TEL-AVIV, Israel, Oct. 27, 2015 /PRNewswire/ -- RADCOM
Ltd. (NASDAQ: RDCM), a leading provider of Customer Experience
Management (CEM) solutions, today reported its financial results
for the third quarter and first nine months ended September 30, 2015.
|
In $
thousands
|
Q1-Q3
2015
|
Q1-Q3
2014
|
Q3
2015
|
Q3
2014
|
|
Revenues
|
$15,958
|
$16,448
|
$4,767
|
$6,007
|
|
Gross
margin
|
80.0%
|
69.2%
|
82.5%
|
66.0%
|
|
Net profit
(loss) (GAAP)
|
$1,201
|
$1,093
|
$561
|
$776
|
|
Net
profit (non-GAAP)
|
$2,261
|
$1,480
|
$835
|
$872
|
|
Cash &
equivalents
|
$7,978
|
$4,509
|
$7,978
|
$4,509
|
Financial Results
First Nine Months of 2015: RADCOM's revenues for
the nine-month period totaled $16.0
million compared with $16.4
million in the first nine months of 2014, while gross margin
increased to 80.0% from 69.2%. The strong gross margin is in line
with the new target margin announced last quarter, reflecting the
Company's successful transition from hardware to software-based
products.
Net income for the first nine months totaled $1.2 million, or $0.14 (basic) and $0.13 (diluted) per ordinary share, up 10%
compared with $1.1 million, or
$0.14 (basic) and $0.13 (diluted) per ordinary share in the first
nine months of 2014. On a non-GAAP basis, net income for the period
totaled $2.3 million, or $0.26 (basic) and $0.25 (diluted) per ordinary share, a 53%
increase compared with $1.5 million,
or $0.18 (basic) and $0.17 (diluted) per ordinary share, for the first
nine months of 2014.
The Company's cash balance as of the end of the period totaled
$8.0 million, up 78% compared with
$4.5 million at the end of Q3 2014.
The increase reflected the strong collections and high customer
satisfaction achieved throughout the year.
Third Quarter: For the third quarter, RADCOM's
revenues totaled $4.8 million,
unchanged from the second quarter of 2015 but down from
$6.0 million in the third quarter of
2014. For the past two quarters, sales have been affected by the
Company's focus on high-potential Tier-1 deals in the U.S. and
other regions, each with long decision-cycles.
Gross margin for the quarter was 82.5%, an all-time record for
the Company. This compared with 66.0% for the third quarter of
2014.
Net income for the third quarter totaled $561,000, or $0.07
(basic) and $0.06 (diluted) per
ordinary share, compared with $776,000, or $0.10
(basic) and $0.09 (diluted) per
ordinary share, for the third quarter of 2014. On a non-GAAP basis,
net profit for the period was $835,000, or $0.10
(basic) and $0.09 (diluted) per
ordinary share, compared with $872,000, or $0.11
(basic) and $0.10 (diluted) per
ordinary share for the third quarter of 2014.
Comments of Management
"During the past several
quarters, we have been fully focused on a number of transformative
opportunities with top-tier service providers in the U.S. and other
regions, with recent developments making us very excited,"
commented Mr. David Ripstein,
RADCOM's President and CEO. "Addressing these opportunities has
required a massive R&D and marketing effort which has naturally
affected our execution of other projects. However, our Q3 bookings
set a new quarterly record for us, demonstrating the continued
health of our business from existing customers. We believe our
Tier-1 investment will prove itself in the quarters ahead, taking
our business to a new level while positioning us as the premier CEM
provider for virtualized/NFV networks.
"We are pleased that our record margin has partially compensated
for the quarter's weaker revenues, enabling us to post our eighth
straight profitable quarter and demonstrating just how far we have
come in a relatively short time. Building from a strong and healthy
platform, we are poised to enter the exciting NFV market at the
beginning of its growth curve, and believe that we are on the cusp
of a breakthrough."
Earnings Conference Call
RADCOM's management will hold
an interactive conference call today at 9:00
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 October 28th
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
Statements of Operations
(1000's of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Sales
|
$ 4,767
|
|
$ 6,007
|
|
$ 15,958
|
|
$ 16,448
|
|
|
Cost of
sales
|
835
|
|
2,044
|
|
3,189
|
|
5,069
|
|
|
Gross
profit
|
3,932
|
|
3,963
|
|
12,769
|
|
11,379
|
|
|
Research and
development, gross
|
1,389
|
|
1,397
|
|
4,452
|
|
4,483
|
|
|
Less -
royalty-bearing participation
|
867
|
|
719
|
|
1,007
|
|
1,306
|
|
|
Research and
development, net
|
522
|
|
678
|
|
3,445
|
|
3,177
|
|
|
Sales and marketing,
net
|
2,194
|
|
1,650
|
|
5,781
|
|
5,371
|
|
|
General and
administrative
|
534
|
|
550
|
|
1,740
|
|
1,686
|
|
|
Total operating
expenses
|
3,250
|
|
2,878
|
|
10,966
|
|
10,234
|
|
|
Operating
income
|
682
|
|
1,085
|
|
1,803
|
|
1,145
|
|
|
Financing expense,
net
|
(107)
|
|
(309)
|
|
(481)
|
|
(52)
|
|
|
Income before
taxes
|
575
|
|
776
|
|
1,322
|
|
1,093
|
|
|
Taxes
|
(14)
|
|
-
|
|
(121)
|
|
-
|
|
|
Net profit
|
$ 561
|
|
$ 776
|
|
$ 1,201
|
|
$ 1,093
|
|
|
Basic net income
per
ordinary
share
|
$ 0.07
|
|
$ 0.10
|
|
$ 0.14
|
|
$ 0.14
|
|
|
Diluted net income
per
ordinary
share
|
$ 0.06
|
|
$ 0.09
|
|
$ 0.13
|
|
$ 0.13
|
|
|
Weighted average
number of
ordinary shares used in
computing basic net income per ordinary share
|
8,622,196
|
|
8,073,268
|
|
8,541,563
|
|
8,021,425
|
|
|
Weighted average
number of
ordinary shares used in
computing diluted net income per ordinary share
|
9,141,928
|
|
8,515,158
|
|
9,091,721
|
|
8,493,472
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$561
|
|
$776
|
|
$1,201
|
|
$1,093
|
|
Stock-based
compensation (1)
|
274
|
|
96
|
|
1,060
|
|
387
|
|
Non-GAAP net
income
|
$835
|
|
$872
|
|
$2,261
|
|
$1,480
|
|
Non-GAAP net income
per share (basic)
|
$0.10
|
|
$0.11
|
|
$0.26
|
|
$0.18
|
|
Non-GAAP net income
per share (diluted)
|
$0.09
|
|
$0.10
|
|
$0.25
|
|
$0.17
|
|
|
|
|
|
|
|
|
|
Number of shares used
in computing Non-GAAP earnings per share (basic)
|
8,622,196
|
|
8,073,268
|
|
8,541,563
|
|
8,021,425
|
|
Number of shares used
in computing Non-GAAP earnings per share (diluted)
|
9,141,928
|
|
8,515,158
|
|
9,091,721
|
|
8,493,472
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
7
|
|
2
|
|
29
|
|
11
|
|
Research and
development
|
108
|
|
34
|
|
433
|
|
135
|
|
Selling and
marketing
|
102
|
|
29
|
|
326
|
|
133
|
|
General and
administrative
|
57
|
|
31
|
|
272
|
|
108
|
|
274
|
|
96
|
|
1,060
|
|
387
|
|
RADCOM
Ltd.
Consolidated
Balance Sheets
(1000's of U.S.
dollars)
|
|
As
of
|
|
As
of
|
|
September
30,
2015
|
|
December
31,
2014
|
|
(unaudited)
|
|
(audited)
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
7,946
|
|
6,848
|
|
Restricted cash
deposits
|
32
|
|
32
|
|
Trade
receivables
|
5,527
|
|
5,477
|
|
Inventories
|
1,709
|
|
2,699
|
|
Other
receivables
|
1,928
|
|
1,411
|
|
Total Current
Assets
|
17,142
|
|
16,467
|
|
Severance pay
fund
|
3,130
|
|
3,051
|
|
Other long-term
receivables
|
464
|
|
600
|
|
Property and
equipment, net
|
316
|
|
200
|
|
Total
Assets
|
21,052
|
|
20,318
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade
payables
|
1,013
|
|
1,524
|
|
Deferred
revenue and advances from customers
|
799
|
|
765
|
|
Employee
and payroll accruals
|
2,000
|
|
2,377
|
|
Other
payables and accrued expenses
|
1,850
|
|
1,739
|
|
Total Current
Liabilities
|
5,662
|
|
6,405
|
|
Long-Term
Liabilities
|
|
|
|
|
Deferred
revenue
|
318
|
|
198
|
|
Accrued severance
pay
|
3,573
|
|
3,453
|
|
Total Long-Term
Liabilities
|
3,891
|
|
3,651
|
|
|
|
|
|
Total
Liabilities
|
9,553
|
|
10,056
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share
capital
|
371
|
|
361
|
|
Additional paid-in
capital
|
69,866
|
|
68,059
|
|
Accumulated
other comprehensive loss
|
(2,843)
|
|
(1,062)
|
|
Accumulated
deficit
|
(55,895)
|
|
(57,096)
|
|
Total Shareholders'
Equity
|
11,499
|
|
10,262
|
|
Total Liabilities
and Shareholders' Equity
|
21,052
|
|
20,318
|
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/radcom-reports-financial-results-for-q3-and-1st-9-months-of-2015-300166797.html
SOURCE RADCOM Ltd.