RADCOM Reports Fourth Quarter and Full Year 2016 Financial Results

TEL-AVIV, Israel, Feb. 14, 2017 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2016.

"The fourth quarter marked a strong end to a great year for the Company, highlighted by our ability to reach the high-end of our guidance range," commented Mr. Yaron Ravkaie, RADCOM's CEO.  "In 2016, we made great progress with our top-tier customer deployments, continued our engagement with other leading global carriers, and focused on preparing the company for future growth by boosting our senior management team and ramping up our engineering capabilities.  We believe we have laid a solid foundation during 2016 to continue our momentum, as evidenced by our initial 2017 revenue guidance range of $36-$39 million."

Fourth Quarter 2016 Financial Highlights

• Revenues: Total revenues for the fourth quarter were $8.0 million, up 196% compared to $2.7 million in the fourth quarter of 2015.  
  
• Net Loss: GAAP net loss for the period was approximately $0.7 million, or $0.06 loss per diluted share, compared to a loss of $2.1 million, or $0.25 loss per diluted share for the fourth quarter of 2015.
  
• Non-GAAP Net Income/(Loss):  Non-GAAP net income for the period was approximately $0.4 million, or $0.04 per diluted share, compared to a loss of $(1.6) million, or $(0.19) per diluted share for the fourth quarter of 2015.
  
  Both GAAP and non-GAAP results for the fourth quarter of 2016 included a $552,000, or $0.05 per diluted share, benefit related to grants from the Israel Innovation Authority (formerly Office of the Chief Scientist) compared to $576,000, or $0.07 per diluted share, in the fourth quarter of 2015.
  
• Balance sheet: As of December 31, 2016, the Company had cash and cash equivalents of $42.9 million and no debt.   

Full Year 2016 Financial Highlights

• Revenues: Total revenues for the full year 2016 were $29.5 million, up 58% compared to $18.7 million in the full year 2015.  
  
• Net Income/(Loss): GAAP net income for the full year 2016 was approximately $1.9 million, or $0.18 per diluted share, compared to a loss of $(923,000), or $(0.11) per diluted share for the full year 2015.
  
• Non-GAAP Net Income:  Non-GAAP net income for the period was approximately $4.8 million or $0.44 per diluted share, for the full year 2016, compared to $656,000, or $0.07 per diluted share for the full year 2015.
  
  Both GAAP and non-GAAP results for the full year 2016 included a $1.7 million, or $0.16 per diluted share, benefit related to grants from the Israel Innovation Authority compared to $1.6 million, or $0.18 per diluted share, in 2015.

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 AM Eastern Time (15:00 Israel Time) to discuss the results and to 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): + 1-888-668-9141

From other locations: +972-3-918-0609

For those unable to listen to the call at the time, a replay will be available from February 15^th on RADCOM's website.

About RADCOM

RADCOM (NASDAQ: RDCM) is a first-mover and leading provider of NFV-ready service assurance and customer experience management solutions for Communications Service Providers (CSPs). RADCOM's software - MaveriQ - continuously monitors network performance and quality of services, to optimize user experience for CSPs' subscribers. RADCOM specializes in solutions for next-generation mobile and fixed networks, including LTE, VoLTE, IMS and others. MaveriQ enables CSPs to smoothly migrate their networks to NFV by assuring physical, NFV-based and hybrid networks. For more information, please visit www.radcom.com.

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, inventory write-off and  non-cash write-off of importation taxes, 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 momentum and revenue guidance for 2017 it is using foward-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.

Contact:
Ran Vered, CFO
(+972) 77-774-5011
ranv@radcom.com 

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SOURCE RADCOM Ltd.