RADCOM Reports Fourth Quarter and Full Year 2016 Financial Results
TEL-AVIV, Israel, Feb. 14, 2017 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2016.
"The fourth quarter marked a strong end to a great year for the Company, highlighted by our ability to reach the high-end of our guidance range," commented Mr. Yaron Ravkaie, RADCOM's CEO. "In 2016, we made great progress with our top-tier customer deployments, continued our engagement with other leading global carriers, and focused on preparing the company for future growth by boosting our senior management team and ramping up our engineering capabilities. We believe we have laid a solid foundation during 2016 to continue our momentum, as evidenced by our initial 2017 revenue guidance range of $36-$39 million."
Fourth Quarter 2016 Financial Highlights
- Revenues: Total revenues for the fourth quarter were $8.0 million, up 196% compared to $2.7 million in the fourth quarter of 2015.
- Net Loss: GAAP net loss for the period was approximately $0.7 million, or $0.06 loss per diluted share, compared to a loss of $2.1 million, or $0.25 loss per diluted share for the fourth quarter of 2015.
- Non-GAAP Net Income/(Loss): Non-GAAP net income for the period was approximately $0.4 million, or $0.04 per diluted share, compared to a loss of $(1.6) million, or $(0.19) per diluted share for the fourth quarter of 2015.Both GAAP and non-GAAP results for the fourth quarter of 2016 included a $552,000, or $0.05 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $576,000, or $0.07 per diluted share, in the fourth quarter of 2015.
- Balance sheet: As of December 31, 2016, the Company had cash and cash equivalents of $42.9 million and no debt.
Full Year 2016 Financial Highlights
- Revenues: Total revenues for the full year 2016 were $29.5 million, up 58% compared to $18.7 million in the full year 2015.
- Net Income/(Loss): GAAP net income for the full year 2016 was approximately $1.9 million, or $0.18 per diluted share, compared to a loss of $(923,000), or $(0.11) per diluted share for the full year 2015.
- Non-GAAP Net Income: Non-GAAP net income for the period was approximately $4.8 million or $0.44 per diluted share, for the full year 2016, compared to $656,000, or $0.07 per diluted share for the full year 2015.Both GAAP and non-GAAP results for the full year 2016 included a $1.7 million, or $0.16 per diluted share, benefit related to grants from the Israel Innovation Authority compared to $1.6 million, or $0.18 per diluted share, in 2015.
Earnings Conference CallRADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (15:00 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 February 15th on RADCOM's website.
About RADCOM
RADCOM (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 software - MaveriQ - continuously monitors network performance and quality of services, to optimize user experience for CSPs' subscribers. 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 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 the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, inventory write-off and non-cash write-off of importation taxes, 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 momentum and revenue guidance for 2017 it is using foward-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 | ||||||||
|
(thousands of U.S. dollars, except share and per share data) | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
2016 |
2015 |
2016 |
2015 | |||||
|
Sales |
$ 8,037 |
$ 2,715 |
$ 29,510 |
$ 18,673 | ||||
|
Cost of sales |
2,796 |
1,137 |
8,982 |
4,326 | ||||
|
Gross profit |
5,241 |
1,578 |
20,528 |
14,347 | ||||
|
Research and development, gross |
2,594 |
1,620 |
8,047 |
6,071 | ||||
|
Less - royalty-bearing participation |
552 |
576 |
1,693 |
1,582 | ||||
|
Research and development, net |
2,042 |
1,044 |
6,354 |
4,489 | ||||
|
Sales and marketing, net |
2,917 |
2,054 |
8,528 |
7,834 | ||||
|
General and administrative |
1,060 |
652 |
4,523 |
2,393 | ||||
|
Total operating expenses |
6,019 |
3,750 |
19,405 |
14,716 | ||||
|
Operating income (loss) |
(778) |
(2,172) |
1,123 |
(369) | ||||
|
Financial income (expense), net |
41 |
48 |
816 |
(433) | ||||
|
Income (loss) before taxes |
(737) |
(2,124) |
1,939 |
(802) | ||||
|
Taxes on income |
- |
- |
(24) |
(121) | ||||
|
Net income (loss) |
$ (737) |
$ (2,124) |
$ 1,915 |
$ (923) | ||||
|
$ (0.06) |
$ (0.25) |
$ 0.18 |
$ (0.11) | |||||
|
Basic net income (loss) per | ||||||||
|
ordinary share | ||||||||
|
Diluted net income (loss) per |
$ (0.06) |
$ (0.25) |
$ 0.18 |
$ (0.11) | ||||
|
ordinary share | ||||||||
|
11,548,059 |
8,665,019 |
10,406,897 |
8,572,681 | |||||
|
Weighted average number of | ||||||||
|
ordinary shares used in | ||||||||
|
computing basic net income (loss) per ordinary share | ||||||||
|
11,548,059 |
8,665,019 |
10,779,547 |
8,572,681 | |||||
|
Weighted average number of | ||||||||
|
ordinary shares used in | ||||||||
|
computing diluted net income (loss) per ordinary share | ||||||||
|
RADCOM LTD. | ||||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||||
|
(thousands of U.S. dollars, except share and per share data) | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
2016 |
2015 |
2016 |
2015 | |||||
|
GAAP gross profit |
5,241 |
1,578 |
20,528 |
14,347 | ||||
|
Stock-based compensation |
37 |
4 |
118 |
33 | ||||
|
Importation tax write-off |
388 |
- |
388 |
- | ||||
|
Inventory write-off |
- |
170 |
- |
170 | ||||
|
Non-GAAP gross profit |
5,666 |
1,752 |
21,034 |
14,550 | ||||
|
GAAP Research and development, net |
2,042 |
1,044 |
6,354 |
4,489 | ||||
|
Stock-based compensation |
231 |
96 |
625 |
529 | ||||
|
Non-GAAP Research and development, net |
1,811 |
948 |
5,729 |
3,960 | ||||
|
GAAP sales and marketing, net |
2,917 |
2,054 |
8,528 |
7,834 | ||||
|
Stock-based compensation |
75 |
54 |
199 |
380 | ||||
|
Non-GAAP sales and marketing, net |
2,842 |
2,000 |
8,329 |
7,454 | ||||
|
GAAP general and administrative |
1,060 |
652 |
4,523 |
2,393 | ||||
|
Stock-based compensation |
428 |
194 |
1,529 |
467 | ||||
|
Non-GAAP general and administrative |
632 |
458 |
2,994 |
1,926 | ||||
|
GAAP total operating expenses |
6,019 |
3,750 |
19,405 |
14,716 | ||||
|
Stock-based compensation |
734 |
344 |
2,353 |
1,376 | ||||
|
Non-GAAP total operating expenses |
5,285 |
3,406 |
17,052 |
13,340 | ||||
|
GAAP operating income (loss) |
(778) |
(2,172) |
1,123 |
(369) | ||||
|
Stock-based compensation |
771 |
348 |
2,471 |
1,409 | ||||
|
Importation tax write-off |
388 |
- |
388 |
|||||
|
Inventory write-off |
- |
170 |
- |
170 | ||||
|
Non-GAAP operating income (loss) |
381 |
(1,654) |
3,982 |
1,210 | ||||
|
GAAP income (loss) before taxes on income |
(737) |
(2,124) |
1,939 |
(802) | ||||
|
Stock-based compensation |
771 |
348 |
2,471 |
1,409 | ||||
|
Importation tax write-off |
388 |
- |
388 |
|||||
|
Inventory write-off |
- |
170 |
- |
170 | ||||
|
Non-GAAP income (loss) before taxes on income |
422 |
(1,606) |
4,798 |
777 | ||||
|
GAAP net income (loss) |
(737) |
(2,124) |
1,915 |
(923) | ||||
|
Stock-based compensation |
771 |
348 |
2,471 |
1,409 | ||||
|
Importation tax write-off |
388 |
- |
388 |
|||||
|
Inventory write-off |
- |
170 |
- |
170 | ||||
|
Non-GAAP net income |
422 |
(1,606) |
4,774 |
656 | ||||
|
GAAP Net income per diluted share |
(0.06) |
(0.25) |
0.18 |
(0.11) | ||||
|
Stock-based compensation |
0.07 |
0.04 |
0.22 |
0.16 | ||||
|
Importation tax write-off |
0.03 |
- |
0.04 |
- | ||||
|
Inventory write-off |
- |
0.02 |
- |
0.02 | ||||
|
Non-GAAP Net income per diluted share |
0.04 |
(0.19) |
0.44 |
0.07 | ||||
|
Weighted average number of shares used to compute |
11,920,521 |
8,665,019 |
10,779,547 |
9,117,767 | ||||
|
diluted net income (loss) per share | ||||||||
|
RADCOM Ltd. | |||
|
Consolidated Balance Sheets | |||
|
(thousands of U.S. dollars) | |||
|
As of |
As of | ||
|
December 31, |
December 31, | ||
|
2016 |
2015 | ||
|
Current Assets |
|||
|
Cash and cash equivalents |
42,886 |
8,727 | |
|
Restricted bank deposits |
32 |
32 | |
|
Trade receivables, net |
4,388 |
3,684 | |
|
Inventories |
623 |
1,532 | |
|
Other receivables |
1,960 |
2,087 | |
|
Total Current Assets |
49,889 |
16,062 | |
|
Severance pay fund |
|||
|
2,788 |
3,181 | ||
|
Other long-term receivables |
|||
|
375 |
508 | ||
|
Property and equipment, net |
|||
|
1,516 |
384 | ||
|
Total Assets |
|||
|
54,568 |
20,135 | ||
|
Liabilities and Shareholders' Equity |
|||
|
Current Liabilities |
|||
|
Trade payables |
2,820 |
1,465 | |
|
Deferred revenue and advances from customers |
2,593 |
931 | |
|
Employee and payroll accruals |
3,541 |
2,533 | |
|
Other payables and accrued expenses |
2,081 |
1,490 | |
|
Total Current Liabilities |
11,035 |
6,419 | |
|
Long-Term Liabilities |
|||
|
Deferred revenue |
123 |
197 | |
|
Accrued severance pay |
3,267 |
3,656 | |
|
Total Long-Term Liabilities |
3,390 |
3,853 | |
|
Total Liabilities |
14,425 |
10,272 | |
|
Shareholders' Equity |
|||
|
Share capital |
523 |
372 | |
|
Additional paid-in capital |
98,283 |
70,270 | |
|
Accumulated other comprehensive loss |
(2,559) |
(2,760) | |
|
Accumulated deficit |
(56,104) |
(58,019) | |
|
Total Shareholders' Equity |
|||
|
40,143 |
9,863 | ||
|
54,568 |
20,135 | ||
|
Total Liabilities and Shareholders' Equity | |||
Contact:Ran Vered, CFO(+972) 77-774-5011[email protected]
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2016-financial-results-300406938.html
SOURCE RADCOM Ltd.