UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
 
For the month of July 2015 (Report No. 2)

Commission File Number: 0-29452

RADCOM LTD.
(Translation of registrant’s name into English)

24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x   Form:40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A
 
 
 

 
 
THIS FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO RADCOM LTD.’S REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-13250, 333-111931, 333-123981, 333-190207, 333-195465 AND 333-203087) AND FORM F-3 (REGISTRATION STATEMENT NOS. 333-170512 AND 333-189111), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
 
CONTENTS

This report on Form 6-K of the registrant consists of the following document, which is attached hereto and incorporated by reference herein:

Exhibit 99.1                      Press Release: RADCOM reports Q2 &H1 Financial Results, dated July 21st, 2015.
 
 
 

 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
RADCOM LTD.
 
       
Date: July 21, 2015
By:
/s/ Uri Birenberg
 
 
Name:  
Uri Birenberg
 
 
Title:
CFO
 
       
 
 
 

 
 
EXHIBIT INDEX
 
Exhibit Number
Description of Exhibit
 
99.1
Press Release: RADCOM reports Q2 &H1 Financial Results, dated July 21st, 2015.
 


 




Exhibit 99.1
 
   News
 
Contact:
Uri Birenberg, CFO
(972) 77-774-5060
urib@radcom.com
 
FOR IMMEDIATE RELEASE

RADCOM REPORTS Q2 & H1 FINANCIAL RESULTS
- Cash Balance Increased by $5.9M to $9.9M;
Long-Term Target for Gross Margin Raised to 80% -
-  Company Investing Significantly to Address the Virtualization Market -
 
TEL-AVIV, Israel – July 21, 2015-- 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.
 
 
 

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  
 


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