RADCOM Reports Financial Results for Q1 2016

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- $6.5M in Revenues, $1.3M Non-GAAP Net Profit -

TEL-AVIV, Israel, May 10, 2016 /PRNewswire/ -- RADCOM Ltd. RDCM today reported its financial results for the first quarter ended March 31, 2016.

In $ thousands

Q1 2016

Q1 2015

YOY Change

Q4 2015

Revenues

$6,547

$6,354

3.0%

$2,715

Gross margin

74.1%

82.2%

-

58.1%

Net profit (loss) (non-GAAP)

$1,340

$821

63%

$(1,606)

Net profit (loss) (GAAP)

$903

$437

107%

$(2,124)

Cash & equivalents

$25,527

$3,974

542%

$8,727

Financial Results
Revenues for the first quarter totaled $6.5 million, up 141% compared with the fourth quarter of 2015 and 3% compared with $6.4 million in the first quarter of 2015. On a non-GAAP basis, net profit for the period totaled $1.3 million, or $0.14 (diluted) and $0.15 (basic) per ordinary share, up 63% compared with $821,000, or $0.09 (diluted) and $0.10 (basic) per ordinary share, for the first quarter of 2015. On a GAAP basis, net profit for the quarter totaled $903,000, or $0.10 (basic and diluted) per ordinary share, up 107% compared with $437,000, or $0.05 (basic and diluted) per ordinary share, for the first quarter of 2015.

The Company's balance of cash and cash equivalents as of the end of the first quarter of 2016 totaled a record $25.5 million compared with $8.7 million at the end of 2015.  

Comments of Management
"After one quarter into my tenure as CEO, in this new era of growth for the company, I'm pleased to report that we are on track with our plans. We are focused on tight delivery of all our customer commitments and in leveraging our first-mover advantage within the NFV space as we engage additional top-tier accounts," commented Mr. Yaron Ravkaie, RADCOM's CEO.

"Given our backlog and funnel of opportunities, we project that our revenues for 2016 will reach $28-$29.5 million, representing 50%-58% growth over 2015."

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 9:00 AM Eastern Time (16:00 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: +972-3-918-0609

For those unable to listen to the call at the time, a replay will be available from May 11th on RADCOM's website.

About RADCOM
RADCOM 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 our financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, our non-GAAP results provide information to both management and investors that is useful in assessing our 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 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, statements about the Company's projected growth, consistency and revenue in 2016 and securing additional business all constitute 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 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

(1000s of U.S. dollars, except share and per share data)



Three months ended
March 31,



2016


2015



(unaudited)


(unaudited)


Sales

$       6,547


$     6,354


Cost of sales

1,693


1,138


Gross profit

4,854


5,216


Research and development

1,836


1,638


Sales and marketing, net

1,527


2,041


General and administrative

871


641


Total operating expenses

4,234


4,320


Operating profit

620


896


Financing income (expenses), net

289


(452)


Income before taxes

909


444


Taxes

6


7


 

Net profit

$   903


$    437


 

Basic and diluted net income per ordinary Share

$   0.10


$    0.05







 

Weighted average number of
    ordinary shares used in
    computing basic net income
    per ordinary share

8,729,891


8,464,565


Weighted average number of 
    ordinary shares used in
    computing diluted net income per ordinary share

9,307,539


9,039,676


 

RADCOM Ltd.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(1000s of U.S. dollars, except share and per share data)




Three Months Ended



March 31,



2016


2015



(unaudited)


(unaudited)






GAAP net income


$903


$437

Stock-based compensation (1)


437


384

Non-GAAP net income  


$1,340


$821

Non-GAAP net income per share (basic)


$0.15


$0.10

Non-GAAP net income per share (diluted)


$0.14


$0.09






Number of shares used in computing Non-GAAP net income per share (basic)


8,729,891


8,464,565

Number of shares used in computing Non-GAAP net income per share (diluted)


9,307,539


9,039,676






(1) Stock-based compensation:





   Cost of sales


14


9

   Research and development


171


165

   Sales and marketing


20


91

   General and administrative


232


119



437


384

 

RADCOM Ltd.

Consolidated Balance Sheets

(1000s of U.S. dollars)



As of


As of


March 31,

2016


December 31,

2015


(unaudited)


(audited)

Current assets




     Cash and cash equivalents

25,527


8,727

     Restricted bank deposits

32


32

     Trade receivables

2,674


3,684

     Inventories

1,411


1,532

      Other account receivables and prepaid expenses

2,043


2,087

Total current assets

31,687


16,062

Severance pay fund

3,341


3,181

Other long-term receivables

589


508

Property and equipment, net

616


384

Total Assets

36,233


20,135





Liabilities and shareholders' equity




Current liabilities




     Trade payables

1,223


1,465

     Deferred revenue and advances from customers

13,935


931

     Employees and payroll accruals

3,034


2,533

     Other payables and accrued expenses

1,501


1,490

Total current liabilities

19,693


6,419

Long-term liabilities




     Deferred revenue  and advances from customers

72


197

     Accrued severance pay       

4,001


3,656

Total long-term liabilities

4,073


3,853





Total liabilities

23,766


10,272





Shareholders' equity




     Share capital

377


372

     Additional paid-in capital

71,451


70,270

     Receipts on account of shares

417



     Accumulated other comprehensive loss

(2,662)


(2,760)

     Accumulated deficit

(57,116)


(58,019)

Total shareholders' equity

12,467


9,863





Total liabilities and shareholders' equity

36,233


20,135

Contact:
Uri Birenberg, CFO
(972) 77-774-5060
urib@radcom.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radcom-reports-financial-results-for-q1-2016-300265804.html

SOURCE RADCOM Ltd.

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