Radcom Ltd 6-K, filed May 15, 2024
Radcom Ltd (RDCM)
About this 6-K
Radcom Ltd filed this 6-K on May 15, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May 2024
Commission File Number: 0-29452
RADCOM LTD.
(Translation of registrant’s name into English)
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form:40-F ☐
THE GAAP FINANCIAL STATEMENTS INCLUDED IN EXHIBIT 99.1 TO THIS FORM 6-K OF THE REGISTRANT ARE HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRANT’S REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-190207, 333-195465, 333-203087, 333-211628, 333-215591, 333-260997, 333-270983 AND 333-276692), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This report on Form 6-K of the registrant consists of the contents above and the following document, which is attached hereto and incorporated by reference herein:
| Exhibit 99.1 | Press release, dated May 15, 2024, reporting the Registrant’s First Quarter of 2024 Results |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| RADCOM LTD. | ||
| Date: May 15, 2024 | By: | /s/ Hadar Rahav |
| Name: | Hadar Rahav | |
| Title: | Chief Financial Officer | |
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Exhibit 99.1
 |
 |
FOR IMMEDIATE RELEASE
RADCOM Delivers Strong First Quarter Results with 17.5% Y-o-Y Revenue Growth
Continues its Strategy for Profitable Growth
Achieves Highest Ever Company Cash Level of $85.3 Million
TEL AVIV, Israel – May 15, 2024 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Highlights:
| ● | Total revenues for the first quarter were $14.1 million, compared to $12.0 million in the first quarter of 2023, 17.5% year-over-year growth. |
| ● | GAAP net income for the first quarter was $0.8 million, or $0.05 per diluted share, compared to $0.6 million, or $0.04 per diluted share, for the first quarter of 2023. |
| ● | Non-GAAP net income for the period was $2.8 million, or $0.18 per diluted share, compared to $1.8 million, or $0.12 per diluted share, for the first quarter of 2023. |
| ● | As of March 31, 2024, the Company had cash, cash equivalents, and short-term bank deposits of $85.3 million and no debt, ending the quarter with its highest-ever cash levels. |
Management Comments:
Hilik Itman, RADCOM’s Interim Chief Executive Officer, commented on the results: “We continued our positive momentum from 2023 into 2024 with a revenue increase of 17.5%, a nineteenth consecutive quarter of year-over-year growth. Thanks to our strong execution and careful expense management, we continued delivering profitable growth and generated positive cash flow, reaching a new milestone totaling $85.3 million.”
Mr. Itman continued, “We have renewed our multi-year contract with Rakuten Mobile, extending our collaboration and strengthening our partnership with this innovative operator in Japan as announced last month. This contract extension includes advanced artificial intelligence (AI)- powered analytics, enabling Rakuten Mobile to drive efficient, automated network operations for its nationwide rollout.”
He added, “Also, a U.S. telecom operator has extended its contract to use RADCOM ACE. As part of this contract extension, RADCOM ACE will be hosted and accessed on Amazon Web Services as Software-as-a-Service.”
Mr. Itman concluded, “Based on our current visibility, sales engagements, and overall market opportunity, we remain well-positioned to deliver on our customer commitments, drive the business forward to deliver a fifth consecutive year of revenue growth, and increase our profitability.
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 PM Israel Daylight Time) to discuss the results and answer participants’ questions. To join the interactive 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: +972-3-918-0644
A live webcast of the presentation will be available at https://veidan.activetrail.biz/radcomq1-2024. The webcast will be archived for 90 days following the live presentation.
For those unable to listen to the call, a replay will be available a few hours later in the investor relations section on the Company’s website at https://radcom.com/investor-relations/.
###
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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:
Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@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 with 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, financial income (expenses), acquisition-related expenses, and amortization of intangible assets related to acquisitions, 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 full-year 2024 revenue guidance and expectations regarding delivering on customer commitments, driving the business forward to deliver revenue growth, and increasing profitability, it uses 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 demand for the Company’s products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel. 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 March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 14,123 | $ | 12,023 | ||||
| Cost of revenues | 3,751 | 3,348 | ||||||
| Gross profit | 10,372 | 8,675 | ||||||
| Research and development, gross | 4,593 | 4,769 | ||||||
| Less - royalty-bearing participation | 209 | 262 | ||||||
| Research and development, net | 4,384 | 4,507 | ||||||
| Sales and marketing | 4,285 | 3,313 | ||||||
| General and administrative | 2,013 | 1,229 | ||||||
| Total operating expenses | 10,682 | 9,049 | ||||||
| Operating loss | (310 | ) | (374 | ) | ||||
| Financial income, net | 1,105 | 1,026 | ||||||
| Income before taxes on income | 795 | 652 | ||||||
| Taxes on income | (33 | ) | (31 | ) | ||||
| Net income | $ | 762 | $ | 621 | ||||
| Basic and diluted net income per ordinary share | $ | 0.05 | $ | 0.04 | ||||
| Weighted average number of ordinary shares used in computing basic net income per ordinary share | 15,427,514 | 14,891,425 | ||||||
| Weighted average number of ordinary shares used in computing diluted net income per ordinary share | 15,866,910 | 15,569,410 | ||||||
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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 March 31, | ||||||||
| 2024 | 2023 | |||||||
| GAAP gross profit | $ | 10,372 | $ | 8,675 | ||||
| Stock-based compensation | 84 | 89 | ||||||
| Amortization of intangible assets | 56 | - | ||||||
| Non-GAAP gross profit | $ | 10,512 | $ | 8,764 | ||||
| GAAP research and development, net | $ | 4,384 | $ | 4,507 | ||||
| Stock-based compensation | 537 | 545 | ||||||
| Non-GAAP research and development, net | $ | 3,847 | $ | 3,962 | ||||
| GAAP sales and marketing | $ | 4,285 | $ | 3,313 | ||||
| Stock-based compensation | 504 | 308 | ||||||
| Amortization of intangible assets | 29 | - | ||||||
| Non-GAAP sales and marketing | $ | 3,752 | $ | 3,005 | ||||
| GAAP general and administrative | $ | 2,013 | $ | 1,229 | ||||
| Stock-based compensation | 839 | 265 | ||||||
| Non-GAAP general and administrative | $ | 1,174 | $ | 964 | ||||
| GAAP total operating expenses | $ | 10,682 | $ | 9,049 | ||||
| Stock-based compensation | 1,880 | 1,118 | ||||||
| Amortization of intangible assets | 29 | - | ||||||
| Non-GAAP total operating expenses | $ | 8,773 | $ | 7,931 | ||||
| GAAP operating loss | $ | (310 | ) | $ | (374 | ) | ||
| Stock-based compensation | 1,964 | 1,207 | ||||||
| Amortization of intangible assets | 85 | - | ||||||
| Non-GAAP operating income | $ | 1,739 | $ | 833 | ||||
| GAAP income before taxes on income | $ | 795 | $ | 652 | ||||
| Stock-based compensation | 1,964 | 1,207 | ||||||
| Amortization of intangible assets | 85 | - | ||||||
| Financial expenses | 37 | - | ||||||
| Non-GAAP income before taxes on income | $ | 2,881 | $ | 1,859 | ||||
| GAAP net income | $ | 762 | $ | 621 | ||||
| Stock-based compensation | 1,964 | 1,207 | ||||||
| Amortization of intangible assets | 85 | - | ||||||
| Financial expenses | 37 | - | ||||||
| Non-GAAP net income | $ | 2,848 | $ | 1,828 | ||||
| GAAP net income per diluted share | $ | 0.05 | $ | 0.04 | ||||
| Stock-based compensation | 0.12 | 0.08 | ||||||
| Amortization of intangible assets | 0.01 | - | ||||||
| Financial expenses | (*) | - | ||||||
| Non-GAAP net income per diluted share | $ | 0.18 | $ | 0.12 | ||||
| Weighted average number of shares used to compute diluted net income per share | 15,866,910 | 15,569,410 | ||||||
| (*) | Less than $ 0.01 |
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RADCOM LTD.
Consolidated Balance Sheets
(thousands of U.S. dollars)
| As of | As of | |||||||
March 31, | December 31, | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 8,139 | $ | 10,892 | ||||
| Short-term bank deposits | 77,126 | 71,273 | ||||||
| Trade receivables, net | 14,829 | 13,412 | ||||||
| Inventories | 975 | 246 | ||||||
| Other accounts receivable and prepaid expenses | 1,469 | 1,592 | ||||||
| Total Current Assets | 102,538 | 97,415 | ||||||
| Non-Current Assets | ||||||||
| Severance pay fund | 3,118 | 3,142 | ||||||
| Other long-term receivables | 1,209 | 1,573 | ||||||
| Property and equipment, net | 787 | 798 | ||||||
| Operating lease right-of-use assets | 1,373 | 1,651 | ||||||
| Goodwill and intangible assets, net | 2,865 | 2,950 | ||||||
| Total Non-Current Assets | 9,352 | 10,114 | ||||||
| Total Assets | $ | 111,890 | $ | 107,529 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Trade payables | $ | 3,677 | $ | 2,640 | ||||
| Deferred revenues and advances from customers | 2,986 | 1,469 | ||||||
| Employee and payroll accruals | 4,911 | 5,400 | ||||||
| Operating lease liabilities | 838 | 1,062 | ||||||
| Other liabilities and accrued expenses | 9,213 | 9,540 | ||||||
| Total Current Liabilities | 21,625 | 20,111 | ||||||
| Non-Current Liabilities | ||||||||
| Accrued severance pay | 3,780 | 3,728 | ||||||
| Operating lease liabilities | 490 | 561 | ||||||
| Other liabilities and accrued expenses | 671 | 638 | ||||||
| Total Non-Current Liabilities | 4,941 | 4,927 | ||||||
| Total Liabilities | $ | 26,566 | $ | 25,038 | ||||
| Shareholders’ Equity | ||||||||
| Share capital | $ | 747 | $ | 736 | ||||
| Additional paid-in capital | 156,651 | 154,697 | ||||||
| Accumulated other comprehensive loss | (2,924 | ) | (3,030 | ) | ||||
| Accumulated deficit | (69,150 | ) | (69,912 | ) | ||||
| Total Shareholders’ Equity | 85,324 | 82,491 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 111,890 | $ | 107,529 | ||||
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