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RADCOM Reports Second Quarter 2018 Financial Results

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RADCOM Reports Second Quarter 2018 Financial Results

- Q2 Revenues up 19% Year-Over-Year to $10.6 million

- Cash, cash equivalents and short-term bank deposit of $71.4 million and No Debt

PR Newswire

TEL AVIV, Israel, Aug. 7, 2018 /PRNewswire/ -- RADCOM Ltd. (NASDAQ:RDCM), today reported its financial results for the second quarter ended June 30, 2018.

"Our solid second quarter results highlight the strength of our continued focus on top-tier network transformations and the ongoing demand for our NFV solutions as operators prepare their 5G-ready clouds," commented Mr. Yaron Ravkaie, RADCOM's CEO. "The Company is focused on supporting top-tier carriers as they accelerate their network virtualization transformations to prepare for 5G rollouts. Based on our current outlook, we are reiterating our 2018 revenue guidance of $43-$47 million."

Second Quarter 2018 Financial Highlights:

  • Revenues: Total revenues for the second quarter were $10.6 million, up 19% compared to $8.9 million in the second quarter of 2017.
  • Net Income/(Loss): GAAP net income for the period was $0.8 million, or $0.05 per diluted share, compared to GAAP net loss of $(0.2) million, or a loss of $(0.02) per diluted share for the second quarter of 2017.
  • Non-GAAP Net Income: Non-GAAP net income for the period was $1.4 million, or $0.10 per diluted share, compared to non-GAAP net income of $0.4 million, or $0.03 per diluted share for the second quarter of 2017.
  • GAAP and non-GAAP results for the second quarter of 2018 included $754,000, or $0.05 per diluted share, related to grants from the Israel Innovation Authority, compared to $312,000, or $0.03 per diluted share, in the second quarter of 2017.
  • Balance sheet: As of June 30, 2018, the Company had cash, cash equivalents and short-term bank deposit of $71.4 million and no debt.

Earnings Conference Call

RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (15:00 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): +1-866-229-7198

From other locations: +972-3-918-0687

For those unable to listen to the call at the time, a replay will be available from August 8, 2018, on RADCOM's website.

About RADCOM

RADCOM (NASDAQ:RDCM) is the leading expert in cloud-native Network Intelligence for telecom operators transitioning to SDN/NFV. Providing a critical first step in an operator's NFV transformation, RADCOM's Network Intelligence delivers end-to-end network visibility from virtual tapping point to network insights. Comprised of RADCOM Service Assurance, RADCOM Network Visibility and RADCOM Network Insights, RADCOM's Network Intelligence portfolio provides operators with complete visibility across their virtual and hybrid networks. RADCOM Network Intelligence is automated, cost-efficient, and provides on-demand functionality that is specifically designed for the needs of telecom operators. RADCOM specializes in assuring next-generation, high capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV and others. 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 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 revenue guidance for 2018, and expected demand for the Company's NFV solutions, the trend of preparing for 5G-ready cloud and the future success of the Company's approach and its differentiation from competitors and the Company's pipeline, 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 Statement of Operations

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



Three months ended

June 30,


Six months ended

June 30,


2018


2017


2018


2017


(unaudited)


(unaudited)


(unaudited)


(unaudited)

Revenues

$       10,639


$       8,917


$     21,542


$     16,957

Cost of revenues

2,877


2,643


5,767


4,665

Gross profit

7,762


6,274


15,775


12,292

Research and development, gross

3,752


2,739


7,496


5,227

Less - royalty-bearing participation

754


312


754


312

Research and development, net

2,998


2,427


6,742


4,915

Sales and marketing, net

3,084


2,989


6,324


5,886

General and administrative

992


1,098


1,990


2,158

Total operating expenses

7,074


6,514


15,056


12,959

Operating income (loss)

688


(240)


719


(667)

Financial income, net

71


41


373


150

Income (loss) before taxes on income

759


(199)


1,092


(517)

Taxes on income

(2)


(5)


(13)


(23)









Net income (loss)

$        757


$        (204)


$       1,079


$       (540)









Basic net income (loss) per

ordinary share

$       0.06


$       (0.02)


$      0.08


$      (0.05)

Diluted net income (loss) per

ordinary share

$       0.05


$       (0.02)


$      0.08


$      (0.05)


Weighted average number of 

ordinary shares used in computing basic
net income (loss) per ordinary share

13,600,323


11,695,750


13,549,494


11,673,240


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

13,849,488


11,695,750


13,817,995


11,673,240

 

 

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 


Six months ended


June 30,


June 30,


2018


2017


2018


2017

GAAP gross profit                    

7,762


6,274


15,775


12,292

Stock-based compensation

37


20


77


67

Non-GAAP gross profit

7,799


6,294


15,852


12,359


GAAP research and development, net

2,998


2,427


6,742


4,915

Stock-based compensation

203


133


411


242

Non-GAAP research and development, net

2,795


2,294


6,331


4,673


GAAP sales and marketing, net

3,084


2,989


6,324


5,886

Stock-based compensation

233


144


462


272

Non-GAAP sales and marketing, net

2,851


2,845


5,862


5,614


GAAP general and administrative

992


1,098


1,990


2,158

Stock-based compensation

193


323


392


659

Non-GAAP general and administrative

799


775


1,598


1,499


GAAP total operating expenses

7,074


6,514


15,056


12,959

Stock-based compensation

629


600


1,265


1,173

Non-GAAP total operating expenses

6,445


5,914


13,791


11,786


GAAP operating income (loss)

688


(240)


719


(667)

Stock-based compensation

666


620


1,342


1,240

Non-GAAP operating income

1,354


380


2,061


573


GAAP income (loss) before taxes on income

759


(199)


1,092


(517)

Stock-based compensation

666


620


1,342


1,240

Non-GAAP income before taxes on income

1,425


421


2,434


723


GAAP net income (loss)

757


(204)


1,079


(540)

Stock-based compensation

666


620


1,342


1,240

Non-GAAP net income

1,423


416


2,421


700


GAAP net income (loss) per diluted share

0.05


(0.02)


0.08


(0.05)

Stock-based compensation

0.05


0.05


0.10


0.11

Non-GAAP net income per diluted share

0.10


0.03


0.18


0.06


Weighted average number of shares used to
 compute diluted net income per share

13,849,488


12,032,429


13,817,995


11,992,539

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars) 



As of


As of


June 30,


December 31,

2018

2017


(unaudited)



Current Assets




     Cash and cash equivalents

$31,438


$22,575

     Restricted bank deposit

-


36

     Short-term bank deposit

40,000


40,000

     Trade receivables, net

14,393


20,266

     Inventories 

119


1,199

     Other receivables

2,635


2,685


88,585



Total Current Assets

86,761

Severance pay fund




3,009

3,052

Other long-term receivables




312

172

Property and equipment, net




1,917

1,924





Total Assets

$93,823


$91,909





Liabilities and Shareholders' Equity




Current Liabilities 




      Trade payables 

$1,879


$1,828

    Deferred revenues

1,021


2,601

       Employee and payroll accruals 

4,052


4,062

    Other payables and accrued expenses 

2,275


3,428


9,227


11,919

Total Current Liabilities

Long-Term Liabilities 




    Deferred revenues

100


21

    Accrued severance pay        

3,513


3,573


3,613


3,594

Total Long-Term Liabilities





Total Liabilities

$12,840


$15,513





Shareholders' Equity 




     Share capital 

$640


$628

     Additional paid-in capital

134,734


131,491

       Accumulated other comprehensive loss

(2,604)


(2,520)

     Accumulated deficit

(51,787)


(53,203)





Total Shareholders' Equity

80,983


76,396


$93,823


$91,909

Total Liabilities and Shareholders' Equity

 

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   

 

Cision View original content:http://www.prnewswire.com/news-releases/radcom-reports-second-quarter-2018-financial-results-300693039.html

SOURCE RADCOM Ltd.

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