Radcom Ltd. (Nasdaq: RDCM) swung to an operating and net profit on higher revenue for the second quarter of 2010 as the expansion of smartphones drives demand for network traffic. The developer service assurance solutions for communications provider posted $4.6 million revenue, 77% more than the $2.6 million revenue for the corresponding quarter of 2009.
Operating profit was $541,000 for the second quarter, compared with an operating loss for the corresponding quarter. GAAP-based net profit was $80,000 ($0.02 per share), compared with a GAAP-based net loss of $856,000 for the corresponding quarter. Non-GAAP net profit $487,000 ($0.09 per share) compared with a net loss of $795,000 for the corresponding quarter.
Radcom president and CEO David Ripstein attributes the company's growth to smartphones. "We continue to benefit from one of the telecommunication industry's strongest drivers: the emergence of smart phone devices, like the iPhone and Blackberry, and the associated explosion in network traffic. Operators are struggling to deal with a reality of dropped calls, crashed networks and extreme customer frustration, and have become hyper-aware of the cost of poor network performance. As a result, our products have become 'must-have' solutions for a growing number of operators throughout the world, and we are experiencing increased interest and demand in all territories."
Radcom is part of the Zisapel's RAD Group. Radcom's share price closed at $5.61 yesterday, giving a market cap of $28 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2010
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