RADCOM Ltd. (NASDAQ: RDCM) today reported its financial results for the third quarter ended September 30, 2021.
Eyal Harari, RADCOM’s Chief Executive Officer, commented, “We started the second half of the year with solid financial results, which represents a ninth consecutive quarter of year-over-year revenue growth as we execute our strategy. We maintain our positive outlook for the fourth quarter. We are optimistic about our overall ability to deliver another growth year in 2021 and reiterate our full-year 2021 revenue guidance of $39 million to $41 million. Moreover, with our current visibility, we believe this trend will continue in 2022.
“During the quarter, we continued our significant R&D investment in our advanced 5G assurance technology and integrations into more cloud ecosystems. In addition, we issued a press release announcing our integration with Amazon Web Services (AWS) in August. Integration with AWS provides operators with a dynamic, automated service assurance solution for deploying and optimizing 5G services on the AWS cloud and Amazon EKS for on-premises implementations. The AWS announcement followed our Microsoft press release in the first quarter of 2021, covering our integration with Microsoft Azure.
“We also announced in August our innovative AI solution for 5G Networks as part of our automated 5G assurance product RADCOM ACE. Our technology utilizes Artificial Intelligence (AI) and Machine Learning (ML) to help operators proactively solve network issues. Our solutions continue to receive positive feedback from our install base and potential customers, and we already have several ongoing opportunities for our latest innovations.
“We remain focused on our strategic objectives. We are already engaged in multiple opportunities at different sales cycle stages, with several engagements reaching an advanced stage. As the market continues to ramp up, we expect the demand for 5G assurance solutions to increase and believe our market-leading assurance offerings are well-aligned with operators’ needs and will drive growth.”
Third Quarter 2021 Financial Highlights:
- Total revenues for the third quarter were $10.2 million, compared to $9.8 million in the third quarter of 2020
- GAAP gross margin for the third quarter of 2021 was 69% compared to 76% in the third quarter of 2020. The decrease is due to the revenue mix
- Total GAAP R&D net expenses for the third quarter were $4.6 million compared to $4.4 million in the third quarter of 2020
- GAAP net loss for the third quarter was $1.1 million, or $0.08 per diluted share, compared to a GAAP net loss of $0.4 million, or $0.03 per diluted share for the third quarter of 2020
- Non-GAAP net loss for the period was $0.3 million, or a loss of $0.02 per diluted share, compared to a non-GAAP net income of $0.2 million, or an income of $0.02 per diluted share for the third quarter of 2020
- As of September 30, 2021, the Company had cash and cash equivalents and short-term bank deposits of $67 million, and no debt
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 am Eastern Standard Time (3:00 pm Israel Standard 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: +972-3-918-0610
For those unable to listen to the call, a replay of the conference call will be available a few hours later on the investor relations section on the Company’s website at https://radcom.com/investor-relations/.