PR Newswire | Aug 12, 2021 07:01AM EDT

08/12 06:00 CDT

RADCOM Reports Second Quarter 2021 Results- Second-quarter revenues of $9.8 million- Eighth consecutive quarter of year-over-year revenue growth- Cash, cash equivalents, and short-term bank deposits of $64.9 million and no debt- Reiterates 2021 revenue guidance range of $39-$41 million TEL AVIV, Israel, Aug. 12, 2021

TEL AVIV, Israel, Aug. 12, 2021 /PRNewswire/ -- RADCOM Ltd.(NASDAQ: RDCM) today reported its financial results for the second quarter ended June 30, 2021.

Eyal Harari, RADCOM's Chief Executive Officer, commented, "We ended the second quarter with revenues of $9.8 million, which represents an eighth consecutive quarter of year-over-year revenue growth. We continued to execute the Company strategy and invest in our advanced 5G cloud technology as we engage in a significantly higher number of sales opportunities. Additionally, we secured several meaningful orders from our existing customer base during the quarter, increasing our visibility into the second half of 2021.

"As announced in May, we were selected by a top-tier LATAM operator during the second quarter to provide our assurance platform - RADCOM ACE. This order covers the operator's 4G network with the expectation of expanding to their 5G network in the future. We continue to see increased momentum in the 5G market worldwide, with more and more operators launching initial 5G services and tender processes looking for 5G assurance.

"Last week, we introduced an innovative Artificial Intelligence (AI) solution as part of RADCOM ACE, as we continue to advance our cloud technology while expanding our 5G assurance capabilities and enhancing our AI-driven insights. Our AI solution analyzes millions of data sessions in real-time and can reveal underlying network faults not otherwise quickly identified in 5G networks. This helps operators overcome the challenges of operating complex networks and helps ensure the quality of revenue-generating 5G services.

"5G is at the early stages of the journey, but it's an exciting time to be in the telecom industry. 5G momentum is building, which we believe will create additional growth opportunities. We are already engaged in multiple opportunities at different stages of the sales cycle and work within the 5G ecosystem to increase our pipeline. As more operators transition to 5G, we expect the demand for next-generation assurance solutions to increase."

Based on our current visibility, we reiterate the full year 2021 revenue guidance of $39-41 million.

Second Quarter 2021 Financial Highlights:

* Total revenues for the second quarter were $9.8 million, compared to $9.2 million in the second quarter of 2020 * GAAP net loss for the second quarter was $1.1 million, or $0.08 per diluted share, compared to a GAAP net loss of $0.2 million, or $0.01 per diluted share for the second quarter of 2020, resulting from increased investment in research and development as well as sales and marketing * Non-GAAP net loss for the period was $0.3 million, or a loss of $0.02 per diluted share, compared to a non-GAAP net income of $0.2 million, or an income of $0.02 per diluted share for the second quarter of 2020 * As of June 30, 2021, the Company had cash and cash equivalents and short-term bank deposits of $64.9 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 available on RADCOM'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:Amir HaiCFO +972-77-774-5011 amir.hai@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 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 sales opportunities, increasing its visibility into the second half of 2021, its potential expansion with a top-tier LATAM operator, increased momentum in the 5G market worldwide, expanding its 5G assurance capabilities and enhancing its AI-driven insights, its growth opportunities and pipeline, the demand for next-generation assurance solutions built for the cloud and 5G-ready 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.

RADCOM Ltd.

Consolidated Statements of Operations

Unaudited

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

Three months ended Six months ended

June 30, June 30,

2021 2020 2021 2020

Revenues $9,756 $9,159 $18,896 $17,487

Cost of revenues 2,466 2,143 4,833 5,252

Gross profit 7,290 7,016 14,063 12,235

Research and development, gross 5,226 4,710 10,330 9,500

Less - royalty-bearing 70 572 138 572participation

Research and development, net 5,156 4,138 10,192 8,928

Sales and marketing 2,566 2,281 5,156 4,734

General and administrative 1,007 906 2,000 1,929

Total operating expenses 8,729 7,325 17,348 15,591

Operating loss (1,439) (309) (3,285) (3,356)

Financial income, net 382 150 500 320

Loss before taxes on income (1,057) (159) (2,785) (3,036)

Taxes on income (40) (21) (58) (53)

Net loss ($1,097) ($180) ($2,843) ($3,089)

Basic and diluted net loss per ($0.08) ($0.01) ($0.20) ($0.22)ordinary share

Weighted average number of 14,131,634 13,930,021 14,089,010 13,902,927 ordinary shares used incomputing basic and diluted netloss per ordinary share

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 Six months ended

June 30, June 30,

2021 2020 2021 2020

GAAP gross $7,290 $7,016 $14,063 $12,235profit

Stock-based compensation 38 14 82 42

Non-GAAP gross profit $7,328 $7,030 $14,145 $12,277

$5,156 $4,138 $10,192 $8,928GAAP research and development, net

Stock-based compensation 324 251 593 418

Non-GAAP research and development, net $4,832 $3,887 $9,599 $8,510

$2,566 $2,281 $5,156 $4,734GAAP sales and marketing

Stock-based compensation 265 44 484 187

Non-GAAP sales and marketing $2,301 $2,237 $4,672 $4,547

$1,007 $906 $2,000 $1,929GAAP general and administrative

Stock-based compensation 166 102 349 287

Non-GAAP general and administrative $841 $804 $1,651 $1,642

$8,729 $7,325 $17,348 $15,591GAAP total operating expenses

Stock-based compensation 755 397 1,426 892

Non-GAAP total operating expenses $7,974 $6,928 $15,922 $14,699

($1,439) ($309) ($3,285) ($3,356)GAAP operating loss

Stock-based compensation 793 411 1,508 934

Non-GAAP operating income (loss) ($646) $102 ($1,777) ($2,422)

($1,057) ($159) ($2,785) ($3,036)GAAP loss before taxes on income

Stock-based compensation 793 411 1,508 934

Non-GAAP income (loss) before taxes on income ($264) $252 ($1,277) ($2,102)

($1,097) ($180) ($2,843) ($3,089)GAAP net loss

Stock-based compensation 793 411 1,508 934

Non-GAAP net income (loss) ($304) $231 ($1,335) ($2,155)

($0.08) ($0.01) ($0.20) ($0.22)GAAP net loss per diluted share

Stock-based compensation 0.06 0.03 0.11 0.07

Non-GAAP net income (loss) per diluted share ($0.02) $0.02 ($0.09) ($0.15)

Weighted average number of shares used to compute diluted net income (loss) per 14,131,634 14,329,385 14,089,010 13,902,927share

RADCOM Ltd.

Consolidated Balance Sheets

(thousands of U.S. dollars)

As of As of

June 30, December 31,

2021 2020

(unaudited) (audited)

Current Assets

Cash and cash equivalents $6,696 $13,548

Short-term bank deposits 58,162 55,413

Trade receivables, net 13,604 12,446

Inventories 876 540

Other accounts receivable and prepaid expenses 1,628 1,437

80,966 83,384Total Current Assets

Non-Current Assets

Severance pay fund 3,861 3,814

Other long-term receivables 1,584 2,185

Property and equipment, net 1,256 1,311

Operating lease right-of-use assets 2,361 2,945

9,062 10,255Total Non-Current Assets

Total Assets $90,028 $93,639

Liabilities and Shareholders' Equity

Current Liabilities

Trade payables $2,045 $1,592

Deferred revenues and advances from customers 1,309 3,149

Employee and payroll accruals 4,391 4,414

Operating lease liabilities 962 1,028

Other liabilities and accrued expenses 4,678 4,721

13,385 12,725Total Current Liabilities

Non-Current Liabilities

Deferred revenues - 26

Accrued severance pay 4,437 4,473

Operating lease liabilities 1,467 2,008

Other liabilities and accrued expenses 78 209

5,982 6,716Total Non-Current Liabilities

Total Liabilities $19,367 $21,620

Shareholders' Equity

Share capital $667 $657

Additional paid-in capital 141,627 140,129

Accumulated other comprehensive loss (2,685) (2,662)

Accumulated deficit (68,948) (66,105)

Total Shareholders' Equity 70,661 72,019

$90,028 $93,639Total Liabilities and Shareholders' Equity

View original content: https://www.prnewswire.com/news-releases/radcom-reports-second-quarter-2021-results-301354194.html

SOURCE RADCOM Ltd.