TEL AVIV, Israel, June 6, 2024 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced that it has secured over $45 million in new contracts since the beginning of 2024. This significant achievement validates the company's strategy for growing the business and increasing revenue through RADCOM's innovative solutions, especially with the transition to 5G and cloud-based networks. Mr. Hilik Itman, RADCOM's interim Chief Executive Officer, commented, "Securing over $45 million in new contracts strengthens our pos ...

Radcom (RDCM) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 18 cents, meeting the Zacks Consensus Estimate. The bottom line increased 50% year over year. Revenues in the quarter totaled $14.1 million, beating the Zacks Consensus Estimate by 4.62%. Total revenues soared 17.5% year over year. This upside underscores RADCOM's continued success in expanding its market presence and driving revenue growth. Non-GAAP net income for the quarter increased to $2.8 million from $1.8 million in the pr ...

Financial Data and Key Metrics Changes - The company reported record first-quarter revenue of $14.1 million, representing a 17.5% year-over-year increase from $12 million in Q1 2023, marking the nineteenth consecutive quarter of revenue growth [13][53]. - Non-GAAP net income for Q1 2024 was $2.8 million, or $0.18 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in Q1 2023 [65]. - The gross margin on a non-GAAP basis was 74% for Q1 2024, with expectations for similar levels in the second quarter [54]. Business Line Data and Key Metrics Changes - The company continues to enhance its RADCOM ACE product line, focusing on cloud integration and AI capabilities, which are critical for telecom operators transitioning to 5G [15][18]. - Sales and marketing expenses reached $3.8 million on a non-GAAP basis, an increase of $747,000 compared to Q1 2023, reflecting strategic investments to capture more opportunities in the 5G market [56]. Market Data and Key Metrics Changes - The company is experiencing a healthy pipeline with a mix of new and existing customers, indicating significant growth potential in the 5G cloud ecosystem [15][20]. - Operators are increasingly investing in their networks and seeking innovative solutions to reduce costs while generating additional revenue from 5G investments [17][18]. Company Strategy and Development Direction - The company aims to become a leading cloud assurance vendor, offering flexible SaaS options for telecom operators [22]. - The focus is on leveraging AI and automation to enhance network management and operational efficiencies, positioning the company favorably in the evolving telecom landscape [18][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering the fifth consecutive year of revenue growth, raising the lower end of the 2024 revenue guidance to $57 million to $60 million [20]. - The company acknowledges challenges in the telecom industry but believes its solutions are essential for operators navigating the transition to 5G and cloud-based networks [37][39]. Other Important Information - The company ended Q1 2024 with cash levels at an all-time high of $85.3 million, supporting its strategic initiatives and potential M&A opportunities [24][61]. - The company continues to receive grants from the Israel Innovation Authority, which are expected to remain stable in the upcoming quarters [60]. Q&A Session Summary Question: How does the current telecom environment affect the company? - Management acknowledged challenges in the telecom industry but emphasized that their solutions are critical for operators transitioning to 5G, positioning the company favorably [37][39]. Question: What are the thoughts on cash position and potential buybacks? - Management indicated that while discussions around buybacks exist, the primary focus remains on stability and market share growth, with sufficient cash reserved for potential M&A [31][32]. Question: How is the sales and marketing strategy evolving? - The company is strategically investing in sales and marketing to capture more opportunities in the 5G market, with a focus on North America and advanced Asian markets [48][49].

Gross profit 10,512$ 8,764$ Research and development, gross 4,056$ 4,224$ Research and development, net 3,847$ 3,962$ General and administrative 1,174$ 964$ Operating income 1,739$ 833$ Financial income, net 1,142$ 1,026$ Net income 2,848$ 1,828$ OPERATING EXPENSES (GAAP) Less - royalty-bearing participation 209$ 262$ Less - royalty-bearing participation 209$ 262$ Research and development, net 3,847$ 3,962$ Sales and marketing 3,752$ 3,005$ CONSOLIDATED BALANCE SHEETS Total Liabilities 26,566$ 25,038$ Total ...

Financial Performance - Total revenues for Q1 2024 were $14.1 million, representing a 17.5% year-over-year growth from $12.0 million in Q1 2023[6] - GAAP net income for Q1 2024 was $0.8 million, or $0.05 per diluted share, compared to $0.6 million, or $0.04 per diluted share in Q1 2023[6] - Non-GAAP net income for Q1 2024 was $2.8 million, or $0.18 per diluted share, up from $1.8 million, or $0.12 per diluted share in Q1 2023[6] - Total operating expenses for Q1 2024 were $10.7 million, compared to $9.0 million in Q1 2023[14] Cash and Assets - The company achieved its highest-ever cash level of $85.3 million as of March 31, 2024, with no debt[6] - The total assets of the company as of March 31, 2024, were $111.9 million, an increase from $107.5 million as of December 31, 2023[18] Revenue Guidance and Growth - The lower end of the 2024 revenue guidance has been raised to $57 million from $56 million, with an upper range of $60 million[5] - The company is positioned to deliver a fifth consecutive year of revenue growth and increase profitability based on current visibility and market opportunities[4] Contracts and Partnerships - A multi-year contract was renewed with Rakuten Mobile, including advanced AI-powered analytics for network operations[4] - A U.S. telecom operator extended its contract to use RADCOM ACE, which will now be hosted on Amazon Web Services as Software-as-a-Service[4]

Continues its Strategy for Profitable Growth Achieves Highest Ever Company Cash Level of $85.3 Million TEL AVIV, Israel, May 15, 2024 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) announced financial results for the first quarter ended March 31, 2024. This gives us the confidence to raise the lower end of our 2024 revenue guidance to $57 - $60 million (from $56 to $60 million)." Earnings Conference Call RADCOM's management will hold an interactive conference call on the same day at 8:00 AM Eastern Time (3:00 P ...

Customer Concentration and Market Focus - The company’s two largest customers accounted for approximately 76% of its revenue in fiscal year 2023[38]. - The company plans to focus its expansion efforts on Tier 1 and other leading communication service providers in North America, Europe, and Asia-Pacific markets[21]. - The company is focusing its sales efforts on Tier 1 and Greenfield Operators in North America, Europe, and select markets, but success in expanding business in these areas is not guaranteed[51]. Market Trends and Competition - The company expects the market for cloud-native, software-based, virtualized network solutions to gain momentum as leading CSPs rollout 5G networks[42]. - The company may face intense competition in the market for service assurance and customer experience management solutions, which could affect its market share[39]. - The telecommunications industry is experiencing financial pressures, leading to reduced investment in capital equipment and infrastructure, which may adversely affect company revenues and results of operations[45]. - The company has observed a trend of decreased revenues and profitability among some Communication Service Providers (CSPs), which could impact future growth and investment in technology[46]. Financial Performance and Risks - The company has experienced net losses prior to 2023 and may not sustain profitability in the future[26]. - The company’s gross margins may vary over time, impacting future profitability[24]. - Current market conditions, including inflation and geopolitical issues, may slow CSP investments in 5G, affecting the company's business and financial condition[59]. - The company may not sustain profitability in the future, which could adversely affect its cash, liquidity, and the market price of its ordinary shares[86]. Operational and Cybersecurity Risks - Disruptions to the company’s IT systems due to system failures or cybersecurity attacks may adversely affect its operations and reputation[43]. - The company has experienced attempted cyberattacks, which, while not materially affecting operations thus far, pose ongoing risks to business continuity and customer trust[44]. - The complexity of solutions provided to larger CSPs is increasing, leading to greater operational risks and potential contractual penalties if projects fail[71]. Currency and Economic Exposure - The company’s revenues are primarily generated in foreign currencies, which may be adversely affected by currency fluctuations[26]. - The company's revenues are primarily generated in foreign currencies, predominantly in U.S. dollars, while a significant portion of expenses is incurred in New Israeli Shekels (NIS), exposing the company to currency fluctuations[93]. - The company has not entered into any hedging transactions to mitigate risks associated with currency fluctuations, which may adversely affect its financial condition[93]. - Economic and political instability in foreign markets, including tariffs and trade barriers, could adversely affect the company's operations[102]. Government Grants and Compliance - The company has received an aggregate of $50.2 million in royalty-bearing grants for research and development activities, which obligates it to pay royalties on revenues from products developed under this program[84]. - The company is subject to ongoing restrictions due to grants received from the IIA, which may affect its ability to transfer know-how outside of Israel[84]. - Compliance with GDPR and CCPA regulations may increase operational costs and impact the company's ability to compete[117]. - The company’s operations are subject to the Foreign Corrupt Practices Act, which could result in severe penalties for non-compliance[120]. Research and Development - The company invested significantly in research and development to enhance automation deployment capabilities and advanced machine learning techniques for network anomaly detection[207]. - The company plans to maintain its investment in research and development while increasing sales and marketing efforts, targeting Tier 1 Greenfield Operators and CSPs transitioning to cloud-native architectures and 5G networks[165]. - The company is enhancing its RADCOM NETWORK DISCOVERY solution and investing in GenAI initiatives to improve future capabilities[208]. Product Offerings and Innovations - RADCOM ACE is a cloud-native assurance solution that integrates into multi-cloud environments, providing real-time subscriber analytics and network insights[127]. - The RADCOM ACE solution supports 5G, 4G, and legacy technologies, offering a unified platform for network intelligence and service assurance[135]. - RADCOM's solutions utilize AI/ML for proactive monitoring and troubleshooting, enhancing customer experience management[134]. - The RADCOM Network Visibility solution optimizes network management and traffic flow, providing advanced packet-broker functionality[138]. Customer Engagement and Support - The company enhances customer relationships through regular meetings and feedback to guide R&D efforts[210]. - Local technical support teams have been established in regional offices to improve customer engagement and address specific needs[210]. - The company provides extensive pre- and post-sale technical support to sales representatives, utilizing various channels for effective communication[210]. Financial Overview - In 2023, the company achieved a net income of approximately $3.7 million, compared to net losses of approximately $2.3 million in 2022 and $5.3 million in 2021[86]. - Total revenues for 2023 reached $51.6 million, a 12% increase from $46.1 million in 2022[199]. - North America accounted for 61.6% of total revenues in 2023, up from 49.8% in 2022, with revenues increasing from $23.0 million to $31.8 million[199].

Q&A The Company does not undertake to revise or update any forward-looking statements for any reason. In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the Company's financial performance. By excluding certain non-cash stock-based compensation expenses, acquisition-related expenses, and amortization of intangible assets related to acquisitions, and financial (income) expenses non-GAAP results provide infor ...

RADCOM Ltd (NASDAQ:RDCM) Q3 2023 Earnings Conference Call November 8, 2023 8:00 AM ET Company Participants Alexander Henderson - Needham & Company Conference Call Participants Eyal Harari - CEO Hadar Rahav - CFO Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the Third Quarter of 2023. All participants are present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer sessio ...

OPERATING EXPENSES (GAAP) Research and development, net OPERATING EXPENSES (NON-GAAP) 10 | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------------------------|-------|--------------|-------|----------|-------|----------| | | 2023 2022 2023 2022 \nUnaudited Unaudited Unaudited Unaudited | | NON-GAAP (1) | | | | | | | $ 4,342 | | $ 4,644 | | $ 12,982 | | $ 14,298 | | | $ 104 | | $ 187 | | $ 546 | | $ 602 | | | $ 4,238 | | $ 4,457 | | $ 12,436 | | $ 13,696 | ...