RADCOM Reports Q2 & H1 2016 Financial Results

Q2 Revenues Up 49% YOY to $7.2M

Announces Relationship with AT&T

Strengthened Balance Sheet Supports Execution of Growth Initiatives

TEL-AVIV, Israel, Aug. 3, 2016 /PRNewswire/ -- RADCOM Ltd. RDCM today reported its financial results for the second quarter and first half ended June 30, 2016.

 

In $ thousands

Q2 2016

Q2 2015

H1 2016

H1 2015

Revenues

$7,200

$4,837

$13,747

$11,191

Gross margin

70%

75%

72%

79%

Net profit

$1,747

$203

$2,650

$640

Net profit (non-GAAP)

$1,997

$605

$3,337

$1,426

Cash & equivalents

$46,468

$9,916

$46,468

$9,916

 

Financial Results
Second Quarter: Revenues for the second quarter were $7.2 million, up 49% compared to $4.8 million in the second quarter of 2015, and up 10% compared to $6.5 million in the first quarter of 2016.

Net income for the period, determined in accordance with U.S. GAAP, totaled $1.7 million, or $0.17 per diluted share, compared to $203,000, or $0.02 per diluted share for the second quarter of 2015, and $0.10 per diluted share in the first quarter of 2016.  On a non-GAAP basis, net income totaled $2.0 million, or $0.20 per diluted share, compared to $605,000, or $0.07 per diluted share for the second quarter of 2015, and $0.14 per diluted share in the first quarter of 2016.  Both GAAP and non-GAAP results for the second quarter of 2016 included a $0.8 million or $0.07 per diluted share, benefit related to grants from the Office of the Chief Scientist compared to $0.2 million or $0.02 per diluted share in the second quarter of 2015.

As of June 30, 2016, the Company's balance of cash and cash equivalents totaled a record $46.5 million compared to $8.7 million at the end of 2015 and $25.5 million at the end of the first quarter. 

First Half of 2016: Revenues for the first six months of 2016 increased by 23% to $13.7 million compared to $11.2 million in the first half of 2015.

GAAP net income for the period totaled $2.6 million, or $0.27 per diluted share, compared to $640,000, or $0.07 per diluted share in the first half of 2015. On a non-GAAP basis, net income for the period totaled $3.3 million, or $0.34 per diluted share compared to $1.4 million, or $0.16 per diluted share recorded in the first half of 2015.

Comments of Management
"AT&T's recent public announcement that it is using RADCOM's innovative technology to support its shift to network virtualization highlights the strong technological leadership of our game-changing MaveriQ product suite. We are on track in implementing the current contract and have recently signed a product expansion, as well as a multi-year maintenance agreement that further strengthens our long-term relationship," commented Mr. Yaron Ravkaie, RADCOM's CEO. "As a vital component of AT&T's NFV transformation, we are positioned to continue innovating and extending our technologies, in line with our strategic plan, and have already added cutting-edge new capabilities to our MaveriQ solution. We believe this new functionality will be critical for the success of any large-scale network virtualization, further positioning RADCOM as the go-to NFV service assurance vendor. With this recent public announcement and AT&T's endorsement, we are accelerating our engagements with additional top-tier carriers."

Mr. Yaron Ravkaie concluded, "We are reiterating our 2016 revenue guidance range of $28-$29.5 million, up 50%-58% compared with 2015. The combination of our best-of-breed MaveriQ suite, growing pipeline of opportunities and significantly strengthened balance sheet positions the Company to scale and grow to a whole new level."

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 August 4th 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 MaveriQ software continuously monitors network performance and quality-of-service, enabling CSPs to optimize the subscriber user experience. 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 http://www.radcom.com. 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

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, when the Company discusses its 2016 revenue guidance range, expected opportunities, pipeline and growth and deployment, extension of relationships with AT&T and becoming the go-to solution for NFV operators 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 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 Statement of Operations

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



Three months ended

June 30,


Six months ended

June 30,


2016


2015


2016


2015


(unaudited)


(unaudited)


(unaudited)


(unaudited)

Sales

$ 7,200


$ 4,837


$ 13,747


$ 11,191

Cost of sales

2,136


1,216


3,829


2,354

Gross profit

5,064


3,621


9,918


8,837

Research and development, gross

1,632


1,433


3,468


3,071

Less - royalty-bearing participation

756


148


756


148

Research and development, net

876


1,285


2,712


2,923

Sales and marketing, net

1,732


1,546


3,259


3,587

General and administrative

1,156


565


2,027


1,206

Total operating expenses

3,764


3,396


7,998


7,716

Operating income

1,300


225


1,920


1,121

Financing income (expense), net

447


78


736


(374)

Income before taxes

1,747


303


2,656


747

Taxes

-


100


6


107









Net profit

$ 1,747


$ 203


$ 2,650


$ 640









Basic net income per

ordinary share

$ 0.18


$ 0.02


$0.28


$ 0.08

Diluted net income per

ordinary share

$ 0.17


$ 0.02


$0.27


$ 0.07

Weighted average number of

ordinary shares used in

computing basic net income

per ordinary share

9,875,268


8,537,377


9,322,930


8,501,254

Weighted average number of

ordinary shares used in

computing diluted net income

per ordinary share

10,117,835


9,093,008


9,733,037


9,066,624

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(1000's of U.S. dollars)


As of


As of


June 30,

2016


December 31,

2015


(unaudited)


(audited)

Current Assets




     Cash and cash equivalents

$       46,468


$       8,727

     Restricted cash deposits

32


32

     Trade receivables

1,020


3,684

     Inventories

1,850


1,532

     Other receivables

2,967


2,087

Total Current Assets

52,337


16,062

Severance pay fund

3,240


3,181

Other long-term receivables

627


508

Property and equipment, net

685


384

Total Assets

$      56,889


$    20,135





Liabilities and Shareholders' Equity




Current Liabilities




    Trade payables

$       1,825


$      1,465

    Deferred revenue and advances from customers

8,110


931

    Employee and payroll accruals

3,628


2533

    Other payables and accrued expenses

1,944


1,490

Total Current Liabilities

15,507


6,419

Long-Term Liabilities




    Deferred revenue

129


197

    Accrued severance pay       

3,876


3,656

Total Long-Term Liabilities

4,005


3,853





Total Liabilities

19,512


10,272





Shareholders' Equity




     Share capital

$510


$372

     Additional paid-in capital

94,791


70,270

       Accumulated other comprehensive loss

(2,555)


(2,760)

     Accumulated deficit

(55,369)


(58,019)

Total Shareholders' Equity

37,377


9,863

Total Liabilities and Shareholders' Equity

$      56,889


$     20,135

 

 

RADCOM Ltd.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

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






Three Months Ended


Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(unaudited)


(unaudited)


(unaudited)


(unaudited)









GAAP net income

$     1,747


$       203


$       2,650


$       640

Stock-based compensation (1)

250


402


687


786

Non-GAAP net income

$     1,997


$       605


$       3,337


$    1,426

Non-GAAP net income per share (basic)

$       0.20


$       0.07


$         0.36


$      0.17

Non-GAAP net income per share (diluted)

$       0.20


$       0.07


$         0.34


$     0.16









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

9,875,268


8,537,377


9,322,930


8,501,254

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

10,117,835


9,093,008


9,733,037


9,066,624









(1) Stock-based compensation:








   Cost of sales

27


13


42


22

   Research and development

69


159


239


324

   Sales and marketing

31


133


51


224

   General and administrative

123


97


355


216


250


402


687


786

 

Contact:
Ran Vered, CFO
(+972)77-774-5011
ranv@radcom.com 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radcom-reports-q2--h1-2016-financial-results-300308339.html

SOURCE RADCOM Ltd

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