RADCOM Reports Financial Results for Q4 & Full Year 2015

- Entering 2016 With Record Backlog, Visibility for Multiple-Year Growth -

- Vetting by Top-Tier Operator & Win of 1st NFV Mega-Deployment Positions RADCOM as Clear Leader of NFV Service Assurance Market -

Feb 17, 2016, 07:00 ET from RADCOM Ltd.

TEL-AVIV, Israel, Feb. 17, 2016 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2015.

In $ thousands

2015

2014

Q4 2015

Q4 2014

Revenues

$18,673

$23,636

$2,715

$7,188

Gross margin (GAAP)

76.8%

63.2%

58.1%

50.0%

Net profit (loss) (GAAP)

$(923)

$726

$(2,124)

$(367)

Net profit (loss) (non-GAAP)

$656

$3,278

$(1,606)

$1,798

Cash & equivalents

$8,727

$6,848

$8,727

$6,848

Comments of Management "The record booking that we achieved at the end of 2015 has created a record backlog for us as we enter 2016, giving us visibility for financial stability based on multi-year growth," commented Mr. Yaron Ravkaie, RADCOM's CEO. "Through this important win, which followed a thorough vetting of our MaveriQ by a top-tier operator, we will become the first company in the world to carry out a mega-deployment of an NFV service assurance solution. This has established RADCOM as the clear leader of this exciting emerging market, positioning us ideally to ride the NFV growth wave."

Mr. Ravkaie continued, "Our results for 2015 reflect the effort to secure this strategic deal, a focused, successful investment that has positioned us for even greater future achievements. Our strong balance sheet, including a high level of cash, low inventory and no debt, demonstrates our financial solidity, an important element for success in our marketing efforts with top-tier customers. 

"In general, 2016 will be a bridge year during which we expect our revenues to increase to a new level. To take full advantage of our favorable positioning, our strategy is to pursue total customer satisfaction in the current deployment, to secure additional anchor customers through direct and channel efforts, and to invest continuously to widen our technology edge, further enhancing our value proposition for our target customers. We are excited by our prospects and look forward to reporting our progress in the quarters ahead."

Financial Results

Full Year 2015: RADCOM's revenues for 2015 totaled $18.7 million compared with $23.6 million in 2014, while gross margin increased to 76.8% from 63.2%. On a GAAP basis, including a $170,000 inventory write-off related to cancellation of an old project, the Company recorded a net loss of $(923,000), or $(0.11) per ordinary share (basic and diluted), compared with a net profit of $726,000, or $0.09 (basic) and $0.08 (diluted) per ordinary share, for 2014. On a non-GAAP basis, net profit for the year totaled $656,000, or $0.08 (basic) and $0.07 (diluted) per ordinary share compared with a net profit of $3.2 million, or $0.40 (basic) and $0.38 (diluted) per ordinary share, for 2014.

The Company's cash balance as of the end of the year totaled $8.7 million, up 27% compared with $6.8 million at the end of 2014. The increase reflected the strong collections achieved throughout the year.

Fourth Quarter 2015: For the fourth quarter, RADCOM's revenues totaled $2.7 million, compared with $7.2 million in the fourth quarter of 2014, reflecting the Company's focus on securing a transformational Tier-1 deal, as explained above. Gross margin for the quarter was 58.1%, compared with 50.0% for the fourth quarter of 2014, reflecting the $170,000 inventory write-off recorded during the period. On a GAAP basis, the Company recorded a net loss for the fourth quarter totaling $(2.1) million, or $(0.25) per ordinary share (basic and diluted), compared with $(367,000), or $(0.04) (basic and diluted) per ordinary share, for the fourth quarter of 2014. On a non-GAAP basis, net loss for the period was $(1.6) million, or $(0.19) per ordinary share (basic and diluted), compared with a net profit of $1.8 million, or $0.22 (basic) and $0.20 (diluted) per ordinary share, for 2014.

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 February 18th on RADCOM's website.

About RADCOM RADCOM provides NFV-ready service assurance 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 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 as well as a non-cash write off of obsolete inventory, 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  December 31,

Twelve months ended  December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

(unaudited)

(audited)

Sales

$2,715

$7,188

$18,673

$23,636

Cost of sales

1,137

3,624

4,326

8,693

Gross profit

1,578

3,564

14,347

14,943

Research and development, gross

1,620

1,329

6,071

5,812

Less - royalty-bearing participation

576

358

1,582

1,664

Research and development, net

1,044

971

4,489

4,148

Sales and marketing, net

2,054

1,924

7,834

7,295

General and administrative

652

576

2,393

2,262

Total operating expenses

3,750

3,471

14,716

13,705

Operating income (loss)

(2,172)

93

(369)

1,238

Financing income (expenses), net

48

(280)

(433)

(332)

Income (loss) before taxes

(2,124)

(187)

(802)

906

Taxes

-

(180)

(121)

(180)

Net profit (loss)

$(2,124)

$(367)

$(923)

$726

Basic net income (loss) per

ordinary  share

$(0.25)

$(0.04)

$(0.11)

$0.09

Diluted net income (loss) per

ordinary  share

$(0.25)

$(0.04)

$(0.11)

$0.08

Weighted average number of      ordinary shares used in     computing basic net income     (loss) per ordinary share

8,665,019

8,289,419

8,572,681

8,088,974

Weighted average number of      ordinary shares used in     computing diluted net income     (loss) per ordinary share

8,665,019

8,289,419

8,572,681

8,592,387

 

 

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

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

(unaudited)

(audited)

GAAP net profit (loss)

$(2,124)

$(367)

$(923)

$726

Stock-based compensation (1)

348

192

1,409

579

Inventory write off

170

1,797

170

1,797

One-time commission write off

-

176

-

176

Non-GAAP net income (loss)

$(1,606)

$1,798

$656

$3,278

Non-GAAP net income (loss) per share (basic)

$(0.19)

$0.22

$0.08

$0.40

Non-GAAP net income (loss) per share (diluted)

$(0.19)

$0.20

$0.07

$0.38

Number of shares used in computing Non-GAAP earnings (loss) per share (basic)

8,665,019

8,289,419

8,572,681

8,088,974

Number of shares used in computing Non-GAAP earnings (loss) per share (diluted)

8,665,019

8,889,451

9,117,767

8,592,387

(1) Stock-based compensation:

   Cost of sales

4

1

33

12

   Research and development

96

43

529

178

   Sales and marketing

54

13

380

146

   General and administrative

194

135

467

243

348

192

1,409

579

 

RADCOM Ltd.

Consolidated Balance Sheets

(1000's of U.S. dollars)

As of

As of

December 31,

2015

December 31,

2014

(unaudited)

(audited)

Current assets

     Cash and cash equivalents

8,727

6,848

     Restricted cash

32

32

     Trade receivables, net

3,684

5,477

     Inventories

1,532

2,699

     Other receivables

2,087

1,411

Total current assets

16,062

16,467

Severance pay fund

3,181

3,051

Other long-term receivables

508

600

Property and equipment, net

384

200

Total Assets

20,135

20,318

Liabilities and shareholders' equity

Current liabilities

     Trade payables

1,465

1,524

     Deferred revenue and advances from customers

931

765

     Employees and payroll accruals

2,533

2,377

     Other payables and accrued expenses

1,490

1,739

Total current liabilities

6,419

6,405

Long-term liabilities

     Deferred revenue

197

198

     Accrued severance pay       

3,656

3,453

Total long-term liabilities

3,853

3,651

Total liabilities

10,272

10,056

Shareholders' equity

     Share capital

372

361

     Additional paid-in capital

70,270

68,059

     Accumulated other comprehensive loss

(2,760)

(1,062)

     Accumulated deficit

(58,019)

(57,096)

Total shareholders' equity

9,863

10,262

Total liabilities and shareholders' equity

20,135

20,318

Contact: Uri Birenberg, CFO (972) 77-774-5060 urib@radcom.com

SOURCE RADCOM Ltd.



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http://www.radcom.com