-- Momentum Building in Line With Strategy; Financial Platform
Secured - TEL-AVIV, Israel, April 28 /PRNewswire-FirstCall/ --
RADCOM Ltd. (RADCOM) (Nasdaq and TASE: RDCM) today announced its
unaudited financial results for the first quarter ended March 31,
2008. Revenues for the first quarter of 2008 were $4.5 million, a
40% increase compared with $3.2 million for the first quarter of
2007. On the basis of U.S. generally accepted accounting principles
(GAAP), the period's net loss was $(855,000), or $(0.05) per
ordinary share (basic and diluted), including non-cash share-based
compensation expense of $157,000 taken in respect of Statement of
Financial Accounting Standards No. 123 (revised 2004), "Share-
Based Payment" ("SFAS 123R"). This compares to a net loss for the
first quarter of 2007 of $(2.8) million, or $(0.17) per ordinary
share (basic and diluted), which included a non-cash share-based
compensation expense of $126,000. The Company is also presenting
its results on a non-GAAP basis excluding share-based compensation
in order to provide investors with insight into its underlying
operating results. On a non-GAAP basis, RADCOM's net loss for the
first quarter of 2008 was $(698,000), or $(0.04) per ordinary share
(basic and diluted). This compares to a net loss of $(2.7) million,
or $(0.16) per ordinary share (basic and diluted), for the first
quarter of 2007. During the quarter, the Company completed a $2.5
million private placement transaction (PIPE), which is reflected in
its balance sheet as of the report date. After the end of the
quarter, the Company secured a $2.5 million venture loan. Comments
of Management Commenting on the results, Mr. David Ripstein,
RADCOM's President and CEO, said, "We are pleased to report a
period of revenue growth and strategic progress, especially in a
macro environment that has entered a period of slowdown. We are
encouraged by our success in increasing our revenues and sales
pipeline, both of which confirm the strategies we have been
following since the beginning of our turnaround plan early in Q4
2007. Unfortunately, our sales in North America were disappointing
in the quarter, and our expenses continue to be impacted by the
sharp decline in the shekel-dollar exchange rate. However, we are
beginning to see the fruits of our investment in our growth
engines, including the development of new channels in emerging
markets and the marketing of our pioneering IMS solutions. We
expect both of these to drive the expansion of our business
throughout 2008." Conference Call Information RADCOM's management
will hold an interactive conference call today, April 28th, 2008,
at 9:00 AM EDT (16:00 Israel Time) to discuss the results and to
answer investor and analyst questions. To participate, please call
one of the following numbers approximately five minutes before the
call is scheduled to begin: -- From the US (toll free): (888)
642-5032 -- From Israel (toll free): 1-800-227-297 -- From other
locations (not toll free): +972-3-918-0692 A replay of the call
will be available after the call on April 28th until midnight May
5th. To access the replay, please call one of the following
numbers: -- From the US (toll free): (888) 326-9310 -- From Israel
(not toll free): 03-925-5921 -- From other locations (not toll
free): +972-3-925-5921 The conference call will also be accessible
online at http://www.radcom.com/. Non-GAAP Information Certain
non-GAAP financial measures are included in this press release.
These non-GAAP financial measures are provided to enhance the
user's overall understanding of our financial performance. By
excluding non-cash equity based compensation that has been expensed
in accordance with SFAS 123R, our non-GAAP results provide
information to both management and investors that is useful in
assessing RADCOM's core operating performance and in evaluating and
comparing our 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
generally accepted accounting principles. About RADCOM RADCOM
develops, manufactures, markets and supports innovative network
test and service monitoring solutions for communications service
providers and equipment vendors. The Company specializes in Next
Generation Cellular as well as Voice, Data and Video over IP
networks. Its solutions are used in the development and
installation of network equipment and in the maintenance of
operational networks. The Company's products facilitate fault
management, network service performance monitoring and analysis,
troubleshooting and pre- mediation. RADCOM's shares are listed on
both the Nasdaq Global Market and the Tel Aviv Stock Exchange under
the symbol RDCM. For more information, please
visithttp://www.radcom.com/. Risks Regarding Forward-Looking
Statements Certain statements made herein that use the words
"estimate," "project," "intend," "expect," "'believe" and similar
expressions are intended to identify forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. 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
United States 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
(1000's of U.S. dollars, except per share data) Three months ended
March 31, 2008a 2007b (unaudited) (unaudited) Sales $4,518 $3,233
Cost of sales 1,549 1,458 Gross profit 2,969 1,775 Research and
development, gross 1,813 1,923 Less - royalty-bearing participation
542 450 Research and development, net 1,271 1,473 Sales and
marketing 2,043 2,652 General and administrative 619 576 Total
operating expenses 3,933 4,701 Operating loss (964) (2,926)
Financing income, net 109 119 Net loss (855) (2,807) Net loss per
ordinary share (basic and diluted) $(0.05) $(0.17) Weighted average
number of ordinary shares used in computing net loss per share
(basic and diluted) 18,989,957 16,278,392 Notes: a: The Company's
results for the first quarter of 2008 according to U.S. GAAP
include non-cash share-based compensation expense of $157,000
allocated as follows: $6,000 to cost of sales, $29,000 to research
and development, $48,000 to sales and marketing and $74,000 to
general and administrative. Non-GAAP results for the period do not
include these share-based compensation expenses. b: The Company's
results for the first quarter of 2007 according to U.S. GAAP
include non-cash share-based compensation expense of $126,000
allocated as follows: $2,000 to cost of sales, $20,000 to research
and development, $48,000 to sales and marketing and $56,000 to
general and administrative. Non-GAAP results for the period do not
include these share-based compensation expenses. RADCOM Ltd.
Consolidated Balance Sheets (1000's of U.S. dollars) As of As of
March 31, December 31, 2008 2007 (unaudited) (unaudited) Current
Assets Cash and cash equivalents 4,550 3,763 Trade receivables, net
7,252 6,589 Inventories 2,960 3,454 Other current assets 1,551
1,150 Total Current Assets 16,313 14,956 Assets held for severance
benefits 2,674 2,480 Property and equipment, net 1,291 1,460 Total
Assets 20,278 18,896 Liabilities and Shareholders' Equity Current
Liabilities Trade payables 1,243 1,392 Current deferred revenue
1,567 1,593 Other payables and accrued expenses 4,326 4,668 Total
Current Liabilities 7,136 7,653 Long-Term Liabilities Long-term
deferred revenue 317 425 Liability for employees' severance pay
benefits 3,483 3,240 Total Long-Term Liabilities 3,800 3,665 Total
Liabilities 10,936 11,318 Shareholders' Equity Share capital 176
122 Additional paid-in capital 50,893 48,328 Accumulated deficit
(41,727) (40,872) Total Shareholders' Equity 9,342 7,578 Total
Liabilities and Shareholders' Equity 20,278 18,896 Contact:Jonathan
Burgin CFO (972) 3-645-5004 DATASOURCE: RADCOM Ltd. CONTACT:
Jonathan Burgin, CFO, (972) 3-645-5004, Web site:
http://www.radcom.com/
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