RADCOM Reports Second Quarter 2021 Results

Loading...
Loading...

TEL AVIV, Israel, Aug. 12, 2021 /PRNewswire/ -- RADCOM Ltd. RDCM today reported its financial results for the second quarter ended June 30, 2021.

Eyal Harari, RADCOM's Chief Executive Officer, commented, "We ended the second quarter with revenues of $9.8 million, which represents an eighth consecutive quarter of year-over-year revenue growth. We continued to execute the Company strategy and invest in our advanced 5G cloud technology as we engage in a significantly higher number of sales opportunities. Additionally, we secured several meaningful orders from our existing customer base during the quarter, increasing our visibility into the second half of 2021.

"As announced in May, we were selected by a top-tier LATAM operator during the second quarter to provide our assurance platform – RADCOM ACE. This order covers the operator's 4G network with the expectation of expanding to their 5G network in the future. We continue to see increased momentum in the 5G market worldwide, with more and more operators launching initial 5G services and tender processes looking for 5G assurance.

"Last week, we introduced an innovative Artificial Intelligence (AI) solution as part of RADCOM ACE, as we continue to advance our cloud technology while expanding our 5G assurance capabilities and enhancing our AI-driven insights. Our AI solution analyzes millions of data sessions in real-time and can reveal underlying network faults not otherwise quickly identified in 5G networks. This helps operators overcome the challenges of operating complex networks and helps ensure the quality of revenue-generating 5G services.

"5G is at the early stages of the journey, but it's an exciting time to be in the telecom industry. 5G momentum is building, which we believe will create additional growth opportunities. We are already engaged in multiple opportunities at different stages of the sales cycle and work within the 5G ecosystem to increase our pipeline. As more operators transition to 5G, we expect the demand for next-generation assurance solutions to increase."

Based on our current visibility, we reiterate the full year 2021 revenue guidance of $39-41 million.

Second Quarter 2021 Financial Highlights:

  • Total revenues for the second quarter were $9.8 million, compared to $9.2 million in the second quarter of 2020
  • GAAP net loss for the second quarter was $1.1 million, or $0.08 per diluted share, compared to a GAAP net loss of $0.2 million, or $0.01 per diluted share for the second quarter of 2020, resulting from increased investment in research and development as well as sales and marketing
  • Non-GAAP net loss for the period was $0.3 million, or a loss of $0.02 per diluted share, compared to a non-GAAP net income of $0.2 million, or an income of $0.02 per diluted share for the second quarter of 2020
  • As of June 30, 2021, the Company had cash and cash equivalents and short-term bank deposits of $64.9 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 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): +1-866-652-8972

From other locations: +972-3-918-0610

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

Loading...
Loading...

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

About RADCOM

RADCOM 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 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, 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 sales opportunities, increasing its visibility into the second half of 2021, its potential expansion with a top-tier LATAM operator, increased momentum in the 5G market worldwide, expanding its 5G assurance capabilities and enhancing its AI-driven insights, its growth opportunities and pipeline, the demand for next-generation assurance solutions built for the cloud and 5G-ready 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


Six months ended

June 30,


June 30,


2021


2020


2021


2020

Revenues

$9,756


$9,159


$18,896


$17,487

Cost of revenues

2,466


2,143


4,833


5,252

Gross profit

7,290


7,016


14,063


12,235

Research and development, gross

5,226


4,710


10,330


9,500

Less - royalty-bearing participation

70


572


138


572

Research and development, net

5,156


4,138


10,192


8,928

Sales and marketing

2,566


2,281


5,156


4,734

General and administrative

1,007


906


2,000


1,929

Total operating expenses

8,729


7,325


17,348


15,591

Operating loss

(1,439)


(309)


(3,285)


(3,356)

Financial income, net

382


150


500


320

Loss before taxes on income

(1,057)


(159)


(2,785)


(3,036)

Taxes on income

(40)


(21)


(58)


(53)









Net loss

($1,097)


($180)


($2,843)


($3,089)









Basic and diluted net loss per

($0.08)


($0.01)


($0.20)


($0.22)

ordinary share


14,131,634


13,930,021


14,089,010


13,902,927

Weighted average number of  

 ordinary shares used in computing basic and diluted net loss per ordinary share










 

 

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,               


2021


2020


2021


2020

GAAP gross profit                                                                                                                                            

$7,290


$7,016


$14,063


$12,235

Stock-based compensation

38


14


82


42

Non-GAAP gross profit

$7,328


$7,030


$14,145


$12,277


$5,156


$4,138


$10,192


$8,928

GAAP research and development, net

Stock-based compensation

324


251


593


418

Non-GAAP research and development, net

$4,832


$3,887


$9,599


$8,510


$2,566


$2,281


$5,156


$4,734

GAAP sales and marketing

Stock-based compensation

265


44


484


187

Non-GAAP sales and marketing

$2,301


$2,237


$4,672


$4,547


$1,007


$906


$2,000


$1,929

GAAP general and administrative

Stock-based compensation

166


102


349


287

Non-GAAP general and administrative

$841


$804


$1,651


$1,642


$8,729


$7,325


$17,348


$15,591

GAAP total operating expenses

Stock-based compensation

755


397


1,426


892

Non-GAAP total operating expenses

$7,974


$6,928


$15,922


$14,699


($1,439)


($309)


($3,285)


($3,356)

GAAP operating loss 

Stock-based compensation

793


411


1,508


934

Non-GAAP operating income (loss)

($646)


$102


($1,777)


($2,422)


($1,057)


($159)


($2,785)


($3,036)

GAAP loss before taxes on income

Stock-based compensation

793


411


1,508


934

Non-GAAP income (loss) before taxes on income

($264)


$252


($1,277)


($2,102)


($1,097)


($180)


($2,843)


($3,089)

GAAP net loss 

Stock-based compensation

793


411


1,508


934

Non-GAAP net income (loss)

($304)


$231


($1,335)


($2,155)


($0.08)


($0.01)


($0.20)


($0.22)

GAAP net loss per diluted share

Stock-based compensation

0.06


0.03


0.11


0.07

Non-GAAP net income (loss) per diluted share

($0.02)


$0.02


($0.09)


($0.15)









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

14,131,634


14,329,385


14,089,010


13,902,927









 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars) 


As of


As of


June 30,


December 31,

2021

2020


(unaudited)


(audited)

Current Assets




    Cash and cash equivalents

$6,696


$13,548

    Short-term bank deposits

58,162


55,413

    Trade receivables, net

13,604


12,446

    Inventories 

876


540

    Other accounts receivable and prepaid expenses

1,628


1,437


80,966


83,384

Total Current Assets





Non-Current Assets




    Severance pay fund

3,861


3,814

    Other long-term receivables

1,584


2,185

    Property and equipment, net

1,256


1,311

    Operating lease right-of-use assets

2,361


2,945


9,062


10,255

Total  Non-Current Assets





Total Assets

$90,028


$93,639





Liabilities and Shareholders' Equity








Current Liabilities 




       Trade payables 

$2,045


$1,592

    Deferred revenues and advances from customers

1,309


3,149

       Employee and payroll accruals 

4,391


4,414

    Operating lease liabilities

962


1,028

    Other liabilities and accrued expenses

4,678


4,721


13,385


12,725

Total Current Liabilities





Non-Current Liabilities 




    Deferred revenues

-


26

    Accrued severance pay        

4,437


4,473

    Operating lease liabilities

1,467


2,008

    Other liabilities and accrued expenses

78


209


5,982


6,716

Total  Non-Current Liabilities





Total Liabilities

$19,367


$21,620





Shareholders' Equity 




     Share capital 

$667


$657

     Additional paid-in capital

141,627


140,129

        Accumulated other comprehensive loss

(2,685)


(2,662)

     Accumulated deficit

(68,948)


(66,105)





Total Shareholders' Equity

70,661


72,019


$90,028


$93,639

Total Liabilities and Shareholders' Equity





 

SOURCE RADCOM Ltd.

Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...