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RADCOM Reports Fourth Quarter and Full Year 2018 Results
[February 12, 2019]

RADCOM Reports Fourth Quarter and Full Year 2018 Results


TEL AVIV, Israel, Feb. 12, 2019 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the fourth quarter and full year ended December 31, 2018.

"During 2018, we delivered successfully on our project commitments while at the same time generating new opportunities," commented Mr. Yaron Ravkaie, RADCOM's CEO. "Although our results were affected by a slower than expected pace of NFV transformations, and while market conditions continue to affect our visibility into when operators will implement their NFV and 5G plans, we remain confident in the future of NFV and 5G and in our technological leadership, our solutions and strong industry recognition.  As operators begin to roll out 5G networks, RADCOM is well positioned as a leading assurance player for NFV, which will be the foundation for 5G-ready cloud services. The Company continues to invest in R&D activities, supported by our healthy balance sheet, to push our innovative technology forward and continue meeting the needs of our leading customers.  Taking into account market conditions, we are currently providing revenue guidance for 2019 of $28-$32 million."

Fourth Quarter 2018 Financial Highlights:

  • Revenues: Total revenues for the fourth quarter were $4.0 million, down 62% compared to $10.6 million in the fourth quarter of 2017.  
  • Net Income (loss): GAAP net loss for the period was $4.1 million, or $0.30 per diluted share, compared to GAAP net income of $2.3 million, or $0.17 per diluted share for the fourth quarter of 2017.
  • Non-GAAP Net Income (loss):  Non-GAAP net loss for the period was $3.7 million, or $0.27 per diluted share, compared to non-GAAP net income of $2.7 million, or $0.21 per diluted share for the fourth quarter of 2017.
  • Balance sheet: As of December 31, 2018, the Company had cash and cash equivalents of $62 million and no debt.

Full Year 2018 Financial Highlights:

  • Revenues: Total revenues for the full year 2018 were $34.1 million, down 8% compared to $37.2 million in the full year 2017. 
  • Net Income (loss): GAAP net loss for the full year 2018 was $2.4 million, or $0.18 per diluted share, compared to GAAP net income of $2.9 million, or $0.23 per diluted share for the full year 2017.
  • Non-GAAP Net Income (loss):  Non-GAAP net loss for the period was $0.3 million, or $0.02 per diluted share, compared to non-GAAP net income of $5.1 million, or $0.41 per diluted share for the full year 2017.

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): +1-888-407-2553

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

For those unable to listen to the call at the time, a replay will be available from February 13th 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 Companby'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


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





Three months ended
 December 31,


Twelve months ended 
December 31,



2018


2017


2018


2017



(unaudited)


(unaudited)


(unaudited)




Revenues

$       3,989


$       10,631


$       34,050


$     37,233


Cost of revenues

1,439


2,660


8,866


10,488


Gross profit

2,550


7,971


25,184


26,745


Research and development, gross

4,074


3,055


15,503


10,562


Less - royalty-bearing participation

366


1,132


1,648


1,599


Research and development, net

3,708


1,923


13,855


8,963


Sales and marketing, net

2,701


2,777


11,426


10,996


General and administrative

744


1,042


3,391


4,191


Total operating expenses

7,153


5,742


28,672


24,150


Operating income (loss)

(4,603)


2,229


(3,488)


2,595


Financial income, net

481


64


1,136


389


Income (loss) before taxes on income

(4,122)


2,293


(2,352)


2,984


Taxes on income

(6)


(35)


(63)


(83)


Net income (loss)

$      (4,128)


$         2,258


$      (2,415)


$       2,901


 

Basic net income (loss) per

ordinary share

$        (0.30)


$           0.17


$        (0.18)


$         0.24


Diluted net income (loss) per

ordinary share

$        (0.30)


$           0.17


$        (0.18)


$         0.23


 

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

13,719,649


13,050,849


13,630,793


12,039,176


 

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

    per ordinary share

13,719,649


13,339,174


13,630,793


12,351,566



 

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
December 31,

Twelve months ended

December 31,


2018


2017


2018


2017

GAAP gross profit

$         2,550


$       7,971


$     25,184


$     26,745

Stock-based compensation

10


55


112


189

Non-GAAP gross profit

$         2,560


$       8,026


$     25,296


$     26,934

 

GAAP research and development, net

$         3,708


$       1,923


$     13,855


$      8,963

Stock-based compensation

187


134


808


473

Non-GAAP research and development, net

$         3,521


$       1,789


$     13,047


$      8,490

 

GAAP sales and marketing, net

$         2,701


$       2,777


$    11,426


$    10,996

Stock-based compensation

115


105


698


499

Non-GAAP sales and marketing, net

$         2,586


$       2,672


$    10,728


$    10,497

 

GAAP general and administrative

$            744


$       1,042


$      3,391


$      4,191

Stock-based compensation

101


196


503


1,055

Non-GAAP general and administrative

$            643


$          846


$      2,888


$      3,136

 

GAAP total operating expenses

$         7,153


$       5,742


$    28,672


$    24,150

Stock-based compensation

403


435


2,009


2,027

Non-GAAP total operating expenses

$         6,750


$       5,307


$    26,663


$    22,123

 

GAAP operating income (loss)

$      (4,603)


$       2,229


$    (3,488)


$      2,595

Stock-based compensation

413


490


2,121


2,216

Non-GAAP operating income (loss)

$      (4,190)


$       2,719


$    (1,367)


$      4,811

 

GAAP income (loss) before taxes on income

$      (4,122)


$     2,293


$    (2,352)


$     2,984

Stock-based compensation

413


490


2,121


2,216

Non-GAAP income (loss) before taxes on income

$      (3,709)


$       2,783


$     (231)


$     5,200

 

GAAP net income (loss)

$      (4,128)


$      2,258


$    (2,415)


$     2,901

Stock-based compensation

413


490


2,121


2,216

Non-GAAP net income (loss)

$      (3,715)


$       2,748


$     (294)


$     5,117

 

GAAP net income (loss) per diluted share

$        (0.30)


$    0.17


$      (0.18)


$      0.23

Stock-based compensation

0.03


0.04


0.16


0.18

Non-GAAP net income (loss) per diluted share

$        (0.27)


$      0.21


$      (0.02)


$      0.41

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

13,719,649


13,339,174


13,630,793


12,351,566









 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)


As of


As of


December 31,

2018


December 31,

2017


(unaudited)







Current Assets




     Cash and cash equivalents

$              61,988


$              22,575

     Restricted bank deposit

-


36

        Short-term bank deposit

-


40,000

     Trade receivables, net

20,381


20,266

     Inventories

251


1,199

     Other receivables

1,766


2,685

 

Total Current Assets

 

84,386


 

86,761

Severance pay fund

 

2,967


 

3,052

Other long-term receivables

 

346


 

172

Property and equipment, net

 

1,832


 

1,924





Total Assets

$              89,531


$              91,909





Liabilities and Shareholders' Equity








Current Liabilities




       Trade payables

$                1,559


$                1,828

    Deferred revenue

266


2,601

    Employee and payroll accruals

3,420


4,062

    Other payables and accrued expenses

2,281


3,428

 

Total Current Liabilities

7,526


11,919





Non-Current Liabilities




    Deferred revenue

100


21

    Accrued severance pay       

3,425


3,573

 

Total Non-Current Liabilities

3,525


3,594





Total Liabilities

$              11,051


$              15,513





Shareholders' Equity




     Share capital

$                   643


$                   628

     Additional paid-in capital

135,730


131,491

        Accumulated other comprehensive loss

(2,612)


(2,520)

     Accumulated deficit

(55,281)


(53,203)





Total Shareholders' Equity

78,480


76,396

 

Total Liabilities and Shareholders' Equity

$             89,531


$             91,909

 

For all investor enquiries, please contact:

Investor Relations:
Miri Segal
MS-IR LLC
+1-917-607-8654
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-fourth-quarter-and-full-year-2018-results-300793994.html

SOURCE RADCOM Ltd.


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