RADCOM Reports Fourth Quarter and Full Year 2019 Results
TEL AVIV, Israel, Feb. 13, 2020 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2019.
"We concluded 2019 with a solid quarter, reaching the high end of our guidance and achieving full year revenue of $33 million. During the year, we expanded our client base into Japan and Russia and invested significantly in R&D to enhance our 5G solutions. This investment will allow us to innovate and deliver real value for operators looking to deploy assurance solutions at the early stages of 5G. We are already pursuing several opportunities for 5G implementations and expect more opportunities to develop as operators ramp up investment in 5G deployments during 2020," commented Eyal Harari, RADCOM's CEO.
"Our recent customer engagements align with our strategy of entering into multi-year contracts with recurring revenues and provide us with good visibility into the coming year. Considering our good visibility into 2020, we are providing annual revenue guidance of $35-$38 million."
Fourth Quarter 2019 Financial Highlights:
-- Revenues: Total revenues for the fourth quarter were $9.0 million,
compared to $4.0 million in the fourth quarter of 2018.
-- Net loss: GAAP net loss for the quarter decreased to $1.1 million, or
$0.08 per diluted share, compared to GAAP net loss of $4.1 million, or
$0.30 per diluted share for the fourth quarter of 2018.
-- Non-GAAP Net loss: Non-GAAP net loss for the period decreased to $0.5
million, or $0.04 per diluted share, compared to non-GAAP net loss of
$3.7 million, or $0.27 per diluted share for the fourth quarter of 2018.
-- Balance sheet: As of December 31, 2019, the Company had cash and cash
equivalents and short-term bank deposits of $69.3 million and no debt.
Full Year 2019 Financial Highlights:
-- Revenues: Total revenues for the full year were $33.0 million, compared
to $34.1 million for the full year 2018.
-- Net loss: GAAP net loss for the period was $6.8 million, or $0.50 per
diluted share, compared to GAAP net loss of $2.4 million, or $0.18 per
diluted share for the full year 2018.
-- Non-GAAP Net loss: Non-GAAP net loss for the period was $4.6 million, or
$0.33 per diluted share, compared to non-GAAP net loss of $0.3 million,
or $0.02 per diluted share for the full year 2018.
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): +1-888-668-9141
From other locations: +972-3-918-0609
For those unable to listen to the call at the time, a replay will be available from February 14(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 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 intended investment in technology and R&D, maintaining technological leadership and delivering real value for early adopters, the expected roll out of 5G networks and 5G network use cases, the Company's strategy of entering into multi-year contracts with recurring revenues, market position, visibility and 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,
--- ---
2019 2018 2019 2018
---
(unaudited)
(unaudited)
(unaudited)
Revenues $9,029 $3,989 $33,010 $34,050
Cost of revenues 2,643 1,439 9,917 8,866
---
Gross profit 6,386 2,550 23,093 25,184
Research and development, gross 4,657 4,074 18,578 15,503
Less - royalty-bearing participation 425 366 1,838 1,648
---
Research and development, net 4,232 3,708 16,740 13,855
Sales and marketing 2,693 2,701 10,514 11,426
General and administrative 963 744 3,674 3,391
---
Total operating expenses 7,888 7,153 30,928 28,672
---
Operating loss (1,502) (4,603) (7,835) (3,488)
Financial income, net 474 481 1,172 1,136
---
Loss before taxes on income (1,028) (4,122) (6,663) (2,352)
Taxes on income (64) (6) (169) (63)
---
Net loss $(1,092) $(4,128) $(6,832) $(2,415)
Basic and diluted net loss per $(0.08) $(0.30) $(0.50) $(0.18)
ordinary share
13,809,258 13,719,649 13,779,885 13,630,793
===
Weighted average number of
ordinary shares used in computing basic
and diluted net 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,
--- ---
2019 2018 2019 2018
GAAP gross profit $6,386 $2,550 $23,093 $25,184
Stock-based compensation 48 10 204 112
Non-GAAP gross profit $6,434 $2,560 $23,297 $25,296
$4,232 $3,708 $16,740 $13,855
GAAP research and development, net
Stock-based compensation 161 187 729 808
---
Non-GAAP research and development, net $4,071 $3,521 $16,011 $13,047
$2,693 $2,701 $10,514 $11,426
GAAP sales and marketing
Stock-based compensation 160 115 638 698
Non-GAAP sales and marketing $2,533 $2,586 $9,876 $10,728
$963 $744 $3,674 $3,391
GAAP general and administrative
Stock-based compensation 222 101 657 503
Non-GAAP general and administrative $741 $643 $3,017 $2,888
$7,888 $7,153 $30,928 $28,672
GAAP total operating expenses
Stock-based compensation 543 403 2,024 2,009
Non-GAAP total operating expenses $7,345 $6,750 $28,904 $26,663
$(1,502) $(4,603) $(7,835) $(3,488)
GAAP operating loss
Stock-based compensation 591 413 2,228 2,121
Non-GAAP operating loss (911) (4,190) (5,607) $(1,367)
---
$(1,028) $(4,122) $(6,663) $(2,352)
GAAP loss before taxes on income
Stock-based compensation 591 413 2,228 2,121
Non-GAAP loss before taxes on income $(437) $(3,709) $(4,435) $(231)
$(1,092) $(4,128) $(6,832) $(2,415)
GAAP net loss
Stock-based compensation 591 413 2,228 2,121
Non-GAAP net loss $(501) $(3,715) $(4,604) $(294)
$(0.08) $(0.30) $(0.50) $(0.18)
GAAP net loss per diluted share
Stock-based compensation 0.04 0.03 0.17 0.16
Non-GAAP net loss per diluted share $(0.04) $(0.27) $(0.33) $(0.02)
Weighted average number of shares used to 13,809,258 13,719,649 13,779,885 13,630,793
compute diluted net loss per share
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
As of
As of
December 31, December 31,
2019 2018
---
(unaudited)
Current Assets
Cash and cash equivalents $6,201 $61,988
Short-term bank deposits 63,080 -
Trade receivables, net 11,039 20,381
Inventories 1,356 251
Other receivables 1,536 1,766
83,212
Total Current Assets 84,386
Non-Current Assets
Severance pay fund 3,365 2,967
Other long-term
receivables 2,314 346
Property and equipment, net 1,669 1,832
Operating lease right-of-
use assets 5,842 -
13,190 5,145
Total
Non-Current Assets
Total Assets $96,402 $89,531
===
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables $2,452 $1,559
Deferred revenues 828 266
Employee and payroll
accruals 4,132 3,420
Operating lease liabilities 1,263 -
Other payables and accrued
expenses 4,050 2,281
12,725 7,526
Total Current Liabilities
Non-Current Liabilities
Deferred revenues 100 100
Accrued severance pay 3,904 3,425
Operating lease liabilities 4,967 -
Other long-term
liabilities 836 -
9,807 3,525
Total
Non-Current
Liabilities
Total Liabilities $22,532 $11,051
---
Shareholders' Equity
Share capital $648 $643
Additional paid-in capital 137,969 135,730
Accumulated other
comprehensive loss (2,634) (2,612)
Accumulated deficit (62,113) (55,281)
Total Shareholders' Equity 73,870 78,480
$96,402 $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.
