Radcom Ltd. (NASDAQ: RDCM) reported Q1 EPS of ($0.17), $0.07 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $8.3 million versus the consensus estimate of $8.01 million.

First Quarter 2020 Financial Highlights:

• Revenues: Total revenues for the first quarter were $8.3 million, compared to $6.0 million in the first quarter of 2019.
• Net loss: GAAP net loss for the quarter decreased to $2.9 million, or $0.21 per diluted share, compared to a GAAP net loss of $3.1 million, or $0.23 per diluted share for the first quarter of 2019.
• Non-GAAP net loss: Non-GAAP net loss for the period decreased to $2.4 million, or $0.17 per diluted share, compared to a non-GAAP net loss of $2.7 million, or $0.20 per diluted share for the first quarter of 2019.
• Balance sheet: As of March 31, 2020, the Company had cash and cash equivalents and short-term bank deposits of $63.3 million and no debt.
• Reaffirming 2020 revenue guidance range of $35-$38 million

Commenting on the results, Eyal Harari, RADCOM's CEO said: "We are pleased with our progress this quarter as we continued to enhance our virtualized technology and deliver on our customer commitments without interruption, despite the spread of COVID-19. This progress included playing an important role in Rakuten Mobile's commercial launch of its greenfield, fully virtualized network in Japan last month.

"Our first-quarter revenues were in line with our expectations with little impact from the COVID-19 global pandemic. Our expenses in this quarter were impacted by one-time hardware component expenses related to one of our projects as well as delayed grants. Though there is uncertainty due to COVID-19 and its global economic impacts that could affect sales cycles, we are well-positioned with a strong balance sheet, multi-year contracts with industry-leading customers, and a belief that the telecom market will remain resilient. Based on current industry conditions and our visibility, we are reaffirming our 2020 revenue guidance range of $35 million to $38 million.

"We are proud of the major role we played in Rakuten Mobile's commercial launch of the world's first fully virtualized mobile network. The use of our technology in this groundbreaking project further cements our position as the leading, most advanced cloud-native assurance vendor for operators building new virtualized platforms for the launch of 5G. RADCOM's innovative offerings helped Rakuten Mobile launch this new virtualized network and ensured the delivery of superior customer experience. We believe our continued work with them is a testament to our market leadership and advanced solutions and that our experience and expertise will be valuable as more and more operators transition to 5G.

"We continue to believe in 5G and the underlying virtualized solutions needed for this technology transition. During the quarter, we focused on 5G in research and development to enhance our 5G offering while also deploying the initial phase of 5G with one of our customers. Despite current market conditions, we expect the telecom industry to continue to move forward with planned rollouts of 5G networks.

"As a company, our top priority has been the health and welfare of our employees. We efficiently implemented secure work-from-home arrangements for all employees, allowing them to continue our product development activities and to support our customers without interruption. We continue to follow local and regional guidelines regarding safe distancing and stay-at-home policies. We are encouraged by our organization's flexibility during these difficult times."

GUIDANCE:

Radcom Ltd. sees Q2 2020 revenue of $35-38 million, versus the consensus of $35.33 million.

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