RADCOM Reports Third Quarter 2017 Financial Results

TEL AVIV, Israel, Nov. 6, 2017 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM), today reported its financial results for the third quarter ended September 30, 2017.

"We are very pleased with our third quarter execution which resulted in record-high quarterly revenues driven by our work with AT&T and other top-tier operators," commented Mr. Yaron Ravkaie, RADCOM's CEO.  "During this quarter, we announced a new win with a world leading top-tier operator and are now executing on the deployment of this contract. Also, subsequent to the quarter, we signed a three-year contract extension with Globe Telecom – the leading operator in the Philippines, with over 60 million customers - to provide service assurance for their mobile network, and to ensure their future transformation to NFV (Network Functions Virtualization). Given the ongoing momentum we see in the market, we also executed during October a successful public equity offering that significantly strengthens our balance sheet and allows us to continue executing on the company's growth strategy. With our current visibility we are updating our 2017 revenue guidance to $36.6-$37.8 million."

Third Quarter 2017 Financial Highlights:

• Revenues: Total revenues for the third quarter were $9.6 million, up 25% compared to $7.7 million in the third quarter of 2016. 
  
  
• Net Income: GAAP net income for the period was $1.2 million, or $0.10 per diluted share, compared to approximately breakeven for the third quarter of 2016.
  
  
• Non-GAAP Net Income:  Non-GAAP net income for the period was $1.7 million, or $0.14 per diluted share, compared to non-GAAP net income of $1.0 million, or $0.09 per diluted share, for the third quarter of 2016.
  
  Both GAAP and non-GAAP results for the third quarter of 2017 included a $155,000, or $0.01 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $385,000, or $0.03 per diluted share, in the third quarter of 2016.
  
  
• Balance sheet: As of September 30, 2017, the Company had cash and cash equivalents of $33.6 million and no debt.   Subsequent to the quarter, RADCOM closed an underwritten public offering of 1,661,536 ordinary shares which generated net proceeds of approximately $30.2 million.

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: +972-3-918-0610

For those unable to listen to the call at the time, a replay will be available from November 7^th on RADCOM's website.

About RADCOM
RADCOM (NASDAQ: RDCM) is a first-mover and leading provider of NFV-ready service assurance and customer experience management solutions for Communications Service Providers (CSPs). RADCOM's software - MaveriQ - continuously monitors network performance and quality of services, to optimize user experience for CSPs' subscribers. RADCOM specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS and others. MaveriQ enables CSPs to smoothly migrate their networks to NFV by assuring physical, NFV-based and hybrid networks. For more information, please visit www.radcom.com.

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 2017 and expected new projects for the Company it is using foward-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.

For all investor enquiries, please contact:
Ran Vered
CFO
+972-77-774-5011
[email protected]

For all media enquiries, please contact:
Mark Rolston
Marketing Manager
+972-77-774-5036
[email protected]

SOURCE RADCOM Ltd.

Related Links

http://www.radcom.com