TEL-AVIV, Israel, April 24, 2013 /PRNewswire/ --
RADCOM Ltd. (NASDAQ: RDCM) today announced its financial results for the first quarter ended March 31, 2013.
In $ thousands Q1 2013 Q1 2012 Change Revenues $4,573 $4,179 9% Gross margin 66% 63% Net loss $(594) $(2,034) (71)% Net loss (non-GAAP) $(512) $(1,859) (72)% Cash flow $327 $(390)
Results for the First Quarter of 2013 : Revenues for the first quarter increased by 9% to $4.6 million compared with $4.2 million in the first quarter of 2012. This is on track with the Company's turnaround plan aimed at delivering significant top-line and bottom-line growth in 2013.
Gross margin for the quarter rose to 66% from 63% in the first quarter of 2012, and operating expenses were down 21% year-over-year, reflecting the significant cost reductions put into place during the second half of 2012.With higher revenues, a stronger gross margin and lower expenses, the Company was able to slash its net loss for the quarter by 71% to ($594,000), or ($0.09) per ordinary share (basic and diluted), from $(2.0 million), or $(0.32) per ordinary share (basic and diluted), in the first quarter of 2012. On a non-GAAP basis, net loss for the quarter decreased by 72% to $(512,000), or ($0.08) per ordinary share (basic and diluted) from $(1.9 million), or $(0.29) per ordinary share (basic and diluted), in the first quarter of 2012. Comments of Management Commenting on the results, David Ripstein, RADCOM's CEO, said, "We are pleased with the results of the first quarter, our second straight period of significant improvement. The rise in our revenues and generation of positive cash flow, both of which are in line with our turnaround plan, position us to deliver on our forecast of strong growth for 2013."." Mr. Ripstein continued, "As reported last quarter, we continue to benefit from our unique solutions for monitoring data and LTE networks. With no end in sight to the network pressures being created by the explosion in online traffic, infrastructure upgrade projects of all types are being fast-tracked, and there is a clear understanding of the need for monitoring and Customer Experience solutions. Having improved our delivery execution, a number of previously-delayed projects with key customers are now moving forward, helping us transform our strong backlog into recognizable revenues. In parallel, we are excited about a number of sales opportunities, and one highly strategic order from a large LTE operator for whom the availability of our new network optimization solution (QiSolve) was a major decision factor, confirming our confidence about its potential to become a new revenue driver. In addition, we are beginning to take advantage of opportunities that are arising as a result of our recently-formed joint ventures."