EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
 
Exhibit 99.1
 

RADCOM Reports Third Quarter 2016 Financial Results

Q3 Revenues Up 62% YOY to $7.7M
Cash and Cash Equivalents of $43.2M and No Debt as of September 30, 2016
Increased Investments to Support Growth

TEL-AVIV, Israel – November 1, 2016-- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the third quarter ended September 30, 2016.

“We were pleased with our strong third quarter results which were driven by our expanding relationship with AT&T, as well as ongoing momentum with other Tier 1 carriers globally,” commented Mr. Yaron Ravkaie, RADCOM’s CEO. “During the quarter, we continued to see accelerated engagements with leading top-tier carriers about their respective NFV strategies given the recent public endorsement from AT&T.  In light of all these engagements and in our efforts to remain the go-to NFV vendor for customer experience, we are making investments to support our growth by scaling up our workforce with a particular focus on engineering.”

Mr. Yaron Ravkaie concluded, “We are reiterating our 2016 revenue guidance range to $28-$29.5 million, up 50%-58% compared with 2015. Given the Company’s best-of-breed MaveriQ suite, our message of future proofing NFV migration is resonating with carriers globally.  As a result, we believe that RADCOM is well positioned to maintain its momentum for the remainder of the year and beyond.”

Third Quarter 2016 Financial Highlights
 
·
Revenues: Total revenues for the third quarter were $7.7 million, up 62% compared to $4.8 million in the third quarter of 2015.

·
Net Income: GAAP net income for the period was approximately breakeven, compared to $561,000, or $0.06 per diluted share for the third quarter of 2015.

·
Non-GAAP Net Income:  Non-GAAP net income totaled $1.0 million, or $0.09 per diluted share, compared to $835,000, or $0.09 per diluted share for the third quarter of 2015.

Both GAAP and non-GAAP results for the third quarter of 2016 included a $385,000, or $0.03 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $867,000, or $0.09 per diluted share, in the third quarter of 2015.

·
Balance sheet: As of September 30, 2016, the Company had cash and cash equivalents of $43.2 million and no debt.


Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (14:00 Israel 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 November 2nd on RADCOM's website.
 
##
 
About RADCOM
 
RADCOM (RDCM) is a first-mover and leading provider of NFV-ready service assurance and customer experience management solutions for Communications Service Providers (CSPs). RADCOM's MaveriQ software continuously monitors network performance and quality-of-service, enabling CSPs to optimize the subscriber user experience. RADCOM specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS and others.
MaveriQ enables CSPs to smoothly migrate their networks to NFV by assuring physical, NFV-based and hybrid networks. For more information, please visit http://www.radcom.com.
For all investor enquiries, please contact: Ran Vered, CFO, (+972) 77-774-5011, ranv@radcom.com
For all media enquiries, please contact: Mark Rolston, Marketing Manager +972-77-774-5036, markr@radcom.com

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 making investments to support growth by scaling up its workforce with a particular focus on engineering and maintainting momentum for the remainder of the year and beyond it is using foward-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
 September 30,
    
Nine months ended
 September 30,
  
   
2016
    
2015
    
2016
    
2015
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
Sales
  
$
7,726
    
$
4,767
    
$
21,473
    
$
15,958
  
Cost of sales
    
2,357
      
835
      
6,186
      
3,189
  
Gross profit
    
5,369
      
3,932
      
15,287
      
12,769
  
                                 
Research and development, gross
    
1,985
      
1,389
      
5,453
      
4,452
  
Less - royalty-bearing participation
    
385
      
867
      
1,141
      
1,007
  
Research and development, net
    
1,600
      
522
      
4,312
      
3,445
  
Sales and marketing, net
    
2,352
      
2,194
      
5,611
      
5,781
  
General and administrative
    
1,436
      
534
      
3,463
      
1,740
  
Total operating expenses
    
5,388
      
3,250
      
13,386
      
10,966
  
Operating income (loss)
    
(19
)
    
682
      
1,901
      
1,803
  
Financing income (expense), net
    
39
      
(107
)
    
775
      
(481
)
Income before taxes
    
20
      
575
      
2,676
      
1,322
  
Taxes
    
(18
)
    
(14
)
    
(24
)
    
(121
)
Net profit
  
$
2
    
$
561
    
$
2,652
    
$
1,201
  
                                 
Basic net income per
ordinary share
  
$
0.00
    
$
0.07
    
$
0.26
    
$
0.14
  
Diluted net income per
ordinary share
  
$
0.00
    
$
0.06
    
$
0.26
    
$
0.13
  
                                 
Weighted average number of
    ordinary shares used in
     computing basic net income per ordinary share
    
11,410,105
      
8,622,196
      
10,023,733
      
8,541,563
  
                                 
Weighted average number of
    ordinary shares used in
     computing diluted net income per ordinary share
    
11,708,030
      
9,141,928
      
10,396,446
      
9,091,721
  

 
RADCOM LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(thousands of U.S. dollars, except share and per share data)
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2016
    
2015
    
2016
    
2015
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
                         
GAAP net income
  
$
2
    
$
561
    
$
2,652
    
$
1,201
  
Stock-based compensation (1)
    
1,013
      
274
      
1,700
      
1,060
  
Non-GAAP net income
  
$
1,015
    
$
835
    
$
4,352
    
$
2,261
  
Non-GAAP net income per share (basic)
  
$
0.09
    
$
0.10
    
$
0.43
    
$
0.26
  
Non-GAAP net income per share (diluted)
  
$
0.09
    
$
0.09
    
$
0.42
    
$
0.25
  
                                 
Number of shares used in computing Non-GAAP earnings per share (basic)
    
11,410,105
      
8,622,196
      
10,023,733
      
8,541,563
  
Number of shares used in computing Non-GAAP earnings per share (diluted)
    
11,708,030
      
9,141,928
      
10,396,446
      
9,091,721
  
                                 
(1) Stock-based compensation:
                                
   Cost of sales
  
$
39
    
$
7
    
$
81
    
$
29
  
   Research and development
    
155
      
108
      
394
      
433
  
   Selling and marketing
    
73
      
102
      
124
      
326
  
   General and administrative
    
746
      
57
      
1,101
      
272
  
   
$
1,013
    
$
274
    
$
1,700
    
$
1,060
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
 
   
As of
    
As of
  
   
September 30,
2016
    
December 31,
2015
  
   
(unaudited)
    
(audited)
  
Current Assets
            
     Cash and cash equivalents
    
43,248
      
8,727
  
     Restricted cash deposits
    
32
      
32
  
     Trade receivables
    
4,413
      
3,684
  
     Inventories
    
1,151
      
1,532
  
     Other receivables
    
2,503
      
2,087
  
Total Current Assets
    
51,347
      
16,062
  
                 
Severance pay fund
    
3,205
      
3,181
  
                 
Other long-term receivables
    
621
      
508
  
                 
Property and equipment, net
    
984
      
384
  
                 
Total Assets
    
56,157
      
20,135
  
                 
Liabilities and Shareholders' Equity
                
Current Liabilities
                
      Trade payables
    
2,801
      
1,465
  
    Deferred revenue and advances from customers
    
4,819
      
931
  
       Employee and payroll accruals
    
3,355
      
2533
  
    Other payables and accrued expenses
    
1,999
      
1,490
  
Total Current Liabilities
    
12,974
      
6,419
  
                 
Long-Term Liabilities
                
    Deferred revenue
    
25
      
197
  
    Accrued severance pay
    
3,807
      
3,656
  
Total Long-Term Liabilities
    
3,832
      
3,853
  
                 
Total Liabilities
    
16,806
      
10,272
  
                 
Shareholders' Equity
                
     Share capital
    
517
      
372
  
     Additional paid-in capital
    
96,775
      
70,270
  
        Accumulated other comprehensive loss
    
(2,574
)
    
(2,760
)
     Accumulated deficit
    
(55,367
)
    
(58,019
)
Total Shareholders' Equity
    
39,351
      
9,863
  
                 
Total Liabilities and Shareholders' Equity
    
56,157
      
20,135
  
 
Contact:
 Ran Vered, CFO
(+972) 77-774-5011
ranv@radcom.com