Revenues Up 57% YOY for Q2, 47% for the 1st Half TEL-AVIV, Israel,
July 21 /PRNewswire-FirstCall/ -- RADCOM Ltd. (RADCOM) (NASDAQ and
TASE:RDCM) today announced its unaudited financial results for the
second quarter and six months ended June 30, 2008. Financial
Results for the Second Quarter Revenues for the second quarter of
2008 were $3.7 million, a 57% increase compared with $2.4 million
for the second quarter of 2007. On the basis of U.S. generally
accepted accounting principles (GAAP), the period's net loss was
$(1.8) million, or $(0.37) per ordinary share (basic and diluted),
including non-cash share-based compensation expense of $145,000
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 second quarter of 2007 of $(3.5)
million, or $(0.85) per ordinary share (basic and diluted), which
included non-cash share-based compensation expense of $138,000. 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 second quarter of 2008 was $(1.7)
million, or $(0.34) per ordinary share (basic and diluted). This
compares to a net loss of $(3.3) million, or $(0.81) per ordinary
share (basic and diluted), for the second quarter of 2007. During
the quarter, the Company secured a $2.5 million venture loan. This
sum is reflected in the Company's Balance Sheet as of June 30, 2008
in Venture Loan and Shareholders' Equity. Financial Results for the
First Half Revenues for the first six months of 2008 were $8.2
million, an increase of 47% compared to $5.6 million recorded in
the first half of 2007. On the basis of U.S. generally accepted
accounted principles (GAAP), the Company's net loss for the period
was $(2.7) million, or $(0.55) per ordinary share (basic and
diluted), including non-cash share-based payment of $302,000. This
compares with a net loss of $ (6.3) million, or $(1.54) per
ordinary share (basic and diluted), for the first half of 2007,
which included non-cash share-based compensation expense of
$264,000. The Company has also presented its results on a non-GAAP
basis excluding share-based compensation to provide investors and
management with insight into RADCOM's underlying operating results.
On such non-GAAP basis, RADCOM's net loss for the first six months
of 2008 was $(2.4) million, or $(0.49) per ordinary share (basic
and diluted), compared with $(6.0) million, or $(1.47) per ordinary
share (basic and diluted), for the first six months of 2007.
Comments of Management Commenting on the results, Mr. David
Ripstein, RADCOM's President and CEO, said, "We are pleased to have
delivered significant year-over-year revenue growth again this
quarter, giving us a 47% increase for the first half of the year
compared with the first half of 2007. However, these revenues were
below our expectations due to sales cycle delays that have
accompanied the slowdown of European and North American
communications markets. Nonetheless, we have experienced a surge in
interest and sales in our target emerging markets - particularly in
Latin America and the Far East - that has boosted our sales
pipeline significantly, both in the number and size of new
opportunities. Further, we believe that our target IMS markets will
continue to grow, acting as an engine that will drive our business
to the next stage over the next few years." Mr. Ripstein continued,
"From a financial point of view, during the quarter we completed a
$2.5 million venture loan and a 4-for-1 stock split, activities
that have buttressed our balance sheet and assured our continued
access to public markets." Mr. Ripstein concluded, "The combination
of our strengthened sales pipeline, the many new opportunities
emerging and our stronger balance sheet enables us to reiterate our
expectation that 2008 will be stronger than 2007." Conference Call
Information RADCOM's management will hold an interactive conference
call today, July 21st, 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): 866-345-5855 - From Israel (toll free):
1-800-227-297 - From other locations (not toll free):
+972-3-918-0609 A replay of the call will be available after the
call on July 21st until midnight July 28th. To access the replay,
please call one of the following numbers: - From the US (toll
free): 877-332-1104 - From Israel (not toll free): 03-925-5945 -
From other locations (not toll free): +972-3-925-5945 The
conference call will also be accessable 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 IMS, Voice, Data and VoIP 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 Capital Market and the Tel Aviv Stock
Exchange under the symbol RDCM. For more information, please visit
http://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 Six months ended June
30, ended June 30, 2008(a) 2007(b) 2008(c) 2007(d) (unaudited)
(unaudited) (unaudited) (unaudited) Sales $ 3,728 $ 2,374 $ 8,246 $
5,607 Cost of sales 1,694 1,320 3,243 2,778 Gross profit 2,034
1,054 5,003 2,829 Research and development, gross 1,834 1,905 3,647
3,828 Less - royalty-bearing participation 571 452 1,113 902
Research and development, net 1,263 1,453 2,534 2,926 Sales and
marketing 1,908 2,477 3,951 5,129 General and administrative 628
652 1,247 1,228 Total operating expenses 3,799 4,582 7,732 9,283
Operating loss (1,765) (3,528) (2,729) (6,454) Financing income
(loss), net (69) 64 40 183 Net loss (1,834) (3,464) (2,689) (6,271)
Basic net loss per ordinary share $ (0.37) $ (0.85) $ (0.55) $
(1.54) Diluted net loss per ordinary share $ (0.37) $ (0.85) $
(0.55) $ (1.54) Weighted average number of ordinary shares used in
computing basic net loss per ordinary share 5,019,696 4,088,293
4,884,336 4,078,946 Weighted average number of ordinary shares used
in computing diluted net loss per ordinary share 5,019,696
4,088,293 4,884,336 4,078,946 Note a: The Company's results for the
second quarter of 2008 according to U.S. GAAP include non-cash
share-based compensation expense of $145,000 allocated as follows:
$6,000 to cost of sales, $30,000 to research and development,
$44,000 to sales and marketing and $65,000 to general and
administrative. Note b: The Company's results for the second
quarter of 2007 according to U.S. GAAP include non-cash share-based
compensation expense of $138,000 allocated as follows: $4,000 to
cost of sales, $25,000 to research and development, $45,000 to
sales and marketing and $64,000 to general and administrative. Note
c: The Company's results for the first half of 2008 according to
U.S. GAAP include non-cash share-based compensation expense of
$302,000 allocated as follows: $12,000 to cost of sales, $59,000 to
research and development, $92,000 to sales and marketing and
$139,000 to general and administrative. Note d: The Company's
results for the first half of 2007 according to U.S. GAAP include
non-cash share-based compensation expense of $264,000 allocated as
follows: $6,000 to cost of sales, $45,000 to research and
development, $93,000 to sales and marketing and $120,000 to general
and administrative. RADCOM Ltd. Consolidated Balance Sheets (1000's
of U.S. dollars) As of As of June 30, December 31, 2008 2007
(unaudited) (unaudited) Current Assets Cash and cash equivalents
5,653 3,763 Trade receivables, net 8,004 6,589 Inventories 2,418
3,454 Other current assets 1,226 1,150 Total Current Assets 17,301
14,956 Assets held for severance benefits 2,778 2,480 Property and
equipment, net 1,189 1,460 Total Assets 21,268 18,896 Liabilities
and Shareholders' Equity Current Liabilities Trade payables 1,272
1,392 Current deferred revenue 1,362 1,593 Current maturities of
long-term venture loan 16 - Other payables and accrued expenses
4,437 4,668 Total Current Liabilities 7,087 7,653 Long-Term
Liabilities Long-term deferred revenue 459 425 Venture loan Less -
current maturities 2,218 - Liability for employees' severance pay
benefits 3,597 3,240 Total Long-Term Liabilities 6,247 3,665 Total
Liabilities 13,361 11,318 Shareholders' Equity Share capital 176
122 Additional paid-in capital 51,292 48,328 Accumulated deficit
(43,561) (40,872) Total Shareholders' Equity 7,907 7,578 Total
Liabilities and Shareholders' Equity 21,268 18,896 Contact:
Jonathan Burgin CFO +972-3-645-5004 DATASOURCE: Radcom Ltd CONTACT:
Contact: Jonathan Burgin, CFO, +972-3-645-5004,
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