Market Overview

RADCOM Reports First Quarter 2019 Results

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TEL AVIV, Israel, May 7, 2019 /PRNewswire/ -- RADCOM Ltd. (NASDAQ:RDCM) today reported its financial results for the first quarter ended March 31, 2019.

"The year began with the signing of a 3-year agreement with AT&T which validates our close working relationship. We are encouraged by the ongoing trust they place in our advanced virtualized technology which we continue to develop, enhance, and deliver for their pioneering network transformation" commented Mr. Yaron Ravkaie, RADCOM's CEO. "We are reiterating our guidance of $28-$32 million for 2019 and continue to focus on delivering innovative solutions to our customers by investing in R&D and maintaining our position as the 'go to' assurance vendor of telco virtualization. We expect our continued product development will bear fruit when more operators are ready to move forward with their transition to NFV and begin their 5G rollouts."

First Quarter 2019 Financial Highlights:

  • Revenues: Total revenues for the first quarter were $6.0 million, down 45% compared to $10.9 million in the first quarter of 2018
  • Net Income (loss): GAAP net loss for the period was $3.1 million, or $0.23 per diluted share, compared to GAAP net income of $0.3 million, or $0.02 per diluted share for the first quarter of 2018
  • Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $2.7 million, or $0.20 per diluted share, compared to non-GAAP net income of $1.0 million, or $0.07 per diluted share for the first quarter of 2018  
  • Balance sheet: As of March 31, 2019, the Company had cash and cash equivalents and short-term bank deposits of $56.8 million and no debt

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Daylight Time (3:00 PM Israel Daylight 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: +972-3-918-0610

For those unable to listen to the call at the time, a replay will be available from May 8th 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 continued investment in technology to meet the needs of its clients, the expected role of NFV and the Company's solutions in 5G networks, the Company's technological leadership or industry recognition, the Company's pipeline of opportunities, and its revenue guidance, 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 Statements of Operations

Unaudited

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




Three months ended
 March 31,


2019


2018

Revenues

$        6,046


$       10,903

Cost of revenues

1,837


2,890

Gross profit

4,209


8,013

Research and development, gross

4,645


3,744

Less - royalty-bearing participation

404


-

Research and development, net

4,241


3,744

Sales and marketing

2,446


3,240

General and administrative

797


998

Total operating expenses

7,484


7,982

Operating income (loss)

(3,275)


31

Financial income, net

140


302

Income (loss) before taxes on income

(3,135)


333

Taxes on income

(9)


(11)

Net income (loss)

$      (3,144)


$          322

 

Basic net income (loss) per

ordinary share

$        (0.23)


$         0.02

Diluted net income (loss) per

ordinary share

$        (0.23)


$        0.02

 

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

13,749,528


13,498,100

 

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

13,749,528


13,785,938





 

 

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
March 31,


2019


2018

GAAP gross profit 

$      4,209


$      8,013

Stock-based compensation

29


40

Non-GAAP gross profit

$      4,238


$      8,053


$      4,241


$      3,744


GAAP Research and development, net

Stock-based compensation

178


208

Non-GAAP Research and development, net

$      4,063


$      3,536


$      2,446


$      3,240


GAAP sales and marketing

Stock-based compensation

146


229

Non-GAAP sales and marketing

$      2,300


$      3,011


$         797


$         998


GAAP general and administrative

Stock-based compensation

87


199

Non-GAAP general and administrative

$         710


$         799


$      7,484


$      7,982


GAAP total operating expenses

Stock-based compensation

411


636

Non-GAAP total operating expenses

$      7,073


$      7,346


$    (3,275)


$           31


GAAP operating income (loss) 

Stock-based compensation

440


676

Non-GAAP operating income (loss)

$    (2,835)


$         707


$    (3,135)


$         333


GAAP income (loss) before taxes on income

Stock-based compensation

440


676

Non-GAAP income (loss) before taxes on income

$    (2,695)


$      1,009


$    (3,144)


$         322


GAAP net income (loss) 

Stock-based compensation

440


676

Non-GAAP net income (loss)

$    (2,704)


$         998


$      (0.23)


$        0.02


GAAP net income (loss) per diluted share

Stock-based compensation

0.03


0.05

Non-GAAP net income (loss) per diluted share

$      (0.20)


$        0.07

Weighted average number of shares used to compute

13,749,528


13,785,938

  diluted net income (loss) per share

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)



As of


As of


March 31,

2019


December 31,

2018


(unaudited)



Current Assets




     Cash and cash equivalents

$              15,579


$              61,988

     Short-term bank deposits

41,210


-

     Trade receivables, net

22,455


20,381

     Inventories

321


251

     Other receivables

1,886


1,766

 

Total Current Assets

81,451


 

84,386

Severance pay fund

 

3,083


 

2,967

Other long-term receivables

 

379


 

346

Property and equipment, net

 

1,794


 

1,832

Operating lease right-of-use assets

5,678


 

-





Total Assets

$             92,385


$             89,531





Liabilities and Shareholders' Equity








Current Liabilities




      Trade payables

$                1,535


$                1,559

    Deferred revenue

206


266

       Employee and payroll accruals

3,343


3,420

    Operating lease liabilities

1,156


-

    Other payables and accrued expenses

2,038


2,281

 

Total Current Liabilities

8,278


7,526





Long-Term Liabilities




    Deferred revenue

107


100

    Accrued severance pay       

3,562


3,425

    Operating lease liabilities

4,681


-

 

Total Long-Term Liabilities

8,350


3,525





Total Liabilities

$               16,628


$              11,051





Shareholders' Equity




     Share capital

$                   644


$                   643

     Additional paid-in capital

136,169


135,730

        Accumulated other comprehensive loss

(2,631)


(2,612)

     Accumulated deficit

(58,425)


(55,281)





Total Shareholders' Equity

75,757


78,480

 

Total Liabilities and Shareholders' Equity

$              92,385


$             89,531

 

 

 

For all investor enquiries, please contact:

Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654  
msegal@ms-ir.com

Company Contact:
Amir Hai
CFO
+972-77-774-5011  
amir.hai@radcom.com

 

 

Cision View original content:http://www.prnewswire.com/news-releases/radcom-reports-first-quarter-2019-results-300845027.html

SOURCE RADCOM Ltd.

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