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 October 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333-170512 AND 333-189111), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 RADCOM reports financial results for Q3 and 1st 9 months of 2015, dated October 27th, 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: October 27, 2015
By:
/s/ Uri Birenberg
 
 
Name:  
Uri Birenberg
 
 
Title:
CFO
 
       
 
 
 

 
 
EXHIBIT INDEX


Exhibit Number
 
Description of Exhibit
     
99.1
 
RADCOM reports financial results for Q3 and 1st 9 months of 2015, dated October 27th, 2015
 
 




 




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

RADCOM REPORTS FINANCIAL RESULTS
FOR Q3 AND 1st 9 MONTHS OF 2015

- Record 82.5% Gross Margin With $0.1 EPS (Basic, Non-GAAP) -
- Continued Progress in Penetrating Top-Tier NFV Markets: Discussions Move
Forward With Tier-1 Service Providers in the U.S. –
 
TEL-AVIV, Israel – October 27, 2015-- 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.o9 (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  
 
 


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