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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 2023
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333-260997 AND 333-270983), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 10, 2023, reporting the Registrant’s First Quarter of 2023 Results |
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 10, 2023 | By: | /s/ Hadar Rahav |
| Name: | Hadar Rahav | |
| Title: | Chief Financial Officer | |
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Exhibit 99.1
 |
News |
FOR IMMEDIATE RELEASE
RADCOM Reports First Quarter 2023 Results
| ● | Revenue grew 13% year-over-year to $12 million |
| ● | GAAP Net income of $0.6 million |
| ● | Non-GAAP Net income of $1.8 million |
TEL AVIV, Israel – May 10, 2023 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the first quarter ended March 31, 2023.
“We continued our strong momentum from 2022 into the first quarter of 2023 with a revenue increase of 13% compared to the same quarter last year, a fifteenth consecutive quarter of year-over-year growth. Our solid performance and careful expense management improved all our profitability key performance indicators (KPIs). We also introduced some new product use cases, built using advanced artificial intelligence (AI) for 5G, commented RADCOM’s Chief Executive Officer Eyal Harari.
Mr. Harari continued, “We significantly improved our profitability this quarter, tripling our non-GAAP net income compared to the first quarter of 2022 and achieving a 15% non-GAAP net margin (5% on a GAAP basis). In addition, our GAAP profitability reached a four-year high, driven by solid team execution and increased revenues.
“As previously announced during the quarter, we signed an agreement with a new customer in North America, expanding our market share and leveraging our success with the recent customers we secured in 2022. We believe this encouraging momentum will continue as operators look to our advanced cloud technology and AI-powered analytics to reduce operational expenses and streamline operations through automation.
“We also completed the acquisition of the assets of Continual Ltd. We believe adding Continual’s advanced mobility experience analytics, and intellectual property, will enrich our 5G assurance solution and create new opportunities for RADCOM in top-tier customers like Vodafone.
Mr. Harari concluded, “Based on our current visibility, innovative assurance solutions, and overall market opportunity, we believe all the foundations are in place for a strong 2023. We are reiterating our full-year 2023 revenue guidance of $50 - $53 million.”
First quarter 2023 financial highlights:
| ● | Total revenues for the first quarter were $12.0 million, compared to $10.6 million in the first quarter of 2022. |
| ● | GAAP net income for the first quarter was $0.6 million, or $0.04 per diluted share, compared to a GAAP net loss of $0.6 million, or $0.04 per diluted share for the first quarter of 2022. |
| ● | Non-GAAP net income for the first quarter was $1.8 million, or $0.12 per diluted share, compared to a non-GAAP net income of $0.6 million or $0.04 per diluted share for the first quarter of 2022. |
| ● | As of March 31, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $77.9 million and no debt. |
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 am Eastern Time (3:00 pm Israel Time) to discuss the results and 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): +1-866-652-8972
From other locations: +972-3-918-0644
For those unable to listen to the call, a replay of the conference call will be available a few hours later in the investor relations section on the Company’s website at https://radcom.com/investor-relations/.
##
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, 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 2023 revenue guidance, its momentum, the potential to leverage Continual’s technology and products to benefit RADCOM with Vodafone and other customers, and its opportunities, it is using 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, 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.
RADCOM Ltd.
Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
| Three months ended March 31, |
||||||||
| 2023 | 2022 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | $ | 12,023 | $ | 10,624 | ||||
| Cost of revenues | 3,348 | 2,837 | ||||||
| Gross profit | 8,675 | 7,787 | ||||||
| Research and development, gross | 4,769 | 5,559 | ||||||
| Less - royalty-bearing participation | 262 | 218 | ||||||
| Research and development, net | 4,507 | 5,341 | ||||||
| Sales and marketing | 3,313 | 2,905 | ||||||
| General and administrative | 1,229 | 1,021 | ||||||
| Total operating expenses | 9,049 | 9,267 | ||||||
| Operating loss | (374 | ) | (1,480 | ) | ||||
| Financial income, net | 1,026 | 947 | ||||||
| Income (loss) before taxes on income | 652 | (533 | ) | |||||
| Taxes on income | (31 | ) | (59 | ) | ||||
| Net income (loss) | $ | 621 | $ | (592 | ) | |||
| Basic and diluted net income (loss) per ordinary share | $ | 0.04 | $ | (0.04 | ) | |||
| Weighted average number of ordinary shares used in computing basic net loss per ordinary share | 14,891,425 | 14,321,861 | ||||||
| Weighted average number of ordinary shares used in computing diluted net loss per ordinary share | 15,569,410 | 14,321,861 | ||||||
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, |
||||||||
| 2023 | 2022 | |||||||
| GAAP gross profit | $ | 8,675 | $ | 7,787 | ||||
| Stock-based compensation | 89 | 92 | ||||||
| Non-GAAP gross profit | $ | 8,764 | $ | 7,879 | ||||
| GAAP research and development, net | $ | 4,507 | $ | 5,341 | ||||
| Stock-based compensation | 545 | 611 602 | ||||||
| Non-GAAP research and development, net | $ | 3,962 | $ | 4,730 | ||||
| GAAP sales and marketing | $ | 3,313 | $ | 2,905 | ||||
| Stock-based compensation | 308 | 307 361 | ||||||
| Non-GAAP sales and marketing | $ | 3,005 | $ | 2,598 | ||||
| GAAP general and administrative | $ | 1,229 | $ | 1,021 | ||||
| Stock-based compensation | 265 | 196 283 | ||||||
| Non-GAAP general and administrative | $ | 964 | $ | 825 | ||||
| GAAP total operating expenses | $ | 9,049 | $ | 9,267 | ||||
| Stock-based compensation | 1,118 | 1,114 1,246 | ||||||
| Non-GAAP total operating expenses | $ | 7,931 | $ | 8,153 | ||||
| GAAP operating loss | $ | (374 | ) | $ | (1,480 | ) | ||
| Stock-based compensation | 1,207 | 1,206 | ||||||
| Non-GAAP operating income (loss) | $ | 833 | $ | (274 | ) | |||
| GAAP income (loss) before taxes on income | $ | 652 | $ | (533 | ) | |||
| Stock-based compensation | 1,207 | 1,206 | ||||||
| Non-GAAP income before taxes on income | $ | 1,859 | $ | 673 | ||||
| GAAP net income (loss) | $ | 621 | $ | (592 | ) | |||
| Stock-based compensation | 1,207 | 1,206 | ||||||
| Non-GAAP net income | $ | 1,828 | $ | 614 | ||||
| GAAP net income (loss) per diluted share | $ | 0.04 | $ | (0.04 | ) | |||
| Stock-based compensation | 0.08 | 0.08 | ||||||
| Non-GAAP net income per diluted share | $ | 0.12 | $ | 0.04 | ||||
| Weighted average number of shares used to compute diluted net income (loss) per share | 15,569,410 | 14,775,554 | ||||||
RADCOM Ltd.
Consolidated Balance Sheets
(thousands of U.S. dollars)
| As of | As of | |||||||
| March 31, 2023 |
December 31, 2022 |
|||||||
| (unaudited) | (audited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 9,727 | $ | 9,527 | ||||
| Short-term bank deposits | 68,155 | 64,130 | ||||||
| Trade receivables, net | 11,953 | 11,074 | ||||||
| Inventories | 407 | 795 | ||||||
| Other accounts receivable and prepaid expenses | 2,068 | 1,928 | ||||||
| Total Current Assets | 92,310 | 87,454 | ||||||
| Non-Current Assets | ||||||||
| Long-term bank deposits | - | 4,002 | ||||||
| Severance pay fund | 3,315 | 3,524 | ||||||
| Other long-term receivables | 2,131 | 2,557 | ||||||
| Property and equipment, net | 945 | 1,010 | ||||||
| Operating lease right-of-use assets | 2,144 | 2,457 | ||||||
| Total Non-Current Assets | 8,535 | 13,550 | ||||||
| Total Assets | $ | 100,845 | $ | 101,004 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Trade payables | $ | 1,865 | $ | 2,708 | ||||
| Deferred revenues and advances from customers | 6,884 | 7,037 | ||||||
| Employee and payroll accruals | 4,519 | 5,198 | ||||||
| Operating lease liabilities | 968 | 1,024 | ||||||
| Other liabilities and accrued expenses | 7,167 | 6,829 | ||||||
| Total Current Liabilities | 21,403 | 22,796 | ||||||
| Non-Current Liabilities | ||||||||
| Accrued severance pay | 3,750 | 3,973 | ||||||
| Operating lease liabilities | 1,131 | 1,452 | ||||||
| Total Non-Current Liabilities | 4,881 | 5,425 | ||||||
| Total Liabilities | $ | 26,284 | $ | 28,221 | ||||
| Shareholders’ Equity | ||||||||
| Share capital | $ | 720 | $ | 706 | ||||
| Additional paid-in capital | 149,803 | 148,610 | ||||||
| Accumulated other comprehensive loss | (2,958 | ) | (2,908 | ) | ||||
| Accumulated deficit | (73,004 | ) | (73,625 | ) | ||||
| Total Shareholders’ Equity | 74,561 | 72,783 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 100,845 | $ | 101,004 | ||||
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