RADCOM Reports Financial Results for Q1 2016

May 10, 2016

– $6.5M in Revenues, $1.3M Non-GAAP Net Profit –

TEL-AVIV, Israel – May 10, 2016 – RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the first quarter ended March 31, 2016. 

In $ thousandsQ1 2016Q1 2015YOY ChangeQ4 2015
Gross margin 74.1%82.2%58.1%
Net profit (loss) (non-GAAP)$1,340$82163%$(1,606)
Net profit (loss) (GAAP)$903$437107%$(2,124)
Cash & equivalents$25,527$3,974542%$8,727

Financial Results

Revenues for the first quarter totaled $6.5 million, up 141% compared with the fourth quarter of 2015 and 3% compared with $6.4 million in the first quarter of 2015. On a non-GAAP basis, net profit for the period totaled $1.3 million, or $0.14 (diluted) and $0.15 (basic) per ordinary share, up 63% compared with $821,000, or $0.09 (diluted) and $0.10 (basic) per ordinary share, for the first quarter of 2015. On a GAAP basis, net profit for the quarter totaled $903,000, or $0.10 (basic and diluted) per ordinary share, up 107% compared with $437,000, or $0.05 (basic and diluted) per ordinary share, for the first quarter of 2015.

 The Company’s balance of cash and cash equivalents as of the end of the first quarter of 2016 totaled a record $25.5 million compared with $8.7 million at the end of 2015.  

Comments of Management

“After one quarter into my tenure as CEO, in this new era of growth for the company, I’m pleased to report that we are on track with our plans. We are focused on tight delivery of all our customer commitments and in leveraging our first-mover advantage within the NFV space as we engage additional top-tier accounts,” commented Mr. Yaron Ravkaie, RADCOM’s CEO.

“Given our backlog and funnel of opportunities, we project that our revenues for 2016 will reach $28-$29.5 million, representing 50%-58% growth over 2015.”

Earnings Conference Call

RADCOM’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 May 11th on RADCOM’s website.



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 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 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, statements about the Company’s projected growth, consistency and revenue in 2016 and securing additional business all constitute 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 Statements of Operations(1000s of U.S. dollars, except share and per share data)  Three months ended 
March 31,
  20162015 (unaudited) (unaudited) Sales$       6,547  $     6,354 Cost of sales1,693 1,138 Gross profit4,854 5,216 Research and development1,836 1,638 Sales and marketing, net1,527 2,041 General and administrative871 641 Total operating expenses4,234 4,320 Operating profit620 896 Financing income (expenses), net 289 (452) Income before taxes909 444 Taxes6 7  Net profit$   903 $    437  Basic and diluted net income per ordinary Share$   0.10  $    0.05       Weighted average number of 
    ordinary shares used in 
    computing basic net income 
    per ordinary share8,729,891 8,464,565 Weighted average number of  
    ordinary shares used in 
    computing diluted net income per ordinary share 9,307,539 9,039,676  



(1000s of U.S. dollars, except share and per share data)

 Three Months Ended
 March 31,
 2016 2015
 (unaudited) (unaudited)
GAAP net income $903 $437
Stock-based compensation (1) 437 384
Non-GAAP net income   $1,340 $821
Non-GAAP net income per share (basic) $0.15 $0.10
Non-GAAP net income per share (diluted) $0.14 $0.09
Number of shares used in computing Non-GAAP net income per share (basic) 8,729,891 8,464,565
Number of shares used in computing Non-GAAP net income per share (diluted) 9,307,539 9,039,676
(1) Stock-based compensation:    
   Cost of sales  14 9
   Research and development  171 165
   Sales and marketing   20 91
   General and administrative   232 119
    437 384
RADCOM Ltd.Consolidated Balance Sheets(1000s of U.S. dollars) 
 As ofAs of
 March 31,2016December 31,2015
Current assets   
     Cash and cash equivalents25,527 8,727
     Restricted bank deposits32 32
     Trade receivables2,674 3,684
     Inventories1,411 1,532
      Other account receivables and prepaid expenses2,043 2,087
Total current assets31,687 16,062
Severance pay fund3,341 3,181
Other long-term receivables589 508
Property and equipment, net616 384
Total Assets36,233 20,135
Liabilities and shareholders’ equity   
Current liabilities    
     Trade payables1,223 1,465
     Deferred revenue and advances from customers13,935 931
     Employees and payroll accruals3,034 2,533
     Other payables and accrued expenses1,501 1,490
Total current liabilities19,693 6,419
Long-term liabilities   
     Deferred revenue  and advances from customers72 197
     Accrued severance pay       4,001 3,656
Total long-term liabilities4,073 3,853
Total liabilities23,766 10,272
Shareholders’ equity    
     Share capital      377      372
     Additional paid-in capital71,451 70,270
     Receipts on account of shares417  
     Accumulated other comprehensive loss            (2,662)             (2,760)
     Accumulated deficit(57,116) (58,019)
Total shareholders’ equity12,467 9,863
Total Total liabilities and shareholders’ equity36,233 20,135
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