RADCOM Announces Fourth Quarter And Twelve Month 1997 Results
Revenues Rise 80% Versus Last Year Net Income Increases More than Three-fold over Q3 1997
TEL AVIV--(BUSINESS WIRE)--Feb. 9, 1998-- RADCOM LTD. (NASDAQ-NM Symbol: RDCMF - news) announced
today audited financial results for the fourth quarter and twelve months ended December 31, 1997.
Revenues for the three months ended December 31, 1997 increased by 96% to $6,765,466 compared to $3,448,306 for the
same period in 1996. Gross profit increased by 109% to $4,564,561 compared to $2,188,244 for the fourth quarter of 1996.
Operating income for the quarter was $707,229 compared to an operating loss of $1,226,322 for the fourth quarter of 1996.
Net income for the quarter was $1,037,175, or $0.10 per share fully diluted, compared to a net loss of $1,206,129, for the
corresponding period last year.
Revenues for the twelve months ended December 31, 1997 increased by 80% to $20,667,285 compared to $11,488,163 for
the same period in 1996. Gross profit increased by 95% to $13,638,155 compared to $6,987,232 for 1996. Operating
income for the year was $375,523 compared to an operating loss of $3,735,716 for 1996. Net income for 1997 was
$125,774, or $0.02 per share fully diluted, compared to a net loss of $3,557,327, or ($0.46) per share fully diluted, for 1996.
Net income for 1997 included a nonrecurring charge of $700,000.
During the quarter, the Company released its IP Blaster software for testing ATM IP routers. The product was later named
Best New Product at CMA Telecom. This is the third year running that RADCOM has won this award.
After the close of the quarter, RADCOM announced that it has won a major PTT tender in China with an initial order for 14
analyzers.
Commenting on the results, Moty Ben-Arie, Chief Executive Officer said, ''We are pleased to finish the year with strong
financial results. Our financial results reflect market acceptance of our products and move us closer to our objective of
becoming a leader in the market for internetwork testing and analysis equipment.
''During the quarter we continued to increase our focus on the needs of end-users and field service personnel, who use larger
quantities of analysis equipment. At the same time, we continue to address the needs of developers.''
Mr. Ben-Arie continued, ''Although bookings for the first quarter of 1998 are, so far, higher than those for the same period
last year, they were received at a slower rate than expected. This could lead to a slowdown in the 1998 growth rate as
compared to previous years. Nevertheless, we are satisfied with our first year as a public company and look forward to the
challenges posed by the coming year.'' RADCOM LTD. designs, manufactures, markets and supports innovative, high
performance internetworking test and analysis equipment for data communications networks. The Company's products are
used in the development and manufacturing of network equipment, the installation of networks, and the ongoing maintenance of
operational networks to facilitate real-time identification, diagnosis, isolation, and resolution of network problems. The
Company's sales network includes 14 manufacturer's representatives in North America and, in the rest of the world, a network
of more than 30 distributors selling in over 35 countries. RADCOM's test and analysis equipment has been sold to a number
of international companies and government agencies including AT&T, Bay Networks, British Telecom, Cisco, CompuServe,
Deutsche Telekom, French Navy, GTE, IBM, Microsoft, Oracle, Pacific Bell, Siemens, and 3Com.
Certain statements made herein that use the words ''estimate'' ''project'' ''intend'' ''expect'' ''believe'' and similar expressions
are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results,
performance or achievements of the Company to be materially different from those which may be expressed or implied by
such statements, including, among others, changes in general economic and business conditions and specifically, decline in
demand to 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 Securities and Exchange Commission. |
