TEL AVIV, Israel, Nov. 7, 2019 /PRNewswire/ -- RADCOM Ltd.
(Nasdaq: RDCM) today reported its financial results for the
third quarter ended September 30,
2019.
"We are pleased to announce that RADCOM's revenue grew 10% over
the previous quarter. We have experienced steady growth this year,
reflecting the continued progress we are making with our advanced
virtual technology as well as the success of our agreements with
Rakuten Mobile, AT&T, and other customers," commented Mr. Yaron
Ravkaie, RADCOM's CEO. "We are encouraged by the traction we are
gaining due to our technological expertise, evidenced by our
increasing customer base, which includes multi-year agreements with
Rakuten Mobile and now VimpelCom, one of the leading operators in
Russia. These partnerships are
providing us with enhanced, multi-year visibility into the
Company's revenue stream."
Third Quarter 2019 Financial Highlights:
- Revenues: Total revenues for the third quarter were
$9.4 million, up 10% compared to
$8.5 million in the third quarter of
2018.
- Net Income (loss): GAAP net loss for the period was
$(1.7) million, or $(0.12) per diluted share, compared to GAAP net
income of $0.6 million, or
$0.05 per diluted share for the third
quarter of 2018.
- Non-GAAP Net Income (loss): Non-GAAP net loss for
the period was $(1.0) million, or
$(0.07) per diluted share, compared
to non-GAAP net income of $1.0
million, or $0.07 per diluted
share for the third quarter of
2018.
- Balance sheet: As of September
30, 2019, the Company had cash and cash equivalents and
short-term bank deposits of $68.1
million and no debt.
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 8:00
AM Eastern Standard Time (3:00
PM Israel Standard 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): +1-888-407-2553
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
8th on RADCOM's website.
About RADCOM
RADCOM (Nasdaq: RDCM) is the leading expert in cloud-native,
container-based network intelligence solutions for telecom
operators transitioning to NFV and 5G. Powered by RADCOM's patented
I.C.O.N technology, the RADCOM Network Intelligence suite delivers
Intelligent, Container-based, On-demand, Network Analysis from the
RAN to the Core for 5G assurance, utilizing automated and dynamic
solutions with smart minimal data collection and on-demand
troubleshooting. RADCOM Network Intelligence consists of RADCOM
Network Visibility, RADCOM Service Assurance, and RADCOM Network
Insights. Utilizing cutting edge technology such as AI and machine
learning, these solutions work in harmony to provide operators an
understanding of the entire customer experience and allow them to
troubleshoot network performance from a high to granular level
while reducing storage costs and cloud resource utilization. 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, 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 continuing progress and continuing traction in its
business and technology, its increasing customer base, its
visibility and revenue stream, 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
September 30,
|
|
Nine months
ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
$
9,389
|
|
$
8,519
|
|
$
23,981
|
|
$
30,061
|
Cost of
revenues
|
3,283
|
|
1,660
|
|
7,274
|
|
7,427
|
Gross
profit
|
6,106
|
|
6,859
|
|
16,707
|
|
22,634
|
Research and
development, gross
|
4,699
|
|
3,933
|
|
13,921
|
|
11,429
|
Less -
royalty-bearing participation
|
597
|
|
528
|
|
1,413
|
|
1,282
|
Research and
development, net
|
4,102
|
|
3,405
|
|
12,508
|
|
10,147
|
Sales and
marketing
|
2,758
|
|
2,401
|
|
7,821
|
|
8,725
|
General and
administrative
|
1,064
|
|
657
|
|
2,711
|
|
2,647
|
Total operating
expenses
|
7,924
|
|
6,463
|
|
23,040
|
|
21,519
|
Operating income
(loss)
|
(1,818)
|
|
396
|
|
(6,333)
|
|
1,115
|
Financial income,
net
|
217
|
|
282
|
|
698
|
|
655
|
Income (loss) before
taxes on income
|
(1,601)
|
|
678
|
|
(5,635)
|
|
1,770
|
Taxes on
income
|
(59)
|
|
(44)
|
|
(105)
|
|
(57)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(1,660)
|
|
$
634
|
|
$
(5,740)
|
|
$
1,713
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per
ordinary
share
|
$
(0.12)
|
|
$
0.05
|
|
$
(0.42)
|
|
$
0.13
|
Diluted net income
(loss) per
ordinary
share
|
$
(0.12)
|
|
$
0.05
|
|
$
(0.42)
|
|
$
0.12
|
Weighted average
number of
ordinary shares used in computing basic net income
(loss) per ordinary share
|
13,797,115
|
|
13,701,844
|
|
13,769,987
|
|
13,600,849
|
Weighted average
number of
ordinary shares used in computing diluted net income
(loss) per ordinary share
|
13,797,115
|
|
13,916,306
|
|
13,769,987
|
|
13,851,324
|
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 September
30,
|
|
Nine months
ended September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP gross
profit
|
$
6,106
|
|
$
6,859
|
|
$
16,707
|
|
$
22,634
|
Stock-based
compensation
|
61
|
|
25
|
|
156
|
|
102
|
Non-GAAP gross
profit
|
$
6,167
|
|
$
6,884
|
|
$
16,863
|
|
$
22,736
|
GAAP research and
development, net
|
$
4,102
|
|
$
3,405
|
|
$
12,508
|
|
$
10,147
|
Stock-based
compensation
|
211
|
|
210
|
|
568
|
|
621
|
Non-GAAP research and
development, net
|
$
3,891
|
|
$
3,195
|
|
$
11,940
|
|
$
9,526
|
GAAP sales and
marketing
|
$
2,758
|
|
$
2,401
|
|
$
7,821
|
|
$
8,725
|
Stock-based
compensation
|
148
|
|
121
|
|
478
|
|
583
|
Non-GAAP sales and
marketing
|
$
2,610
|
|
$
2,280
|
|
$
7,343
|
|
$
8,142
|
GAAP general and
administrative
|
$
1,064
|
|
$
657
|
|
$
2,711
|
|
$
2,647
|
Stock-based
compensation
|
252
|
|
10
|
|
435
|
|
402
|
Non-GAAP general and
administrative
|
$
812
|
|
$
647
|
|
$
2,276
|
|
$
2,245
|
GAAP total operating
expenses
|
$
7,924
|
|
$
6,463
|
|
$
23,040
|
|
$
21,519
|
Stock-based
compensation
|
611
|
|
341
|
|
1,481
|
|
1,606
|
Non-GAAP total
operating expenses
|
$
7,313
|
|
$
6,122
|
|
$
21,559
|
|
$
19,913
|
GAAP operating income
(loss)
|
$
(1,818)
|
|
$
396
|
|
$
(6,333)
|
|
$
1,115
|
Stock-based
compensation
|
672
|
|
366
|
|
1,637
|
|
1,708
|
Non-GAAP operating
income (loss)
|
$
(1,146)
|
|
$
762
|
|
$
(4,696)
|
|
$
2,823
|
GAAP income (loss)
before taxes on income
|
$
(1,601)
|
|
$
678
|
|
$
(5,635)
|
|
$
1,770
|
Stock-based
compensation
|
672
|
|
366
|
|
1,637
|
|
1,708
|
Non-GAAP income (loss)
before taxes on income
|
$
(929)
|
|
$
1,044
|
|
$
(3,998)
|
|
$
3,478
|
GAAP net income
(loss)
|
$
(1,660)
|
|
$
634
|
|
$
(5,740)
|
|
$
1,713
|
Stock-based
compensation
|
672
|
|
366
|
|
1,637
|
|
1,708
|
Non-GAAP net income
(loss)
|
$
(988)
|
|
$
1,000
|
|
$
(4,103)
|
|
$
3,421
|
GAAP net income (loss)
per diluted share
|
$
(0.12)
|
|
$
0.05
|
|
$
(0.42)
|
|
$
0.12
|
Stock-based
compensation
|
0.05
|
|
0.02
|
|
0.12
|
|
0.12
|
Non-GAAP net income
(loss) per diluted share
|
$
(0.07)
|
|
$
0.07
|
|
$
(0.30)
|
|
$
0.24
|
Weighted average number
of shares used to compute diluted net
income (loss) per share
|
13,797,115
|
|
13,916,306
|
|
13,769,987
|
|
13,851,324
|
RADCOM
Ltd.
|
|
Consolidated
Balance Sheets
|
|
(thousands of U.S.
dollars)
|
|
|
|
|
As
of
|
|
As
of
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
2018
|
|
|
(unaudited)
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
9,504
|
|
$
61,988
|
|
Short-term bank
deposits
|
58,626
|
|
-
|
|
Trade receivables,
net
|
13,473
|
|
20,381
|
|
Inventories
|
1,203
|
|
251
|
|
Other receivables
|
1,561
|
|
1,766
|
|
|
84,367
|
|
|
|
Total Current
Assets
|
84,386
|
|
|
|
|
|
|
Non-Current
Assets
|
|
|
|
|
Severance pay
fund
|
3,336
|
|
2,967
|
|
Other long-term
receivables
|
2,365
|
|
346
|
|
Property and
equipment, net
|
1,619
|
|
1,832
|
|
Operating lease
right-of-use assets
|
5,861
|
|
-
|
|
|
13,181
|
|
5,145
|
|
Total
Non-Current Assets
|
|
|
|
|
|
|
Total
Assets
|
$
97,548
|
|
$
89,531
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade
payables
|
$
3,143
|
|
$
1,559
|
|
Deferred revenues
|
1,048
|
|
266
|
|
Employee and
payroll accruals
|
3,940
|
|
3,420
|
|
Operating lease liabilities
|
1,198
|
|
-
|
|
Other payables and accrued expenses
|
3,813
|
|
2,281
|
|
|
13,142
|
|
7,526
|
|
Total Current
Liabilities
|
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
Deferred revenues
|
100
|
|
100
|
|
Accrued severance
pay
|
3,926
|
|
3,425
|
|
Operating lease liabilities
|
5,024
|
|
-
|
|
Other long-term liabilities
|
993
|
|
-
|
|
|
10,043
|
|
3,525
|
|
Total
Non-Current Liabilities
|
|
|
|
|
|
|
Total
Liabilities
|
$
23,185
|
|
$
11,051
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share capital
|
$
647
|
|
$
643
|
|
Additional paid-in
capital
|
137,378
|
|
135,730
|
|
Accumulated other comprehensive loss
|
(2,641)
|
|
(2,612)
|
|
Accumulated
deficit
|
(61,021)
|
|
(55,281)
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
74,363
|
|
78,480
|
|
|
$
97,548
|
|
$
89,531
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
For all investor inquiries, 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-third-quarter-2019-results-300953773.html
SOURCE RADCOM Ltd.