RADCOM Announces First Quarter 1998 Results
Revenues Rise 24% on Record Gross Margins of 69%
TEL-AVIV--(BUSINESS WIRE)--April 27, 1998-- RADCOM LTD. (NASDAQ-NM Symbol: RDCMF - news)
announced today financial results for the first quarter ended March 31, 1998.
Revenues for the three months ended March 31, 1998 increased by 24% to $4,516,098 compared to $3,631,233 for the
same period in 1997. Gross profit increased by 33% to $3,110,749 compared to $2,334,659 for the first quarter of 1997,
resulting in record gross margins of 68.9%. Operating income for the quarter was $103,497 compared to an operating loss of
$670,404 for the first quarter of 1997. Net income for the quarter was $462,629, or $0.04 per share fully diluted, compared
to a net loss of $608,681, or $0.08 per share fully diluted, for the corresponding period last year.
Commenting on the results, Moty Ben-Arie CEO of RADCOM said, ''Our first quarter results were somewhat stronger than
we had expected. This is partially the result of a strengthening ATM market as an increasing number of Internet Service
Providers (ISPs) and carriers deploy ATM.
''Market reaction to our PrismLite WAN/LAN/ATM analyzers continues to be very encouraging and our strategy of pursuing
major global accounts is bearing fruit. During the quarter, we were pleased to receive a three year contract to supply PrismLite
equipment to Telstra, Australia's largest data communications carrier and Official Supplier to the 2000 Olympic Games in
Sydney. After the quarter, we signed a promising agreement with Siemens Corporation for the sale of network testing
equipment to their offices around the world.
''We continue to make significant investments in sales and marketing. During the quarter, we opened a new sales office in
Florida to better serve the Latin American market. After the quarter, we launched RADCOM Academy, which will leverage
our proven knowledge base of ATM, WAN, and LAN technology through the sale of seminars, workshops, educational
CD-ROMs, and technical publications. RADCOM Academy should eventually develop into a profit center as a service
supplying arm of RADCOM.
''Finally, we continue to invest heavily in R&D in order to maintain our competitive advantage.''
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. |
