TEL-AVIV, Israel, January 26, 2012 /PRNewswire/ --
RADCOM Ltd. (RADCOM) (NASDAQ: RDCM) today announced its financial results for the fourth quarter and full year ended December 31, 2011.
In $ thousands Q4 2011 Q3 2011 Q4 2010 Revenues $7,004 $3,499 $5,363 Gross margin 69.9% 60.4% 64.6% Operating income (loss) (GAAP) $360 $(1,983) $39 Operating income (loss) (non-GAAP) $564 $(1,788) $461 Net income (loss) (GAAP) $64 $(2,169) $78 Net income (loss) (non-GAAP) $268 $(1,974) $500
Fourth Quarter of 2011 : Revenues totaled $7.0 million , up 31% compared with $5.4 million for Q4 2010 and more than double their level in Q3 2011. Gross margin for the quarter increased to 69.9% from 64.6% in Q4 2010.Annual bookings and backlog reached near-historic highs, reflecting the Company's accelerating momentum with top-tier operators throughout the world. Operating income increased to $360,000 from $39,000 in Q4 2010, according to U.S. generally accepted accounting principles (GAAP). Excluding share-based compensation expenses from all periods, the Company's non-GAAP operating income for Q4 2011 totaled $564,000, up 22% compared with $461,000 for Q4 2010. The Company's net income for the quarter totaled $64,000 ( $0.01 basic and diluted per share), a slight decrease compared with $78,000 ( $0.01 basic and diluted per share) for Q4 2010. The decrease derived from the period's unusually high financial expenses, which were caused primarily by fluctuations in the exchange rate of the Brazilian real against the U.S. dollar. Excluding share-based compensation expenses from all periods, the Company's non-GAAP net income for Q4 2011 totaled $268,000 ( $0.04 diluted per share) compared with $500,000 ( $0.08 diluted per share) for Q4 2010. The decrease reflects the higher financial expenses, as described above, together with the Company's strategic scale-up of its sales, marketing and support organizations, including the development of its direct sales offices in Singapore, Brazil and India, and the expansion of its support capabilities to meet the business growth implied by current near-historic levels of annual bookings and backlog. Management expects its operating expenses during the coming quarters to remain at a similar level. Full Year 2011: The Company's revenues rose 15% to $22.0 million for the full year of 2011 from $19.2 million in 2010. Gross margin for the year increased to 69.6% from 66.2% in 2010. According to U.S. GAAP, the Company reported a net loss for 2011 of $(1.9) million ($(o.30) basic and diluted per share) compared with a net income of $570,000 ( $0.11 basic per share and $0.10 diluted per share) for 2010. This reflected the significant net loss recorded in the third quarter, together with investments made throughout the year to build the Company's sales and marketing infrastructure. Excluding share-based compensation expenses and changes in the fair value of warrants from all periods, non-GAAP net loss for 2011 was $(1.1) million ( $(0.17) diluted per share) compared with net income of $1.7 million ( $0.28 diluted per share) for 2010. Comments of Management