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RADCOM Returns To Positive Momentum In Q4: Revenues Of $5.2M Returns Company To Operating Profit (Non-GAAP); Strong Bookings Build Backlog To $20M

Stocks in this article: RDCM

TEL-AVIV, Israel, January 29, 2013 /PRNewswire/ --

 

RADCOM Ltd. (RADCOM) (NASDAQ: RDCM) today announced its financial results for the fourth quarter and full year ended December 31, 2012.

    In $ thousands            Q4 2012        Q3 2012

    Revenues                   $5,152         $3,030
    Gross margin                 64.2%            57%
    Operating loss              $(201)       $(1,803)
    Operating income (loss)
    (non-GAAP)                    $73        $(1,677)
    Net loss                    $(332)       $(1,810)
    Net loss (non-GAAP)          $(58)       $(1,684)

Results for the Fourth Quarter of 2012 :  Revenues for the quarter totaled $5.2 million,  a 70% increase compared with $3.0 million in the third quarter. Revenues for the fourth quarter of 2011 were $7.0 million.

The strong bookings received during the quarter (with an above-1 book-to-bill ratio) enabled the Company to increase its backlog to a near-record $19.7 million. The majority of the new bookings are fast-path expansion orders initiated by existing customers with shorter time frames and more expedited sign-off terms, on average, than initial orders. This, coupled with the fact that most of the projects in the Company's backlog have now reached an advanced execution stage, improves the Company's visibility regarding its ability to deliver significant revenue growth in 2013.

The Company's net loss for the quarter was ($332,000), or ($0.05) per ordinary share (basic and diluted), reflecting the higher revenues and lower expenses, countered by financial expenses and an inventory write-off of approximately $200,000. This was a significant improvement from the Company's net loss of $(1.8 million), or $(0.28) per ordinary share (basic and diluted), recorded in the third quarter of 2012. Net income for the fourth quarter of 2011 was $64,000, or $0.01 per share.

During the fourth quarter, the Company completed its cost reduction program. As a result, the Company was able to return to profitability on a non-GAAP operating basis, delivering non-GAAP operating income of $73,000 for the fourth quarter of 2012, compared with a non-GAAP operating loss of $(1.7 million) in the third quarter of 2012. This operating income included the impact of the inventory write-off, without which the Company would have recorded non-GAAP operating income of more than $250,000.

On a non-GAAP basis, the Company achieved near-break-even with a net loss of $(58,000), or ($0.01) per ordinary share (basic and diluted) for the fourth quarter of 2012, compared with $(1.7 million), or $(0.26) per ordinary share (basic and diluted), for the third quarter of 2012, and a net income of $268,000, or $0.o4 per ordinary share (basic and diluted), for the fourth quarter of 2011.

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