- First quarter revenues of $9.1 million, 10% year-over-year growth
- Cash, cash equivalents, and short-term bank deposits of $67.3 million and no debt
- Reiterating 2021 revenue guidance range of $39-$41 million
TEL AVIV, Israel – May 11, 2021 − RADCOM Ltd. (Nasdaq: RDCM), today reported its financial results for the first quarter ended March 31, 2021.
Commenting on the results, Eyal Harari, RADCOM’s CEO, said: “We are pleased with our first quarter financial results, which reflected year-over-year growth and improvement in our bottom-line. We continued to invest and strengthen our position as the leading 5G assurance provider. During the quarter, we remained focused on executing our growth strategy and increasing our install base while ensuring the safety of our employees and customers during the pandemic.”
As previously announced, we are excited about being selected by a top-tier LATAM operator to provide our innovative assurance platform – RADCOM ACE. This order resulted from a tender process that evaluated multiple vendors for their 4G and 5G assurance capabilities. This order covers assurance for this top-tier operator’s 4G network with the expectation of expanding to their 5G network in the future.
In March, we were pleased to announce RADCOM ACE’s integration with Microsoft Azure, which provides operators with a carrier-grade assurance solution for deploying 5G on Microsoft’s public cloud. The industry trend of operators cooperating with leading cloud providers and requiring more automated processes in managing the network continues to gain momentum. We believe our leading 5G assurance platform, RADCOM ACE, developed through years of R&D investments, positions us well to capitalize on the transition to cloud-native networks and 5G.
Operators will soon be required to upgrade their existing network and assurance infrastructure to deliver the full capabilities of 5G. Our technology provides an integrated cloud-native assurance solution to monitor their network performance in real-time and ensure a superior customer experience is offered in their transitions to 5G. We are ready to take advantage of these opportunities.
Based on our current visibility, we reiterate full year 2021 revenue guidance of $39-41 million.
First Quarter 2021 Financial Highlights:
- Total revenues for the first quarter were $9.1 million, compared to $8.3 million in the first quarter of 2020
- GAAP net loss for the first quarter decreased to $1.7 million, or $0.12 per diluted share, compared to a GAAP net loss of $2.9 million, or $0.21 per diluted share for the first quarter of 2020
- Non-GAAP net loss for the period was $1 million, or a loss of $0.07 per diluted share, compared to a non-GAAP net loss of $2.4 million, or a loss of $0.17 per diluted share for the first quarter of 2020
- As of March 31, 2021, the Company had cash and cash equivalents and short-term bank deposits of $67.3 million, and no debt
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 AM Eastern Daylight Time (3:00 PM Israel Daylight Time) to discuss the results and 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): +1-866-652-8972
From other locations: +972-3-918-0610
For those unable to listen to the call at the time, a replay will be availableon RADCOM’s website at https://radcom.com/investor-relations/.
RADCOM (Nasdaq: RDCM) is the leading expert in 5G ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver network analysis from the RAN to the core for 5G assurance. Utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting and cutting edge techniques based on machine learning, these solutions work in harmony to provide operators an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. 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.
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,” ” 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 the 5G market and industry trends, the Company’s market position, its potential expansion with a top-tier LATAM operator, its cash position, potential and expected growth, the potential in the RADCOM ACE product generally, the Company’s ability to capitalize on the transition to cloud-native networks and 5G, its ability to capitalize on the emerging 5G opportunities and its revenue guidance, 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.