RADCOM Reports Fourth Quarter and Full Year 2017 Financial Results

 

- Q4 Revenues up 32% Year-Over-Year to $10.6 million

- 2017 full year Revenues up 26% Year-Over-Year to a record of $37.2 million

- Cash, cash equivalents and short-term bank deposits of $62.6 million and No Debt

TEL AVIV, Israel, Feb. 13, 2018 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the fourth quarter and fiscal year ended December 31, 2017.

"We were very pleased with our fourth quarter results, which marked a strong end to the year. In 2017, we successfully executed our growth strategy and extended our leadership position in NFV with the signing of another top-tier carrier," commented Mr. Yaron Ravkaie, RADCOM's CEO. "We entered 2018 with a strong pipeline of opportunities with other leading global carriers as our hybrid approach of enabling a path to NFV, and future proofing purchasing decisions, continues to resonate with customers. Our 2018 revenue guidance of $43-$47 million reflects the ongoing momentum we see in our business."

Fourth Quarter 2017 Financial Highlights:

  • Revenues: Total revenues for the fourth quarter were $10.6 million, up 32% compared to $8.0 million in the fourth quarter of 2016.
  • Net Income: GAAP net income for the period was $2.3 million, or $0.17 per diluted share, compared to a GAAP net loss of $0.7 million, or $0.06 loss per diluted share for the fourth quarter of 2016.
  • Non-GAAP Net Income: Non-GAAP net income for the period was $2.7 million, or $0.21 per diluted share, compared to non-GAAP net income of $0.4 million, or $0.04 per diluted share for the fourth quarter of 2016.

    Both GAAP and non-GAAP results for the fourth quarter of 2017 included a $1.1 million, or $0.08 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist), compared to $552,000, or $0.05 per diluted share, in the fourth quarter of 2016.
  • Balance sheet: As of December 31, 2017, the Company had cash, cash equivalents and short-term bank deposits of $ 62.6 million and no debt.

Full Year 2017 Financial Highlights:

  • Revenues: Total revenues for the full year 2017 were $37.2 million, up 26% compared to $29.5 million in the full year 2016.
  • Net Income: GAAP net income for the full year 2017 was $2.9 million, or $0.23 per diluted share, compared to $1.9 million, or $0.18 per diluted share for the full year 2016.
  • Non-GAAP Net Income: Non-GAAP net income for the period was $5.1 million, or $0.41 per diluted share, compared to non-GAAP net income of $4.8 million, or $0.44 per diluted share for the full year 2016.

    Both GAAP and non-GAAP results for the full year 2017 included a $1.6 million, or $0.13 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist), compared to $1.7 million, or $0.16 per diluted share, in 2016.

Earnings Conference Call

RADCOM's management will hold an interactive conference call today at 8:00 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 February 14, 2018, on RADCOM's website.

About RADCOM
RADCOM (NASDAQ: RDCM) is the leading expert in probe-based SDN/NFV service assurance for telecom operators. Providing a critical first step in an operator's NFV transformation, RADCOM's cloud-native software - MaveriQ - delivers end-to-end network visibility and customer insights across virtual and hybrid networks to ensure end-to-end service quality and customer satisfaction. With an automated, cost-efficient, on-demand solution RADCOM specializes in assuring next-generation, high capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV and others. For more information on how to RADCOMize your network, today, please visit www.radcom.com, the content of which does not form a part of this press release.

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 the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718 and non-cash write-off of importation taxes, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's 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 and other securities laws. For example, when the Company discusses its revenue guidance for 2018, pipeline and expected new projects with new and future customers for the Company as well as maintaining its leadership position in the market it is using forward-looking statements. 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 U.S. 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


(thousands of U.S. dollars, except share and per share data)








Three months ended

 December 31,


Twelve months ended

  December 31,



2017


2016


2017


2016


Revenues

$       10,631


$      8,037


$     37,233


$          29,510


Cost of revenues

2,660


2,796


10,488


8,982


Gross profit

7,971


5,241


26,745


20,528


Research and development, gross

3,055


2,594


10,562


8,047


Less - royalty-bearing participation

1,132


552


1,599


1,693


Research and development, net

1,923


2,042


8,963


6,354


Sales and marketing, net

2,777


2,917


10,996


8,528


General and administrative

1,042


1,060


4,191


4,523


Total operating expenses

5,742


6,019


24,150


19,405


Operating income (loss)

2,229


(778)


2,595


1,123


Financial income, net

64


41


389


816


Income (loss) before taxes

2,293


(737)


2,984


1,939


Taxes on income

(35)


-


(83)


(24)


Net income (loss)

$         2,258


$      (737)


$       2,901


$            1,915


Basic net income (loss) per

ordinary share

$           0.17


$     (0.06)


$         0.24


$             0.18


Diluted net income (loss) per

ordinary share

$           0.17


$     (0.06)


$         0.23


$             0.18


Weighted average number of 

    ordinary shares used in

    computing basic net income (loss)     
    per ordinary share

13,050,849


11,548,059


12,039,176


10,406,897


Weighted average number of 

    ordinary shares used in

    computing diluted net income (loss)

    per ordinary share

13,339,174


11,548,059


12,351,566


10,779,547


 

 

RADCOM LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(thousands of U.S. dollars, except share and per share data)






Three months ended 
December 31,  


Twelve months ended
December 31,


2017


2016


2017


2016

GAAP gross profit

$         7,971


$       5,241


$     26,745


$     20,528

Stock-based compensation

55


37


189


118

Importation tax write-off

-


388


-


388

Non-GAAP gross profit

$         8,026


$       5,666


$     26,934


$     21,034









GAAP research and development, net

$         1,923


$       2,042


$      8,963


$       6,354

Stock-based compensation

134


231


473


625

Non-GAAP research and development, net

$         1,789


$       1,811


$      8,490


$       5,729









GAAP sales and marketing, net

$         2,777


$       2,917


$    10,996


$       8,528

Stock-based compensation

105


75


499


199

Non-GAAP sales and marketing, net

$         2,672


$       2,842


$    10,497


$       8,329









GAAP general and administrative

$         1,042


$       1,060


$      4,191


$       4,523

Stock-based compensation

196


428


1,055


1,529

Non-GAAP general and administrative

$            846


$          632


$      3,136


$       2,994









GAAP total operating expenses

$         5,742


$       6,019


$    24,150


$     19,405

Stock-based compensation

435


734


2,027


2,353

Non-GAAP total operating expenses

$         5,307


$       5,285


$    22,123


$     17,052









GAAP operating income (loss)

$         2,229


$       (778)


$      2,595


$       1,123

Stock-based compensation

490


771


2,216


2,471

Importation tax write-off

-


388


-


388

Non-GAAP operating income  

$         2,719


$         381


$     4,811


$       3,982









GAAP income (loss) before taxes on income

$         2,293


$      (737)


$     2,984


$       1,939

Stock-based compensation

490


771


2,216


2,471

Importation tax write-off

-


388


-


388

Non-GAAP income before taxes on income

$        2,783


$         422


$     5,200


$       4,798









GAAP net income (loss)

$        2,258


$      (737)


$     2,901


$       1,915

Stock-based compensation

490


771


2,216


2,471

Importation tax write-off

-


388


-


388

Non-GAAP net income

$        2,748


$        422


$     5,117


$       4,774









GAAP net income (loss) per diluted share

$          0.17


$    (0.06)


$      0.23


$         0.18

Stock-based compensation

0.04


0.07


0.18


0.22

Importation tax write-off

-


0.03


-


0.04

Non-GAAP net income per diluted share

$          0.21


$      0.04


$      0.41


$        0.44









Weighted average number of shares used to compute diluted net income per share

13,339,174


11,920,521


12,351,566


10,779,547

 

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)






As of


As of


December 31,

2017


December 31,

2016





Current Assets




     Cash and cash equivalents

$              22,575


$              42,886

     Restricted bank deposits

36


32

        Short-term bank deposits

40,000


-

     Trade receivables, net

20,266


4,388

     Inventories

1,199


623

     Other receivables

2,685


1,960





Total Current Assets

86,761


49,889





Severance pay fund

3,052


2,788





Other long-term receivables

172


375





Property and equipment, net

1,924


1,516





Total Assets

$              91,909


$              54,568





Liabilities and Shareholders' Equity




Current Liabilities




       Trade payables

$                1,828


$                2,820

    Deferred revenue

2,601


2,593

       Employee and payroll accruals

4,062


3,541

    Other payables and accrued expenses

3,428


2,081





Total Current Liabilities

11,919


11,035

Long-Term Liabilities




    Deferred revenue

21


123

    Accrued severance pay       

3,573


3,267





Total Long-Term Liabilities

3,594


3,390





Total Liabilities

$              15,513


$              14,425





Shareholders' Equity




     Share capital

$                   628


$                   523

     Additional paid-in capital

131,491


98,283

        Accumulated other comprehensive loss

(2,520)


(2,559)

     Accumulated deficit

(53,203)


(56,104)





Total Shareholders' Equity

76,396


40,143





Total Liabilities and Shareholders' Equity

$             91,909


$              54,568

 

For all investor enquiries, please contact:

Ran Vered
CFO
+972-77-774-5011
ranv@radcom.com

For all media enquiries, please contact:
Mark Rolston
Marketing Manager
+972-77-774-5036
markr@radcom.com

 

Cision View original content:http://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2017-financial-results-300597793.html

SOURCE RADCOM Ltd.



RELATED LINKS
http://www.radcom.com

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos and customised feeds just for media.

View and download archived video content distributed by MultiVu on The Digital Center.

 

Get content for your website

Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Start today.

 

 
 

Contact PR Newswire

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
 

Become a PR Newswire client

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
  1. Products & Services
  2. News Releases
  3. Contact Us