RADCOM Reports First Quarter 2019 Results
TEL AVIV, Israel, May 7, 2019 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the first quarter ended March 31, 2019.
"The year began with the signing of a 3-year agreement with AT&T which validates our close working relationship. We are encouraged by the ongoing trust they place in our advanced virtualized technology which we continue to develop, enhance, and deliver for their pioneering network transformation" commented Mr. Yaron Ravkaie, RADCOM's CEO. "We are reiterating our guidance of $28-$32 million for 2019 and continue to focus on delivering innovative solutions to our customers by investing in R&D and maintaining our position as the 'go to' assurance vendor of telco virtualization. We expect our continued product development will bear fruit when more operators are ready to move forward with their transition to NFV and begin their 5G rollouts."
First Quarter 2019 Financial Highlights:
-- Revenues: Total revenues for the first quarter were $6.0 million, down
45% compared to $10.9 million in the first quarter of 2018
-- Net Income (loss): GAAP net loss for the period was $3.1 million, or
$0.23 per diluted share, compared to GAAP net income of $0.3 million, or
$0.02 per diluted share for the first quarter of 2018
-- Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $2.7
million, or $0.20 per diluted share, compared to non-GAAP net income of
$1.0 million, or $0.07 per diluted share for the first quarter of 2018
-- Balance sheet: As of March 31, 2019, the Company had cash and cash
equivalents and short-term bank deposits of $56.8 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: +972-3-918-0610
For those unable to listen to the call at the time, a replay will be available from May 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 continued investment in technology to meet the needs of its clients, the expected role of NFV and the Company'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
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
March 31,
2019 2018
Revenues $6,046 $10,903
Cost of revenues 1,837 2,890
---
Gross profit 4,209 8,013
Research and development, gross 4,645 3,744
Less - royalty-bearing participation 404
---
Research and development, net 4,241 3,744
Sales and marketing 2,446 3,240
General and administrative 797 998
---
Total operating expenses 7,484 7,982
---
Operating income (loss) (3,275) 31
Financial income, net 140 302
---
Income (loss) before taxes on income (3,135) 333
Taxes on income (9) (11)
---
Net income (loss) $(3,144) $322
$(0.23) $0.02
Basic net income (loss) per
ordinary share
Diluted net income (loss) per $(0.23) $0.02
ordinary share
13,749,528 13,498,100
Weighted average number of
ordinary shares used in
computing basic net income (loss)
per ordinary share
===
13,749,528 13,785,938
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
March 31,
2019 2018
GAAP gross profit $4,209 $8,013
Stock-based
compensation 29 40
Non-GAAP gross
profit $4,238 $8,053
$4,241 $3,744
GAAP Research and
development, net
Stock-based
compensation 178 208
---
Non-GAAP Research
and development, net $4,063 $3,536
$2,446 $3,240
GAAP sales and
marketing
Stock-based
compensation 146 229
Non-GAAP sales and
marketing $2,300 $3,011
$797 $998
GAAP general and
administrative
Stock-based
compensation 87 199
Non-GAAP general and
administrative $710 $799
$7,484 $7,982
GAAP total operating
expenses
Stock-based
compensation 411 636
Non-GAAP total
operating expenses $7,073 $7,346
$(3,275) $31
GAAP operating income
(loss)
Stock-based
compensation 440 676
Non-GAAP operating
income (loss) $(2,835) $707
$(3,135) $333
GAAP income (loss)
before taxes on
income
Stock-based
compensation 440 676
Non-GAAP income
(loss) before taxes
on income $(2,695) $1,009
$(3,144) $322
GAAP net income
(loss)
Stock-based
compensation 440 676
Non-GAAP net income
(loss) $(2,704) $998
$(0.23) $0.02
GAAP net income
(loss) per diluted
share
Stock-based
compensation 0.03 0.05
Non-GAAP net income
(loss) per diluted
share $(0.20) $0.07
Weighted average
number of shares
used to compute 13,749,528 13,785,938
diluted net income
(loss) per share
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
As of
As of
March 31, December 31,
2019 2018
---
(unaudited)
Current Assets
Cash and cash equivalents $15,579 $61,988
Short-term bank deposits 41,210 -
Trade receivables, net 22,455 20,381
Inventories 321 251
Other receivables 1,886 1,766
81,451
Total Current Assets 84,386
Severance pay fund
3,083 2,967
---
Other long-term receivables
379 346
---
Property and equipment, net
1,794 1,832
---
Operating lease right-of-
use assets 5,678
Total Assets $92,385 $89,531
===
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables $1,535 $1,559
Deferred revenue 206 266
Employee and payroll
accruals 3,343 3,420
Operating lease liabilities 1,156 -
Other payables and accrued
expenses 2,038 2,281
8,278 7,526
Total Current Liabilities
Long-Term Liabilities
Deferred revenue 107 100
Accrued severance pay 3,562 3,425
Operating lease liabilities 4,681 -
8,350 3,525
Total Long-Term Liabilities
Total Liabilities $16,628 $11,051
---
Shareholders' Equity
Share capital $644 $643
Additional paid-in capital 136,169 135,730
Accumulated other
comprehensive loss (2,631) (2,612)
Accumulated deficit (58,425) (55,281)
Total Shareholders' Equity 75,757 78,480
$92,385 $89,531
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.
