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RADCOM Reports First Quarter 2023 Results

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  • Revenue grew 13% year-over-year to $12 million
  • GAAP Net income of $0.6 million
  • Non-GAAP Net income of $1.8 million

TEL AVIV, Israel, May 10, 2023 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the first quarter ended March 31, 2023.

"We continued our strong momentum from 2022 into the first quarter of 2023 with a revenue increase of 13% compared to the same quarter last year, a fifteenth consecutive quarter of year-over-year growth. Our solid performance and careful expense management improved all our profitability key performance indicators (KPIs). We also introduced some new product use cases built using advanced artificial intelligence (AI) for 5G, commented RADCOM's Chief Executive Officer Eyal Harari.

Mr. Harari continued, "We significantly improved our profitability this quarter, tripling our non-GAAP net income compared to the first quarter of 2022 and achieving a 15% non-GAAP net margin (5% on a GAAP basis). In addition, our GAAP profitability reached a four-year high, driven by solid team execution and increased revenues.

"As previously announced during the quarter, we signed an agreement with a new customer in North America, expanding our market share and leveraging our success with the recent customers we secured in 2022. We believe this encouraging momentum will continue as operators look to our advanced cloud technology and AI-powered analytics to reduce operational expenses and streamline operations through automation.

"We also completed the acquisition of the assets of Continual Ltd. We believe adding Continual's advanced mobility experience analytics, and intellectual property, will enrich our 5G assurance solution and create new opportunities for RADCOM in top-tier customers like Vodafone.

Mr. Harari concluded, "Based on our current visibility, innovative assurance solutions, and overall market opportunity, we believe all the foundations are in place for a strong 2023. We are reiterating our full-year 2023 revenue guidance of $50 - $53 million."

First quarter 2023 financial highlights:

  • Total revenues for the first quarter were $12.0 million, compared to $10.6 million in the first quarter of 2022.
  • GAAP net income for the first quarter was $0.6 million, or $0.04 per diluted share, compared to a GAAP net loss of $0.6 million, or $0.04 per diluted share for the first quarter of 2022.
  • Non-GAAP net income for the first quarter was $1.8 million, or $0.12 per diluted share, compared to a non-GAAP net income of $0.6 million or $0.04 per diluted share for the first quarter of 2022.  
  • As of March 31, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $77.9 million and no debt.

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 am Eastern Time (3:00 pm Israel 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: +972-3-918-0644

For those unable to listen to the call, a replay of the conference call will be available a few hours later in the investor relations section on the Company's website at https://radcom.com/investor-relations/.

For all investor inquiries, please contact:

Investor Relations:

Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com

Company Contact: 
Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@radcom.com     

About RADCOM

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 with 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.

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," " 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 full-year 2023 revenue guidance, its momentum, the potential to leverage Continual's technology and products to benefit RADCOM with Vodafone and other customers, and its opportunities, 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 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.

 

RADCOM Ltd.
Consolidated Statements of Operations
Unaudited


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



Three months ended
 March 31,


2023


2022


(unaudited)


(unaudited)

Revenues

$               12,023


$               10,624

Cost of revenues

3,348


2,837

Gross profit

8,675


7,787

Research and development, gross

4,769


5,559

Less - royalty-bearing participation

262


218

Research and development, net

4,507


5,341

Sales and marketing

3,313


2,905

General and administrative

1,229


1,021

Total operating expenses

9,049


9,267

Operating loss

(374)


(1,480)

Financial income, net

1,026


947

Income (loss) before taxes on income

652


(533)

Taxes on income

(31)


(59)





Net income (loss)

$              621


$                (592)





Basic and diluted net income (loss) per

ordinary share

$               0.04


$               (0.04)

 

Weighted average number of 
 ordinary shares used in computing basic net loss per ordinary share

14,891,425


14,321,861

Weighted average number of 
 ordinary shares used in computing diluted
 net loss per ordinary share

15,569,410


14,321,861

 

RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited

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



Three months ended
March 31,


2023


2022

GAAP gross profit                                                                                                                                           

$               8,675


$               7,787

Stock-based compensation

89


92

Non-GAAP gross profit

$               8,764


$               7,879

 

GAAP research and development, net

$                4,507


$               5,341

Stock-based compensation

545


611

Non-GAAP research and development, net

$                3,962


$               4,730

 

GAAP sales and marketing

$                3,313


$               2,905

Stock-based compensation

308


307

Non-GAAP sales and marketing

$                3,005


$               2,598

 

GAAP general and administrative

$                1,229


$               1,021

Stock-based compensation

265


196

Non-GAAP general and administrative

$                   964


$                  825

 

GAAP total operating expenses

$                9,049


$               9,267

Stock-based compensation

1,118


1,114

Non-GAAP total operating expenses

$                7,931


$               8,153

 

GAAP operating loss

$                (374)


$             (1,480)

Stock-based compensation

1,207


1,206

Non-GAAP operating income (loss)

$                  833


$                (274)

 

GAAP income (loss) before taxes on income

$                   652


$                (533)

Stock-based compensation

1,207


1,206

Non-GAAP income before taxes on income

$                1,859


$                  673

 

GAAP net income (loss)

$                   621


$               (592)

Stock-based compensation

1,207


1,206

Non-GAAP net income

$                1,828


$                 614

 

GAAP net income (loss) per diluted share

$                  0.04


$             (0.04)

Stock-based compensation

0.08


0.08

Non-GAAP net income per diluted share

$                  0.12


$               0.04





Weighted average number of shares used to compute diluted net income (loss) per share

15,569,410


14,775,554

 

RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars) 


As of


As of


March 31,

2023


December 31,

2022


(unaudited)


(audited)

Current Assets




    Cash and cash equivalents

$                  9,727


$                  9,527

    Short-term bank deposits

68,155


64,130

    Trade receivables, net

11,953


11,074

    Inventories

407


795

    Other accounts receivable and prepaid expenses

2,068


1,928

 

Total Current Assets

92,310


87,454





Non-Current Assets




    Long-term bank deposits

-


4,002

    Severance pay fund

3,315


3,524

    Other long-term receivables

2,131


2,557

    Property and equipment, net

945


1,010

    Operating lease right-of-use assets

2,144


2,457

 

Total Non-Current Assets

8,535


13,550





Total Assets

$             100,845


$             101,004





Liabilities and Shareholders' Equity








Current Liabilities




       Trade payables

$                    1,865


$                   2,708

    Deferred revenues and advances from customers

6,884


7,037

       Employee and payroll accruals

4,519


5,198

    Operating lease liabilities

968


1,024

    Other liabilities and accrued expenses

7,167


6,829

 

Total Current Liabilities

21,403


22,796





Non-Current Liabilities




    Accrued severance pay       

3,750


3,973

    Operating lease liabilities

1,131


1,452

 

Total Non-Current Liabilities

4,881


5,425





Total Liabilities

$                  26,284


$                 28,221





Shareholders' Equity




     Share capital

$                       720


$                      706

     Additional paid-in capital

149,803


148,610

        Accumulated other comprehensive loss

(2,958)


(2,908)

     Accumulated deficit

(73,004)


(73,625)





Total Shareholders' Equity

74,561


72,783

 

Total Liabilities and Shareholders' Equity

$             100,845


$             101,004

 

 

Cision View original content:https://www.prnewswire.com/news-releases/radcom-reports-first-quarter-2023-results-301820737.html

SOURCE RADCOM Ltd.

Radcom

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Telephone Apparatus Manufacturing
Manufacturing
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Electronic Technology, Electronic Equipment/Instruments, Distribution Services, Electronics Distributors, Technology Services, Packaged Software, Manufacturing, Telephone Apparatus Manufacturing
Israel
24 Raoul Wallenberg St

About RDCM

radcom provides innovative service assurance and customer experience management solutions for leading telecom operators and communications service providers. radcom specializes in solutions for next-generation mobile and fixed networks, including lte, volte, ims, voip, umts/gsm and mobile broadband. radcom's comprehensive, carrier- grade solutions are designed for big data analytics on terabit networks, and are used to prevent service provider revenue leakage and to enhance customer care management. radcom's products interact with policy management to provide self-optimizing network solutions. radcom's shares are listed on the nasdaq capital market under the symbol rdcm. for more information, please visit www.radcom.com