Radcom(US:RDCM)2022-05-12 14:45Financial Data and Key Metrics Changes - Revenue for Q1 2022 grew 16% year-over-year, reaching $10.6 million, marking the 11th consecutive quarter of revenue growth [10][37] - Gross margin on a non-GAAP basis was 74%, with gross R&D expenses at $4.9 million, a slight increase from the previous year [38][39] - Net income for Q1 2022 was $614,000 or $0.04 per diluted share, compared to a net loss of $1,030,000 or $0.07 per diluted share in Q1 2021 [41] Business Line Data and Key Metrics Changes - The company secured two significant 5G contracts: one with DISH for monitoring its 5G cloud network and another with a European mobile network operator [9][13] - The 5G strategy is yielding results, with expectations for further interest from operators and additional multiyear contracts [14][16] Market Data and Key Metrics Changes - The 5G market is expected to be a catalyst for growth, with increasing sales engagements and potential for additional contracts [16][19] - The company noted a healthy pipeline of opportunities from both existing and new customers, indicating strong demand in the 5G sector [18][19] Company Strategy and Development Direction - The company is focused on enhancing its RADCOM ACE solution and expanding its AI-driven insights to align with market needs [17] - Continued investment in R&D is deemed vital for maintaining technological leadership in the evolving 5G landscape [17][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a solid pipeline and increased revenue guidance for fiscal 2022, now projected between $43 million and $47 million [33][34] - The company is confident in its ability to deliver growth above initial revenue guidance due to recent contract wins and a healthy opportunity pipeline [33][34] Other Important Information - The company received a grant of $218,000 from the Israel Innovation Authority, which positively impacted net R&D expenses [39] - AT&T renewed its multiyear assurance contract, providing good visibility into 2022 and indicating a strong ongoing partnership [20] Q&A Session Summary Question: Timing and expansion opportunities with DISH - Management expects revenue from the DISH contract to start in the second half of the year, with most revenue coming in subsequent years, and is looking forward to further expansion as DISH grows [45][48] Question: Role of AI and predictive analytics in the pipeline - AI capabilities are becoming a key differentiator, with increasing customer interest in predictive analytics to enhance network efficiency and automation [49][51] Question: Increase in operating expenses due to in-person events - A slight increase in sales and marketing expenses is expected due to the return of in-person events, which management believes will enhance business opportunities [53][56]