RADCOM Reports Q2 & H1 2016 Financial Results
TEL-AVIV, Israel, Aug. 3, 2016 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the second quarter and first half ended June 30, 2016.
|
In $ thousands |
Q2 2016 |
Q2 2015 |
H1 2016 |
H1 2015 |
|
Revenues |
$7,200 |
$4,837 |
$13,747 |
$11,191 |
|
Gross margin |
70% |
75% |
72% |
79% |
|
Net profit |
$1,747 |
$203 |
$2,650 |
$640 |
|
Net profit (non-GAAP) |
$1,997 |
$605 |
$3,337 |
$1,426 |
|
Cash & equivalents |
$46,468 |
$9,916 |
$46,468 |
$9,916 |
Financial Results Second Quarter: Revenues for the second quarter were $7.2 million, up 49% compared to $4.8 million in the second quarter of 2015, and up 10% compared to $6.5 million in the first quarter of 2016.
Net income for the period, determined in accordance with U.S. GAAP, totaled $1.7 million, or $0.17 per diluted share, compared to $203,000, or $0.02 per diluted share for the second quarter of 2015, and $0.10 per diluted share in the first quarter of 2016. On a non-GAAP basis, net income totaled $2.0 million, or $0.20 per diluted share, compared to $605,000, or $0.07 per diluted share for the second quarter of 2015, and $0.14 per diluted share in the first quarter of 2016. Both GAAP and non-GAAP results for the second quarter of 2016 included a $0.8 million or $0.07 per diluted share, benefit related to grants from the Office of the Chief Scientist compared to $0.2 million or $0.02 per diluted share in the second quarter of 2015.
As of June 30, 2016, the Company's balance of cash and cash equivalents totaled a record $46.5 million compared to $8.7 million at the end of 2015 and $25.5 million at the end of the first quarter.
First Half of 2016: Revenues for the first six months of 2016 increased by 23% to $13.7 million compared to $11.2 million in the first half of 2015.
GAAP net income for the period totaled $2.6 million, or $0.27 per diluted share, compared to $640,000, or $0.07 per diluted share in the first half of 2015. On a non-GAAP basis, net income for the period totaled $3.3 million, or $0.34 per diluted share compared to $1.4 million, or $0.16 per diluted share recorded in the first half of 2015.
Comments of Management "AT&T's recent public announcement that it is using RADCOM's innovative technology to support its shift to network virtualization highlights the strong technological leadership of our game-changing MaveriQ product suite. We are on track in implementing the current contract and have recently signed a product expansion, as well as a multi-year maintenance agreement that further strengthens our long-term relationship," commented Mr. Yaron Ravkaie, RADCOM's CEO. "As a vital component of AT&T's NFV transformation, we are positioned to continue innovating and extending our technologies, in line with our strategic plan, and have already added cutting-edge new capabilities to our MaveriQ solution. We believe this new functionality will be critical for the success of any large-scale network virtualization, further positioning RADCOM as the go-to NFV service assurance vendor. With this recent public announcement and AT&T's endorsement, we are accelerating our engagements with additional top-tier carriers."
Mr. Yaron Ravkaie concluded, "We are reiterating our 2016 revenue guidance range of $28-$29.5 million, up 50%-58% compared with 2015. The combination of our best-of-breed MaveriQ suite, growing pipeline of opportunities and significantly strengthened balance sheet positions the Company to scale and grow to a whole new level."
Earnings Conference CallRADCOM'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 August 4th on RADCOM's website.
About RADCOMRADCOM (NASDAQ: RDCM) is a first-mover and leading provider of NFV-ready service assurance and customer experience management solutions for Communications Service Providers (CSPs). RADCOM's MaveriQ software continuously monitors network performance and quality-of-service, enabling CSPs to optimize the subscriber user experience. RADCOM specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS and others. MaveriQ enables CSPs to smoothly migrate their networks to NFV by assuring physical, NFV-based and hybrid networks. For more information, please visit http://www.radcom.com. For all investor enquiries, please contact: Ran Vered, CFO, (+972)77-774-5011, [email protected]. For all media enquiries, please contact: Mark Rolston, Marketing Manager +972-77-774-5036, [email protected]
Non-GAAP InformationCertain 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 StatementsCertain 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 2016 revenue guidance range, expected opportunities, pipeline and growth and deployment, extension of relationships with AT&T and becoming the go-to solution for NFV operators 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 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 Statement of Operations | |||||||
|
(1000's of U.S. dollars, except share and per share data) | |||||||
|
Three months ended June 30, |
Six months ended June 30, | ||||||
|
2016 |
2015 |
2016 |
2015 | ||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) | ||||
|
Sales |
$ 7,200 |
$ 4,837 |
$ 13,747 |
$ 11,191 | |||
|
Cost of sales |
2,136 |
1,216 |
3,829 |
2,354 | |||
|
Gross profit |
5,064 |
3,621 |
9,918 |
8,837 | |||
|
Research and development, gross |
1,632 |
1,433 |
3,468 |
3,071 | |||
|
Less - royalty-bearing participation |
756 |
148 |
756 |
148 | |||
|
Research and development, net |
876 |
1,285 |
2,712 |
2,923 | |||
|
Sales and marketing, net |
1,732 |
1,546 |
3,259 |
3,587 | |||
|
General and administrative |
1,156 |
565 |
2,027 |
1,206 | |||
|
Total operating expenses |
3,764 |
3,396 |
7,998 |
7,716 | |||
|
Operating income |
1,300 |
225 |
1,920 |
1,121 | |||
|
Financing income (expense), net |
447 |
78 |
736 |
(374) | |||
|
Income before taxes |
1,747 |
303 |
2,656 |
747 | |||
|
Taxes |
- |
100 |
6 |
107 | |||
|
Net profit |
$ 1,747 |
$ 203 |
$ 2,650 |
$ 640 | |||
|
Basic net income per ordinary share |
$ 0.18 |
$ 0.02 |
$0.28 |
$ 0.08 | |||
|
Diluted net income per ordinary share |
$ 0.17 |
$ 0.02 |
$0.27 |
$ 0.07 | |||
|
Weighted average number of ordinary shares used in computing basic net income per ordinary share |
9,875,268 |
8,537,377 |
9,322,930 |
8,501,254 | |||
|
Weighted average number of ordinary shares used in computing diluted net income per ordinary share |
10,117,835 |
9,093,008 |
9,733,037 |
9,066,624 | |||
|
RADCOM Ltd. Consolidated Balance Sheets (1000's of U.S. dollars) | |||
|
As of |
As of | ||
|
June 30, 2016 |
December 31, 2015 | ||
|
(unaudited) |
(audited) | ||
|
Current Assets |
|||
|
Cash and cash equivalents |
$ 46,468 |
$ 8,727 | |
|
Restricted cash deposits |
32 |
32 | |
|
Trade receivables |
1,020 |
3,684 | |
|
Inventories |
1,850 |
1,532 | |
|
Other receivables |
2,967 |
2,087 | |
|
Total Current Assets |
52,337 |
16,062 | |
|
Severance pay fund |
3,240 |
3,181 | |
|
Other long-term receivables |
627 |
508 | |
|
Property and equipment, net |
685 |
384 | |
|
Total Assets |
$ 56,889 |
$ 20,135 | |
|
Liabilities and Shareholders' Equity |
|||
|
Current Liabilities |
|||
|
Trade payables |
$ 1,825 |
$ 1,465 | |
|
Deferred revenue and advances from customers |
8,110 |
931 | |
|
Employee and payroll accruals |
3,628 |
2533 | |
|
Other payables and accrued expenses |
1,944 |
1,490 | |
|
Total Current Liabilities |
15,507 |
6,419 | |
|
Long-Term Liabilities |
|||
|
Deferred revenue |
129 |
197 | |
|
Accrued severance pay |
3,876 |
3,656 | |
|
Total Long-Term Liabilities |
4,005 |
3,853 | |
|
Total Liabilities |
19,512 |
10,272 | |
|
Shareholders' Equity |
|||
|
Share capital |
$510 |
$372 | |
|
Additional paid-in capital |
94,791 |
70,270 | |
|
Accumulated other comprehensive loss |
(2,555) |
(2,760) | |
|
Accumulated deficit |
(55,369) |
(58,019) | |
|
Total Shareholders' Equity |
37,377 |
9,863 | |
|
Total Liabilities and Shareholders' Equity |
$ 56,889 |
$ 20,135 | |
|
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, | ||||||
|
2016 |
2015 |
2016 |
2015 | ||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) | ||||
|
GAAP net income |
$ 1,747 |
$ 203 |
$ 2,650 |
$ 640 | |||
|
Stock-based compensation (1) |
250 |
402 |
687 |
786 | |||
|
Non-GAAP net income |
$ 1,997 |
$ 605 |
$ 3,337 |
$ 1,426 | |||
|
Non-GAAP net income per share (basic) |
$ 0.20 |
$ 0.07 |
$ 0.36 |
$ 0.17 | |||
|
Non-GAAP net income per share (diluted) |
$ 0.20 |
$ 0.07 |
$ 0.34 |
$ 0.16 | |||
|
Number of shares used in computing Non-GAAP earnings per share (basic) |
9,875,268 |
8,537,377 |
9,322,930 |
8,501,254 | |||
|
Number of shares used in computing Non-GAAP earnings per share (diluted) |
10,117,835 |
9,093,008 |
9,733,037 |
9,066,624 | |||
|
(1) Stock-based compensation: |
|||||||
|
Cost of sales |
27 |
13 |
42 |
22 | |||
|
Research and development |
69 |
159 |
239 |
324 | |||
|
Sales and marketing |
31 |
133 |
51 |
224 | |||
|
General and administrative |
123 |
97 |
355 |
216 | |||
|
250 |
402 |
687 |
786 | ||||
Contact: Ran Vered, CFO (+972)77-774-5011 [email protected]
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SOURCE RADCOM Ltd