RADCOM Reports Second Quarter 2020 Results
TEL AVIV, Israel, Aug. 11, 2020 /PRNewswire/ --
-- Second quarter revenues of $9.2 million
-- Cash, cash equivalents and short-term bank deposits of $66 million and
no debt
-- Reiterating 2020 revenue guidance range of $35-$38 million
RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the second quarter ended June 30, 2020.
"We are pleased by our second quarter performance, which was in line with our full-year growth plans as we increased revenues, and improved our bottom line while continuing to invest in R&D," commented Eyal Harari, RADCOM's CEO. "Despite the challenges of COVID-19, we were able to further our technological capabilities for 5G while following regional health guidelines to keep our employees and customers safe. At the same time, the telecom industry continued to move forward with 5G rollouts."
"We were excited to announce last week the launch of RADCOM ACE - our Automated, Containerized, End-To-End assurance solution for 5G networks. This product launch is the culmination of research and development investments made over the last few years and our virtualization expertise, which we gained through working with leading operators worldwide. RADCOM ACE enables operators to integrate assurance into their cloud platforms and automate 5G network operations using artificial intelligence (AI)-driven insights. As 5G implementations continue, operators will need real-time, customer-centric insights of the network, which will require operators to upgrade their existing service assurance solutions to cloud-native offerings that are designed from the ground up for 5G networks. To that end, RADCOM ACE is already being trialed at some of the most advanced cloud-native networks worldwide."
"We believe that RADCOM is well-positioned to take advantage of 5G opportunities as the market evolves, and more operators migrate their networks to 5G. We believe that our strong cash position and balance sheet enable us to continue growing and investing in our innovative solutions, despite the uncertainty caused by the COVID-19 pandemic. Based on the current industry conditions and our visibility, we are reiterating our full-year 2020 revenue guidance range of $35 million to $38 million."
Second Quarter 2020 Financial Highlights:
-- Total revenues for the second quarter were $9.2 million, compared to
$8.5 million in the second quarter of 2019.
-- GAAP net loss for the second quarter decreased to $0.2 million, or $0.01
per diluted share, compared to a GAAP net loss of $0.9 million, or $0.07
per diluted share for the second quarter of 2019.
-- Non-GAAP net income for the period is $0.2 million, or $0.02 per diluted
share, compared to a non-GAAP net loss of $0.4 million, or loss of $0.03
per diluted share for the second quarter of 2019.
-- As of June 30, 2020, the Company had cash and cash equivalents and
short-term bank deposits of $66 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): +1-888-407-2553
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay will be available on RADCOM's website later the same day.
About RADCOM
RADCOM (Nasdaq: RDCM) is the leading expert in 5G ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver 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 and cutting edge techniques based on 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 investment in technology and R&D, the expected transition to and roll out of 5G networks and other market trends, the Company's market position, potential growth, the potential in the RADCOM ACE product, the Company's expectations regarding the impact of COVID-19, 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 Six months ended
June 30,
June 30,
--- ---
2020 2019 2020 2019
Revenues $9,159 $8,546 $17,487 $14,592
Cost of revenues 2,143 2,154 5,252 3,991
---
Gross profit 7,016 6,392 12,235 10,601
Research and
development, gross 4,710 4,577 9,500 9,222
Less - royalty-
bearing
participation 572 412 572 816
---
Research and
development, net 4,138 4,165 8,928 8,406
Sales and marketing 2,281 2,617 4,734 5,063
General and
administrative 906 850 1,929 1,647
---
Total operating
expenses 7,325 7,632 15,591 15,116
---
Operating loss (309) (1,240) (3,356) (4,515)
Financial income,
net 150 341 320 481
---
Loss before taxes
on income (159) (899) (3,036) (4,034)
Taxes on income (21) (37) (53) (46)
---
Net loss $(180) $(936) $(3,089) $(4,080)
Basic and diluted
net loss per $(0.01) $(0.07) $(0.22) $(0.30)
ordinary share
13,930,021 13,762,795 13,902,927 13,756,198
===
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)
T
h
r
e
e months
ended Six months ended
---
June 30, June 30,
---
2020 2019 2020 2019
GAAP gross profit $7,016 $6,392 $12,235 $10,601
Stock-based compensation 14 66 42 95
Non-GAAP gross profit $7,030 $6,458 $12,277 $10,696
$4,138 $4,165 $8,928 $8,406
GAAP research and development, net
Stock-based compensation 251 179 418 357
---
Non-GAAP research and development, net $3,887 $3,986 $8,510 $8,049
$2,281 $2,617 $4,734 $5,063
GAAP sales and marketing
Stock-based compensation 44 184 187 330
Non-GAAP sales and marketing $2,237 $2,433 $4,547 $4,733
$906 $850 $1,929 $1,647
GAAP general and administrative
Stock-based compensation 102 96 287 183
Non-GAAP general and administrative $804 $754 $1,642 $1,464
$7,325 $7,632 $15,591 $15,116
GAAP total operating expenses
Stock-based compensation 397 459 892 870
Non-GAAP total operating expenses $6,928 $7,173 $14,699 $14,246
$(309) $(1,240) $(3,356) $(4,515)
GAAP operating loss
Stock-based compensation 411 525 934 965
Non-GAAP operating income (loss) $102 $(715) $(2,422) $(3,550)
$(159) $(899) $(3,036) $(4,034)
GAAP loss before taxes on income
Stock-based compensation 411 525 934 965
Non-GAAP income (loss) before taxes on income $252 $(374) $(2,102) $(3,069)
$(180) $(936) $(3,089) $(4,080)
GAAP net loss
Stock-based compensation 411 525 934 965
Non-GAAP net income (loss) $231 $(411) $(2,155) $(3,115)
$(0.01) $(0.07) $(0.22) $(0.30)
GAAP net loss per diluted share
Stock-based compensation 0.03 0.04 0.07 0.07
Non-GAAP net income (loss) per diluted share $0.02 $(0.03) $(0.15) $(0.23)
Weighted average number of shares used to compute diluted net income (loss) per share 14,329,385 13,762,795 13,902,927 13,756,198
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
As of
As of
June 30, December 31,
2020 2019
--- ---
(unaudited)
(audited)
---
Current Assets
Cash and cash
equivalents $8,234 $6,201
Short-term bank
deposits 57,779 63,080
Trade receivables, net 12,109 11,039
Inventories 742 1,356
Other accounts
receivable and prepaid
expenses 1,353 1,536
80,217 83,212
Total Current Assets
Non-Current Assets
Severance pay fund 3,356 3,365
Other long-term
receivables 1,695 2,314
Property and equipment,
net 1,543 1,669
Operating lease right-
of-use assets 5,064 5,842
11,658 13,190
Total Non-Current
Assets
Total Assets $91,875 $96,402
===
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables $1,951 $2,452
Deferred revenues and
advances from customers 840 828
Employee and payroll
accruals 3,767 4,132
Operating lease
liabilities 1,173 1,263
Other liabilities and
accrued expenses 3,594 4,050
11,325 12,725
Total Current
Liabilities
Non-Current Liabilities
Deferred revenues 75 100
Accrued severance pay 4,025 3,904
Operating lease
liabilities 4,213 4,967
Other liabilities and
accrued expenses 523 836
8,836 9,807
Total Non-Current
Liabilities
Total Liabilities $20,161 $22,532
---
Shareholders' Equity
Share capital $655 $648
Additional paid-in
capital 138,896 137,969
Accumulated other
comprehensive loss -2,635 -2,634
Accumulated deficit -65,202 -62,113
Total Shareholders'
Equity 71,714 73,870
$91,875 $96,402
===
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.
