EX-99.1 2 ea182693ex99-1_radcomltd.htm PRESS RELEASE, DATED AUGUST 2, 2023, REPORTING THE REGISTRANT'S SECOND QUARTER OF 2023 RESULTS

Exhibit 99.1

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

RADCOM Reports Second Quarter 2023 Results

 

All-time quarterly revenue record of $12.4 million

5-year high diluted EPS

 

TEL AVIV, Israel – August 2, 2023 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the second quarter ended June 30, 2023.

 

Eyal Harari, RADCOM’s Chief Executive Officer, commented, “This quarter, we achieved several all-time financial records and continued investing in our solutions to drive future growth. Revenues for the second quarter were $12.4 million, the 16th consecutive quarter of year-over-year growth.

 

“We significantly improved our bottom line, achieving net income for the second quarter and first six months of 2023 that hit a 5-year high (on both GAAP and non-GAAP basis). The improvements in our profitability KPIs continued our strong momentum and are driven by strong execution and revenue increase.

 

“Last month, we announced the launch of our 5G assurance solution on Google Cloud as we continue integrating our solution with leading public cloud providers. Launching on Google Cloud will extend our market availability to further potential customers and offer a leading 5G assurance solution to simplify 5G rollouts. Additionally, as previously announced, we completed the acquisition of Continual Ltd. during the quarter. We believe that adding Continual’s core assets will enrich our solution and create new opportunities for RADCOM in top-tier customers.

 

Mr. Harari concluded, “We remain confident in our ability to cross the $50 million annual revenue threshold and scale up to a mid-size software company for the first time in the Company’s history in 2023 and deliver a fourth consecutive year of growth. Therefore, we are reiterating the 2023 revenue guidance of $50 million to $53 million.”

 

Second quarter 2023 financial highlights:

 

Total revenue for the second quarter was $12.4 million, compared to $11.1 million in the second quarter of 2022.

GAAP net income for the second quarter was $0.8 million, or $0.05 per diluted share, compared to a GAAP net loss of $1.3 million, or a loss of $0.09 per diluted share for the second quarter of 2022.

Non-GAAP net income for the second quarter was $2.1 million, or $0.13 per diluted share, compared to a non-GAAP net income of $0.02 million or $0.001 per diluted share for the second quarter of 2022.

As of June 30, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $78.3 million and no debt.

 

 

 

 

First six months of 2023 financial highlights:

 

Total revenue for the first six months was $24.4 million, compared to $21.8 million in the first six months of 2022.

GAAP net income for the first six months was $1.4 million, or $0.09 per diluted share, compared to a GAAP net loss of $1.8 million, or a loss of $0.13 per diluted share for the first six months of 2022.

Non-GAAP net income for the first six months was $3.9 million, or $0.25 per diluted share, compared to a non-GAAP net income of $0.6 million or $0.04 per diluted share for the first six months of 2022.

 

Earnings Conference Call

 

RADCOM’s management will hold an interactive conference call today at 8:30 am Eastern Time (3:30 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/.

  

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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, acquisition-related expenses, and amortization of intangible assets related to acquisitions, 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, the potential to scale up to a mid-size software company, extend RADCOM’s market availability to further potential customers, and offer a leading 5G assurance solution to simplify 5G rollouts, the expectation that adding Continual’s core assets will create new opportunities for RADCOM, its momentum and potential growth, 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.
 

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RADCOM LTD.

Consolidated Statements of Operations

Unaudited

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

 

   Three months ended
June 30,
   Six months ended
June 30,
 
   2023   2022   2023   2022 
Revenues  $12,372   $11,127   $24,395   $21,751 
Cost of revenues   3,480    3,178    6,828    6,015 
Gross profit   8,892    7,949    17,567    15,736 
                     
Research and development, gross   4,952    5,349    9,721    10,908 
Less - royalty-bearing participation   180    197    442    415 
Research and development, net   4,772    5,152    9,279    10,493 
Sales and marketing   3,351    2,879    6,664    5,784 
General and administrative   1,215    1,007    2,444    2,028 
Total operating expenses   9,338    9,038    18,387    18,305 
Operating loss   (446)   (1,089)   (820)   (2,569)
Financial income (loss), net   1,260    (130)   2,286    817 
Income (loss) before taxes on income   814    (1,219)   1,466    (1,752)
Taxes on income   (33)   (31)   (64)   (90)
                     
Net income (loss)  $781   $(1,250)  $1,402   $(1,842)
                     
Basic and diluted net income (loss) per ordinary share  $0.05   $(0.09)  $0.09   $(0.13)
Weighted average number of ordinary shares used in computing basic net income (loss) per ordinary share   15,063,112    14,462,749    14,977,743    14,408,524 
Weighted average number of ordinary shares used in computing diluted net income (loss) per ordinary share   15,658,748    14,462,749    15,614,553    14,408,524 

 

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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

June 30,

  

Six months ended

June 30,

 
   2023   2022   2023   2022 
GAAP gross profit  $8,892   $7,949   $17,567   $15,736 
Stock-based compensation   74    99    163    191 
Amortization of intangible assets   43    -    43    - 
Non-GAAP gross profit  $9,009   $8,048   $17,773   $15,927 
                     
GAAP research and development, net  $4,772   $5,152   $9,279   $10,493 
Stock-based compensation   536    643    1,081    1,254 
Non-GAAP research and development, net  $4,236   $4,509   $8,198   $9,239 
                     
GAAP sales and marketing  $3,351   $2,879   $6,664   $5,784 
Stock-based compensation   328    357    636    664 
Amortization of intangible assets   21    -    21    - 
Non-GAAP sales and marketing  $3,002   $2,522   $6,007   $5,120 
                     
GAAP general and administrative  $1,215   $1,007   $2,444   $2,028 
Stock-based compensation   249    166    514    362 
Acquisition related expenses   37    -    37    - 
Non-GAAP general and administrative  $929   $841   $1,893   $1,666 
                     
GAAP total operating expenses  $9,338   $9,038   $18,387   $18,305 
Stock-based compensation   1,113    1,166    2,231    2,280 
Amortization of intangible assets   21    -    21    - 
Acquisition related expenses   37    -    37    - 
Non-GAAP total operating expenses  $8,167   $7,872   $16,098   $16,025 
                     
GAAP operating loss  $(446)  $(1,089)  $(820)  $(2,569)
Stock-based compensation   1,187    1,265    2,394    2,472 
Amortization of intangible assets   64    -    64    - 
Acquisition related expenses   37    -    37    - 
Non-GAAP operating income (loss)  $842   $176   $1,675   $(97)

 

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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

June 30,

  

Six months ended

June 30,

 
   2023   2022   2023   2022 
GAAP income (loss) before taxes on income  $814   $(1,219)  $1,466   $(1,752)
Stock-based compensation   1,187    1,265    2,394    2,472 
Amortization of intangible assets   64    -    64    - 
Acquisition related expenses   66    -    66    - 
Non-GAAP income before taxes on income  $2,131   $46   $3,990   $720 
                     
GAAP net income (loss)  $781   $(1,250)  $1,402   $(1,842)
Stock-based compensation   1,187    1,265    2,394    2,472 
Amortization of intangible assets   64    -    64    - 
Acquisition related expenses   66    -    66    - 
Non-GAAP net income  $2,098   $15   $3,926   $630 
                     
GAAP net income (loss) per diluted share  $0.05   $(0.09)  $0.09   $(0.13)
Stock-based compensation   0.08    0.09    0.16    0.17 
Amortization of intangible assets   (*)   -    (*)   - 
Acquisition related expenses   (*)   -    (*)   - 
Non-GAAP net income per diluted share  $0.13    (*)  $0.25   $0.04 
                     
Weighted average number of shares used to compute diluted net income per share   15,658,748    14,878,438    15,614,553    14,843,215 

 

(*)Less than $ 0.01

 

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RADCOM LTD.

Consolidated Balance Sheets

Unaudited

(thousands of U.S. dollars)

 

   As of   As of 
  

June 30,

2023

  

December 31,

2022

 
Current Assets        
Cash and cash equivalents  $35,409   $9,527 
Short-term bank deposits   42,901    64,130 
Trade receivables, net   10,111    11,074 
Inventories   396    795 
Other accounts receivable and prepaid expenses   1,409    1,928 
Total Current Assets   90,226    87,454 
           
Non-Current Assets          
Long-term bank deposits   -    4,002 
Severance pay fund   3,278    3,524 
Other long-term receivables   1,995    2,557 
Property and equipment, net   884    1,010 
Operating lease right-of-use assets   1,946    2,457 
Goodwill and intangible assets, net   3,146    - 
Total Non-Current Assets   11,249    13,550 
           
Total Assets  $101,475   $101,004 
           
Liabilities and Shareholders’ Equity          
           
Current Liabilities          
Trade payables  $1,433   $2,708 
Deferred revenues and advances from customers   4,359    7,037 
Employee and payroll accruals   4,663    5,198 
Operating lease liabilities   949    1,024 
Other liabilities and accrued expenses   8,391    6,829 

Total Current Liabilities

   19,795    22,796 
           
Non-Current Liabilities          
Accrued severance pay   3,859    3,973 
Operating lease liabilities   917    1,452 
Other liabilities and accrued expenses   675    - 
Total Non-Current Liabilities   5,451    5,425 
           
Total Liabilities  $25,246   $28,221 
           
Shareholders’ Equity          
Share capital  $724   $706 
Additional paid-in capital   150,985    148,610 
Accumulated other comprehensive loss   (3,259)   (2,908)
Accumulated deficit   (72,221)   (73,625)
           
Total Shareholders’ Equity   76,229    72,783 

Total Liabilities and Shareholders’ Equity

  $101,475   $101,004 

 

 

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