EX-99.1 2 f6k081219ex99-1_radcomltd.htm PRESS RELEASE, DATED AUGUST 12, 2019 REPORTING THE REGISTRANT'S SECOND QUARTER 2019 FINANCIAL RESULTS

Exhibit 99.1

 

RADCOM Reports Second Quarter 2019 Results

  

-  Second quarter revenues of $8.5 million

 

-  Selected by Rakuten Mobile to assure the world’s first fully virtualized cloud-native mobile network

 

-  Cash, cash equivalents and short-term bank deposits of $58.6 million and no debt

 

-  Increasing 2019 revenue guidance range to $30-$33 million

 

TEL AVIV, Israel, Aug. 12, 2019 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the second quarter ended June 30, 2019.

 

“We are pleased with our new strategic customer, Rakuten Mobile, and the multi-year agreement signed with this innovative operator in Japan. This agreement already impacted our revenues in the second quarter, and we are delighted with the progress already made on this pioneering project,” commented Mr. Yaron Ravkaie, RADCOM’s CEO. “Rakuten chose RADCOM because of our deep NFV expertise, our on-going work, and partnership with AT&T and our advanced, cutting-edge virtual technology. This strong vote of confidence in our technology further cements our position as the leading, most advanced NFV assurance vendor for operators transitioning to NFV and planning their 5G rollouts.”

 

Second Quarter 2019 Financial Highlights:

 

●Revenues: Total revenues for the second quarter were $8.5 million, down 20% compared to $10.6 million in the second quarter of 2018.   

 

●Net Income (loss): GAAP net loss for the period was $(0.9) million, or $(0.07) per diluted share, compared to GAAP net income of $0.8 million, or $0.05 per diluted share for the second quarter of 2018. 

 

●Non-GAAP Net Income (loss): Non-GAAP net loss for the period was $(0.4) million, or $(0.03) per diluted share, compared to non-GAAP net income of $1.4 million, or $0.10 per diluted share for the second quarter of 2018.   

 

●Balance sheet: As of June 30, 2019, the Company had cash and cash equivalents and short-term bank deposits of $58.6 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- 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 August 13th on RADCOM’s website.

  

 

 

 

About RADCOM
 

RADCOM (Nasdaq: RDCM) is the leading expert in cloud-native Network Intelligence for telecom operators transitioning to SDN/NFV. Providing a critical first step in an operator’s NFV transformation, RADCOM’s Network Intelligence delivers end-to-end network visibility from virtual tapping point to network insights. Comprised of RADCOM Service Assurance, RADCOM Network Visibility, and RADCOM Network Insights, RADCOM’s Network Intelligence portfolio provides operators with complete visibility across their virtual and hybrid networks. RADCOM Network Intelligence is automated, cost-efficient, and provides on-demand functionality that is specifically designed for the needs of telecom operators. RADCOM specializes in assuring next-generation, high capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV, and others. 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 continued investment in technology, the expected role of NFV and the Company’s solutions in 5G networks, transition to NFV and adoption of 5G, the success of the engagement with Rakuten Mobile, the Company’s market position, 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.

  

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RADCOM Ltd.

Consolidated Statements of Operations

Unaudited

(thousands of U.S. dollars, except share and per share data)

 

   Three months ended 
June 30,		   Six months ended 
June 30,		 
   2019   2018   2019   2018 
                 
Revenues  $8,546   $10,639   $14,592   $21,542 
Cost of revenues   2,154    2,877    3,991    5,767 
Gross profit   6,392    7,762    10,601    15,775 
Research and development, gross   4,577    3,752    9,222    7,496 
Less - royalty-bearing participation   412    754    816    754 
Research and development, net   4,165    2,998    8,406    6,742 
Sales and marketing   2,617    3,084    5,063    6,324 
General and administrative   850    992    1,647    1,990 
Total operating expenses   7,632    7,074    15,116    15,056 
Operating income (loss)   (1,240)   688    (4,515)   719 
Financial income, net   341    71    481    373 
Income (loss) before taxes on income   (899)   759    (4,034)   1,092 
Taxes on income   (37)   (2)   (46)   (13)
                     
Net income (loss)  $(936)  $757   $(4,080)  $1,079 
                     
Basic net income (loss) per ordinary share  $(0.07)  $0.06   $(0.30)  $0.08 
Diluted net income (loss) per ordinary share  $(0.07)  $0.05   $(0.30)  $0.08 
Weighted average number of ordinary shares used in computing basic net income (loss) per ordinary share   13,762,795    13,600,323    13,756,198    13,549,494 
Weighted average number of ordinary shares used in computing diluted net income (loss) per ordinary share   13,762,795    13,849,488    13,756,198    13,817,995 

  

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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  
June 30,		   Six months ended
June 30,		 
   2019   2018   2019   2018 
GAAP gross profit  $6,392   $7,762   $10,601   $15,775 
Stock-based compensation   66    37    95    77 
Non-GAAP gross profit  $6,458   $7,799   $10,696   $15,852 
GAAP research and development, net  $4,165   $2,998   $8,406   $6,742 
Stock-based compensation   179    203    357    411 
Non-GAAP research and development, net  $3,986   $2,795   $8,049   $6,331 
GAAP sales and marketing  $2,617   $3,084   $5,063   $6,324 
Stock-based compensation   184    233    330    462 
Non-GAAP sales and marketing  $2,433   $2,851   $4,733   $5,862 
GAAP general and administrative  $850   $992   $1,647   $1,990 
Stock-based compensation   96    193    183    392 
Non-GAAP general and administrative  $754   $799   $1,464   $1,598 
GAAP total operating expenses  $7,632   $7,074   $15,116   $15,056 
Stock-based compensation   459    629    870    1,265 
Non-GAAP total operating expenses  $7,173   $6,445   $14,246   $13,791 
GAAP operating income (loss)  $(1,240)  $688   $(4,515)  $719 
Stock-based compensation   525    666    965    1,342 
Non-GAAP operating income (loss)  $(715)  $1,354   $(3,550)  $2,061 
GAAP income (loss) before taxes on income  $(899)  $759   $(4,034)  $1,092 
Stock-based compensation   525    666    965    1,342 
Non-GAAP income (loss) before taxes on income  $(374)  $1,425   $(3,069)  $2,434 
GAAP net income (loss)  $(936)  $757   $(4,080)  $1,079 
Stock-based compensation   525    666    965    1,342 
Non-GAAP net income (loss)  $(411)  $1,423   $(3,115)  $2,421 
GAAP net income (loss) per diluted share  $(0.07)  $0.05   $(0.30)  $0.08 
Stock-based compensation   0.04    0.05    0.07    0.10 
Non-GAAP net income (loss) per diluted share  $(0.03)  $0.10   $(0.23)  $0.18 
Weighted average number of shares used to compute diluted net income (loss) per share   13,762,795    13,849,488    13,756,198    13,817,995 

   

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RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)

 

   As of   As of 
   June 30,   December 31, 
   2019   2018 
   (unaudited)     
Current Assets        
Cash and cash equivalents  $11,260   $61,988 
Short-term bank deposits   47,367    - 
Trade receivables, net   21,957    20,381 
Inventories   702    251 
Other receivables   1,564    1,766 
           
Total Current Assets   82,850    84,386 
Severance pay fund   3,199    2,967 
Other long-term receivables   2,391    346 
Property and equipment, net   1,738    1,832 
Operating lease right-of-use assets   6,147    - 
           
Total Assets  $96,325   $89,531 
           
Liabilities and Shareholders’ Equity          
           
Current Liabilities          
Trade payables  $1,765   $1,559 
Deferred revenues   888    266 
Employee and payroll accruals   3,559    3,420 
Operating lease liabilities   1,176    - 
Other payables and accrued expenses   3,228    2,281 
           
Total Current Liabilities   10,616    7,526 
           
Long-Term Liabilities          
Deferred revenues   206    100 
Accrued severance pay   3,762    3,425 
Operating lease liabilities   5,236    - 
Other long-term liabilities   1,150    - 
           
Total Long-Term Liabilities   10,354    3,525 
           
Total Liabilities  $20,970   $11,051 
           
Shareholders’ Equity          
Share capital  $645   $643 
Additional paid-in capital   136,702    135,730 
Accumulated other comprehensive loss   (2,631)   (2,612)
Accumulated deficit   (59,361)   (55,281)
           
Total Shareholders’ Equity   75,355    78,480 
           
Total Liabilities and Shareholders’ Equity  $96,325   $89,531 

 

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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