Radcom Ltd. · NASDAQ:RDCM
Radcom — Q3 2015 Earnings Presentation
16 slides from Radcom's earnings presentation, October 2015
Slide 1: Reference Slides: Earnings Call for Q3-15 Results
Reference Slides Earnings Call for Q3-15 Results 1
Slide 2: Safe Harbor Provision
Safe Harbor Provision Forward-looking statements in the conference call involve a number of risks and uncertainties, including but not limited to product demand, pricing, market acceptance, changing economic conditions, product technology development, the effect of the company’s accounting policies,
Slide 3: Record Gross Margin
Record Gross Margin 100 Q3-’15 Gross Margin: 82.5% 90 80% 80 70 63.2% 60.8% 61.5% 60 50 40 2012 2013 2014 2015 2015 Q1-Q3 3 October 15
Slide 4: 9M Operating Income (Non GAAP, US $ 000's)
9M Operating Income (Non GAAP, US $ 000’S) 4000 2,863 3000 1,532 956 2000 627 1000 (905) 1,181 1,280 (4,955) 442 309 0 -415 42 Q3 -1000 (1,667) (932) Q2 -2000 Q1 (1,611) -3000 -4000 (1,677) -5000 -6000 2012 2013 2014 2015 4 October 15
Slide 5: Top-Tier Spending on NFV
Top-Tier Spending on NFV Technology Business Research, Sept 2015: • US & Europe are leading the shift to network virtualization • 114% CAGR expected for the SDN & NFV markets between now and 2020 • The lion's share of the spend will be from established, incumbent, traditional telcos 5 October 15
Slide 6: RADCOM: Aligned for Growth
RADCOM: Aligned for Growth RADCOM Growth Tier 1 Operators Netscout’s Transitioning to acquisition of NFV Tektronix RADCOM’s Tier 1 Vendor Product Partnerships Revolution 6 October 15
Slide 7: Financials
Financials 7
Slide 8: Record Gross Margin
Record Gross Margin 100 Q3-’15 Gross Margin: 82.5% 90 80% 80 70 63.2% 60.8% 61.5% 60 50 40 2012 2013 2014 2015 2015 Q1-Q3 8 October 15
Slide 9: Operating Expenses (Non GAAP, US $ 000's)
Operating Expenses (Non GAAP, US $ 000’S) Q3-15 Q3-14 9M-15 9M-14 R&D, gross 1,281 1,363 4,019 4,348 Less participation 867 719 1,007 1,306 R&D, net 414 644 3,012 3,042 Sales & marketing 2,092 1,621 5,455 5,238 General & administration 477 519 1,468 1,578 Operating expenses 2,983 2,784 9,935 9,858 9
Slide 10: 9M Operating Income (Non GAAP, US $ 000's)
9M Operating Income (Non GAAP, US $ 000’S) 4000 2,863 3000 1,532 956 2000 627 1000 (905) 1,181 1,280 (4,955) 442 309 0 -415 42 Q3 -1000 (1,667) (932) Q2 -2000 Q1 (1,611) -3000 -4000 (1,677) -5000 -6000 2012 2013 2014 2015 10 October 15
Slide 11: 9M Net Income (Non GAAP, US $ 000's)
9M Net Income (Non GAAP, US $ 000’S) 3000 2,261 2000 1,480 835 1000 872 605 (1,110) (5,228) 360 821 419 248 0 (512) -1000 (1,859) (1,017) Q3 -2000 Q2 (1,715) Q1 -3000 -4000 (1,684) -5000 -6000 2012 2013 2014 2015 11 October 15
Slide 12: Income Statement (Non-GAAP, US$ 000's)
Income Statement (Non-GAAP, US$ 000’s) Q3-15 Q3-14 9M-15 9M-14 Sales 4,767 6,007 15,958 16,448 Cost of sales 828 2,042 3,160 5,058 Gross Profit 3,939 3,965 12,798 11,390 Gross margin 82.6% 66.0% 80.2% 69.2% R&D, gross 1,281 1,363 4,019 4,348 Less participation 867 719 1,007 1,306 R&D, net 414 644 3,
Slide 13: Balance Sheet (US$ 000's)
Balance Sheet (US$ 000’s) US$ ‘000s 31 Sept 15 31 Sept 14 Cash and deposits 7,978 4,509 Trade receivables 5,527 5,430 Inventories 1,709 3,340 Other receivables 1,928 2,824 Current assets 17,142 16,103 Assets for severance benefits 3,130 3,306 Other long-term receivables 469 - Property & equipment, n
Slide 14: Current Assets vs. Current Liabilities
Current Assets vs. Current Liabilities 18 16 17.1 16.1 14 15.1 205% 12 172% 10 101% 8 7.5 6 5.9 5.6 4 2 Q3-13 Q3-14 Q3-15 Current assets Current liabilities 14 October 15
Slide 15: Equity to Total Assets
Equity to Total Assets 60% 56% 54% 55% 51% 50% 48% 44% 42% 39% 40% 40% 37% 38% 30% 26% 25% 23% 20% 10% 0% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 15 October 15
Slide 16: Thank You
(7 COM Radically better. October 15