RADCOM Reports Second Quarter 2019 Results - WBCB: The Valley's CW |

RADCOM Reports Second Quarter 2019 Results

SOURCE RADCOM Ltd.

- Second quarter revenues of $8.5 million

- Selected by Rakuten Mobile to assure the world's first fully virtualized cloud-native mobile network

- Cash, cash equivalents and short-term bank deposits of $58.6 million and no debt

- Increasing 2019 revenue guidance range to $30-$33 million

TEL AVIV, Israel, Aug. 12, 2019 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the second quarter ended June 30, 2019.

"We are pleased with our new strategic customer, Rakuten Mobile, and the multi-year agreement signed with this innovative operator in Japan. This agreement already impacted our revenues in the second quarter, and we are delighted with the progress already made on this pioneering project," commented Mr. Yaron Ravkaie, RADCOM's CEO. "Rakuten chose RADCOM because of our deep NFV expertise, our on-going work, and partnership with AT&T and our advanced, cutting-edge virtual technology. This strong vote of confidence in our technology further cements our position as the leading, most advanced NFV assurance vendor for operators transitioning to NFV and planning their 5G rollouts."

Second Quarter 2019 Financial Highlights:

  • Revenues: Total revenues for the second quarter were $8.5 million, down 20% compared to $10.6 million in the second quarter of 2018.   
  • Net Income (loss): GAAP net loss for the period was $(0.9) million, or $(0.07) per diluted share, compared to GAAP net income of $0.8 million, or $0.05 per diluted share for the second quarter of 2018. 
  • Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $(0.4) million, or $(0.03) per diluted share, compared to non-GAAP net income of $1.4 million, or $0.10 per diluted share for the second quarter of 2018.   
  • Balance sheet: As of June 30, 2019, the Company had cash and cash equivalents and short-term bank deposits of $58.6 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 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 August 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, the expected role of NFV and the Company's solutions in 5G networks, transition to NFV and adoption of 5G, the success of the engagement with Rakuten Mobile, the Company's market position, 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
June 30,



Six months ended
June 30,



2019



2018



2019



2018













Revenues

$

8,546


$

10,639


$

14,592


$

21,542

Cost of revenues


2,154



2,877



3,991



5,767

Gross profit


6,392



7,762



10,601



15,775

Research and development, gross


4,577



3,752



9,222



7,496

Less - royalty-bearing participation


412



754



816



754

Research and development, net


4,165



2,998



8,406



6,742

Sales and marketing


2,617



3,084



5,063



6,324

General and administrative


850



992



1,647



1,990

Total operating expenses


7,632



7,074



15,116



15,056

Operating income (loss)


(1,240)



688



(4,515)



719

Financial income, net


341



71



481



373

Income (loss) before taxes on income


(899)



759



(4,034)



1,092

Taxes on income


(37)



(2)



(46)



(13)













Net income (loss)

$

(936)


$

757


$

(4,080)


$

1,079













Basic net income (loss) per

ordinary share

$

(0.07)


$

0.06


$

(0.30)


$

0.08

Diluted net income (loss) per

ordinary share

$

(0.07)


$

0.05


$

(0.30)


$

0.08

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


13,762,795



13,600,323



13,756,198



13,549,494

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


13,762,795



13,849,488



13,756,198



13,817,995

 

 

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 
June 30,



Six months ended
June 30, 



2019


2018


2019


2018

GAAP gross profit

$

6,392


$

7,762


$

10,601


$

15,775

Stock-based compensation


66



37



95



77

Non-GAAP gross profit

$

6,458


$

7,799


$

10,696


$

15,852

GAAP research and development, net

$

4,165


$

2,998


$

8,406


$

6,742

Stock-based compensation


179



203



357



411

Non-GAAP research and development, net

$

3,986


$

2,795


$

8,049


$

6,331

GAAP sales and marketing

$

2,617


$

3,084


$

5,063


$

6,324

Stock-based compensation


184



233



330



462

Non-GAAP sales and marketing

$

2,433


$

2,851


$

4,733


$

5,862

GAAP general and administrative

$

850


$

992


$

1,647


$

1,990

Stock-based compensation


96



193



183



392

Non-GAAP general and administrative

$

754


$

799


$

1,464


$

1,598

GAAP total operating expenses

$

7,632


$

7,074


$

15,116


$

15,056

Stock-based compensation


459



629



870



1,265

Non-GAAP total operating expenses

$

7,173


$

6,445


$

14,246


$

13,791

GAAP operating income (loss)

$

(1,240)


$

688


$

(4,515)


$

719

Stock-based compensation


525



666



965



1,342

Non-GAAP operating income (loss)

$

(715)


$

1,354


$

(3,550)


$

2,061

GAAP income (loss) before taxes on income

$

(899)


$

759


$

(4,034)


$

1,092

Stock-based compensation


525



666



965



1,342

Non-GAAP income (loss) before taxes on income

$

(374)


$

1,425


$

(3,069)


$

2,434

GAAP net income (loss)

$

(936)


$

757


$

(4,080)


$

1,079

Stock-based compensation


525



666



965



1,342

Non-GAAP net income (loss)

$

(411)


$

1,423


$

(3,115)


$

2,421

GAAP net income (loss) per diluted share

$

(0.07)


$

0.05


$

(0.30)


$

0.08

Stock-based compensation


0.04



0.05



0.07



0.10

Non-GAAP net income (loss) per diluted share

$

(0.03)


$

0.10


$

(0.23)


$

0.18

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


13,762,795



13,849,488



13,756,198



13,817,995


 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars) 











As of



As of




June 30,



December 31,




2019



2018




(unaudited)




Current Assets







Cash and cash equivalents


$

11,260


$

61,988

Short-term bank deposits



47,367



-

Trade receivables, net



21,957



20,381

Inventories



702



251

Other receivables



1,564



1,766

Total Current Assets



82,850



 

84,386

Severance pay fund



3,199



2,967

Other long-term receivables



2,391



346

Property and equipment, net



1,738



1,832

Operating lease right-of-use assets



6,147



-


Total Assets


$

96,325


$

89,531


Liabilities and Shareholders' Equity



Current Liabilities 


Trade payables 


$

1,765


$

1,559

Deferred revenues



888



266

Employee and payroll accruals



3,559



3,420

Operating lease liabilities



1,176



-

Other payables and accrued expenses 



3,228



2,281








Total Current Liabilities



10,616



7,526


Long-Term Liabilities







Deferred revenues



206



100

Accrued severance pay



3,762



3,425

Operating lease liabilities



5,236



-

Other long-term liabilities



1,150



-


Total Long-Term Liabilities



10,354



3,525








Total Liabilities


$

20,970


$

11,051


Shareholders' Equity







Share capital


$

645


$

643

Additional paid-in capital



136,702



135,730

Accumulated other comprehensive loss



(2,631)



(2,612)

Accumulated deficit



(59,361)



(55,281)


Total Shareholders' Equity



75,355



78,480


Total Liabilities and Shareholders' Equity


$

96,325


$

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 

 

 

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