EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
RADCOM Reports First Quarter 2017 Financial Results

Q1 Revenues up 23% Year-Over-Year to $8.0 million
Cash and Cash Equivalents of $40.7 million and No Debt as of March 31, 2017

TEL-AVIV, Israel – May 4, 2017-- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the first quarter ended March 31, 2017.

“We were pleased with our strong first quarter execution highlighted by our relationship with AT&T and with other top tier carriers globally,” commented Mr. Yaron Ravkaie, RADCOM’s CEO.  “During the quarter, our hybrid approach of enabling a path to NFV and future proofing purchasing decisions continued to resonate with carriers.  Given our visibility for the remainder of the year, we are reiterating our 2017 revenue guidance of $36-$39 million.”

First Quarter 2017 Financial Highlights
●
Revenues: Total revenues for the first quarter were $8.0 million, up 23% compared to $6.5 million in the first quarter of 2016.

●
Net Income/(Loss): GAAP net loss for the period was $(0.3) million, or a loss of $(0.03) per diluted share, compared to net income of $0.9 million, or $0.10 per diluted share for the first quarter of 2016.

●
Non-GAAP Net Income:  Non-GAAP net income for the period was $0.3 million, or $0.02 per diluted share, compared to net income of $1.3 million, or $0.14 per diluted share for the first quarter of 2016.

GAAP and non-GAAP results for both the first quarter of 2017 and 2016, included no benefits related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist).

●
Balance sheet: As of March 31, 2017, the Company had cash and cash equivalents of $40.7 million and no debt.

 
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 May 5th 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, 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 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
 March 31,
  
   
2017
    
2016
  
Revenues
  
$
8,040
    
$
6,547
  
Cost of revenues
    
2,022
      
1,693
  
Gross profit
    
6,018
      
4,854
  
                 
Research and development, gross
    
2,488
      
1,836
  
Less - royalty-bearing participation
    
-
      
-
  
Research and development, net
    
2,488
      
1,836
  
                 
Sales and marketing, net
    
2,897
      
1,527
  
General and administrative
    
1,060
      
871
  
Total operating expenses
    
6,445
      
4,234
  
                 
Operating (loss) income
    
(427
)
    
620
  
Financing income, net
    
109
      
289
  
(loss) Income before taxes
    
(318
)
    
909
  
                 
Taxes
    
(18
)
    
(6
)
Net (loss) income
  
$
(336
)
  
$
903
  
                 
Basic net (loss) income per ordinary share
  
$
(0.03
)
  
$
0.10
  
Diluted net (loss) income per ordinary share
  
$
(0.03
)
  
$
0.10
  
                 
Weighted average number of ordinary shares used in computing basic net income (loss) per ordinary share
    
11,650,479
      
8,729,891
  
                 
Weighted average number of ordinary shares used in computing diluted net income (loss) per ordinary share
    
11,650,479
      
9,307,539
  


RADCOM LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(thousands of U.S. dollars, except share and per share data)

   
Three months ended
March 31,
 
   
2017
    
2016
  
GAAP gross profit
  
$
6,018
    
$
4,854
  
Stock-based compensation
    
47
      
14
  
Non-GAAP gross profit
    
6,065
      
4,868
  
                 
GAAP Research and development, net
    
2,488
      
1,836
  
Stock-based compensation
    
109
      
171
  
Non-GAAP Research and development, net
    
2,379
      
1,665
  
                 
GAAP sales and marketing, net
    
2,897
      
1,527
  
Stock-based compensation
    
128
      
20
  
Non-GAAP selling and marketing, net
    
2,769
      
1,507
  
                 
GAAP general and administrative
    
1,060
      
871
  
Stock-based compensation
    
336
      
232
  
Non-GAAP general and administrative
    
724
      
639
  
                 
GAAP total operating expenses
    
6,445
      
4,234
  
Stock-based compensation
    
573
      
423
  
Non-GAAP total operating expenses
    
5,872
      
3,811
  
                 
GAAP operating (loss) income
    
(427
)
    
620
  
Stock-based compensation
    
620
      
437
  
Non-GAAP operating income
    
193
      
1,057
  
                 
GAAP (loss) income before taxes on income
    
(318
)
    
909
  
Stock-based compensation
    
620
      
437
  
Non-GAAP income before taxes on income
    
302
      
1,346
  
                 
GAAP net (loss) income
    
(336
)
    
903
  
Stock-based compensation
    
620
      
437
  
Non-GAAP net income
    
284
      
1,340
  
                 
GAAP Net (loss) income per diluted share
    
(0.03
)
    
0.10
  
Stock-based compensation
    
0.05
      
0.04
  
Non-GAAP Net income per diluted share
  
$
0.02
    
$
0.14
  
                 
Weighted average number of shares used to compute diluted net earnings per share
    
11,952,399
      
9,307,539
  
 
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
 
   
As of
    
As of
  
   
March 31,
2017
    
December 31,
2016
  
Current Assets
            
     Cash and cash equivalents
  
$
40,749
    
$
42,886
  
     Restricted bank deposits
    
34
      
32
  
     Trade receivables, net
    
3,958
      
4,388
  
     Inventories
    
513
      
623
  
     Other receivables
    
1,598
      
1,960
  
                 
Total Current Assets
    
46,852
      
49,889
  
                 
Severance pay fund
    
2,973
      
2,788
  
                 
Other long-term receivables
    
306
      
375
  
                 
Property and equipment, net
    
1,642
      
1,516
  
                 
Total Assets
  
$
51,773
    
$
54,568
  
                 
Liabilities and Shareholders' Equity
                
Current Liabilities
                
      Trade payables
  
$
1,291
    
$
2,820
  
    Deferred revenue and advances from customers
    
1,017
      
2,593
  
       Employee and payroll accruals
    
3,258
      
3,541
  
    Other payables and accrued expenses
    
1,710
      
2,081
  
                 
Total Current Liabilities
    
7,276
      
11,035
  
Long-Term Liabilities
                
    Deferred revenue
    
143
      
123
  
    Accrued severance pay
    
3,526
      
3,267
  
                 
Total Long-Term Liabilities
    
3,669
      
3,390
  
                 
Total Liabilities
    
10,945
      
14,425
  
                 
Shareholders' Equity
                
     Share capital
    
525
      
523
  
     Additional paid-in capital
    
99,242
      
98,283
  
       Accumulated other comprehensive loss
    
(2,499
)
    
(2,559
)
     Accumulated deficit
    
(56,440
)
    
(56,104
)
                 
Total Shareholders' Equity
    
40,828
      
40,143
  
                 
Total Liabilities and Shareholders' Equity
  
$
51,773
    
$
54,568