TEL-AVIV, Israel, Feb. 3, 2015 /PRNewswire/ -- RADCOM Ltd.
(NASDAQ: RDCM), a leading provider of customer experience
management (CEM) solutions, today reported its financial results
for the fourth quarter and twelve months ended December 31, 2014.
In $
thousands
|
Q4
2014
|
Q4
2013
|
Full Year
2014
|
Full Year
2013
|
Revenues
|
$7,188
|
$5,707
|
$23,636
|
$20,482
|
Gross
margin (non-GAAP)
|
74.6%
|
61.2%
|
70.9%
|
61.5%
|
Net
profit (loss) (non-GAAP)
|
$1,795
|
$187
|
$3,275
|
$(921)
|
Net
profit (loss) (GAAP)
|
$(367)
|
$117
|
$726
|
$(1,420)
|
Cash &
equivalents (at end of period)
|
$6,848
|
$1,185
|
$6,848
|
$1,185
|
Financial Results
Fourth Quarter: RADCOM's revenues for the fourth
quarter grew by 26% to $7.2 million,
compared with Q4 2013 and by 20% compared with Q3 2014. Non-GAAP
Gross margin for the quarter increased to 75% from 61% in Q4 2013,
reflecting RADCOM's continued transition to a software-driven
business model and an increasing proportion of MaveriQ, the
Company's new NFV-ready software-based solution, in the sales
mix.
Net loss (GAAP) for the quarter totaled $367,000, or $(0.04) per basic ordinary share $(0.04) per diluted ordinary share) compared
year-over-year with Net profit of $117,000, or $0.01
per ordinary share (basic and diluted), in Q4 2013, and compared
sequentially with net profit of $776,000, or $0.10
per basic ordinary share ( $0.09 per
diluted ordinary share), in Q3 2014. Net profit included the impact
of a one-time non-cash $2 million
charge, mainly related to inventory and related assets write-off
taken in respect of the Company's transition from a hardware-based
to a software-based business model and primarily related to a
dispute with customers regarding legacy equipment delivered to them
in 2010.
On a non-GAAP basis excluding the one-time write-off and
non-cash stock-based compensation, net income totaled $1,795,000, or $0.22 (basic) and $0.20 (diluted) per ordinary share, generating a
record non-GAAP net margin of 25.0%. This compared with non-GAAP
net income of $187,000, or
$0.02 per ordinary share (basic and
diluted), for Q4 2013, and $872,000,
or $0.11 (basic) and $0.10 (diluted) per ordinary share, for Q3
2014.
The Company's cash balance as of the end of the quarter totaled
$6.8 million. This is up 51% compared
with the Company's cash balance at the end of the third quarter,
and a five-fold increase compared with the end of 2013.
Full Year 2014: For 2014 as a whole,
RADCOM's revenues increased by 15% to $23.6
million from $20.5 million in
2013. Non-GAAP Gross margin for the period increased to 71% from
62% in 2013, reflecting the Company's ongoing transition to a
software company, as mentioned above.
Net income GAAP for the year totaled a record $726,000, or $0.09
(basic) and $0.08 (diluted) per
ordinary share, compared with a net loss of $(1.4) million, or $(0.19) per ordinary share (basic and diluted),
for 2013. On a non-GAAP basis, net income for the period totaled a
record $3.3 million or $0.40 (basic) and $0.38 (diluted) per ordinary share, compared with
the $(0.9) million non-GAAP net loss
recorded in 2013.
Comments of Management
"We are pleased and proud to
report a robust Q4, a fitting end to a year in which we have moved
into new territory in terms of revenues, margins, profits, bookings
and collections," commented Mr. David
Ripstein, RADCOM's President and CEO. "We are gratified that
our correct analysis of the market, our development of
a pioneering lead product, our transition from hardware to
software and our streamlining program resulted in a profit
$3.3 million this year as well as the
growth in our cash position to $6.8
million at December 31, 2014,
from $1.2 million at the end of
2013."
Mr. Ripstein continued, "A number of factors lead us to forecast
continued growth in the year to come: especially the quarter's very
strong collections, which derive from a very high level of customer
satisfaction; our all-time record bookings, which confirm MaveriQ's
unique suitability for market needs; and our growing margins, which
leverage all of our sales into higher profits. We believe these
positive indicators, layered on top of the solid platform that we
have built during the past few years, are a formula for success
that will continue to build value over time."
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 9:00
AM Eastern Time (16:00 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
4th on RADCOM's website.
About RADCOM
RADCOM provides innovative service
assurance and customer experience management solutions for leading
telecom operators and communications service providers. RADCOM
specializes in solutions for next-generation mobile and fixed
networks, including LTE, VoLTE, IMS, VoIP, UMTS/GSM and mobile
broadband. RADCOM's comprehensive, carrier- grade solutions are
designed for big data analytics on terabit networks, and are used
to prevent service provider revenue leakage and to enhance customer
care management. RADCOM's products interact with policy management
to provide self-optimizing network solutions. RADCOM's shares are
listed on the NASDAQ Capital Market under the symbol RDCM. 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 our financial performance, excluding non-cash
stock-based compensation (that has been expensed in accordance with
ASC Topic 718) as well as a one-time, non-cash write-off of
obsolete inventory. In this way, our non-GAAP results provide
information to both management and investors that is useful in
assessing our core operating performance and in evaluating and
comparing our 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.
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 United States
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Sales
|
$ 7,188
|
|
$ 5,707
|
|
$ 23,636
|
|
$ 20,482
|
|
Cost of
sales
|
3,624
|
|
2,213
|
|
8,693
|
|
7,890
|
|
Gross
profit
|
3,564
|
|
3,494
|
|
14,943
|
|
12,592
|
|
Research and
development, gross
|
1,329
|
|
1,480
|
|
5,812
|
|
5,615
|
|
Less -
royalty-bearing participation
|
358
|
|
597
|
|
1,664
|
|
1,537
|
|
Research and
development, net
|
971
|
|
883
|
|
4,148
|
|
4,078
|
|
Sales and
marketing
|
1,924
|
|
1,882
|
|
7,295
|
|
7,592
|
|
General and
administrative
|
576
|
|
526
|
|
2,262
|
|
2,051
|
|
Total operating
expenses
|
3,471
|
|
3,291
|
|
13,705
|
|
13,721
|
|
Operating income
(loss)
|
93
|
|
203
|
|
1,238
|
|
(1,129)
|
|
Financing expenses,
net
|
(280)
|
|
(86)
|
|
(332)
|
|
(291)
|
|
Income (loss) before
taxes
|
(187)
|
|
117
|
|
906
|
|
(1,420)
|
|
Taxes
|
(180)
|
|
-
|
|
(180)
|
|
-
|
|
Net Income
(loss)
|
$ (367)
|
|
$ 117
|
|
$ 726
|
|
$ (1,420)
|
|
Basic net income
(loss) per
ordinary
share
|
$ (0.04)
|
|
$ 0.01
|
|
$ 0.09
|
|
$ ( 0.19)
|
|
Diluted net income
(loss) per
ordinary
share
|
$ (0.04)
|
|
$ 0.01
|
|
$ 0.08
|
|
$ ( 0.19)
|
|
Weighted average
number of
ordinary shares used in
computing basic net income
(loss) per ordinary share
|
8,289,419
|
|
7,936,829
|
|
8,088,974
|
|
7,340,056
|
|
Weighted average
number of
ordinary shares used in
computing diluted net income
(loss) per ordinary share
|
8,889,451
|
|
8,318,024
|
|
8,592,387
|
|
7,340,056
|
|
RADCOM
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL INFORMATION
|
(1000's of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$(367)
|
|
$117
|
|
$726
|
|
$(1,420)
|
Stock-based
compensation (1)
|
192
|
|
70
|
|
579
|
|
499
|
One-time inventory
write off
|
1,797
|
|
-
|
|
1,797
|
|
-
|
One-time commission
write off
|
173
|
|
-
|
|
173
|
|
-
|
Non-GAAP net income
(loss)
|
$1,795
|
|
$187
|
|
$3,275
|
|
$(921)
|
Non-GAAP net income
(loss)
per share (basic)
|
$0.22
|
|
$0.02
|
|
$0.40
|
|
$(0.13)
|
Non-GAAP net income
(loss)
per share (diluted)
|
$0.20
|
|
$0.02
|
|
$0.38
|
|
$(0.13)
|
|
|
|
|
|
|
|
|
Number of shares used
in computing Non-GAAP earnings (loss) per share (basic)
|
8,289,419
|
|
7,936,829
|
|
8,088,974
|
|
7,340,056
|
|
|
|
|
|
|
|
|
Number of shares used
in computing Non-GAAP earnings (loss) per share
(diluted)
|
8,889,451
|
|
8,318,024
|
|
8,592,387
|
|
7,340,056
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
sales
|
1
|
|
1
|
|
12
|
|
7
|
Research
and development
|
43
|
|
10
|
|
178
|
|
117
|
Selling
and marketing
|
13
|
|
7
|
|
146
|
|
82
|
General
and administrative
|
135
|
|
52
|
|
243
|
|
293
|
|
192
|
|
70
|
|
579
|
|
499
|
RADCOM
Ltd.
|
Consolidated
Balance Sheets
|
(1000's of U.S.
dollars)
|
|
|
|
|
|
As of
December 31,
2014
|
|
As of
December 31,
2013
|
|
(unaudited)
|
|
(audited)
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
6,848
|
|
1,185
|
Restricted cash
|
32
|
|
1,505
|
Trade receivables,
net
|
5,477
|
|
5,723
|
Inventories
|
2,699
|
|
4,352
|
Other receivables
|
1,411
|
|
3,092
|
Total current
assets
|
16,467
|
|
15,857
|
Severance pay
fund
|
3,051
|
|
3,535
|
Property and
equipment, net
|
200
|
|
253
|
Other
Receivables
|
600
|
|
-
|
Total
Assets
|
20,318
|
|
19,645
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Short term bank
credit
|
-
|
|
629
|
Trade payables
|
1,524
|
|
2,257
|
Deferred revenue and
advances from customers
|
765
|
|
1,305
|
Employees and payroll
accruals
|
2,377
|
|
2,109
|
Other payables and accrued
expenses
|
1,739
|
|
1,795
|
Total current
liabilities
|
6,405
|
|
8,095
|
Long-term
liabilities
|
|
|
|
Deferred revenue
|
198
|
|
107
|
Accrued severance
pay
|
3,453
|
|
3,944
|
Total long-term
liabilities
|
3,651
|
|
4,051
|
|
|
|
|
Total
liabilities
|
10,056
|
|
12,146
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share capital
|
361
|
|
335
|
Additional paid-in
capital
|
68,070
|
|
65,791
|
Accumulated other
comprehensive loss
|
(1,068)
|
|
(805)
|
Accumulated
deficit
|
(57,101)
|
|
(57,822)
|
Total shareholders'
equity
|
10,262
|
|
7,499
|
|
|
|
|
Total liabilities
and shareholders' equity
|
20,318
|
|
19,645
|
|
|
Contact:
Uri
Birenberg
CFO
(972) 77-774-5060
urib@radcom.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/record-q4-caps-off-year-of-strong-growth-for-radcom-q4--72m-revenues-022-eps-non-gaap-2014--236m-revenues-040-eps-non-gaap-300029873.html
SOURCE RADCOM Ltd.