RADCOM Reports Third Quarter 2019 Results
TEL AVIV, Israel, Nov. 7, 2019 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the third quarter ended September 30, 2019.
"We are pleased to announce that RADCOM's revenue grew 10% over the previous quarter. We have experienced steady growth this year, reflecting the continued progress we are making with our advanced virtual technology as well as the success of our agreements with Rakuten Mobile, AT&T, and other customers," commented Mr. Yaron Ravkaie, RADCOM's CEO. "We are encouraged by the traction we are gaining due to our technological expertise, evidenced by our increasing customer base, which includes multi-year agreements with Rakuten Mobile and now VimpelCom, one of the leading operators in Russia. These partnerships are providing us with enhanced, multi-year visibility into the Company's revenue stream."
Third Quarter 2019 Financial Highlights:
-- Revenues: Total revenues for the third quarter were $9.4 million, up 10%
compared to $8.5 million in the third quarter of 2018.
-- Net Income (loss): GAAP net loss for the period was $(1.7) million, or
$(0.12) per diluted share, compared to GAAP net income of $0.6 million,
or $0.05 per diluted share for the third quarter of 2018.
-- Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $(1.0)
million, or $(0.07) per diluted share, compared to non-GAAP net income
of $1.0 million, or $0.07 per diluted share for the third quarter of
2018.
-- Balance sheet: As of September 30, 2019, the Company had cash and cash
equivalents and short-term bank deposits of $68.1 million and no debt.
Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Standard 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 November 8(th) on RADCOM's website.
About RADCOM
RADCOM (Nasdaq: RDCM) is the leading expert in cloud-native, container-based network intelligence solutions for telecom operators transitioning to NFV and 5G. Powered by RADCOM's patented I.C.O.N technology, the RADCOM Network Intelligence suite delivers Intelligent, Container-based, On-demand, Network Analysis from the RAN to the Core for 5G assurance, utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. Utilizing cutting edge technology such as AI and machine learning, these solutions work in harmony to provide operators an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. 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, 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 continuing progress and continuing traction in its business and technology, its increasing customer base, its visibility and revenue stream, 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 Nine months ended
September 30, September 30,
---
2019 2018 2019 2018
---
Revenues $9,389 $8,519 $23,981 $30,061
Cost of revenues 3,283 1,660 7,274 7,427
---
Gross profit 6,106 6,859 16,707 22,634
Research and development, gross 4,699 3,933 13,921 11,429
Less - royalty-bearing participation 597 528 1,413 1,282
---
Research and development, net 4,102 3,405 12,508 10,147
Sales and marketing 2,758 2,401 7,821 8,725
General and administrative 1,064 657 2,711 2,647
---
Total operating expenses 7,924 6,463 23,040 21,519
---
Operating income (loss) (1,818) 396 (6,333) 1,115
Financial income, net 217 282 698 655
---
Income (loss) before taxes on income (1,601) 678 (5,635) 1,770
Taxes on income (59) (44) (105) (57)
---
Net income (loss) $(1,660) $634 $(5,740) $1,713
Basic net income (loss) per $(0.12) $0.05 $(0.42) $0.13
ordinary share
Diluted net income (loss) per $(0.12) $0.05 $(0.42) $0.12
ordinary share
13,797,115 13,701,844 13,769,987 13,600,849
Weighted average number of
ordinary shares used in computing basic net income
(loss) per ordinary share
===
13,797,115 13,916,306 13,769,987 13,851,324
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)
T
h
r
e
e
months ended Nine months ended
September 30, September 30,
---
2019 2018 2019 2018
GAAP gross profit $6,106 $6,859 $16,707 $22,634
Stock-based compensation 61 25 156 102
Non-GAAP gross profit $6,167 $6,884 $16,863 $22,736
$4,102 $3,405 $12,508 $10,147
GAAP research and development, net
Stock-based compensation 211 210 568 621
---
Non-GAAP research and development, net $3,891 $3,195 $11,940 $9,526
$2,758 $2,401 $7,821 $8,725
GAAP sales and marketing
Stock-based compensation 148 121 478 583
Non-GAAP sales and marketing $2,610 $2,280 $7,343 $8,142
$1,064 $657 $2,711 $2,647
GAAP general and administrative
Stock-based compensation 252 10 435 402
Non-GAAP general and administrative $812 $647 $2,276 $2,245
$7,924 $6,463 $23,040 $21,519
GAAP total operating expenses
Stock-based compensation 611 341 1,481 1,606
Non-GAAP total operating expenses $7,313 $6,122 $21,559 $19,913
$(1,818) $396 $(6,333) $1,115
GAAP operating income (loss)
Stock-based compensation 672 366 1,637 1,708
Non-GAAP operating income (loss) $(1,146) $762 $(4,696) $2,823
$(1,601) $678 $(5,635) $1,770
GAAP income (loss) before taxes on income
Stock-based compensation 672 366 1,637 1,708
Non-GAAP income (loss) before taxes on income $(929) $1,044 $(3,998) $3,478
$(1,660) $634 $(5,740) $1,713
GAAP net income (loss)
Stock-based compensation 672 366 1,637 1,708
Non-GAAP net income (loss) $(988) $1,000 $(4,103) $3,421
$(0.12) $0.05 $(0.42) $0.12
GAAP net income (loss) per diluted share
Stock-based compensation 0.05 0.02 0.12 0.12
Non-GAAP net income (loss) per diluted share $(0.07) $0.07 $(0.30) $0.24
Weighted average number of shares used to compute diluted net 13,797,115 13,916,306 13,769,987 13,851,324
income (loss) per share
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
As of
As of
September 30, December 31,
2019 2018
---
(unaudited)
Current Assets
Cash and cash equivalents $9,504 $61,988
Short-term bank deposits 58,626
Trade receivables, net 13,473 20,381
Inventories 1,203 251
Other receivables 1,561 1,766
84,367
Total Current Assets 84,386
Non-Current Assets
Severance pay fund 3,336 2,967
Other long-term receivables 2,365 346
Property and equipment, net 1,619 1,832
Operating lease right-of-
use assets 5,861
13,181 5,145
Total Non-Current Assets
Total Assets $97,548 $89,531
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables $3,143 $1,559
Deferred revenues 1,048 266
Employee and payroll
accruals 3,940 3,420
Operating lease liabilities 1,198
Other payables and accrued
expenses 3,813 2,281
13,142 7,526
Total Current Liabilities
Non-Current Liabilities
Deferred revenues 100 100
Accrued severance pay 3,926 3,425
Operating lease liabilities 5,024
Other long-term liabilities 993
10,043 3,525
Total Non-Current Liabilities
Total Liabilities $23,185 $11,051
Shareholders' Equity
Share capital $647 $643
Additional paid-in capital 137,378 135,730
Accumulated other
comprehensive loss (2,641) (2,612)
Accumulated deficit (61,021) (55,281)
Total Shareholders' Equity 74,363 78,480
$97,548 $89,531
Total Liabilities and Shareholders'
Equity
For all investor inquiries, 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.
