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 13(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 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 Twelve months ended
December 31, 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
$(0.30) $0.17 $(0.18) $0.24
Basic net income (loss) per
ordinary share
Diluted net income (loss) per $(0.30) $0.17 $(0.18) $0.23
ordinary share
13,719,649 13,050,849 13,630,793 12,039,176
Weighted average number of
ordinary shares used in
computing basic net income (loss)
per ordinary share
13,719,649 13,339,174 13,630,793 12,351,566
Weighted average number of
ordinary shares used in
computing diluted net income (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,
---
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
$3,708 $1,923 $13,855 $8,963
GAAP research and development, net
Stock-based compensation 187 134 808 473
---
Non-GAAP research and development, net $3,521 $1,789 $13,047 $8,490
$2,701 $2,777 $11,426 $10,996
GAAP sales and marketing, net
Stock-based compensation 115 105 698 499
Non-GAAP sales and marketing, net $2,586 $2,672 $10,728 $10,497
$744 $1,042 $3,391 $4,191
GAAP general and administrative
Stock-based compensation 101 196 503 1,055
Non-GAAP general and administrative $643 $846 $2,888 $3,136
$7,153 $5,742 $28,672 $24,150
GAAP total operating expenses
Stock-based compensation 403 435 2,009 2,027
Non-GAAP total operating expenses $6,750 $5,307 $26,663 $22,123
$(4,603) $2,229 $(3,488) $2,595
GAAP operating income (loss)
Stock-based compensation 413 490 2,121 2,216
Non-GAAP operating income (loss) $(4,190) $2,719 $(1,367) $4,811
$(4,122) $2,293 $(2,352) $2,984
GAAP income (loss) before taxes on income
Stock-based compensation 413 490 2,121 2,216
Non-GAAP income (loss) before taxes on income $(3,709) $2,783 $(231) $5,200
$(4,128) $2,258 $(2,415) $2,901
GAAP net income (loss)
Stock-based compensation 413 490 2,121 2,216
Non-GAAP net income (loss) $(3,715) $2,748 $(294) $5,117
$(0.30) $0.17 $(0.18) $0.23
GAAP net income (loss) per diluted share
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 13,719,649 13,339,174 13,630,793 12,351,566
to compute diluted net income (loss) per share
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
As of
As of
December 31, December 31,
2018 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
7,526 11,919
Total Current Liabilities
Non-Current Liabilities
Deferred revenue 100 21
Accrued severance pay 3,425 3,573
3,525 3,594
Total Non-Current Liabilities
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
$89,531 $91,909
Total Liabilities and Shareholders' Equity
===
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
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SOURCE RADCOM Ltd.
