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RADCOM Reports Fourth Quarter and Full Year 2019 Results
[February 13, 2020]

RADCOM Reports Fourth Quarter and Full Year 2019 Results


TEL AVIV, Israel, Feb. 13, 2020 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2019.

"We concluded 2019 with a solid quarter, reaching the high end of our guidance and achieving full year revenue of $33 million. During the year, we expanded our client base into Japan and Russia and invested significantly in R&D to enhance our 5G solutions. This investment will allow us to innovate and deliver real value for operators looking to deploy assurance solutions at the early stages of 5G. We are already pursuing several opportunities for 5G implementations and expect more opportunities to develop as operators ramp up investment in 5G deployments during 2020," commented Eyal Harari, RADCOM's CEO.

"Our recent customer engagements align with our strategy of entering into multi-year contracts with recurring revenues and provide us with good visibility into the coming year. Considering our good visibility into 2020, we are providing annual revenue guidance of $35-$38 million."

Fourth Quarter 2019 Financial Highlights:

  • Revenues: Total revenues for the fourth quarter were $9.0 million, compared to $4.0 million in the fourth quarter of 2018.
  • Net loss: GAAP net loss for the quarter decreased to $1.1 million, or $0.08 per diluted share, compared to GAAP net loss of $4.1 million, or $0.30 per diluted share for the fourth quarter of 2018. 
  • Non-GAAP Net loss: Non-GAAP net loss for the period decreased to $0.5 million, or $0.04 per diluted share, compared to non-GAAP net loss of $3.7 million, or $0.27 per diluted share for the fourth quarter of 2018.   
  • Balance sheet: As of December 31, 2019, the Company had cash and cash equivalents and short-term bank deposits of $69.3 million and no debt.

Full Year 2019 Financial Highlights:

  • Revenues: Total revenues for the full year were $33.0 million, compared to $34.1 million for the full year 2018.   
  • Net loss: GAAP net loss for the period was $6.8 million, or $0.50 per diluted share, compared to GAAP net loss of $2.4 million, or $0.18 per diluted share for the full year 2018. 
  • Non-GAAP Net loss: Non-GAAP net loss for the period was $4.6 million, or $0.33 per diluted share, compared to non-GAAP net loss of $0.3 million, or $0.02 per diluted share for the full year 2018.   

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Standard 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): +1-888-668-9141
From other locations: +972-3-918-0609

For those unable to listen to the call at the time, a replay will be available from February 14th on RADCOM's website.

About RADCOM

RADCOM (Nasdaq: RDCM) is the leading expert in cloud-native, container-based network intelligence solutions for telecom operators transitioning to NFV and 5G. Powered by RADCOM's patented I.C.O.N technology, the RADCOM Network Intelligence suite delivers Intelligent, Container-based, On-demand, 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. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. Utilizing cutting edge technology such as AI and 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," "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 intended investment in technology and R&D, maintaining technological leadership and delivering real value for early adopters, the expected roll out of 5G networks and 5G network use cases, the Company's strategy of entering into multi-year contracts with recurring revenues, market position, visibility and 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


Twelve months ended

December 31,

December 31,


2019


2018


2019


2018


(unaudited)


(unaudited)


(unaudited)



Revenues

$        9,029


$       3,989


$     33,010


$     34,050









Cost of revenues

2,643


1,439


9,917


8,866

Gross profit

6,386


2,550


23,093


25,184









Research and development, gross

4,657


4,074


18,578


15,503

Less - royalty-bearing participation

425


366


1,838


1,648

Research and development, net

4,232


3,708


16,740


13,855









Sales and marketing

2,693


2,701


10,514


11,426

General and administrative

963


744


3,674


3,391

Total operating expenses

7,888


7,153


30,928


28,672









Operating loss

(1,502)


(4,603)


(7,835)


(3,488)

Financial income, net

474


481


1,172


1,136

Loss before taxes on income

(1,028)


(4,122)


(6,663)


(2,352)

Taxes on income

(64)


(6)


(169)


(63)









Net loss

$      (1,092)


$     (4,128)


$     (6,832)


$     (2,415)









Basic and diluted net loss per

$        (0.08)


$       (0.30)


$       (0.50)


$       (0.18)

ordinary share


13,809,258


13,719,649


13,779,885


13,630,793

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  


Twelve months ended

December 31,

December 31,


2019


2018


2019


2018

GAAP gross profit 

$        6,386


$       2,550


$     23,093


$     25,184

     Stock-based compensation

48


10


204


112

Non-GAAP gross profit

$        6,434


$       2,560


$     23,297


$     25,296


$        4,232


$       3,708


$     16,740


$     13,855

GAAP research and development, net

     Stock-based compensation

161


187


729


808

Non-GAAP research and development, net

$        4,071


$       3,521


$     16,011


$     13,047


$        2,693


$       2,701


$     10,514


$     11,426

GAAP sales and marketing

     Stock-based compensation

160


115


638


698

Non-GAAP sales and marketing

$        2,533


$       2,586


$       9,876


$     10,728


$           963


$          744


$       3,674


$       3,391

GAAP general and administrative

     Stock-based compensation

222


101


657


503

Non-GAAP general and administrative

$           741


$          643


$       3,017


$       2,888


$        7,888


$       7,153


$     30,928


$     28,672

GAAP total operating expenses 

     Stock-based compensation

543


403


2,024


2,009

Non-GAAP total operating expenses

$        7,345


$       6,750


$     28,904


$     26,663










$      (1,502)


$     (4,603)


$     (7,835)


$     (3,488)

GAAP operating loss

Stock-based compensation

591


413


2,228


2,121

Non-GAAP operating loss

(911)


(4,190)


(5,607)


$     (1,367)


$      (1,028)


$     (4,122)


$     (6,663)


$     (2,352)

GAAP loss before taxes on income

Stock-based compensation

591


413


2,228


2,121

Non-GAAP loss before taxes on income

$         (437)


$      (3,709)


$      (4,435)


$        (231)


$      (1,092)


$      (4,128)


$      (6,832)


$     (2,415)

GAAP net loss

Stock-based compensation

591


413


2,228


2,121

Non-GAAP net loss

$         (501)


$      (3,715)


$      (4,604)


$        (294)


$        (0.08)


$        (0.30)


$        (0.50)


$       (0.18)

GAAP net loss per diluted share

Stock-based compensation

0.04


0.03


0.17


0.16

Non-GAAP net loss per diluted share

$        (0.04)


$        (0.27)


$        (0.33)


$       (0.02)









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

13,809,258


13,719,649


13,779,885


13,630,793

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)


As of


As of


December 31,

2019


December 31,

2018


(unaudited)



Current Assets




     Cash and cash equivalents

$                6,201


$               61,988

     Short-term bank deposits

63,080


-

     Trade receivables, net

11,039


20,381

     Inventories

1,356


251

     Other receivables

1,536


1,766

 

Total Current Assets

83,212


 

84,386





Non-Current Assets




Severance pay fund

3,365


2,967

Other long-term receivables

2,314


346

Property and equipment, net

1,669


1,832

Operating lease right-of-use assets

5,842


-

 

Total  Non-Current Assets

13,190


5,145





Total Assets

$              96,402


$               89,531





Liabilities and Shareholders' Equity








Current Liabilities




       Trade payables

$                  2,452


$                 1,559

    Deferred revenues

828


266

       Employee and payroll accruals 

4,132


3,420

    Operating lease liabilities

1,263


-

    Other payables and accrued expenses

4,050


2,281

 

Total Current Liabilities

12,725


7,526





Non-Current Liabilities




    Deferred revenues

100


100

    Accrued severance pay       

3,904


3,425

    Operating lease liabilities

4,967


-

    Other long-term liabilities

836


-

 

Total  Non-Current Liabilities

9,807


3,525





Total Liabilities

$                 22,532


$               11,051





Shareholders' Equity




     Share capital

$                     648


$                    643

     Additional paid-in capital

137,969


135,730

        Accumulated other comprehensive loss

(2,634)


(2,612)

     Accumulated deficit

(62,113)


(55,281)





Total Shareholders' Equity

73,870


78,480

 

Total Liabilities and Shareholders' Equity

$                 96,402


$               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-fourth-quarter-and-full-year-2019-results-301004427.html

SOURCE RADCOM Ltd.


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