EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
 

RADCOM Reports Fourth Quarter and Full Year 2016 Financial Results

Q4 Revenues up 196% Year-Over-Year to $8.0 million
Full Year 2016 Revenues up 58% Year-Over-Year to $29.5 million
Cash and Cash Equivalents of $42.9 million and No Debt as of December 31, 2016

TEL-AVIV, Israel – February 14, 2017-- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2016.

“The fourth quarter marked a strong end to a great year for the Company, highlighted by our ability to reach the high-end of our guidance range,” commented Mr. Yaron Ravkaie, RADCOM’s CEO.  “In 2016, we made great progress with our top-tier customer deployments, continued our engagement with other leading global carriers, and focused on preparing the company for future growth by boosting our senior management team and ramping up our engineering capabilities.  We believe we have laid a solid foundation during 2016 to continue our momentum, as evidenced by our initial 2017 revenue guidance range of $36-$39 million.”

Fourth Quarter 2016 Financial Highlights
·
Revenues: Total revenues for the fourth quarter were $8.0 million, up 196% compared to $2.7 million in the fourth quarter of 2015.

·
Net Loss: GAAP net loss for the period was approximately $0.7 million, or $0.06 loss per diluted share, compared to a loss of $2.1 million, or $0.25 loss per diluted share for the fourth quarter of 2015.

·
Non-GAAP Net Income/(Loss):  Non-GAAP net income for the period was approximately $0.4 million, or $0.04 per diluted share, compared to a loss of $(1.6) million, or $(0.19) per diluted share for the fourth quarter of 2015.

Both GAAP and non-GAAP results for the fourth quarter of 2016 included a $552,000, or $0.05 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $576,000, or $0.07 per diluted share, in the fourth quarter of 2015.

·
Balance sheet: As of December 31, 2016, the Company had cash and cash equivalents of $42.9 million and no debt.

Full Year 2016 Financial Highlights
·
Revenues: Total revenues for the full year 2016 were $29.5 million, up 58% compared to $18.7 million in the full year 2015.

·
Net Income/(Loss): GAAP net income for the full year 2016 was approximately $1.9 million, or $0.18 per diluted share, compared to a loss of $(923,000), or $(0.11) per diluted share for the full year 2015.

·
Non-GAAP Net Income:  Non-GAAP net income for the period was approximately $4.8 million or $0.44 per diluted share, for the full year 2016, compared to $656,000, or $0.07 per diluted share for the full year 2015.

Both GAAP and non-GAAP results for the full year 2016 included a $1.7 million, or $0.16 per diluted share, benefit related to grants from the Israel Innovation Authority compared to $1.6 million, or $0.18 per diluted share, in 2015.


Earnings Conference Call
 RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (15:00 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 February 15th on RADCOM's website.
 
##
 
About RADCOM
RADCOM (NASDAQ: 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 software - MaveriQ - continuously monitors network performance and quality of services, to optimize user experience for CSPs’ subscribers. 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 www.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, inventory write-off and  non-cash write-off of importation taxes, 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 momentum and revenue guidance for 2017 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
 December 31,
    
Twelve months ended
 December 31,
  
   
2016
    
2015
    
2016
    
2015
  
Sales
  
$
8,037
    
$
2,715
    
$
29,510
    
$
18,673
  
Cost of sales
    
2,796
      
1,137
      
8,982
      
4,326
  
Gross profit
    
5,241
      
1,578
      
20,528
      
14,347
  
Research and development, gross
    
2,594
      
1,620
      
8,047
      
6,071
  
Less - royalty-bearing participation
    
552
      
576
      
1,693
      
1,582
  
Research and development, net
    
2,042
      
1,044
      
6,354
      
4,489
  
Sales and marketing, net
    
2,917
      
2,054
      
8,528
      
7,834
  
General and administrative
    
1,060
      
652
      
4,523
      
2,393
  
Total operating expenses
    
6,019
      
3,750
      
19,405
      
14,716
  
Operating income (loss)
    
(778
)
    
(2,172
)
    
1,123
      
(369
)
Financial income (expense), net
    
41
      
48
      
816
      
(433
)
Income (loss) before taxes
    
(737
)
    
(2,124
)
    
1,939
      
(802
)
Taxes on income
    
-
      
-
      
(24
)
    
(121
)
Net income (loss)
  
$
(737
)
  
$
(2,124
)
  
$
1,915
    
$
(923
)
                                 
Basic net income (loss) per
   ordinary share
  
$
(0.06
)
  
$
(0.25
)
  
$
0.18
    
$
(0.11
)
                                 
Diluted net income (loss) per
   ordinary share
  
$
(0.06
)
  
$
(0.25
)
  
$
0.18
    
$
(0.11
)
                                 
Weighted average number of ordinary shares used in computing
   basic net income (loss) per ordinary share
    
11,548,059
      
8,665,019
      
10,406,897
      
8,572,681
  
                                 
Weighted average number of ordinary shares used in computing
   diluted net income (loss) per ordinary share
    
11,548,059
      
8,665,019
      
10,779,547
      
8,572,681
  

 
RADCOM LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(thousands of U.S. dollars, except share and per share data)
 
   
Three months ended
December 31,
   
Twelve months ended
December 31,
 
   
2016
    
2015
    
2016
    
2015
  
GAAP gross profit
    
5,241
      
1,578
      
20,528
      
14,347
  
Stock-based compensation
    
37
      
4
      
118
      
33
  
Importation tax write-off
    
388
      
-
      
388
      
-
  
Inventory write-off
    
-
      
170
      
-
      
170
  
Non-GAAP gross profit
    
5,666
      
1,752
      
21,034
      
14,550
  
                                 
 GAAP Research and development, net
    
2,042
      
1,044
      
6,354
      
4,489
  
Stock-based compensation
    
231
      
96
      
625
      
529
  
Non-GAAP Research and development, net
    
1,811
      
948
      
5,729
      
3,960
  
                                 
 GAAP sales and marketing, net
    
2,917
      
2,054
      
8,528
      
7,834
  
Stock-based compensation
    
75
      
54
      
199
      
380
  
Non-GAAP sales and marketing, net
    
2,842
      
2,000
      
8,329
      
7,454
  
                                 
 GAAP general and administrative
    
1,060
      
652
      
4,523
      
2,393
  
Stock-based compensation
    
428
      
194
      
1,529
      
467
  
Non-GAAP general and administrative
    
632
      
458
      
2,994
      
1,926
  
                                 
 GAAP total operating expenses
    
6,019
      
3,750
      
19,405
      
14,716
  
Stock-based compensation
    
734
      
344
      
2,353
      
1,376
  
Non-GAAP total operating expenses
    
5,285
      
3,406
      
17,052
      
13,340
  
                                 
 GAAP operating income (loss)
    
(778
)
    
(2,172
)
    
1,123
      
(369
)
Stock-based compensation
    
771
      
348
      
2,471
      
1,409
  
Importation tax write-off
    
388
      
-
      
388
          
Inventory write-off
    
-
      
170
      
-
      
170
  
Non-GAAP operating income (loss)
    
381
      
(1,654
)
    
3,982
      
1,210
  
                                 
 GAAP income (loss) before taxes on income
    
(737
)
    
(2,124
)
    
1,939
      
(802
)
Stock-based compensation
    
771
      
348
      
2,471
      
1,409
  
Importation tax write-off
    
388
      
-
      
388
          
Inventory write-off
    
-
      
170
      
-
      
170
  
Non-GAAP income (loss) before taxes on income
    
422
      
(1,606
)
    
4,798
      
777
  
                                 
 GAAP net income (loss)
    
(737
)
    
(2,124
)
    
1,915
      
(923
)
Stock-based compensation
    
771
      
348
      
2,471
      
1,409
  
Importation tax write-off
    
388
      
-
      
388
          
Inventory write-off
    
-
      
170
      
-
      
170
  
Non-GAAP net income
    
422
      
(1,606
)
    
4,774
      
656
  
                                 
 GAAP Net income per diluted share
    
(0.06
)
    
(0.25
)
    
0.18
      
(0.11
)
Stock-based compensation
    
0.07
      
0.04
      
0.22
      
0.16
  
Importation tax write-off
    
0.03
      
-
      
0.04
      
-
  
Inventory write-off
    
-
      
0.02
      
-
      
0.02
  
Non-GAAP Net income per diluted share
    
0.04
      
(0.19
)
    
0.44
      
0.07
  
                                 
Weighted average number of shares used to compute diluted net income (loss) per share
    
11,920,521
      
8,665,019
      
10,779,547
      
9,117,767
  
 
 
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
 
   
As of
    
As of
  
   
December 31,
2016
    
December 31,
2015
  
Current Assets
            
     Cash and cash equivalents
    
42,886
      
8,727
  
     Restricted bank deposits
    
32
      
32
  
     Trade receivables, net
    
4,388
      
3,684
  
     Inventories
    
623
      
1,532
  
     Other receivables
    
1,960
      
2,087
  
                 
   Total Current Assets
    
49,889
      
16,062
  
                 
Severance pay fund
    
2,788
      
3,181
  
                 
Other long-term receivables
    
375
      
508
  
                 
Property and equipment, net
    
1,516
      
384
  
                 
Total Assets
    
54,568
      
20,135
  
                 
Liabilities and Shareholders' Equity
                
Current Liabilities
                
      Trade payables
    
2,820
      
1,465
  
    Deferred revenue and advances from customers
    
2,593
      
931
  
       Employee and payroll accruals
    
3,541
      
2,533
  
    Other payables and accrued expenses
    
2,081
      
1,490
  
                 
   Total Current Liabilities
    
11,035
      
6,419
  
Long-Term Liabilities
                
    Deferred revenue
    
123
      
197
  
    Accrued severance pay
    
3,267
      
3,656
  
                 
   Total Long-Term Liabilities
    
3,390
      
3,853
  
                 
Total Liabilities
    
14,425
      
10,272
  
                 
Shareholders' Equity
                
     Share capital
    
523
      
372
  
     Additional paid-in capital
    
98,283
      
70,270
  
       Accumulated other comprehensive loss
    
(2,559
)
    
(2,760
)
     Accumulated deficit
    
(56,104
)
    
(58,019
)
                 
Total Shareholders' Equity
    
40,143
      
9,863
  
                 
Total Liabilities and Shareholders' Equity
    
54,568
      
20,135