TEL-AVIV, Israel – April 28, 2014– RADCOM Ltd. (NASDAQ: RDCM), a leading provider of service assurance and customer experience solutions, today reported its financial results for the first quarter ended March 31, 2015.
| In $ thousands | Q1 2015 | Q1 2014 | YOY Change | Q4 2014 |
| Revenues | $6,354 | $5,471 | 16.1% | $7,188 |
| Gross margin | 82.2% | 67.6% | – | 74.6% |
| Operating margin (non-GAAP) | 20.1% | 0.8% | – | 31.4% |
| Net profit (loss) (GAAP) | $437 | $110 | 297% | $(367) |
| Net profit (non-GAAP) | $821 | $248 | 231% | $1,795 |
Financial Results
RADCOM’s revenues for the first quarter increased by 16.1% to $6.4 million from $5.5 million in the first quarter of 2014. Gross margin (non-GAAP) for the quarter reached 82.2%, an all-time record for the Company and well above its long-term target of >75%, reflecting the predominance of software-based MaveriQ deployments in the revenue mix. With higher revenues, a record gross margin and steady expenses, the Company achieved $1.3 million in non-GAAP operating profit and a 20.1% operating margin.
GAAP-based net income for the quarter totaled $437,000, or $0.05 per ordinary share (basic and diluted), a 297% increase compared with $110,000, or $0.01 per ordinary share (basic and diluted), in the first quarter of 2014. On a non-GAAP basis, net income totaled $821,000, or $0.09 per ordinary diluted share ($0.10 per basic share), a 231% increase compared with $248,000, or $0.03 per ordinary share (basic and diluted), in the first quarter of 2014.
Comments of Management
“We are very pleased with our Q1 results, which continue to demonstrate the positive effect that the MaveriQ solution has had on our revenues, profits and margins,” commented Mr. David Ripstein, RADCOM’s President and CEO.
“We are very pleased that MaveriQ has proven to be such a good fit for market needs, and that it continues to lead in terms of both innovation and quality. Its shorter deployment cycle, coupled with the operational improvements that we implemented last year, are enabling us to recognize revenues more rapidly than in the past – often in just months rather than years. This is enhancing customer satisfaction while reducing our risk, deployment expenses and inventory, giving us the healthy business platform that we need to support continued growth in the year ahead. To leverage MaveriQ’s full market potential, we have increased – and continue to increase – our sales and marketing force.”
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. During the conference call, Management will be referring to a presentation that is available from the investor section of RADCOM’s website at www.radcom.com/investor-relations.
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 April 29th on RADCOM’s website.