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 8(th) 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 Nine months ended
September 30, 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 $0.05 $0.10 $0.13 $0.05
ordinary share
Diluted net income per $0.05 $0.10 $0.12 $0.05
ordinary share
13,701,844 11,747,443 13,600,849 11,698,246
Weighted average number of
ordinary shares used in computing basic
net income per ordinary share
===
13,916,306 12,070,080 13,851,324 12,018,658
Weighted average number of ordinary
shares used in computing diluted net
income 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)
T
h
r
e
e
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
$3,405 $2,125 $10,147 $7,040
GAAP research and development, net
Stock-based compensation 210 97 621 339
---
Non-GAAP research and development, net $3,195 $2,028 $9,526 $6,701
$2,401 $2,333 $8,725 $8,219
GAAP sales and marketing, net
Stock-based compensation 121 122 583 394
Non-GAAP sales and marketing, net $2,280 $2,211 $8,142 $7,825
$657 $991 $2,647 $3,149
GAAP general and administrative
Stock-based compensation 10 200 402 859
Non-GAAP general and administrative $647 $791 $2,245 $2,290
$6,463 $5,449 $21,519 $18,408
GAAP total operating expenses
Stock-based compensation 341 419 1,606 1,592
Non-GAAP total operating expenses $6,122 $5,030 $19,913 $16,816
$396 $1,033 $1,115 $366
GAAP operating income
Stock-based compensation 366 486 1,708 1,726
Non-GAAP operating income $762 $1,519 $2,823 $2,092
$678 $1,208 $1,770 $691
GAAP income before taxes on income
Stock-based compensation 366 486 1,708 1,726
Non-GAAP income before taxes on income $1,044 $1,694 $3,478 $2,417
$634 $1,183 $1,713 $643
GAAP net income
Stock-based compensation 366 486 1,708 1,726
Non-GAAP net income $1,000 $1,669 $3,421 $2,369
$0.05 $0.10 $0.12 $0.05
GAAP net income per diluted share
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, December 31,
2018 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
88,144
Total Current Assets 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
7,549 11,919
Total Current Liabilities
Long-Term Liabilities
Deferred revenues 100 21
Accrued severance pay 3,600 3,573
3,700 3,594
Total Long-Term Liabilities
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
$93,390 $91,909
Total Liabilities and Shareholders' Equity
===
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.
