TEL AVIV, Israel, Nov. 6, 2017 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM), today reported its financial results for
the third quarter ended September 30,
2017.
"We are very pleased with our third quarter execution which
resulted in record-high quarterly revenues driven by our work with
AT&T and other top-tier operators," commented Mr. Yaron Ravkaie, RADCOM's CEO. "During this
quarter, we announced a new win with a world leading top-tier
operator and are now executing on the deployment of this contract.
Also, subsequent to the quarter, we signed a three-year contract
extension with Globe Telecom – the leading operator in the Philippines, with over 60 million
customers - to provide service assurance for their mobile network,
and to ensure their future transformation to NFV (Network Functions
Virtualization). Given the ongoing momentum we see in the market,
we also executed during October a successful public equity offering
that significantly strengthens our balance sheet and allows us to
continue executing on the company's growth strategy. With our
current visibility we are updating our 2017 revenue guidance to
$36.6-$37.8 million."
Third Quarter 2017 Financial Highlights:
- Revenues: Total revenues for the third quarter were
$9.6 million, up 25% compared to
$7.7 million in the third quarter of
2016.
- Net Income: GAAP net income for the period was
$1.2 million, or $0.10 per diluted share, compared to
approximately breakeven for the third quarter of 2016.
- Non-GAAP Net Income: Non-GAAP net income for the
period was $1.7 million, or
$0.14 per diluted share, compared to
non-GAAP net income of $1.0 million,
or $0.09 per diluted share, for the
third quarter of 2016.
Both GAAP and non-GAAP results for the third quarter of 2017
included a $155,000, or $0.01 per diluted share, benefit related to
grants from the Israel Innovation Authority (formerly Office of the
Chief Scientist) compared to $385,000, or $0.03
per diluted share, in the third quarter of 2016.
- Balance sheet: As of September
30, 2017, the Company had cash and cash equivalents of
$33.6 million and no
debt. Subsequent to the quarter, RADCOM closed an
underwritten public offering of 1,661,536 ordinary shares which
generated net proceeds of approximately $30.2 million.
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): + 1-888-668-9141
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay
will be available from November
7th on RADCOM's website.
About RADCOM
RADCOM (NASDAQ: RDCM) is a first-mover
and leading provider of NFV-ready service assurance and customer
experience management solutions for Communications Service
Providers (CSPs). RADCOM's software - MaveriQ - continuously
monitors network performance and quality of services, to optimize
user experience for CSPs' subscribers. RADCOM specializes in
solutions for next-generation mobile and fixed networks, including
LTE, VoLTE, IMS and others. MaveriQ enables CSPs to smoothly
migrate their networks to NFV by assuring physical, NFV-based and
hybrid networks. For more information, please visit
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 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 2017 and expected new projects for the Company
it is using foward-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
September 30,
|
|
Nine months
ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$ 9,645
|
|
$ 7,726
|
|
$ 26,602
|
|
$ 21,473
|
Cost of
revenues
|
3,163
|
|
2,357
|
|
7,828
|
|
6,186
|
Gross
profit
|
6,482
|
|
5,369
|
|
18,774
|
|
15,287
|
Research and
development, gross
|
2,280
|
|
1,985
|
|
7,507
|
|
5,453
|
Less -
royalty-bearing participation
|
155
|
|
385
|
|
467
|
|
1,141
|
Research and
development, net
|
2,125
|
|
1,600
|
|
7,040
|
|
4,312
|
Sales and marketing,
net
|
2,333
|
|
2,352
|
|
8,219
|
|
5,611
|
General and
administrative
|
991
|
|
1,436
|
|
3,149
|
|
3,463
|
Total operating
expenses
|
5,449
|
|
5,388
|
|
18,408
|
|
13,386
|
Operating income
(loss)
|
1,033
|
|
(19)
|
|
366
|
|
1,901
|
Financial income,
net
|
175
|
|
39
|
|
325
|
|
775
|
Income before
taxes
|
1,208
|
|
20
|
|
691
|
|
2,676
|
Taxes
|
(25)
|
|
(18)
|
|
(48)
|
|
(24)
|
|
|
|
|
|
|
|
|
Net income
|
$ 1,183
|
|
$ 2
|
|
$ 643
|
|
$ 2,652
|
|
|
|
|
|
|
|
|
Basic net income
per
ordinary
share
|
$ 0.10
|
|
$ 0.00
|
|
$ 0.05
|
|
$ 0.26
|
Diluted net income
per
ordinary share
|
$ 0.10
|
|
$ 0.00
|
|
$ 0.05
|
|
$ 0.26
|
Weighted average
number of
ordinary shares used in
computing basic net income
per ordinary share
|
11,747,443
|
|
11,410,105
|
|
11,698,246
|
|
10,023,733
|
Weighted average
number of
ordinary shares used in
computing diluted net income
per ordinary share
|
12,070,080
|
|
11,708,030
|
|
12,018,658
|
|
10,396,446
|
RADCOM
LTD.
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
(thousands of
U.S. dollars, except share and per share data)
|
|
Three months
ended September
30,
|
|
Nine months
ended September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
GAAP gross
profit
|
$
6,482
|
|
$
5,369
|
|
$
18,774
|
|
$
15,287
|
Stock-based
compensation
|
67
|
|
39
|
|
134
|
|
81
|
Non-GAAP gross
profit
|
$
6,549
|
|
$
5,408
|
|
$
18,908
|
|
$
15,368
|
|
|
|
|
|
|
|
|
GAAP research and
development, net
|
$
2,125
|
|
$
1,600
|
|
$
7,040
|
|
$
4,312
|
Stock-based
compensation
|
97
|
|
155
|
|
339
|
|
394
|
Non-GAAP research and
development, net
|
$
2,028
|
|
$
1,445
|
|
$
6,701
|
|
$
3,918
|
|
|
|
|
|
|
|
|
GAAP sales and
marketing, net
|
$
2,333
|
|
$
2,352
|
|
$
8,219
|
|
$
5,611
|
Stock-based
compensation
|
122
|
|
73
|
|
394
|
|
124
|
Non-GAAP sales and
marketing, net
|
$
2,211
|
|
$
2,279
|
|
$
7,825
|
|
$
5,487
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
991
|
|
$
1,436
|
|
$
3,149
|
|
$
3,463
|
Stock-based
compensation
|
200
|
|
746
|
|
859
|
|
1,101
|
Non-GAAP general and
administrative
|
$
791
|
|
$
690
|
|
$
2,290
|
|
$
2,362
|
|
|
|
|
|
|
|
|
GAAP total operating
expenses
|
$
5,449
|
|
$
5,388
|
|
$
18,408
|
|
$
13,386
|
Stock-based
compensation
|
419
|
|
974
|
|
1,592
|
|
1,619
|
Non-GAAP total
operating expenses
|
$
5,030
|
|
$
4,414
|
|
$
16,816
|
|
$
11,767
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
1,033
|
|
$
(19)
|
|
$
366
|
|
$
1,901
|
Stock-based
compensation
|
486
|
|
1,013
|
|
1,726
|
|
1,700
|
Non-GAAP operating
income
|
$
1,519
|
|
$
994
|
|
$
2,092
|
|
$
3,601
|
|
|
|
|
|
|
|
|
GAAP income before
taxes
|
$
1,208
|
|
$
20
|
|
$
691
|
|
$
2,676
|
Stock-based
compensation
|
486
|
|
1,013
|
|
1,726
|
|
1,700
|
Non-GAAP income before
taxes
|
$
1,694
|
|
$
1,033
|
|
$
2,417
|
|
$
4,376
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
1,183
|
|
$
2
|
|
$
643
|
|
$
2,652
|
Stock-based
compensation
|
486
|
|
1,013
|
|
1,726
|
|
1,700
|
Non-GAAP net
income
|
$
1,669
|
|
$
1,015
|
|
$
2,369
|
|
$
4,352
|
|
|
|
|
|
|
|
|
GAAP Net income per
diluted share
|
$
0.10
|
|
$
0.00
|
|
$
0.05
|
|
$
0.26
|
Stock-based
compensation
|
0.04
|
|
0.09
|
|
0.15
|
|
0.16
|
Non-GAAP net income per
diluted share
|
$
0.14
|
|
$
0.09
|
|
$
0.20
|
|
$
0.42
|
|
|
|
|
|
|
|
|
Weighted average number
of
shares used to compute diluted
net income per share
|
12,070,080
|
|
11,708,030
|
|
12,018,658
|
|
10,396,446
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(thousands of U.S.
dollars)
|
|
As
of
September
30,
2017
|
|
As
of
December
31,
2016
|
|
(unaudited)
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
33,563
|
|
$
42,886
|
Restricted bank
deposits
|
35
|
|
32
|
Trade receivables,
net
|
13,835
|
|
4,388
|
Inventories
|
275
|
|
623
|
Other receivables
|
1,599
|
|
1,960
|
|
|
|
|
Total Current
Assets
|
49,307
|
|
49,889
|
|
|
|
|
Severance pay
fund
|
3,065
|
|
2,788
|
|
|
|
|
Other long-term
receivables
|
335
|
|
375
|
|
|
|
|
Property and
equipment, net
|
1,855
|
|
1,516
|
|
|
|
|
Total
Assets
|
$
54,562
|
|
$
54,568
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
1,336
|
|
2,820
|
Deferred revenue
|
583
|
|
2,593
|
Employee and
payroll accruals
|
3,691
|
|
3,541
|
Other payables and accrued expenses
|
2,018
|
|
2,081
|
|
|
|
|
Total Current
Liabilities
|
7,628
|
|
11,035
|
Long-Term
Liabilities
|
|
|
|
Deferred revenue
|
48
|
|
123
|
Accrued severance
pay
|
3,603
|
|
3,267
|
|
|
|
|
Total Long-Term
Liabilities
|
3,651
|
|
3,390
|
|
|
|
|
Total
Liabilities
|
$
11,279
|
|
$
14,425
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
531
|
|
523
|
Additional paid-in
capital
|
100,681
|
|
98,283
|
Accumulated other comprehensive loss
|
(2,468)
|
|
(2,559)
|
Accumulated
deficit
|
(55,461)
|
|
(56,104)
|
|
|
|
|
Total Shareholders'
Equity
|
43,283
|
|
40,143
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
54,562
|
|
$
54,568
|
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.