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 | ...

AGENDA 5 7 Income (loss) before taxes on income Cost of revenues 9 4 0 General and administrative 8 Operating income (loss) Sales and marketing CONSOLIDATED BALANCE SHEETS | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|----------------------------------------------------------------------------------------------------------------------------- ...

This new integration with Google Cloud has already received positive feedback from potential customers, and we have several ongoing opportunities for RADCOM ACE on Google Cloud. We offer multiple assurance use cases to automatically prevent service degradation, drive network automation and safe operational costs powered by AI. Integrating with these top public cloud providers means telco operator can choose whatever provider they want to use our assurance technology to manage their 5G rollouts. Now please t ...

RADCOM Ltd. (NASDAQ:RDCM) Q1 2023 Earnings Conference Call May 10, 2023 8:00 AM ET Company Participants Eyal Harari - Chief Executive Officer Hadar Rahav - Chief Financial Officer​​ Conference Call Participants Arjun Bhatia - William Blair Alex Henderson - Needham & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the First Quarter of 2023. All participants are presently in a listen-only mode. Following management's formal presentati ...

RADCOM Introduction and safe harbor Q&A 3 4 Cash and cash equivalents and short-term bank deposits of $77.9 million dollars and no debt !^DCOM Basic and diluted net income (loss) per ordinary share $ 0.04 $ (0.04) | --- | --- | --- | --- | |-------|----------------------------------------------|-------|-----------------------------| | | March 31, \n2023 \nUnaudited \n$ 12,023 | | 2022 \nUnaudited \n$ 10,624 | | | $ 3,348 | | $ 2,837 | | | $ 8,675 | | $ 7,787 | | | 72% | | 73% | | | | | | | | $ 4,769 | | $ 5 ...

Customer Concentration and Revenue - The two largest customers accounted for approximately 77% of the company's revenue in fiscal year 2022[37]. - Large customers possess significant negotiating leverage, potentially leading to unfavorable terms that could adversely affect revenue and operational efficiency[49]. - Approximately 97% of the company's sales in 2022 were generated outside of Israel, highlighting its significant international presence[85]. - North America accounted for 49.8% of total revenues in 2022, while Asia contributed 27.2% and EMEA (including Israel) contributed 16.6%[186]. Market and Competitive Landscape - The company plans to focus expansion efforts on tier 1 and leading innovative communication service providers in North America, Europe, and Asia-Pacific markets[23]. - The company may face increased competition from existing and potential competitors with greater resources and market recognition[38]. - The competitive landscape includes major players like NetScout, Infovista, and Huawei, with the company differentiating itself through advanced technology and cloud-native solutions[187]. - The company is focusing sales efforts on Tier 1 and Greenfield Operators in North America and Europe, but success is not guaranteed due to competitive pressures[50]. Technology and Product Development - The company provides 5G ready cloud-native network intelligence and service assurance solutions for Communication Service Providers (CSPs) to support the launch and operation of 5G networks[122]. - RADCOM ACE, the company's flagship 5G automated assurance solution, is designed to deliver end-to-end network intelligence and AI-driven insights for 5G operations, ensuring a seamless transition for CSPs' customers to 5G networks[125]. - The company’s solutions utilize AI and ML for automated anomaly detection and root cause analysis, enhancing network intelligence and customer experience[177]. - The company has secured contracts with major operators including AT&T, Dish, and Rakuten, enhancing their 5G service quality and customer experience through real-time analytics and automated assurance solutions[130][136][149]. Financial Performance and Challenges - The company incurred net losses of approximately $2.3 million, $5.3 million, and $4.0 million in 2022, 2021, and 2020 respectively, indicating ongoing challenges in achieving profitability[84]. - Quarterly results may fluctuate significantly due to factors such as customer purchase timing, long sales cycles, and competitive conditions, impacting share price[51]. - Current market conditions, including inflation and geopolitical issues, may slow CSP investments and impact the company's growth and financial health[58]. - The company has experienced a non-linear sales pattern, with higher order volumes typically occurring at the end of quarters, complicating revenue predictions[55]. Research and Development - The company received an aggregate of $48.4 million in royalty-bearing grants for research and development activities, which imposes ongoing financial obligations[79]. - Significant investments in research and development were made to enhance automation deployment capabilities and advanced ML techniques for network anomaly detection[193]. - The company expects to continue significant investment in 2023 to develop new features and modular solutions for the service assurance market[195]. - In 2023, the company plans to increase investment in research and development and sales and marketing efforts, targeting Tier 1 and Greenfield Operators transitioning to 5G networks[156]. Operational Risks and Compliance - The company may face penalties if it fails to meet service levels under warranty and extended maintenance agreements, which could impact financial condition[74]. - The company is exposed to risks associated with currency fluctuations, as a significant portion of its expenses is incurred in New Israeli Shekels while revenues are primarily in U.S. dollars[89]. - The company is subject to potential claims of infringement of third-party intellectual property, which could lead to significant financial and managerial resource expenditures[81]. - Compliance with privacy and data security laws, such as GDPR and CCPA, may increase operational costs and impact competitiveness[111][112]. Global Economic Impact - Economic and political instability in emerging markets could adversely affect revenue generation and operational results[59]. - Global economic conditions may negatively impact the telecommunications sector, leading to reduced consumer spending and affecting sales[109]. - The telecommunications industry has experienced financial pressures, leading to reduced investment in capital-intensive projects by some communication service providers[45]. Employee Relations and Operations - The company has never experienced a strike or work stoppage and considers its relations with employees to be good[205]. - The total headcount as of December 31, 2022, was 284, including employees and contractors[205]. - The company currently leases approximately 22,830 square feet of office space in Tel Aviv, Israel[213]. - The company provides benefits in the United States averaging approximately 19.1% of the employee's base salary[210].