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RADCOM Reports Third Quarter 2018 Financial Results
[November 07, 2018]

RADCOM Reports Third Quarter 2018 Financial Results


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

"RADCOM continues to be a leading player in Network Function Virtualization. We are delivering successfully on our project commitments and operators continue to benefit from our advanced cloud-native technology," commented Mr. Yaron Ravkaie, RADCOM's CEO. "The Company continues to support its existing customers, advance its R&D activities, and focus its sales efforts on top-tier operators.  Our strong balance sheet enables our continued investment in innovative technology designed to meet the needs of our leading clients and the forthcoming transition to NFV and 5G."

Third Quarter 2018 Financial Highlights:

  • Revenues: Total revenues for the third quarter were $8.5 million, down 12% compared to $9.6 million in the third quarter of 2017.  
  • Net Income: GAAP net income for the period was $0.6 million, or $0.05 per diluted share, compared to GAAP net income of $1.2 million, or $0.10 per diluted share for the third quarter of 2017.
  • Non-GAAP Net Income:  Non-GAAP net income for the period was $1.0 million, or $0.07 per diluted share, compared to non-GAAP net income of $1.7 million, or $0.14 per diluted share for the third quarter of 2017.

    Both GAAP and non-GAAP results for the third quarter of 2018 included a $528,000, or $0.04 per diluted share, benefit related to grants from the Israel Innovation Authority compared to $155,000, or $0.01 per diluted share, in the third quarter of 2017.

  • Balance sheet: As of September 30, 2018, the Company had cash, cash equivalents and short-term bank deposit of $67.6 million and no debt.

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (3:00 PM Israel Standard 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 November 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 revenue guidance for 2018, continued investment in technology to meet the needs of its clients and transition to NFV as well as success in focusing on sales to top-tier operators, it is using foward-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
September 30,


Nine months ended
September 30,


2018


2017


2018


2017


(unaudited)


(unaudited)


(unaudited)


(unaudited)

Revenues

$       8,519


$       9,645


$     30,061


$     26,602

Cost of revenues

1,660


3,163


7,427


7,828

Gross profit

6,859


6,482


22,634


18,774









Research and development, gross

3,933


2,280


11,429


7,507

Less - royalty-bearing participation

528


155


1,282


467

Research and development, net

3,405


2,125


10,147


7,040









Sales and marketing, net

2,401


2,333


8,725


8,219

General and administrative

657


991


2,647


3,149

Total operating expenses

6,463


5,449


21,519


18,408

Operating income

396


1,033


1,115


366

Financial income, net

282


175


655


325

Income before taxes on income

678


1,208


1,770


691

Taxes on income

(44)


(25)


(57)


(48)









Net income

$        634


$        1,183


$       1,713


$          643









Basic net income per

ordinary share

$       0.05


$          0.10


$      0.13


$         0.05

Diluted net income per

ordinary share

$       0.05


$          0.10


$      0.12


$         0.05

 

Weighted average number of 
 ordinary shares used in computing basic

net income per ordinary share

13,701,844


11,747,443


13,600,849


11,698,246

 

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

13,916,306


12,070,080


13,851,324


12,018,658


 

 

 

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 


Nine months ended    

September 30,      

September 30,  


2018


2017


2018


2017

GAAP gross profit                                                                                                                                           

$       6,859


$       6,482


$      22,634


$     18,774

Stock-based compensation

25


67


102


134

Non-GAAP gross profit

$       6,884


$       6,549


$      22,736


$     18,908

 

GAAP research and development, net

$       3,405


$       2,125


$      10,147


$       7,040

Stock-based compensation

210


97


621


339

Non-GAAP research and development, net

$       3,195


$       2,028


$       9,526


$       6,701

 

GAAP sales and marketing, net

$       2,401


$       2,333


$       8,725


$       8,219

Stock-based compensation

121


122


583


394

Non-GAAP sales and marketing, net

$       2,280


$       2,211


$       8,142


$       7,825

 

GAAP general and administrative

$          657


$          991


$        2,647


$       3,149

Stock-based compensation

10


200


402


859

Non-GAAP general and administrative

$          647


$          791


$        2,245


$       2,290

 

GAAP total operating expenses

$       6,463


$       5,449


$       21,519


$     18,408

Stock-based compensation

341


419


1,606


1,592

Non-GAAP total operating expenses

$       6,122


$       5,030


$       19,913


$     16,816

 

GAAP operating income

$          396


$       1,033


$         1,115


$          366

Stock-based compensation

366


486


1,708


1,726

Non-GAAP operating income

$          762


$       1,519


$         2,823


$       2,092

 

GAAP income before taxes on income

$          678


$       1,208


$         1,770


$          691

Stock-based compensation

366


486


1,708


1,726

Non-GAAP income before taxes on income

$       1,044


$       1,694


$         3,478


$      2,417

 

GAAP net income

$          634


$       1,183


$         1,713


$         643

Stock-based compensation

366


486


1,708


1,726

Non-GAAP net income

$       1,000


$       1,669


$         3,421


$      2,369

 

GAAP net income per diluted share

$         0.05


$         0.10


$           0.12


$        0.05

Stock-based compensation

0.02


0.04


0.12


0.15

Non-GAAP net income per diluted share

$         0.07


$         0.14


$           0.24


$        0.20

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

13,916,306


12,070,080


13,851,324


12,018,658


 

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)


As of


As of


September 30,

2018


December 31,

2017


(unaudited)



Current Assets




     Cash and cash equivalents

$              27,576


$              22,575

     Restricted bank deposit

-


36

     Short-term bank deposit

40,000


40,000

     Trade receivables, net

18,485


20,266

     Inventories

350


1,199

     Other receivables

1,733


2,685

 

Total Current Assets

88,144


 

86,761

Severance pay fund

3,103


 

3,052

Other long-term receivables

302


 

172

Property and equipment, net

1,841


 

1,924





Total Assets

$              93,390


$             91,909





Liabilities and Shareholders' Equity




Current Liabilities




      Trade payables

$                1,539


$                1,828

    Deferred revenues

811


2,601

       Employee and payroll accruals

3,403


4,062

    Other payables and accrued expenses

1,796


3,428

 

Total Current Liabilities

7,549


11,919

Long-Term Liabilities




    Deferred revenues

100


21

    Accrued severance pay       

3,600


3,573

 

Total Long-Term Liabilities

3,700


3,594





Total Liabilities

$               11,249


$              15,513





Shareholders' Equity




     Share capital

$                   642


$                   628

     Additional paid-in capital

135,274


131,491

       Accumulated other comprehensive loss

(2,622)


(2,520)

     Accumulated deficit

(51,153)


(53,203)





Total Shareholders' Equity

82,141


76,396

 

Total Liabilities and Shareholders' Equity

$             93,390


$             91,909

 

 

 

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-third-quarter-2018-financial-results-300745517.html

SOURCE RADCOM Ltd.


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