RADCOM Reports Fourth Quarter and Full Year 2020 Results

- Full year revenues of $37.6 million, 14% year-over-year growth - Fourth quarter revenues of $10.2 million, 13% year-over-year growth - Cash, cash equivalents, and short-term bank deposits of $69 million and no debt - 2021 revenue guidance range of $39-$41 million

February 17, 2021 7:00 AM EST

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TEL AVIV, Israel, Feb. 17, 2021 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2020.

Commenting on the results, Eyal Harari, RADCOM's CEO, said: "We are pleased with our fourth quarter financial results, which concluded a full year of strong execution. The fourth quarter represented another consecutive quarter of revenue growth and closed the full year at the high end of our revenue guidance. We continued to manage operating expenses prudently throughout 2020 while executing our growth strategy and ensuring the safety of our employees and customers during the pandemic.

"Our considerable R&D investment over the last several years resulted in the launch of our innovative 5G assurance platform, RADCOM ACE, in Q3 and has already gained market traction following our multi-year agreement with Rakuten Mobile, one of the industry's first standalone 5G assurance contract wins.

"We expect 2021 to be an important year as more operators transition to 5G and the first advanced standalone networks begin to roll out. We continue to see increased investments across the 5G market from equipment providers to network operators, and we believe that the evolving market trends position us well for the future. Our leading 5G offering and expertise will become increasingly vital as industry players upgrade their networks and rely on our automated assurance capabilities and cloud-based technology. As the positive momentum builds in the 5G market, we intend to continue investing in our product development and sales and marketing.

"We are excited to enter the next chapter of our long-term journey and capitalize on the emerging 5G evolution while adapting to the ongoing COVID-19 situation. We expect the company to continue growing in 2021 and, based on our current visibility, we are providing full year 2021 revenue guidance of $39-$41 million."

Fourth Quarter 2020 Financial Highlights:

  • Total revenues for the fourth quarter were $10.2 million, compared to $9.0 million in the fourth quarter of 2019
  • GAAP net loss for the fourth quarter decreased to $0.5 million, or $0.03 per diluted share, compared to a GAAP net loss of $1.1 million, or $0.08 per diluted share for the fourth quarter of 2019
  • Non-GAAP net income for the period was $0.1 million, or less than $0.01 per diluted share, compared to a non-GAAP net loss of $0.5 million, or a loss of $0.04 per diluted share for the fourth quarter of 2019
  • As of December 31, 2020, the Company had cash and cash equivalents and short-term bank deposits of $69 million, and no debt

Full Year 2020 Financial Highlights:

  • Total revenues for the full year were $37.6 million, compared to $33 million in the full year of 2019
  • GAAP net loss for the full year decreased to $4 million, or $0.29 per diluted share, compared to a GAAP net loss of $6.8 million, or $0.50 per diluted share for the full year of 2019
  • Non-GAAP net loss for the full year decreased to $1.8 million, or $0.13 per diluted share, compared to a non-GAAP net loss of $4.6 million, or a loss of $0.33 per diluted share for the full year of 2019

Earnings Conference CallRADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Standard Time (3:00 PM Israel Standard Time) to discuss the results and 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): +1-866-652-8972

From other locations: +972-3-918-0610

For those unable to listen to the call at the time, a replay will be available on RADCOM's website later the same day.

For all investor inquiries, please contact:

Investor Relations:

Miri Segal  MS-IR LLC917-607-8654  msegal@ms-ir.com

Company Contact:Amir Hai CFO+972-77-774-5011amir.hai@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 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, 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 continued management of operating expenses, the positive momentum of the 5G market, levels of investments in 5G and other market and industry trends, the Company's market position and traction, cash position, potential and expected growth, the potential in the RADCOM ACE product generally and with Rakuten in particular, the Company's expectations regarding the impact of COVID-19, its ability to capitalize on the emerging 5G opportunities and its revenue guidance, 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

Unaudited

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

Three months ended December 31,

Twelve months ended December 31,

2020

2019

2020

2019

(unaudited)

(unaudited)

(unaudited)

(audited)

Revenues

$              10,246

$              9,029

$         37,562

$         33,010

Cost of revenues

3,116

2,643

10,758

9,917

Gross profit

7,130

6,386

26,804

23,093

Research and development, gross

4,815

4,657

19,199

18,578

Less - royalty-bearing participation

308

425

1,358

1,838

Research and development, net

4,507

4,232

17,841

16,740

Sales and marketing

2,501

2,693

9,709

10,514

General and administrative

899

963

3,836

3,674

Total operating expenses

7,907

7,888

31,386

30,928

Operating loss

(777)

(1,502)

(4,582)

(7,835)

Financial income, net

370

474

810

1,172

Loss before taxes on income

(407)

(1,028)

(3,772)

(6,663)

Taxes on income

(54)

(64)

(220)

(169)

Net loss

$             (461)

$             (1,092)

$        (3,992)

$        (6,832)

Basic and diluted net loss per

ordinary share

$               (0.03)

$               (0.08)

$          (0.29)

$          (0.50)

 

Weighted average number of  ordinary shares used in computing basic and diluted net loss per ordinary share

13,957,085

13,809,258

13,927,788

13,779,885

 

                RADCOM LTD.

                                 Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

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

Three months endedDecember 31,     

Twelve months endedDecember 31,       

2020

2019

2020

2019

GAAP gross profit                                                                                                                                             

$       7,130

$       6,386

$      26,804

$      23,093

Stock-based compensation

34

48

106

204

Non-GAAP gross profit

$       7,164

$       6,434

$      26,910

$      23,297

$       4,507

$       4,232

$      17,841

$      16,740

GAAP research and development, net

Stock-based compensation

177

161

879

729

Non-GAAP research and development, net

$       4,330

$       4,071

$      16,962

$      16,011

$       2,501

$       2,693

$       9,709

$       10,514

GAAP sales and marketing

Stock-based compensation

184

160

536

638

Non-GAAP sales and marketing

$       2,317

$       2,533

$       9,173

$       9,876

$       899

$       963

$        3,836

$        3,674

GAAP general and administrative

Stock-based compensation

151

222

648

657

Non-GAAP general and administrative

$          748

$          741

$        3,188

$        3,017

$       7,907

$       7,888

$      31,386

$      30,928

GAAP total operating expenses 

Stock-based compensation

512

543

2,063

2,024

Non-GAAP total operating expenses

$       7,395

$       7,345

$     29,323

$     28,904

$    (777)

$    (1,502)

$     (4,582)

$     (7,835)

GAAP operating loss

Stock-based compensation

546

591

2,169

2,228

Non-GAAP operating loss

$       (231)

$       (911)

$     (2,413)

$     (5,607)

$    (407)

$    (1,028)

$     (3,772)

$     (6,663)

GAAP loss before taxes on income

Stock-based compensation

546

591

2,169

2,228

Non-GAAP loss before taxes on income

$       139

$       (437)

$     (1,603)

$     (4,435)

$    (461)

$    (1,092)

$     (3,992)

$     (6,832)

GAAP net loss

Stock-based compensation

546

591

2,169

2,228

Non-GAAP net income (loss)

$       85

$       (501)

$     (1,823)

$     (4,604)

$      (0.03)

$      (0.08)

$       (0.29)

$       (0.50)

GAAP net loss per diluted share

Stock-based compensation

0.04

0.04

0.16

0.17

Non-GAAP net income (loss) per diluted share

$       0.01

$       (0.04)

$       (0.13)

$       (0.33)

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

14,302,719

13,809,258

13,927,788

13,779,885

 

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars) 

As of

As of

December 31,

December 31,

2020

2019

(unaudited)

(audited)

Current Assets

     Cash and cash equivalents

$                13,548

$                6,201

     Short-term bank deposits

55,413

63,080

     Trade receivables, net

12,446

11,039

     Inventories 

540

1,356

     Other accounts receivable and prepaid expenses

1,437

1,536

83,384

83,212

Total Current Assets

Non-Current Assets

Severance pay fund

3,814

3,365

Other long-term receivables

2,185

2,314

Property and equipment, net

1,311

1,669

Operating lease right-of-use assets

2,945

5,842

10,255

13,190

Total  Non-Current Assets

Total Assets

$              93,639

$              96,402

Liabilities and Shareholders' Equity

Current Liabilities 

       Trade payables 

$                  1,592

$                  2,452

    Deferred revenues and advances from customers

3,149

828

       Employee and payroll accruals 

4,414

4,132

    Operating lease liabilities

1,028

1,263

    Other liabilities and accrued expenses

4,721

4,050

14,904

12,725

Total Current Liabilities

Non-Current Liabilities 

    Deferred revenues

26

100

    Accrued severance pay        

4,473

3,904

    Operating lease liabilities

2,008

4,967

    Other liabilities and accrued expenses

209

836

6,716

9,807

Total  Non-Current Liabilities

Total Liabilities

$                 21,620

$                 22,532

Shareholders' Equity 

     Share capital 

$                     657

$                     648

     Additional paid-in capital

140,129

137,969

        Accumulated other comprehensive loss

(2,662)

(2,634)

     Accumulated deficit

(66,105)

(62,113)

Total Shareholders' Equity

72,019

73,870

$                 93,639

$                 96,402

Total Liabilities and Shareholders' Equity

 

 

Cision View original content:http://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2020-results-301229800.html

SOURCE RADCOM Ltd.



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