RADCOM Returns To Profitability; Continued Momentum In Q2; $5.4M Revenues, $0.06 Non-GAAP EPS - Strong Backlog, Streamlined Execution Increase Visibility for Future Growth -- -7 Recent Wins in LTE -- the Next Generation of Wireless Networks -- PR Newswire TEL-AVIV, Israel, July 23, 2013 TEL-AVIV, Israel, July 23, 2013 /PRNewswire/ --RADCOM Ltd. (RADCOM) (NASDAQ: RDCM), a leading service assurance provider, today reported a 59% year-over-year increase in revenues and a return to profitability for the second quarter ended June 30, 2013. In $ thousands Q2 2013 Q2 2012 Q1 2013 Revenues $5,443 $3,424 $4,573 Gross margin 67% 57% 66% Net income (loss) $204 $(1,811) $(594) (GAAP) Net income (loss) $419 $(1,715) $(512) (non-GAAP) EPS (GAAP) $0.03 $(0.28) $(0.09) EPS (Non-GAAP) $0.06 $(0.27) $(0.08) Results for the 2nd Quarter of 2013 Q2 revenues totaled $5.4 million, up 59% compared with $3.4 million in the second quarter of 2012 and 19% compared with the first quarter of 2013. The increase reflects the Company's strong execution of its backlog and continued momentum in the emerging markets of Latin America and Asia. As a result, the Company has returned to profitability and is on track with its plan for delivering significant top-line and bottom-line growth in 2013. The Company's gross margin for the quarter rose to 67% from 57% in Q2 2012 and 66% in Q1 2013. In addition, operating expenses declined by an additional $100,000 from the first quarter, reflecting the Company's successful ongoing streamlining and cost management efforts. With higher revenues, a stronger gross margin and lower expenses, the Company recorded both operating and net profit for the quarter. Net income for the second quarter totaled $204,000, or $0.03 per ordinary share (basic and diluted), a dramatic improvement compared to the net loss of ($1.8) million, or ($0.28) per ordinary share (basic and diluted), from Q2 2012, and ($594,000), or ($0.09) per ordinary share (basic and diluted) from Q1 2013. On a non-GAAP basis, the Company reported net income of $419,000, or $0.06 per ordinary share (basic and diluted), for the second quarter of 2013, compared to a net loss of ($1.7) million, or ($0.27) per ordinary share (basic and diluted), in the second quarter of 2012, and $(512,000), or $(0.08) per ordinary share (basic and diluted), in the first quarter of 2013. Comments of Management Commenting on the results, David Ripstein, RADCOM's CEO, said, "We are very pleased to report a return to profitability in continuation of the strong momentum that has been developing for RADCOM over the past three quarters, demonstrating the success of our backlog execution and cost reduction programs. This, combined with our growing competitive strength in fast-growing target markets, positions us favorably to continue building our business in line with our plan for generating top and bottom line growth in the second half of 2013. "Our business is being driven by a strong tailwind: the global explosion in data traffic, which is forcing operators to invest in next-generation LTE and VoLTE infrastructures. With the industry's best service assurance technologies for these environments, we are participating in more and larger tenders with many of the world's top-tier operators, including both existing and potential new customers. We are proud to have recently won seven highly competitive LTE deals, demonstrating our clear technology advantage while creating the potential for additional future growth." Results for the 1^st Half of 2013 For the first half of 2013, revenues increased by 32% to $10.0 million from $7.6 million in the first half of 2012. Net loss for the period improved by 90% to $(390,000), or $(0.06) per ordinary share (basic and diluted), from $(3.8 million), or $(0.60) per ordinary share (basic and diluted), in the first half of 2012. Non-GAAP net loss for the period was $(93,000), or $(0.01) per share (basic and diluted), a 97% improvement compared with $(3.6 million), or $(0.56) per share (basic and diluted) for the first half of 2012. PIPE Transaction In April, RADCOM signed a definitive agreement with investors regarding a $3.5 million private placement transaction (PIPE). Investors in the PIPE transaction included both existing and new investors in the Company. For details of the transaction, please refer to the Company's press release of April 29, 2013 http://www.radcom.com/node/727. 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 July 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@example.com RADCOM Ltd. Consolidated Statements of Operations (1000's of U.S. dollars, except share and per share data) Three months ended Six months ended June 30, June 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) Sales $ 5,443 $ 3,424 $ 10,016 $ 7,602 Cost of sales 1,781 1,489 3,316 3,036 Gross profit 3,662 1,935 6,700 4,566 Research and development, 1,420 1,392 2,871 3,071 gross Less - royalty-bearing 279 505 669 730 participation Research and development, 1,141 887 2,202 2,341 net Sales and marketing 1,803 2,262 3,790 4,763 General and 491 493 978 1,011 administrative Total operating expenses 3,435 3,642 6,970 8,115 Operating income 227 (1,707) (270) (3,549) (expenses) Financing expenses, net (23) (104) (120) (176) Income (loss) before tax 204 (1,811) (390) (3,725) on income Taxes on Income - - - (120) Net income (loss) 204 (1,811) (390) (3,845) Basic net income (loss) per $ 0.03 $ (0.28) $ (0.06) $ (0.60) ordinary Share Diluted net income (loss) per $ 0.03 $ (0.28) $ (0.06) $ (0.60) ordinary share Weighted average number of ordinary shares used in computing basic net 7,133,654 6,444,221 6,795,807 6,434,617 income (loss) per ordinary share Weighted average number of ordinary shares used in computing diluted net 7,381,794 6,444,221 6,795,807 6,434,617 income (loss) per ordinary share 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 Six Months Ended June 30, June 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) GAAP net income (loss) $204 $(1,811) $(390) $(3,845) Stock-based compensation 215 96 297 271 (1) Non-GAAP net income (loss) $419 $(1,715) $(93) $(3,574) Non-GAAP net income (loss) $0.06 $(0.27) $(0.01) $(0.56) per share (diluted) Number of shares used in computing Non-GAAP 7,381,794 6,444,221 6,795,807 6,434,617 earnings (loss) per share (diluted) (1) Stock-based compensation: Cost of sales 5 3 5 9 Research and development 80 30 86 98 Sales and marketing 55 34 61 92 General and 75 29 145 72 administrative 215 96 297 271 RADCOM Ltd. Consolidated Balance Sheets (1000's of U.S. dollars) As of As of June 30, December 31, 2013 2012 (unaudited) (audited) Current Assets Cash and cash equivalents 1,278 1,474 Restricted Cash 1,757 1,452 Trade receivables, net 5,327 3,292 Inventories 5,635 6,736 Other receivables 2,575 2,685 Total Current Assets 16,572 15,639 Severance pay fund 3,259 3,090 Property and equipment, net 286 268 Total Assets 20,117 18,997 Liabilities and Shareholders' Equity Current Liabilities Short term bank credit - 1,058 Short term loans 750 1,527 Trade payables 1,262 1,920 Deferred revenue and advances from customers 2,604 2,100 Employees and payroll accruals 1,944 1,996 Other payables and accrued expenses 1,727 1,844 Total Current Liabilities 8,287 10,445 Long-Term Liabilities Deferred revenue 31 37 Accrued severance pay 3,664 3,518 Total Long-Term Liabilities 3,695 3,555 Total Liabilities 11,982 14,000 Shareholders' Equity Share capital 322 251 Additional paid-in capital 65,167 61,470 Accumulated other comprehensive loss (562) (322) Accumulated deficit (56,792) (56,402) Total Shareholders' Equity 8,135 4,997 Total Liabilities and Shareholders' Equity 20,117 18,997 SOURCE RADCOM Ltd. Website: http://www.radcom.com
RADCOM Returns To Profitability; Continued Momentum In Q2; $5.4M Revenues, $0.06 Non-GAAP EPS
Press spacebar to pause and continue. Press esc to stop.