- All-time quarterly revenue record of $12.4 million
- 5-year high diluted EPS
TEL
AVIV, Israel, Aug. 2, 2023
/PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced
financial results for the second quarter ended June 30, 2023.
Eyal Harari, RADCOM's Chief
Executive Officer, commented, "This quarter, we achieved several
all-time financial records and continued investing in our solutions
to drive future growth. Revenues for the second quarter were
$12.4 million, the 16th consecutive
quarter of year-over-year growth.
"We significantly improved our bottom line, achieving net income
for the second quarter and first six months of 2023 that hit a
5-year high (on both GAAP and non-GAAP basis). The improvements in
our profitability KPIs continued our strong momentum and are driven
by strong execution and revenue increase.
"Last month, we announced the launch of our 5G assurance
solution on Google Cloud as we continue integrating our solution
with leading public cloud providers. Launching on Google Cloud will
extend our market availability to further potential customers and
offer a leading 5G assurance solution to simplify 5G rollouts.
Additionally, as previously announced, we completed the acquisition
of Continual Ltd. during the quarter. We believe that adding
Continual's core assets will enrich our solution and create new
opportunities for RADCOM in top-tier customers.
Mr. Harari concluded, "We remain confident in our ability to
cross the $50 million annual revenue
threshold and scale up to a mid-size software company for the first
time in the Company's history in 2023 and deliver a fourth
consecutive year of growth. Therefore, we are reiterating the 2023
revenue guidance of $50 million to
$53 million."
Second quarter 2023 financial highlights:
- Total revenue for the second quarter was $12.4 million, compared to $11.1 million in the second quarter of 2022.
- GAAP net income for the second quarter was $0.8 million, or $0.05 per diluted share, compared to a GAAP net
loss of $1.3 million, or a loss of
$0.09 per diluted share for the
second quarter of 2022.
- Non-GAAP net income for the second quarter was $2.1 million, or $0.13 per diluted share, compared to a non-GAAP
net income of $0.02 million or
$0.001 per diluted share for the
second quarter of 2022.
- As of June 30, 2023, the Company
had cash, cash equivalents, and short-term bank deposits of
$78.3 million and no debt.
First six months of 2023 financial highlights:
- Total revenue for the first six months was $24.4 million, compared to $21.8 million in the first six months of
2022.
- GAAP net income for the first six months was $1.4 million, or $0.09 per diluted share, compared to a GAAP net
loss of $1.8 million, or net loss of
$0.13 per diluted share for the first
six months of 2022.
- Non-GAAP net income for the first six months was $3.9 million, or $0.25 per diluted share, compared to a non-GAAP
net income of $0.6 million or
$0.04 per diluted share for the first
six months of 2022.
Earnings Conference Call
RADCOM's management will hold an interactive conference call today
at 8:30 am Eastern Time (3:30 pm Israel Time) to discuss the results and
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): +1-866-652-8972
From other locations: +972-3-918-0644
For those unable to listen to the call, a replay of the
conference call will be available a few hours later in the investor
relations section on the Company's website
at https://radcom.com/investor-relations/.
For all investor inquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
Company Contact: Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@radcom.com
About RADCOM
RADCOM (Nasdaq: RDCM) is the leading
expert in 5G ready cloud-native, network intelligence solutions for
telecom operators transitioning to 5G. RADCOM Network Intelligence
consists of RADCOM Network Visibility, RADCOM Service Assurance,
and RADCOM Network Insights. The RADCOM Network Intelligence suite
offers intelligent, container-based, on-demand solutions to deliver
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, and cutting-edge
techniques based on machine learning, these solutions work in
harmony to provide operators with 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,
acquisition-related expenses, and amortization of intangible assets
related to acquisitions, 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," " 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 full-year 2023 revenue guidance, the
potential to scale up to a mid-size software company, extend
RADCOM's market availability to further potential customers, and
offer a leading 5G assurance solution to simplify 5G rollouts, the
expectation that adding Continual's core assets will create new
opportunities for RADCOM, its momentum and potential growth, 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
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
|
|
Six months ended
|
June 30,
|
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
$
12,372
|
|
$
11,127
|
|
$
24,395
|
|
$
21,751
|
Cost of
revenues
|
3,480
|
|
3,178
|
|
6,828
|
|
6,015
|
Gross profit
|
8,892
|
|
7,949
|
|
17,567
|
|
15,736
|
Research and
development, gross
|
4,952
|
|
5,349
|
|
9,721
|
|
10,908
|
Less - royalty-bearing
participation
|
180
|
|
197
|
|
442
|
|
415
|
Research and
development, net
|
4,772
|
|
5,152
|
|
9,279
|
|
10,493
|
Sales and
marketing
|
3,351
|
|
2,879
|
|
6,664
|
|
5,784
|
General and
administrative
|
1,215
|
|
1,007
|
|
2,444
|
|
2,028
|
Total operating
expenses
|
9,338
|
|
9,038
|
|
18,387
|
|
18,305
|
Operating
loss
|
(446)
|
|
(1,089)
|
|
(820)
|
|
(2,569)
|
Financial income
(loss), net
|
1,260
|
|
(130)
|
|
2,286
|
|
817
|
Income (loss) before
taxes on income
|
814
|
|
(1,219)
|
|
1,466
|
|
(1,752)
|
Taxes on
income
|
(33)
|
|
(31)
|
|
(64)
|
|
(90)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
781
|
|
$
(1,250)
|
|
$
1,402
|
|
$ (1,842)
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss)
per ordinary share
|
$
0.05
|
|
$
(0.09)
|
|
$
0.09
|
|
$
(0.13)
|
|
15,063,112
|
|
14,462,749
|
|
14,977,743
|
|
14,408,524
|
Weighted average number
of
|
ordinary shares
used in computing
basic net income (loss) per ordinary
share
|
Weighted average number
of
|
15,658,748
|
|
14,462,749
|
|
15,614,553
|
|
14,408,524
|
ordinary shares
used in computing
diluted net income (loss) per
ordinary share
|
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
June
30,
|
|
Six months ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP gross
profit
|
$
8,892
|
|
$
7,949
|
|
$
17,567
|
|
$
15,736
|
Stock-based compensation
|
74
|
|
99
|
|
163
|
|
191
|
Amortization of
intangible assets
|
43
|
|
-
|
|
43
|
|
-
|
Non-GAAP gross profit
|
$
9,009
|
|
$
8,048
|
|
$
17,773
|
|
$
15,927
|
GAAP research and development, net
|
$
4,772
|
|
$
5,152
|
|
$
9,279
|
|
$
10,493
|
Stock-based compensation
|
536
|
|
643
|
|
1,081
|
|
1,254
|
Non-GAAP research and development, net
|
$
4,236
|
|
$
4,509
|
|
$
8,198
|
|
$
9,239
|
GAAP sales
and marketing
|
$
3,351
|
|
$
2,879
|
|
$
6,664
|
|
$
5,784
|
Stock-based compensation
|
328
|
|
357
|
|
636
|
|
664
|
Amortization of
intangible assets
|
21
|
|
-
|
|
21
|
|
-
|
Non-GAAP sales
and marketing
|
$
3,002
|
|
$
2,522
|
|
$
6,007
|
|
$
5,120
|
GAAP general and administrative
|
$
1,215
|
|
$
1,007
|
|
$
2,444
|
|
$
2,028
|
Stock-based compensation
|
249
|
|
166
|
|
514
|
|
362
|
Acquisition related
expenses
|
37
|
|
-
|
|
37
|
|
-
|
Non-GAAP general and administrative
|
$
929
|
|
$
841
|
|
$
1,893
|
|
$
1,666
|
GAAP total operating expenses
|
$
9,338
|
|
$
9,038
|
|
$
18,387
|
|
$
18,305
|
Stock-based compensation
|
1,113
|
|
1,166
|
|
2,231
|
|
2,280
|
Amortization of
intangible assets
|
21
|
|
-
|
|
21
|
|
-
|
Acquisition related
expenses
|
37
|
|
-
|
|
37
|
|
-
|
Non-GAAP total operating expenses
|
$
8,167
|
|
$
7,872
|
|
$
16,098
|
|
$
16,025
|
GAAP operating loss
|
$
(446)
|
|
$
(1,089)
|
|
$
(820)
|
|
$
(2,569)
|
Stock-based compensation
|
1,187
|
|
1,265
|
|
2,394
|
|
2,472
|
Amortization of
intangible assets
|
64
|
|
-
|
|
64
|
|
-
|
Acquisition related
expenses
|
37
|
|
-
|
|
37
|
|
-
|
Non-GAAP operating income
(loss)
|
$
842
|
|
$
176
|
|
$
1,675
|
|
$
(97)
|
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
June
30,
|
|
Six months
ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP income
(loss) before taxes on income
|
$
814
|
|
$
(1,219)
|
|
$
1,466
|
|
$
(1,752)
|
Stock-based compensation
|
1,187
|
|
1,265
|
|
2,394
|
|
2,472
|
Amortization of
intangible assets
|
64
|
|
-
|
|
64
|
|
-
|
Acquisition related
expenses
|
66
|
|
-
|
|
66
|
|
-
|
Non-GAAP income before taxes on income
|
$
2,131
|
|
$
46
|
|
$
3,990
|
|
$
720
|
GAAP net income
(loss)
|
$
781
|
|
$
(1,250)
|
|
1,402
|
|
$
(1,842)
|
Stock-based compensation
|
1,187
|
|
1,265
|
|
2,394
|
|
2,472
|
Amortization of
intangible assets
|
64
|
|
-
|
|
64
|
|
-
|
Acquisition related
expenses
|
66
|
|
-
|
|
66
|
|
-
|
Non-GAAP net income
|
$
2,098
|
|
$
15
|
|
$
3,926
|
|
$
630
|
GAAP net
income (loss) per diluted share
|
$
0.05
|
|
$
(0.09)
|
|
0.09
|
|
$
(0.13)
|
Stock-based compensation
|
0.08
|
|
0.09
|
|
0.16
|
|
0.17
|
Amortization of
intangible assets
|
(*)
|
|
-
|
|
(*)
|
|
-
|
Acquisition related
expenses
|
(*)
|
|
-
|
|
(*)
|
|
-
|
Non-GAAP net income per diluted share
|
$
0.13
|
|
(*)
|
|
$
0.25
|
|
$
0.04
|
Weighted average number of shares used
to compute diluted net
income per share
|
15,658,748
|
|
14,878,438
|
|
15,614,553
|
|
14,843,215
|
|
(*) Less than $
0.01
|
RADCOM
Ltd.
Consolidated
Balance Sheets
Unaudited
(thousands of U.S.
dollars)
|
|
As of
|
|
As of
|
|
June
30,
2023
|
|
December
31,
2022
|
Current
Assets
|
|
|
|
Cash and cash equivalents
|
$
35,409
|
|
$
9,527
|
Short-term bank deposits
|
42,901
|
|
64,130
|
Trade receivables, net
|
10,111
|
|
11,074
|
Inventories
|
396
|
|
795
|
Other accounts receivable and prepaid expenses
|
1,409
|
|
1,928
|
Total Current
Assets
|
90,226
|
|
87,454
|
|
|
|
|
Non-Current
Assets
|
|
|
|
Long-term bank deposits
|
-
|
|
4,002
|
Severance pay fund
|
3,278
|
|
3,524
|
Other long-term receivables
|
1,995
|
|
2,557
|
Property and equipment, net
|
884
|
|
1,010
|
Operating lease right-of-use assets
|
1,946
|
|
2,457
|
Goodwill and intangible assets, net
|
3,146
|
|
-
|
Total
Non-Current Assets
|
11,249
|
|
13,550
|
|
|
|
|
Total
Assets
|
$
101,475
|
|
$
101,004
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
1,433
|
|
$
2,708
|
Deferred revenues and advances from customers
|
4,359
|
|
7,037
|
Employee and payroll accruals
|
4,663
|
|
5,198
|
Operating lease liabilities
|
949
|
|
1,024
|
Other liabilities and accrued expenses
|
8,391
|
|
6,829
|
Total Current
Liabilities
|
19,795
|
|
22,796
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Accrued severance
pay
|
3,859
|
|
3,973
|
Operating lease liabilities
|
917
|
|
1,452
|
Other liabilities and accrued expenses
|
675
|
|
-
|
Total
Non-Current Liabilities
|
5,451
|
|
5,425
|
|
|
|
|
Total
Liabilities
|
$
25,246
|
|
$
28,221
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
$
724
|
|
$
706
|
Additional paid-in
capital
|
150,985
|
|
148,610
|
Accumulated other comprehensive loss
|
(3,259)
|
|
(2,908)
|
Accumulated
deficit
|
(72,221)
|
|
(73,625)
|
|
|
|
|
Total Shareholders'
Equity
|
76,229
|
|
72,783
|
Total
Liabilities and Shareholders' Equity
|
$
101,475
|
|
$
101,004
|
View original
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SOURCE RADCOM Ltd.