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
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SOURCE RADCOM Ltd.