Continues its Strategy for Profitable
Growth
Achieves Highest Ever Company Cash Level of
$85.3 Million
TEL
AVIV, Israel, May 15, 2024
/PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) announced
financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Highlights:
- Total revenues for the first quarter were $14.1 million, compared to $12.0 million in the first quarter of 2023,
17.5% year-over-year growth.
- GAAP net income for the first quarter was $0.8 million, or $0.05 per diluted share, compared to $0.6 million, or $0.04 per diluted share, for the first quarter of
2023.
- Non-GAAP net income for the period was $2.8 million, or $0.18 per diluted share, compared to $1.8 million, or $0.12 per diluted share, for the first quarter of
2023.
- As of March 31, 2024, the Company
had cash, cash equivalents, and short-term bank deposits of
$85.3 million and no debt,
ending the quarter with its highest-ever cash levels.
Management Comments:
Hilik Itman, RADCOM's Interim Chief Executive Officer, commented
on the results: "We continued our positive momentum from 2023 into
2024 with a revenue increase of 17.5%, a nineteenth consecutive
quarter of year-over-year growth. Thanks to our strong execution
and careful expense management, we continued delivering profitable
growth and generated positive cash flow, reaching a new milestone
totaling $85.3 million."
Mr. Itman continued, "We have renewed our multi-year contract
with Rakuten Mobile, extending our collaboration and strengthening
our partnership with this innovative operator in Japan as announced last month. This contract
extension includes advanced artificial intelligence (AI)- powered
analytics, enabling Rakuten Mobile to drive efficient, automated
network operations for its nationwide rollout."
He added, "Also, a U.S. telecom operator has extended its
contract to use RADCOM ACE. As part of this contract extension,
RADCOM ACE will be hosted and accessed on Amazon Web Services as
Software-as-a-Service."
Mr. Itman concluded, "Based on our current visibility, sales
engagements, and overall market opportunity, we remain
well-positioned to deliver on our customer commitments, drive the
business forward to deliver a fifth consecutive year of revenue
growth, and increase our profitability.
This gives us the confidence to raise the lower end of our 2024
revenue guidance to $57 -
$60 million (from $56 to $60
million)."
Earnings Conference Call
RADCOM's management will hold an interactive conference call on
the same day at 8:00 AM Eastern Time
(3:00 PM Israel Daylight Time) to
discuss the results and answer participants' questions. To join the
interactive call, please call one of the following numbers
approximately five minutes before the call is scheduled to
begin:
From the US (toll-free): +1-866-652-8972
From other locations: +972-3-918-0644
A live webcast of the presentation will be available at
https://veidan.activetrail.biz/radcomq1-2024. The webcast will be
archived for 90 days following the live presentation.
For those unable to listen to the call, a replay will be
available a few hours later in the investor relations section on
the Company's website at
https://radcom.com/investor-relations/.
For all investor inquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
Company Contact:
Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@radcom.com
About RADCOM
RADCOM (NASDAQ: RDCM) is the leading expert in 5G-ready
cloud-native, network intelligence solutions for telecom operators
transitioning to 5G. RADCOM Network Intelligence consists of RADCOM
Network Visibility, RADCOM Service Assurance, and RADCOM Network
Insights. The RADCOM Network Intelligence suite offers intelligent,
container-based, on-demand solutions to deliver network analysis
from the RAN to the core for 5G assurance. Utilizing automated and
dynamic solutions with smart minimal data collection and on-demand
troubleshooting, and cutting-edge techniques based on machine
learning, these solutions work in harmony to provide operators with
an understanding of the entire customer experience and allow them
to troubleshoot network performance from a high to granular level
while reducing storage costs and cloud resource utilization. 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, financial
income (expenses), acquisition-related expenses, and amortization
of intangible assets related to acquisitions, 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," " 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
full-year 2024 revenue guidance and expectations regarding
delivering on customer commitments, driving the business forward to
deliver revenue growth, and increasing profitability, it uses
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
demand for the Company's products, inability to timely develop and
introduce new technologies, products, and applications, loss of
market share and pressure on prices resulting from competition and
the effects of the war in Israel.
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
|
Unaudited
|
(thousands of U.S.
dollars, except share and per share data)
|
|
Three months
ended
|
March
31,
|
|
2024
|
|
2023
|
Revenues
|
$
14,123
|
|
$
12,023
|
Cost of
revenues
|
3,751
|
|
3,348
|
Gross profit
|
10,372
|
|
8,675
|
Research and
development, gross
|
4,593
|
|
4,769
|
Less - royalty-bearing
participation
|
209
|
|
262
|
Research and
development, net
|
4,384
|
|
4,507
|
Sales and
marketing
|
4,285
|
|
3,313
|
General and
administrative
|
2,013
|
|
1,229
|
Total operating
expenses
|
10,682
|
|
9,049
|
Operating
loss
|
(310)
|
|
(374)
|
Financial income,
net
|
1,105
|
|
1,026
|
Income before taxes on
income
|
795
|
|
652
|
Taxes on
income
|
(33)
|
|
(31)
|
|
|
|
|
Net
income
|
$
762
|
|
$
621
|
|
|
|
|
Basic and diluted net
income per
|
$
0.05
|
|
$
0.04
|
ordinary
share
|
|
15,427,514
|
|
14,891,425
|
Weighted average number
of
|
ordinary shares
used in computing basic net income per ordinary share
|
Weighted average number
of
|
15,866,910
|
|
15,569,410
|
ordinary shares
used in computing diluted net income per ordinary share
|
|
|
|
|
RADCOM
LTD.
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
Unaudited
|
(thousands of
U.S. dollars, except share and per share data)
|
|
Three months
ended
|
March
31,
|
|
2024
|
|
2023
|
GAAP gross
profit
|
$
10,372
|
|
$
8,675
|
Stock-based
compensation
|
84
|
|
89
|
Amortization of
intangible assets
|
56
|
|
-
|
Non-GAAP gross
profit
|
$
10,512
|
|
$
8,764
|
|
$
4,384
|
|
$
4,507
|
GAAP research and
development, net
|
Stock-based
compensation
|
537
|
|
545
|
Non-GAAP research and
development, net
|
$
3,847
|
|
$
3,962
|
|
$
4,285
|
|
$
3,313
|
GAAP sales and
marketing
|
Stock-based
compensation
|
504
|
|
308
|
Amortization of
intangible assets
|
29
|
|
-
|
Non-GAAP sales and
marketing
|
$
3,752
|
|
$
3,005
|
|
$
2,013
|
|
$
1,229
|
GAAP general and
administrative
|
Stock-based
compensation
|
839
|
|
265
|
Non-GAAP general and
administrative
|
$
1,174
|
|
$
964
|
|
$
10,682
|
|
$
9,049
|
GAAP total operating
expenses
|
Stock-based
compensation
|
1,880
|
|
1,118
|
Amortization of
intangible assets
|
29
|
|
-
|
Non-GAAP total
operating expenses
|
$
8,773
|
|
$
7,931
|
|
$
(310)
|
|
$
(374)
|
GAAP operating
loss
|
Stock-based
compensation
|
1,964
|
|
1,207
|
Amortization of
intangible assets
|
85
|
|
-
|
Non-GAAP operating
income
|
$
1,739
|
|
$
833
|
|
$
795
|
|
$
652
|
GAAP income before
taxes on income
|
Stock-based
compensation
|
1,964
|
|
1,207
|
Amortization of
intangible assets
|
85
|
|
-
|
Financial
expenses
|
37
|
|
-
|
Non-GAAP income before
taxes on income
|
$
2,881
|
|
$
1,859
|
|
$
762
|
|
$
621
|
GAAP net
income
|
Stock-based
compensation
|
1,964
|
|
1,207
|
Amortization of
intangible assets
|
85
|
|
-
|
Financial
expenses
|
37
|
|
-
|
Non-GAAP net
income
|
$
2,848
|
|
$
1,828
|
|
$
0.05
|
|
$
0.04
|
GAAP net income per
diluted share
|
Stock-based
compensation
|
0.12
|
|
0.08
|
Amortization of
intangible assets
|
0.01
|
|
-
|
Financial
expenses
|
(*)
|
|
-
|
Non-GAAP net income per
diluted share
|
$
0.18
|
|
$
0.12
|
|
Weighted average number
of shares used to compute diluted net income per share
|
15,866,910
|
|
15,569,410
|
(*) Less than $
0.01
|
|
|
|
|
|
|
|
RADCOM
Ltd.
|
Consolidated Balance
Sheets
|
(thousands of U.S.
dollars)
|
|
As of
|
|
As of
|
|
March
31,
|
|
December
31,
|
2024
|
2023
|
Current
Assets
|
|
|
|
Cash
and cash equivalents
|
$
8,139
|
|
$
10,892
|
Short-term bank deposits
|
77,126
|
|
71,273
|
Trade receivables, net
|
14,829
|
|
13,412
|
Inventories
|
975
|
|
246
|
Other accounts receivable and prepaid expenses
|
1,469
|
|
1,592
|
|
102,538
|
|
97,415
|
Total Current
Assets
|
|
|
|
|
Non-Current
Assets
|
|
|
|
Severance pay fund
|
3,118
|
|
3,142
|
Other long-term receivables
|
1,209
|
|
1,573
|
Property and equipment, net
|
787
|
|
798
|
Operating lease right-of-use assets
|
1,373
|
|
1,651
|
Goodwill and intangible assets, net
|
2,865
|
|
2,950
|
|
9,352
|
|
10,114
|
Total Non-Current
Assets
|
|
|
|
|
Total
Assets
|
$
111,890
|
|
$
107,529
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
Trade
payables
|
$
3,677
|
|
$
2,640
|
Deferred revenues and advances from customers
|
2,986
|
|
1,469
|
Employee and
payroll accruals
|
4,911
|
|
5,400
|
Operating lease liabilities
|
838
|
|
1,062
|
Other liabilities and accrued expenses
|
9,213
|
|
9,540
|
|
21,625
|
|
20,111
|
Total Current
Liabilities
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
Accrued severance
pay
|
3,780
|
|
3,728
|
Operating lease liabilities
|
490
|
|
561
|
Other liabilities and accrued expenses
|
671
|
|
638
|
|
4,941
|
|
4,927
|
Total Non-Current
Liabilities
|
|
|
|
|
Total
Liabilities
|
$
26,566
|
|
$
25,038
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
$
747
|
|
$
736
|
Additional paid-in
capital
|
156,651
|
|
154,697
|
Accumulated other comprehensive loss
|
(2,924)
|
|
(3,030)
|
Accumulated
deficit
|
(69,150)
|
|
(69,912)
|
|
|
|
|
Total Shareholders'
Equity
|
85,324
|
|
82,491
|
|
$
111,890
|
|
$
107,529
|
Total Liabilities
and Shareholders' Equity
|
|
|
|
|
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SOURCE RADCOM Ltd.