RADCOM Reports 57% Year-Over-Year Revenue Increase & Positive Cash Flow For Q3 2013

TEL-AVIV, Israel, Oct. 23, 2013 /PRNewswire/ -- RADCOM Ltd. (RADCOM) (NASDAQ: RDCM), a leading service assurance provider, today reported its results for the third quarter of 2013, recording a 57% year-over-year increase in revenues, a 37% year-over-year decrease in net loss and strong bookings for the third quarter ended September 30, 2013.

Results for the 3rd Quarter of 2013
Q3 revenues totaled $4.8 million, up 57% compared with $3.0 million in the third quarter of 2012, but down 13% compared with the second quarter of 2013. The sequential decline reflects the timing of recognition of approximately $800,000 in revenues that was delayed from the third to the fourth quarter. These revenues add to the Company's visibility, and form a solid basis for a strong fourth quarter.

Gross margin for the period was 50%, reflecting the impact of a large, old and low-margin project that was recognized from the backlog. Gross margin is expected to return to normal levels in future quarters.

With year-over-year revenue growth and steady operating expenses, the Company was able to slash its net loss by 37% on a year-over-year basis despite the low gross margin. Net loss for the third quarter of 2013 was $(1,148,000), or $(0.15) per ordinary share (basic and diluted), compared with $(1,810,000), or $(0.28) per ordinary share (basic and diluted), for the third quarter of 2012. On a non-GAAP basis, net loss for the quarter totaled $(1,017,000), or $(0.13) per ordinary share (basic and diluted), compared with $(1,684,000), or $(0.26) per ordinary share (basic and diluted), for the parallel quarter of 2012. Despite the net loss, the Company achieved positive cash flow during the period, reflecting successful cash management and reduced expenses.

Comments of Management
Commenting on the results, David Ripstein, RADCOM's CEO, said, "The third quarter was a period of continued strategic progress and momentum that was masked by certain events that affected our financial results, as detailed above. Although we are pleased to report another quarter of strong year-over-year growth, the period's revenue recognition fluctuations prevented us from achieving the sequential growth we had expected. The shifted revenues, combined with the bookings we have achieved during the past few weeks, are a solid basis for a strong fourth quarter in line with the trend that has been building through 2013.

"In fact, a number of factors make us excited about our future prospects: especially the growing size and quality of opportunities in the market, the growth of our sales pipeline and high win rate, the increase in our partner activities and the strength of our bookings and backlog. Equally important, we continue to develop exciting new products that bring even more value to our customers, and whose higher software component will enable us to achieve better gross margins and profitability over the long term. As such, we remain optimistic and continue to see strong growth ahead – in both the top and bottom line - for 2013." 

Results for the 1^st Nine Months of 2013
For the first nine months of 2013, revenues increased by 39% to $14.8 million from $10.6 million in the parallel period of 2012. Net loss for the period was reduced by nearly 73% to $(1.5) million, or $(o.22) per ordinary share (basic and diluted), from $(5.7) million, or $(o.88) per ordinary share (basic and diluted), in the first nine months of 2012. Non-GAAP net loss for the period was $(1.1) million, or $(0.16) per share (basic and diluted), compared with $(5.3) million, or $(0.82) per share (basic and diluted) for the first nine months of 2012.

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): + 1-888-407-2553

From other locations: +972-3-918-0644

For those unable to listen to the call at the time, a replay will be available from October 24^th 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.

Contact:
Gilad Yehudai
CFO
(972) 77-774-5060
[email protected]

SOURCE RADCOM Ltd.