAAP net
income
|
1,423
|
|
416
|
|
2,421
|
|
700
|
|
GAAP net income (loss)
per diluted share
|
0.05
|
|
(0.02)
|
|
0.08
|
|
(0.05)
|
Stock-based
compensation
|
0.05
|
|
0.05
|
|
0.10
|
|
0.11
|
Non-GAAP net income per
diluted share
|
0.10
|
|
0.03
|
|
0.18
|
|
0.06
|
|
Weighted average number
of shares used to
compute diluted net income per share
|
13,849,488
|
|
12,032,429
|
|
13,817,995
|
|
11,992,539
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
|
As
of
|
|
As
of
|
|
June
30,
|
|
December
31,
|
2018
|
2017
|
|
(unaudited)
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$31,438
|
|
$22,575
|
Restricted bank
deposit
|
-
|
|
36
|
Short-term bank
deposit
|
40,000
|
|
40,000
|
Trade receivables,
net
|
14,393
|
|
20,266
|
Inventories
|
119
|
|
1,199
|
Other receivables
|
2,635
|
|
2,685
|
|
88,585
|
|
|
Total Current
Assets
|
86,761
|
Severance pay
fund
|
|
|
|
3,009
|
3,052
|
Other long-term
receivables
|
|
|
|
312
|
172
|
Property and
equipment, net
|
|
|
|
1,917
|
1,924
|
|
|
|
|
Total
Assets
|
$93,823
|
|
$91,909
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$1,879
|
|
$1,828
|
Deferred revenues
|
1,021
|
|
2,601
|
Employee and
payroll accruals
|
4,052
|
|
4,062
|
Other payables and accrued expenses
|
2,275
|
|
3,428
|
|
9,227
|
|
11,919
|
Total Current
Liabilities
|
Long-Term
Liabilities
|
|
|
|
Deferred revenues
|
100
|
|
21
|
Accrued severance
pay
|
3,513
|
|
3,573
|
|
3,613
|
|
3,594
|
Total Long-Term
Liabilities
|
|
|
|
|
Total
Liabilities
|
$12,840
|
|
$15,513
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
$640
|
|
$628
|
Additional paid-in
capital
|
134,734
|
|
131,491
|
Accumulated
other comprehensive loss
|
(2,604)
|
|
(2,520)
|
Accumulated
deficit
|
(51,787)
|
|
(53,203)
|
|
|
|
|
Total
Shareholders' Equity
|
80,983
|
|
76,396
|
|
$93,823
|
|
$91,909
|
Total Liabilities
and Shareholders' Equity
|
For all investor enquiries, please contact:
Ran Vered
CFO
+972-77-774-5011
ranv@radcom.com
For all media enquiries, please contact:
Mark Rolston
Marketing Manager
+972-77-774-5036
markr@radcom.com
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SOURCE RADCOM Ltd.