RADCOM Reports First Quarter 2018 Financial Results

May 22, 2018


  • Q1 Revenues up 36% Year-Over-Year to $10.9 million
  • Cash, cash equivalents and short-term bank deposit of $74.5 million and No Debt 

TEL AVIV, Israel – May 22, 2018 − RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the first quarter ended March 31, 2018.

“Our strong quarter resulted from successful execution on a number of deployments with both existing and new customers leading to our continued strong growth,” commented Mr. Yaron Ravkaie, RADCOM’s CEO. “Another example that highlights our hybrid approach of enabling a path to NFV and future proofing purchasing decisions is the top-tier galaxy operator that selected RADCOM. We expect to finalize a contract with this operator in the coming months. Given our healthy pipeline of opportunities and ongoing momentum, we are reiterating our 2018 revenue guidance of $43-$47 million.”

First Quarter 2018 Financial Highlights:

• Revenues: Total revenues for the first quarter were $10.9 million, up 36% compared to $8.0 million in the first quarter of 2017.  

• Net Income/(Loss): GAAP net income for the period was $0.3 million, or $0.02 per diluted share, compared to GAAP net loss of $(0.3) million, or $(0.03) per diluted share for the first quarter of 2017. 

• Non-GAAP Net Income:  Non-GAAP net income for the period was $1.0 million, or $0.07 per diluted share, compared to Non-GAAP net income of $0.3 million, or $0.02 per diluted share for the first quarter of 2017.

 GAAP and non-GAAP results for the first quarter of 2018 and 2017, do not include any benefits related to grants from the Israel Innovation Authority as no such grants were received during the period.  

• Balance sheet: As of March 31, 2018, the Company had cash, cash equivalents and short-term bank deposit of $74.5 million and no debt.    

Earnings Conference Call
RADCOM’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 May 23, 2018, on RADCOM’s website.


RADCOM (NASDAQ: RDCM) is the leading expert in cloud-native Network Intelligence for telecom operators transitioning to SDN/NFV. Providing a critical first step in an operator’s NFV transformation, RADCOM’s Network Intelligence delivers end-to-end network visibility from virtual tapping point to network insights. Comprised of RADCOM Service Assurance (MaveriQ), RADCOM Network Visibility and RADCOM Network Insights, RADCOM’s Network Intelligence portfolio provides operators with end-to-end network visibility across virtual and hybrid networks. RADCOM Network Intelligence is automated, cost-efficient, provides on-demand functionality and is specifically designed for the needs of telecom operators. RADCOM specializes in assuring next-generation, high capacity networks, including LTE, Advanced-LTE, 5G, IMS, SDN/NFV and others. 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 revenue guidance for 2018 and expected pipeline projects for the Company and timing and actual entry into a contract with a galaxy operator, if at all, 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.

Consolidated Statements of Operations
(thousands of U.S. dollars, except share and per share data)
 Three months ended
 March 31,
 2018 2017  
Revenues$10,903 $8,040  
Cost of revenues2,890 2,022  
Gross profit8,013 6,018  
Research and development, gross3,744 2,488  
Less – royalty-bearing participation   
Research and development, net3,744 2,488  
Sales and marketing, net3,240 2,897  
General and administrative998 1,060  
Total operating expenses7,982 6,445  
Operating income (loss)31 (427)  
Financial income, net302 109  
Income (loss) before taxes on income333 (318)  
Taxes on income(11) (18)  
Net income (loss)$322 $(336)  
 Basic net income (loss) per ordinary share$0.02 $(0.03)  
Diluted net income (loss) per ordinary share$0.02 $(0.03)  
 Weighted average number of ordinary shares used incomputing basic net income (loss) per ordinary share  13,498,100   11,650,479  
 Weighted average number of ordinary shares used incomputing diluted net income (loss) per ordinary share             13,785,938   11,650,479  
(thousands of U.S. dollars, except share and per share data)
 Three months ended March 31,  
 2018 2017 
GAAP gross profit                                                                                                                                           $8,013 $6,018 
Stock-based compensation40 47 
Non-GAAP gross profit$8,053 $6,065 
 GAAP Research and development, net$3,744 $2,488 
Stock-based compensation208 109 
Non-GAAP Research and development, net$3,536 $2,379 
 GAAP sales and marketing, net$3,240 $2,897 
Stock-based compensation229 128 
Non-GAAP sales and marketing, net$3,011 $2,769 
 GAAP general and administrative$998 $1,060 
Stock-based compensation199 336 
Non-GAAP general and administrative$799 $724 
 GAAP total operating expenses$7,982 $6,445 
Stock-based compensation636 573 
Non-GAAP total operating expenses$7,346 $5,872 
 GAAP operating income (loss)$31 $(427) 
Stock-based compensation676 620 
Non-GAAP operating income$707 $193 
 GAAP income (loss) before taxes on income$333 $(318) 
Stock-based compensation676 620 
Non-GAAP income before taxes on income$1,009 $302 
 GAAP net income (loss)$322 $(336) 
Stock-based compensation676 620 
Non-GAAP net income$998 $284 
 GAAP net income (loss) per diluted share$0.02 $(0.03) 
Stock-based compensation0.05 0.05 
Non-GAAP net income per diluted share$0.07 $0.02 
Weighted average number of shares used to compute diluted net income per share13,785,938 11,952,399 
Consolidated Balance Sheets
(thousands of U.S. dollars) 
 As of As of
 March 31, December 31,
Current Assets   
Cash and cash equivalents$34,519 $22,575
Restricted bank deposit35 36
Short-term bank deposit40,000 40,000
Trade receivables, net7,397 20,266
Inventories 213 1,199
Other receivables2,981 2,685
Total Current Assets86,761
Severance pay fund   
Other long-term receivables   
Property and equipment, net   
Total Assets$90,400 $91,909
Liabilities and Shareholders’ Equity   
Current Liabilities    
Trade payables $1,436 $1,828
Deferred revenue1,178 2,601
Employee and payroll accruals 3,584 4,062
Other payables and accrued expenses 1,884 3,428
 8,082 11,919
Total Current Liabilities
Long-Term Liabilities    
Deferred revenue140 21
Accrued severance pay        3,589 3,573
 3,729 3,594
Total Long-Term Liabilities
Total Liabilities$11,811 $15,513
Shareholders’ Equity    
Share capital $634 $628
Additional paid-in capital133,018 131,491
Accumulated other comprehensive loss(2,519) (2,520)
Accumulated deficit(52,544) (53,203)
Total Shareholders’ Equity78,589 76,396
 $90,400 $91,909

For all investor enquiries, please contact:

Ran Vered 

For all media enquiries, please contact:

Mark Rolston
Marketing Manager

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