UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2024
Commission File Number: 0-29452
RADCOM LTD.
(Translation of registrant’s name into English)
24 Raoul Wallenberg Street, Tel Aviv 69719,
Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form:40-F ☐
THE GAAP FINANCIAL STATEMENTS INCLUDED IN
EXHIBIT 99.1 TO THIS FORM 6-K OF THE REGISTRANT ARE HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRANT’S REGISTRATION STATEMENTS
ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-190207, 333-195465, 333-203087, 333-211628, 333-215591, 333-260997, 333-270983
AND 333-276692), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR
REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This report on Form 6-K of the registrant consists
of the contents above and the following document, which is attached hereto and incorporated by reference herein:
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
RADCOM LTD. |
|
|
Date: August 7, 2024 |
By: |
/s/
Hadar Rahav |
|
Name: |
Hadar Rahav |
|
Title: |
Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
RADCOM Delivers 20% YoY Revenue Growth and EPS
up by 120%
Reaffirming Company’s Commitment
to Profitable Growth and Long-Term Shareholder Value
| ● | Highest quarterly revenues of $14.8 million |
| ● | Record half-year revenue and profitability |
| ● | Peak cash level of $86.1 million |
TEL AVIV, Israel – August 7, 2024 − RADCOM Ltd. (Nasdaq:
RDCM), an industry leader in automated assurance and intelligent analytics for telecom operators transitioning to 5G, announced today
its financial results for the second quarter ended June 30, 2024.
Hilik Itman, RADCOM’s interim Chief Executive Officer, commented, “This
quarter, we continued to execute our strategy to drive profitable growth and long-term shareholder value. We achieved record quarterly
revenues of $14.8 million, up 20% from the second quarter of 2023.
Our net income increased by approximately
120%, driven by strong revenue growth. We maintained our positive cash flow generation, achieving a new milestone with our cash and
cash equivalents reaching a record high of $86.1 million. We are on track to meet our 2024 financial guidance and deliver revenue
and profitability growth.
“Since the start of the year, we have secured over $50 million
in new 5G contracts, including several seven-digit contracts across various geographic markets, while maintaining significant recurring
revenues. This shows the demand for our leading solutions and boosts our revenues as telecom operators transition to 5G.”
Key highlights Q2 2024:
| ● | Total
revenues for the second quarter were $14.8 million, compared to $12.4 million in the second quarter of 2023, representing
a 20% year-over-year growth, a new company record. |
| ● | GAAP
net income for the second quarter was $1.7 million, or $0.11 diluted EPS, compared to $0.8 million, or $0.05 diluted
EPS, for the second quarter of 2023, representing approximately 120% increase year-over-year compared to the second quarter of 2023. |
| ● | Non-GAAP
net income for the period was $3.1 million, or $0.20 diluted EPS, compared to $2.1 million, or $0.13 diluted EPS, for
the second quarter of 2023. |
| ● | As
of June 30, 2024, the Company had cash, cash equivalents, and short-term bank deposits of $86.1 million and no debt, ending the
quarter with its highest-ever cash levels. |
Key highlights H1 2024
| ● | Total
revenues for the first six months were $28.9 million, compared to $24.4 million in the first six months of 2023, representing
a 19% year-over-year growth. |
| ● | GAAP
net income for the first six months was $2.5 million, or $0.16 diluted EPS, compared to $1.4 million, or $0.09 diluted
EPS for the first six months of 2023. |
| ● | Non-GAAP
net income for the first six months was $6.0 million, or $0.38 diluted EPS, compared to $3.9 million, or $0.25 diluted
EPS, for the first six months of 2023. |
Mr. Itman concluded, “The efficient growth we achieved in the
first six months of 2024 provides a strong foundation for our continued success in the remaining six months of 2024, and we believe the
best is yet to come. We are witnessing increasing demand for our solutions across multiple regions, particularly in North America. The
heightened demand is reflected in our expanding sales pipeline, which has the potential to drive further growth and enhance shareholder
returns.
This gives us the confidence to raise our 2024 revenue guidance to
$58 to $61 million (from $57 to $60 million).”
Earnings conference call and webcast
RADCOM’s management will hold an interactive conference call
on the same day at 8:00 AM Eastern Time (3:00 PM Israel Daylight Time) to discuss the results and answer participants’ questions.
| ● | Live
webcast: A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq2-2024. The webcast will be
archived for 90 days following the live presentation. |
| ● | Joining
the interactive call: Please dial in 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 |
A conference call replay will be available a few
hours after the call on RADCOM’s investor relations webpage 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 in accordance with ASC Topic 718, financial income
(expenses), 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 2024 revenue guidance, market trends, and
demand for the Company’s products and services, expanding its sales pipeline, profitability, growth, and enhancing shareholder
returns, it uses 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, loss of market share and pressure on prices resulting from competition and the effects of the war in
Israel. 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 June 30, | | |
Six months ended June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
Revenues | |
$ | 14,801 | | |
$ | 12,372 | | |
$ | 28,924 | | |
$ | 24,395 | |
Cost of revenues | |
| 3,794 | | |
| 3,480 | | |
| 7,545 | | |
| 6,828 | |
Gross profit | |
| 11,007 | | |
| 8,892 | | |
| 21,379 | | |
| 17,567 | |
Research and development, gross | |
| 4,621 | | |
| 4,952 | | |
| 9,214 | | |
| 9,721 | |
Less - royalty-bearing participation | |
| 180 | | |
| 180 | | |
| 389 | | |
| 442 | |
Research and development, net | |
| 4,441 | | |
| 4,772 | | |
| 8,825 | | |
| 9,279 | |
Sales and marketing | |
| 4,325 | | |
| 3,351 | | |
| 8,610 | | |
| 6,664 | |
General and administrative | |
| 1,361 | | |
| 1,215 | | |
| 3,374 | | |
| 2,444 | |
Total operating expenses | |
| 10,127 | | |
| 9,338 | | |
| 20,809 | | |
| 18,387 | |
Operating income (loss) | |
| 880 | | |
| (446 | ) | |
| 570 | | |
| (820 | ) |
Financial income, net | |
| 854 | | |
| 1,260 | | |
| 1,959 | | |
| 2,286 | |
Income before taxes on income | |
| 1,734 | | |
| 814 | | |
| 2,529 | | |
| 1,466 | |
Taxes on income | |
| (27 | ) | |
| (33 | ) | |
| (60 | ) | |
| (64 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net income | |
$ | 1,707 | | |
$ | 781 | | |
$ | 2,469 | | |
$ | 1,402 | |
| |
| | | |
| | | |
| | | |
| | |
Basic and diluted net income per ordinary share | |
$ | 0.11 | | |
$ | 0.05 | | |
$ | 0.16 | | |
$ | 0.09 | |
Weighted average number of ordinary shares used in computing
basic net income per ordinary share | |
| 15,608,402 | | |
| 15,063,112 | | |
| 15,517,958 | | |
| 14,977,743 | |
Weighted average number of ordinary shares used in
computing diluted net income per ordinary share | |
| 15,978,799 | | |
| 15,658,748 | | |
| 15,922,855 | | |
| 15,614,553 | |
| |
Three months ended June 30, | | |
Six months ended June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
GAAP gross profit | |
$ | 11,007 | | |
$ | 8,892 | | |
$ | 21,379 | | |
$ | 17,567 | |
Stock-based compensation | |
| 99 | | |
| 74 | | |
| 183 | | |
| 163 | |
Amortization of intangible assets | |
| 56 | | |
| 43 | | |
| 112 | | |
| 43 | |
Non-GAAP gross profit | |
$ | 11,162 | | |
$ | 9,009 | | |
$ | 21,674 | | |
$ | 17,773 | |
GAAP research and development, net | |
$ | 4,441 | | |
$ | 4,772 | | |
$ | 8,825 | | |
$ | 9,279 | |
Stock-based compensation | |
| 525 | | |
| 536 | | |
| 1,062 | | |
| 1,081 | |
Non-GAAP research and development, net | |
$ | 3,916 | | |
$ | 4,236 | | |
$ | 7,763 | | |
$ | 8,198 | |
GAAP sales and marketing | |
$ | 4,325 | | |
$ | 3,351 | | |
$ | 8,610 | | |
$ | 6,664 | |
Stock-based compensation | |
$ | 485 | | |
| 328 | | |
| 989 | | |
| 636 | |
Amortization of intangible assets | |
$ | 29 | | |
| 21 | | |
| 58 | | |
| 21 | |
Non-GAAP sales and marketing | |
$ | 3,811 | | |
$ | 3,002 | | |
$ | 7,563 | | |
$ | 6,007 | |
GAAP general and administrative | |
$ | 1,361 | | |
$ | 1,215 | | |
$ | 3,374 | | |
$ | 2,444 | |
Stock-based compensation | |
| 202 | | |
| 249 | | |
| 1,041 | | |
| 514 | |
Acquisition related expenses | |
| - | | |
| 37 | | |
| - | | |
| 37 | |
Non-GAAP general and administrative | |
$ | 1,159 | | |
$ | 929 | | |
$ | 2,333 | | |
$ | 1,893 | |
GAAP total operating expenses | |
$ | 10,127 | | |
$ | 9,338 | | |
$ | 20,809 | | |
$ | 18,387 | |
Stock-based compensation | |
| 1,212 | | |
| 1,113 | | |
| 3,092 | | |
| 2,231 | |
Amortization of intangible assets | |
| 29 | | |
| 21 | | |
| 58 | | |
| 21 | |
Acquisition related expenses | |
| - | | |
| 37 | | |
| - | | |
| 37 | |
Non-GAAP total operating expenses | |
$ | 8,886 | | |
$ | 8,167 | | |
$ | 17,659 | | |
$ | 16,098 | |
GAAP operating income (loss) | |
$ | 880 | | |
$ | (446 | ) | |
$ | 570 | | |
$ | (820 | ) |
Stock-based compensation | |
| 1,311 | | |
| 1,187 | | |
| 3,275 | | |
| 2,394 | |
Amortization of intangible assets | |
| 85 | | |
| 64 | | |
| 170 | | |
| 64 | |
Acquisition related expenses | |
| - | | |
| 37 | | |
| - | | |
| 37 | |
Non-GAAP operating income | |
$ | 2,276 | | |
$ | 842 | | |
$ | 4,015 | | |
$ | 1,675 | |
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, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
GAAP income before taxes on income | |
$ | 1,734 | | |
$ | 814 | | |
$ | 2,529 | | |
$ | 1,466 | |
Stock-based compensation | |
| 1,311 | | |
| 1,187 | | |
| 3,275 | | |
| 2,394 | |
Amortization of intangible assets | |
| 85 | | |
| 64 | | |
| 170 | | |
| 64 | |
Acquisition related expenses | |
| 34 | | |
| 66 | | |
| 71 | | |
| 66 | |
Non-GAAP income before taxes on income | |
$ | 3,164 | | |
$ | 2,131 | | |
$ | 6,045 | | |
$ | 3,990 | |
GAAP net income | |
$ | 1,707 | | |
$ | 781 | | |
$ | 2,469 | | |
$ | 1,402 | |
Stock-based compensation | |
| 1,311 | | |
| 1,187 | | |
| 3,275 | | |
| 2,394 | |
Amortization of intangible assets | |
| 85 | | |
| 64 | | |
| 170 | | |
| 64 | |
Acquisition related expenses | |
| 34 | | |
| 66 | | |
| 71 | | |
| 66 | |
Non-GAAP net income | |
$ | 3,137 | | |
$ | 2,098 | | |
$ | 5,985 | | |
$ | 3,926 | |
GAAP net income per diluted share | |
$ | 0.11 | | |
$ | 0.05 | | |
$ | 0.16 | | |
$ | 0.09 | |
Stock-based compensation | |
| 0.08 | | |
| 0.08 | | |
| 0.21 | | |
| 0.16 | |
Amortization of intangible assets | |
| 0.01 | | |
| (* | ) | |
| 0.01 | | |
| (* | ) |
Acquisition related expenses | |
| (* | ) | |
| (* | ) | |
| (* | ) | |
| (* | ) |
Non-GAAP net income per diluted share | |
$ | 0.20 | | |
$ | 0.13 | | |
$ | 0.38 | | |
$ | 0.25 | |
Weighted average number of shares used to compute diluted net income per share | |
| 15,978,799 | | |
| 15,658,748 | | |
| 15,922,855 | | |
| 15,614,553 | |
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
(Unaudited)
| |
As of | | |
As of | |
| |
June 30, 2024 | | |
December 31, 2023 | |
Current Assets | |
| | |
| |
Cash and cash equivalents | |
$ | 15,248 | | |
$ | 10,892 | |
Short-term bank deposits | |
| 70,864 | | |
| 71,273 | |
Trade receivables, net | |
| 18,071 | | |
| 13,412 | |
Inventories | |
| 695 | | |
| 246 | |
Other accounts receivable and prepaid expenses | |
| 1,353 | | |
| 1,592 | |
Total Current Assets | |
| 106,231 | | |
| 97,415 | |
| |
| | | |
| | |
Non-Current Assets | |
| | | |
| | |
Severance pay fund | |
| 3,006 | | |
| 3,142 | |
Other long-term receivables | |
| 3,353 | | |
| 1,573 | |
Property and equipment, net | |
| 772 | | |
| 798 | |
Operating lease right-of-use assets | |
| 1,148 | | |
| 1,651 | |
Goodwill and intangible assets, net | |
| 2,780 | | |
| 2,950 | |
Total Non-Current Assets | |
| 11,059 | | |
| 10,114 | |
| |
| | | |
| | |
Total Assets | |
$ | 117,290 | | |
$ | 107,529 | |
| |
| | | |
| | |
Liabilities and Shareholders’ Equity | |
| | | |
| | |
| |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Trade payables | |
$ | 3,400 | | |
$ | 2,640 | |
Deferred revenues and advances from customers | |
| 4,140 | | |
| 1,469 | |
Employee and payroll accruals | |
| 5,397 | | |
| 5,400 | |
Operating lease liabilities | |
| 627 | | |
| 1,062 | |
Other liabilities and accrued expenses | |
| 10,449 | | |
| 9,540 | |
Total Current Liabilities | |
| 24,013 | | |
| 20,111 | |
| |
| | | |
| | |
Non-Current Liabilities | |
| | | |
| | |
Accrued severance pay | |
| 3,680 | | |
| 3,728 | |
Operating lease liabilities | |
| 472 | | |
| 561 | |
Other liabilities and accrued expenses | |
| 653 | | |
| 638 | |
Total Non-Current Liabilities | |
| 4,805 | | |
| 4,927 | |
| |
| | | |
| | |
Total Liabilities | |
$ | 28,818 | | |
$ | 25,038 | |
| |
| | | |
| | |
Shareholders’ Equity | |
| | | |
| | |
Share capital | |
$ | 755 | | |
$ | 736 | |
Additional paid-in capital | |
| 157,954 | | |
| 154,697 | |
Accumulated other comprehensive loss | |
| (2,794 | ) | |
| (3,030 | ) |
Accumulated deficit | |
| (67,443 | ) | |
| (69,912 | ) |
| |
| | | |
| | |
Total Shareholders’ Equity | |
| 88,472 | | |
| 82,491 | |
Total Liabilities and Shareholders’ Equity | |
$ | 117,290 | | |
$ | 107,529 | |
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