TEL AVIV, Israel, May 7, 2019 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM) today reported its financial results for
the first quarter ended March 31,
2019.
"The year began with the signing of a 3-year agreement with
AT&T which validates our close working relationship. We are
encouraged by the ongoing trust they place in our advanced
virtualized technology which we continue to develop, enhance, and
deliver for their pioneering network transformation" commented Mr.
Yaron Ravkaie, RADCOM's CEO. "We are reiterating our guidance of
$28-$32
million for 2019 and continue to focus on delivering
innovative solutions to our customers by investing in R&D and
maintaining our position as the 'go to' assurance vendor of telco
virtualization. We expect our continued product development will
bear fruit when more operators are ready to move forward with their
transition to NFV and begin their 5G rollouts."
First Quarter 2019 Financial Highlights:
- Revenues: Total revenues for the first quarter were
$6.0 million, down 45% compared to
$10.9 million in the first quarter of
2018
- Net Income (loss): GAAP net loss for the period was
$3.1 million, or $0.23 per diluted share, compared to GAAP net
income of $0.3 million, or
$0.02 per diluted share for the first
quarter of 2018
- Non-GAAP Net Income (loss): Non-GAAP net loss for the
period was $2.7 million, or
$0.20 per diluted share, compared to
non-GAAP net income of $1.0 million,
or $0.07 per diluted share for the
first quarter of 2018
- Balance sheet: As of March 31,
2019, the Company had cash and cash equivalents and
short-term bank deposits of $56.8
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- 668-9141
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay
will be available from May
8th 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 continued investment in technology to meet the needs
of its clients, the expected role of NFV and the Company's
solutions in 5G networks, the Company's technological leadership or
industry recognition, the Company's pipeline of opportunities, 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,
|
|
2019
|
|
2018
|
Revenues
|
$
6,046
|
|
$
10,903
|
Cost of
revenues
|
1,837
|
|
2,890
|
Gross
profit
|
4,209
|
|
8,013
|
Research and
development, gross
|
4,645
|
|
3,744
|
Less -
royalty-bearing participation
|
404
|
|
-
|
Research and
development, net
|
4,241
|
|
3,744
|
Sales and
marketing
|
2,446
|
|
3,240
|
General and
administrative
|
797
|
|
998
|
Total operating
expenses
|
7,484
|
|
7,982
|
Operating income
(loss)
|
(3,275)
|
|
31
|
Financial income,
net
|
140
|
|
302
|
Income (loss) before
taxes on income
|
(3,135)
|
|
333
|
Taxes on
income
|
(9)
|
|
(11)
|
Net income
(loss)
|
$
(3,144)
|
|
$
322
|
Basic net income
(loss) per
ordinary
share
|
$
(0.23)
|
|
$
0.02
|
Diluted net income
(loss) per
ordinary
share
|
$
(0.23)
|
|
$
0.02
|
Weighted average
number of
ordinary shares used in
computing basic net income (loss)
per ordinary share
|
13,749,528
|
|
13,498,100
|
Weighted average
number of
ordinary shares used in
computing diluted net income
(loss) per ordinary share
|
13,749,528
|
|
13,785,938
|
|
|
|
|
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,
|
|
2019
|
|
2018
|
GAAP gross
profit
|
$
4,209
|
|
$
8,013
|
Stock-based
compensation
|
29
|
|
40
|
Non-GAAP gross
profit
|
$
4,238
|
|
$
8,053
|
|
$
4,241
|
|
$
3,744
|
|
GAAP Research and
development, net
|
Stock-based
compensation
|
178
|
|
208
|
Non-GAAP Research and
development, net
|
$
4,063
|
|
$
3,536
|
|
$
2,446
|
|
$
3,240
|
|
GAAP sales and
marketing
|
Stock-based
compensation
|
146
|
|
229
|
Non-GAAP sales and
marketing
|
$
2,300
|
|
$
3,011
|
|
$
797
|
|
$
998
|
|
GAAP general and
administrative
|
Stock-based
compensation
|
87
|
|
199
|
Non-GAAP general and
administrative
|
$
710
|
|
$
799
|
|
$
7,484
|
|
$
7,982
|
|
GAAP total operating
expenses
|
Stock-based
compensation
|
411
|
|
636
|
Non-GAAP total
operating expenses
|
$
7,073
|
|
$
7,346
|
|
$
(3,275)
|
|
$
31
|
|
GAAP operating income
(loss)
|
Stock-based
compensation
|
440
|
|
676
|
Non-GAAP operating
income (loss)
|
$
(2,835)
|
|
$
707
|
|
$
(3,135)
|
|
$
333
|
|
GAAP income (loss)
before taxes on income
|
Stock-based
compensation
|
440
|
|
676
|
Non-GAAP income
(loss) before taxes on income
|
$
(2,695)
|
|
$
1,009
|
|
$
(3,144)
|
|
$
322
|
|
GAAP net income
(loss)
|
Stock-based
compensation
|
440
|
|
676
|
Non-GAAP net income
(loss)
|
$
(2,704)
|
|
$
998
|
|
$
(0.23)
|
|
$
0.02
|
|
GAAP net income
(loss) per diluted share
|
Stock-based
compensation
|
0.03
|
|
0.05
|
Non-GAAP net income
(loss) per diluted share
|
$
(0.20)
|
|
$
0.07
|
Weighted average
number of shares used to compute
|
13,749,528
|
|
13,785,938
|
diluted net
income (loss) per share
|
RADCOM
Ltd.
Consolidated
Balance Sheets
(thousands of U.S.
dollars)
|
|
|
As
of
|
|
As
of
|
|
March
31,
2019
|
|
December
31,
2018
|
|
(unaudited)
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
15,579
|
|
$
61,988
|
Short-term bank
deposits
|
41,210
|
|
-
|
Trade receivables,
net
|
22,455
|
|
20,381
|
Inventories
|
321
|
|
251
|
Other receivables
|
1,886
|
|
1,766
|
Total Current
Assets
|
81,451
|
|
84,386
|
Severance pay
fund
|
3,083
|
|
2,967
|
Other long-term
receivables
|
379
|
|
346
|
Property and
equipment, net
|
1,794
|
|
1,832
|
Operating lease
right-of-use assets
|
5,678
|
|
-
|
|
|
|
|
Total
Assets
|
$
92,385
|
|
$
89,531
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,535
|
|
$
1,559
|
Deferred revenue
|
206
|
|
266
|
Employee and
payroll accruals
|
3,343
|
|
3,420
|
Operating lease liabilities
|
1,156
|
|
-
|
Other payables and accrued expenses
|
2,038
|
|
2,281
|
Total Current
Liabilities
|
8,278
|
|
7,526
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
Deferred revenue
|
107
|
|
100
|
Accrued severance
pay
|
3,562
|
|
3,425
|
Operating lease liabilities
|
4,681
|
|
-
|
Total Long-Term
Liabilities
|
8,350
|
|
3,525
|
|
|
|
|
Total
Liabilities
|
$
16,628
|
|
$
11,051
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
$
644
|
|
$
643
|
Additional paid-in
capital
|
136,169
|
|
135,730
|
Accumulated other comprehensive loss
|
(2,631)
|
|
(2,612)
|
Accumulated
deficit
|
(58,425)
|
|
(55,281)
|
|
|
|
|
Total Shareholders'
Equity
|
75,757
|
|
78,480
|
Total
Liabilities and Shareholders' Equity
|
$
92,385
|
|
$
89,531
|
For all investor enquiries, 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-first-quarter-2019-results-300845027.html
SOURCE RADCOM Ltd.