TEL-AVIV, Israel, July 21, 2015 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM), a leading provider of Customer Experience
Management (CEM) solutions, today reported its financial results
for the second quarter and first half ended June 30, 2015.
In $
thousands
|
H1
2015
|
H1
2014
|
Q2
2015
|
Q2
2014
|
Revenues
|
$11,191
|
$10,441
|
$4,837
|
$4,970
|
Gross
margin
|
79%
|
71%
|
75%
|
75%
|
Net
profit
|
$640
|
$317
|
$203
|
$207
|
Net
profit (non-GAAP)
|
$1,426
|
$608
|
$605
|
$360
|
Cash &
equivalents
|
$9,916
|
$3,853
|
$9,916
|
$3,853
|
Financial Results
First Half of 2015: RADCOM's revenues increased to
$11.2 million from $10.4 million in the first half of 2014, while
gross margin for the period increased to 79% from 71%. Based on the
rising proportion of software-based MaveriQ sales in the Company's
backlog and sales opportunity pipeline, Management has raised its
long-term target gross margin to 80%.
Net income for the first half totaled $640,000, or $0.07
per diluted share ($0.08 per basic
share), more than double the $317,000, or $0.04
per share (basic and diluted) recorded in the first half of 2014.
On a non-GAAP basis, net income for the period totaled $1,426,000, or $0.16 per diluted share ($0.17 per basic share), a 134% increase compared
with $608,000, or $0.08 per basic share ($0.07 per diluted share) for the first half of
2014.
Second Quarter: During the second quarter, RADCOM
recorded $4.8 million in revenues
compared with $5.0 million in the
second quarter of 2014. The quarter's sales were affected by a
slow-down in the decision-making process regarding a specific deal
in Russia that is not expected to
impact the Company's full-year performance.
According to GAAP, the Company recorded net income of
$203,000, or $0.02 per share (basic and diluted), compared
with $207,000, or $0.02 per diluted share ($0.03 per basic share), for the second quarter of
2014. On a non-GAAP basis, net income totaled $605,000, or $0.07
per share (basic and diluted), compared with $360,000, or $0.04
per share (basic and diluted), for the second quarter of 2014.
The Company's cash balance during the quarter increased by
$5.9 million, resulting in a total of
$9.9 million as of June 30, 2015.
Comments of Management
"Our activities during the
past two quarters have been intensely focused on establishing
RADCOM as a leading player in CEM for the virtualized/NFV
environment, which has entailed a massive effort in both
development and marketing," commented Mr. David Ripstein, RADCOM's President and CEO. "We
are excited to have recently launched the last component of our
virtualized MaveriQ solution, making it what we believe is the best
fully NFV-compatible solution on the market. This is already
opening up a new scale of opportunities, and expanding our
geographical focus into additional regions, especially the U.S. We
believe these efforts will bear fruit and that our solution for the
NFV market will become a new revenue driver."
Mr. Ripstein continued, "Our sales for the second quarter were
below our internal expectations, reflecting the slow-down in
decision-making regarding a specific deal in Russia. Nonetheless, the opportunities that we
are addressing in both our traditional focus regions of
Latin America and APAC, together
with the potential that our virtualized MaveriQ solution is opening
up to us, makes us feel well positioned. We are pleased to be
updating our long-term target gross margin to 80%, and look forward
to reporting our progress in the quarters ahead."
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 July 22nd 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. By excluding non-cash
stock-based compensation that has been expensed in accordance with
ASC Topic 718, 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.
Contact:
Uri
Birenberg, CFO
(972) 77-774-5060
urib@radcom.com
RADCOM
Ltd. Consolidated Statement of Operations
(1000's of U.S. dollars, except share and per share
data)
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Sales
|
$ 4,837
|
|
$ 4,970
|
|
$ 11,191
|
|
$ 10,441
|
Cost of
sales
|
1,216
|
|
1,253
|
|
2,354
|
|
3,025
|
Gross
profit
|
3,621
|
|
3,717
|
|
8,837
|
|
7,416
|
Research and
development, gross
|
1,433
|
|
1,518
|
|
3,071
|
|
3,086
|
Less -
royalty-bearing participation
|
148
|
|
289
|
|
148
|
|
587
|
Research and
development, net
|
1,285
|
|
1,229
|
|
2,923
|
|
2,499
|
Sales and marketing,
net
|
1,546
|
|
1,774
|
|
3,587
|
|
3,721
|
General and
administrative
|
565
|
|
558
|
|
1,206
|
|
1,136
|
Total operating
expenses
|
3,396
|
|
3,561
|
|
7,716
|
|
7,356
|
Operating
income
|
225
|
|
156
|
|
1,121
|
|
60
|
Financing income
(expense), net
|
78
|
|
51
|
|
(374)
|
|
257
|
Income before
taxes
|
303
|
|
207
|
|
747
|
|
317
|
Taxes
|
(100)
|
|
-
|
|
(107)
|
|
-
|
|
|
|
|
|
|
|
|
Net profit
|
$ 203
|
|
$ 207
|
|
$ 640
|
|
$ 317
|
|
|
|
|
|
|
|
|
Basic net income
per
ordinary share
|
$ 0.02
|
|
$ 0.03
|
|
$ 0.08
|
|
$ 0.04
|
Diluted net income
per
ordinary
share
|
$ 0.02
|
|
$ 0.02
|
|
$ 0.07
|
|
$ 0.04
|
Weighted average
number of
ordinary shares used in
computing basic net income
per ordinary
share
|
8,537,377
|
|
8,017,570
|
|
8,501,254
|
|
7,995,073
|
Weighted average
number of
ordinary shares used in
computing diluted net income
per ordinary
share
|
9,093,008
|
|
8,495,235
|
|
9,066,624
|
|
8,482,199
|
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
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$203
|
|
$207
|
|
$640
|
|
$317
|
Stock-based
compensation (1)
|
402
|
|
153
|
|
786
|
|
291
|
Non-GAAP net
income
|
$605
|
|
$360
|
|
$1,426
|
|
$608
|
Non-GAAP net income
per share (basic)
|
$0.07
|
|
$0.04
|
|
$0.17
|
|
$0.08
|
Non-GAAP net income
per share (diluted)
|
$0.07
|
|
$0.04
|
|
$0.16
|
|
$0.07
|
|
|
|
|
|
|
|
|
Number of shares used
in computing Non-GAAP earnings per share (basic)
|
8,537,377
|
|
8,017,570
|
|
8,501,254
|
|
7,995,073
|
Number of shares used
in computing Non-GAAP earnings per share (diluted)
|
9,093,008
|
|
8,495,235
|
|
9,066,624
|
|
8,482,199
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
sales
|
13
|
|
4
|
|
22
|
|
8
|
Research
and development
|
159
|
|
56
|
|
324
|
|
102
|
Sales
and marketing
|
133
|
|
54
|
|
224
|
|
104
|
General
and administrative
|
97
|
|
39
|
|
216
|
|
77
|
|
402
|
|
153
|
|
786
|
|
291
|
RADCOM
Ltd.
Consolidated
Balance Sheets
(1000's of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
June
30,
2015
|
|
December
31,
2014
|
|
(unaudited)
|
|
(audited)
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
9,883
|
|
6,848
|
Restricted cash
deposits
|
33
|
|
32
|
Trade receivables
|
3,434
|
|
5,477
|
Inventories
|
1,482
|
|
2,699
|
Other receivables
|
1,569
|
|
1,411
|
Total Current
Assets
|
16,401
|
|
16,467
|
Severance pay
fund
|
3,163
|
|
3,051
|
Other long-term
receivables
|
622
|
|
600
|
Property and
equipment, net
|
210
|
|
200
|
Total
Assets
|
20,396
|
|
20,318
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Trade payables
|
424
|
|
1,524
|
Deferred revenue and advances from customers
|
842
|
|
765
|
Employee and payroll accruals
|
2,120
|
|
2,377
|
Other payables and accrued expenses
|
1,518
|
|
1,739
|
Total Current
Liabilities
|
4,904
|
|
6,405
|
Long-Term
Liabilities
|
|
|
|
Deferred revenue
|
384
|
|
198
|
Accrued severance
pay
|
3,636
|
|
3,453
|
Total Long-Term
Liabilities
|
4,020
|
|
3,651
|
|
|
|
|
Total
Liabilities
|
8,924
|
|
10,056
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share capital
|
368
|
|
361
|
Additional paid-in
capital
|
69,318
|
|
68,059
|
Accumulated
other comprehensive loss
|
(1,758)
|
|
(1,062)
|
Accumulated
deficit
|
(56,456)
|
|
(57,096)
|
Total Shareholders'
Equity
|
11,472
|
|
10,262
|
Total Liabilities
and Shareholders' Equity
|
20,396
|
|
20,318
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/radcom-reports-q2--h1-financial-results-300116192.html
SOURCE RADCOM Ltd.