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RADCOM Reports Q2 2005 ResultsTEL-AVIV, Israel, July 25 /PRNewswire-FirstCall/ -- RADCOM Ltd. (RADCOM) today announced unaudited financial results for the second quarter and six months ended June 30, 2005. Financial Results Revenues for the second quarter of 2005 were $4,837,000, an increase of 46% compared to $3,318,000 in the second quarter of 2004. Net income for the second quarter of 2005 was $103,000, or $0.01 per ordinary share, compared to a net loss of ($675,000), or ($0.05) per ordinary share, for the second quarter of 2004. Comments of Management Commenting on the results, Arnon Toussia-Cohen, President and CEO of RADCOM, said, "As projected, the second quarter was another profitable period of strong year-over-year revenue growth, a demonstration of our success in penetrating cellular and VoIP service providers as well as steady demand from equipment vendors. We have been working on a number of large multi-quarter deals with top-tier service providers in both Europe and the U.S., and have visibility for a sequential increase in revenues and profits during the second half of the year. "We are pleased with the pace of development of our US business, and our team in China is working according to schedule. In parallel, to extend our market leadership, we are working on new products that leverage our unique product platform to address the test and monitoring needs of emerging triple-play and next-generation convergence equipment vendors and service providers. Overall, we are operating on track according to our plans and are optimistic looking forward." Guidance The following statement is forward-looking in nature, and actual results may differ materially. See below under "Risks Regarding Forward Looking Statements". Revenues for the third quarter of 2005 are expected to be between $5.3 million and $5.8 million. A teleconference to discuss the results will be held today, July 25th, at 9:00 a.m. Eastern Daylight Time. To participate, please call 1-877-209-0397 from the U.S., or +1-612-332-1025 from international locations, approximately five minutes before the call is scheduled to begin. A replay of the call will be available from 10:45 AM Eastern Time on July 25th until midnight August 1st. To access the replay, please call 1-800-475-6701 from the U.S., or +1-320-365-3844 from international locations, and use the access code 788719. The conference call can also be accessed online at http://www.radcom.com/. RADCOM develops, manufactures, markets and supports innovative network test and service monitoring solutions for communications service providers and equipment vendors. The company specializes in Next Generation Cellular as well as Voice, Data and Video over IP networks. Its solutions are used in the development and installation of network equipment and in the maintenance of operational networks. The company's products facilitate fault management, network service performance monitoring and analysis, troubleshooting and pre-mediation. For more information, please visit http://www.radcom.com/. Risks Regarding Forward Looking Statements Certain statements made herein that use the words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand to 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 Securities and Exchange Commission. The Company does not undertake to update forward-looking statements. RADCOM REPORTS/3 RADCOM Ltd. Consolidated Statements of Operations (1000's of U.S. dollars, except per share data) Three months ended Six months ended June 30, June 30, _____________________ ____________________ 2005 2004 2005 2004 _________ _________ _________ ________ (unaudited) (unaudited)(unaudited)(unaudited) _________ _________ _________ ________ Sales $ 4,837 $ 3,318 $ 9,854 $ 6,822 Cost of sales 1,571 1,077 3,192 2,221 _________ _________ _________ ________ Gross profit 3,266 2,241 6,662 4,601 Research and development, gross 1,416 1,255 2,831 2,501 Less - royalty-bearing participation 489 402 884 902 _________ _________ _________ ________ Research and development, net 927 853 1,947 1,599 Sales and marketing 1,870 1,662 3,736 3,406 General and administrative 422 419 833 871 _________ _________ _________ ________ Total operating expenses 3,219 2,934 6,516 5,876 _________ _________ _________ ________ Operating income (loss) 47 (693) 146 (1,275) Financing income, net 56 18 91 24 _________ _________ _________ ________ Net income (loss) 103 (675) 237 (1,251) _________ _________ _________ ________ Basic net earnings (loss) per ordinary share $ 0.01 $ (0.05) $ 0.02 $ (0.10) _________ _________ _________ ________ Diluted net earnings (loss) per ordinary share $ 0.01 $ (0.05) $ 0.02 $ (0.10) Weighted average number of ordinary shares used in computing basic net earnings (loss) per ordinary share 14,792,288 14,395,338 14,540,644 12,492,464 Weighted average number of ordinary shares used in computing diluted net earnings (loss) per ordinary share 16,069,930 14,395,338 16,152,875 12,492,464 RADCOM REPORTS/4 RADCOM Ltd. Consolidated Balance Sheets (1000's of U.S. dollars) As of As of December 31, June 30, 2005 2004 _______________ _____________ Current Assets (unaudited) (unaudited) _______________ _____________ Cash and cash equivalents 7,560 6,558 Marketable securities 1,994 1,992 Trade receivables, net 5,088 5,341 Inventories and inventory prepayments 2,361 2,400 Other current assets 923 880 _______________ _____________ Total Current Assets 17,926 17,171 _______________ _____________ Assets held for severance benefits 1,825 1,784 _______________ _____________ Property and equipment, net 1,172 1,174 _______________ _____________ Total Assets 20,923 20,129 _______________ _____________ Liabilities and Shareholders' Equity Current Liabilities Trade payables 1,754 2,027 Current deferred revenue 1,156 889 Other payables and accrued expenses 3,675 4,204 _______________ _____________ Total Current Liabilities 6,585 7,120 _______________ _____________ Long-Term Liabilities Long-term deferred revenue 964 583 Liability for employees' severance pay benefits 2,439 2,402 _______________ _____________ Total Long-Term Liabilities 3,403 2,985 _______________ _____________ Total Liabilities 9,988 10,105 _______________ _____________ Shareholders' Equity Share capital 105 101 Additional paid-in capital 43,366 43,698 Accumulated other comprehensive loss (11) (13) Accumulated deficit (33,525) (33,762) _______________ _____________ Total Shareholders' Equity 10,935 10,024 _______________ _____________ Total Liabilities and Shareholders' Equity 20,923 20,129 _______________ _____________ Contact: David Zigdon Adam Rosen CFO RK Equity Partners +972-3-6455004 +1-(646)-536-3865 [email protected] [email protected] RADCOM Ltd CONTACT: David Zigdon, CFO, +972-3-6455004 [email protected] Adam Rosen,RK Equity Partners, +1-(646)-536-3865 [email protected] |