Exhibit 99.1
FOR IMMEDIATE RELEASE
RADCOM Reports Fourth Quarter and Full Year 2020 Results
| ● | Full year revenues of $37.6 million, 14% year-over-year growth | |
| ● | Fourth quarter revenues of $10.2 million, 13% year-over-year growth | |
| ● | Cash, cash equivalents, and short-term bank deposits of $69 million and no debt | |
| ● | 2021 revenue guidance range of $39-$41 million |
TEL AVIV, Israel – February 17, 2021 − RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2020.
Commenting on the results, Eyal Harari, RADCOM’s CEO, said: “We are pleased with our fourth quarter financial results, which concluded a full year of strong execution. The fourth quarter represented another consecutive quarter of revenue growth and closed the full year at the high end of our revenue guidance. We continued to manage operating expenses prudently throughout 2020 while executing our growth strategy and ensuring the safety of our employees and customers during the pandemic.”
Our considerable R&D investment over the last several years resulted in the launch of our innovative 5G assurance platform, RADCOM ACE, in Q3 and has already gained market traction following our multi-year agreement with Rakuten Mobile, one of the industry’s first standalone 5G assurance contract wins.
We expect 2021 to be an important year as more operators transition to 5G and the first advanced standalone networks begin to roll out. We continue to see increased investments across the 5G market from equipment providers to network operators, and we believe that the evolving market trends position us well for the future. Our leading 5G offering and expertise will become increasingly vital as industry players upgrade their networks and rely on our automated assurance capabilities and cloud-based technology. As the positive momentum builds in the 5G market, we intend to continue investing in our product development and sales and marketing.
“We are excited to enter the next chapter of our long-term journey and capitalize on the emerging 5G evolution while adapting to the ongoing COVID-19 situation. We expect the company to continue growing in 2021 and, based on our current visibility, we are providing full year 2021 revenue guidance of $39-$41 million.”
Fourth Quarter 2020 Financial Highlights:
| ● | Total revenues for the fourth quarter were $10.2 million, compared to $9.0 million in the fourth quarter of 2019 | |
| ● | GAAP net loss for the fourth quarter decreased to $0.5 million, or $0.03 per diluted share, compared to a GAAP net loss of $1.1 million, or $0.08 per diluted share for the fourth quarter of 2019 | |
| ● | Non-GAAP net income for the period was $0.1 million, or less than $0.01 per diluted share, compared to a non-GAAP net loss of $0.5 million, or a loss of $0.04 per diluted share for the fourth quarter of 2019 | |
| ● | As of December 31, 2020, the Company had cash and cash equivalents and short-term bank deposits of $69 million, and no debt |
Full Year 2020 Financial Highlights:
| ● | Total revenues for the full year were $37.6 million, compared to $33 million in the full year of 2019 | |
| ● | GAAP net loss for the full year decreased to $4 million, or $0.29 per diluted share, compared to a GAAP net loss of $6.8 million, or $0.50 per diluted share for the full year of 2019 | |
| ● | Non-GAAP net loss for the full year decreased to $1.8 million, or $0.13 per diluted share, compared to a non-GAAP net loss of $4.6 million, or a loss of $0.33 per diluted share for the full year of 2019 |
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 AM Eastern Standard Time (3:00 PM Israel Standard 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 later the same day.
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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:
Amir Hai
CFO
+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,” “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 continued management of operating expenses, the positive momentum of the 5G market, levels of investments in 5G and other market and industry trends, the Company’s market position and traction, cash position, potential and expected growth, the potential in the RADCOM ACE product generally and with Rakuten in particular, the Company’s expectations regarding the impact of COVID-19, its ability to capitalize on the emerging 5G opportunities 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.
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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 December 31, | Twelve months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||
| Revenues | $ | 10,246 | $ | 9,029 | $ | 37,562 | $ | 33,010 | ||||||||
| Cost of revenues | 3,116 | 2,643 | 10,758 | 9,917 | ||||||||||||
| Gross profit | 7,130 | 6,386 | 26,804 | 23,093 | ||||||||||||
| Research and development, gross | 4,815 | 4,657 | 19,199 | 18,578 | ||||||||||||
| Less - royalty-bearing participation | 308 | 425 | 1,358 | 1,838 | ||||||||||||
| Research and development, net | 4,507 | 4,232 | 17,841 | 16,740 | ||||||||||||
| Sales and marketing | 2,501 | 2,693 | 9,709 | 10,514 | ||||||||||||
| General and administrative | 899 | 963 | 3,836 | 3,674 | ||||||||||||
| Total operating expenses | 7,907 | 7,888 | 31,386 | 30,928 | ||||||||||||
| Operating loss | (777 | ) | (1,502 | ) | (4,582 | ) | (7,835 | ) | ||||||||
| Financial income, net | 370 | 474 | 810 | 1,172 | ||||||||||||
| Loss before taxes on income | (407 | ) | (1,028 | ) | (3,772 | ) | (6,663 | ) | ||||||||
| Taxes on income | (54 | ) | (64 | ) | (220 | ) | (169 | ) | ||||||||
| Net loss | $ | (461 | ) | $ | (1,092 | ) | $ | (3,992 | ) | $ | (6,832 | ) | ||||
| Basic and diluted net loss per ordinary share | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.29 | ) | $ | (0.50 | ) | ||||
| Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share | 13,957,085 | 13,809,258 | 13,927,788 | 13,779,885 | ||||||||||||
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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 December 31, | Twelve months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| GAAP gross profit | $ | 7,130 | $ | 6,386 | $ | 26,804 | $ | 23,093 | ||||||||
| Stock-based compensation | 34 | 48 | 106 | 204 | ||||||||||||
| Non-GAAP gross profit | $ | 7,164 | $ | 6,434 | $ | 26,910 | $ | 23,297 | ||||||||
| GAAP research and development, net | $ | 4,507 | $ | 4,232 | $ | 17,841 | $ | 16,740 | ||||||||
| Stock-based compensation | 177 | 161 | 879 | 729 | ||||||||||||
| Non-GAAP research and development, net | $ | 4,330 | $ | 4,071 | $ | 16,962 | $ | 16,011 | ||||||||
| GAAP sales and marketing | $ | 2,501 | $ | 2,693 | $ | 9,709 | $ | 10,514 | ||||||||
| Stock-based compensation | 184 | 160 | 536 | 638 | ||||||||||||
| Non-GAAP sales and marketing | $ | 2,317 | $ | 2,533 | $ | 9,173 | $ | 9,876 | ||||||||
| GAAP general and administrative | $ | 899 | $ | 963 | $ | 3,836 | $ | 3,674 | ||||||||
| Stock-based compensation | 151 | 222 | 648 | 657 | ||||||||||||
| Non-GAAP general and administrative | $ | 748 | $ | 741 | $ | 3,188 | $ | 3,017 | ||||||||
| GAAP total operating expenses | $ | 7,907 | $ | 7,888 | $ | 31,386 | $ | 30,928 | ||||||||
| Stock-based compensation | 512 | 543 | 2,063 | 2,024 | ||||||||||||
| Non-GAAP total operating expenses | $ | 7,395 | $ | 7,345 | $ | 29,323 | $ | 28,904 | ||||||||
| GAAP operating loss | $ | (777 | ) | $ | (1,502 | ) | $ | (4,582 | ) | $ | (7,835 | ) | ||||
| Stock-based compensation | 546 | 591 | 2,169 | 2,228 | ||||||||||||
| Non-GAAP operating loss | $ | (231 | ) | $ | (911 | ) | $ | (2,413 | ) | $ | (5,607 | ) | ||||
| GAAP loss before taxes on income | $ | (407 | ) | $ | (1,028 | ) | $ | (3,772 | ) | $ | (6,663 | ) | ||||
| Stock-based compensation | 546 | 591 | 2,169 | 2,228 | ||||||||||||
| Non-GAAP loss before taxes on income | $ | 139 | $ | (437 | ) | $ | (1,603 | ) | $ | (4,435 | ) | |||||
| GAAP net loss | $ | (461 | ) | $ | (1,092 | ) | $ | (3,992 | ) | $ | (6,832 | ) | ||||
| Stock-based compensation | 546 | 591 | 2,169 | 2,228 | ||||||||||||
| Non-GAAP net income (loss) | $ | 85 | $ | (501 | ) | $ | (1,823 | ) | $ | (4,604 | ) | |||||
| GAAP net loss per diluted share | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.29 | ) | $ | (0.50 | ) | ||||
| Stock-based compensation | 0.04 | 0.04 | 0.16 | 0.17 | ||||||||||||
| Non-GAAP net income (loss) per diluted share | $ | 0.01 | $ | (0.04 | ) | $ | (0.13 | ) | $ | (0.33 | ) | |||||
| Weighted average number of shares used to compute diluted net loss per share | 14,302,719 | 13,809,258 | 13,927,788 | 13,779,885 | ||||||||||||
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RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
| As of | As of | |||||||
December 31, | December 31, | |||||||
| (unaudited) | (audited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 13,548 | $ | 6,201 | ||||
| Short-term bank deposits | 55,413 | 63,080 | ||||||
| Trade receivables, net | 12,446 | 11,039 | ||||||
| Inventories | 540 | 1,356 | ||||||
| Other accounts receivable and prepaid expenses | 1,437 | 1,536 | ||||||
| Total Current Assets | 83,384 | 83,212 | ||||||
| Non-Current Assets | ||||||||
| Severance pay fund | 3,814 | 3,365 | ||||||
| Other long-term receivables | 2,185 | 2,314 | ||||||
| Property and equipment, net | 1,311 | 1,669 | ||||||
| Operating lease right-of-use assets | 2,945 | 5,842 | ||||||
| Total Non-Current Assets | 10,255 | 13,190 | ||||||
| Total Assets | $ | 93,639 | $ | 96,402 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Trade payables | $ | 1,592 | $ | 2,452 | ||||
| Deferred revenues and advances from customers | 3,149 | 828 | ||||||
| Employee and payroll accruals | 4,414 | 4,132 | ||||||
| Operating lease liabilities | 1,028 | 1,263 | ||||||
| Other liabilities and accrued expenses | 4,721 | 4,050 | ||||||
| Total Current Liabilities | 14,904 | 12,725 | ||||||
| Non-Current Liabilities | ||||||||
| Deferred revenues | 26 | 100 | ||||||
| Accrued severance pay | 4,473 | 3,904 | ||||||
| Operating lease liabilities | 2,008 | 4,967 | ||||||
| Other liabilities and accrued expenses | 209 | 836 | ||||||
| Total Non-Current Liabilities | 6,716 | 9,807 | ||||||
| Total Liabilities | $ | 21,620 | $ | 22,532 | ||||
| Shareholders’ Equity | ||||||||
| Share capital | $ | 657 | $ | 648 | ||||
| Additional paid-in capital | 140,129 | 137,969 | ||||||
| Accumulated other comprehensive loss | (2,662 | ) | (2,634 | ) | ||||
| Accumulated deficit | (66,105 | ) | (62,113 | ) | ||||
| Total Shareholders’ Equity | 72,019 | 73,870 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 93,639 | $ | 96,402 | ||||
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