Radcom (Nasdaq: RDCM) today lowered its revenue guidance for 2018 in a conference call conducted by the company for investors. The company's share price is now down by over 8% in New York.
Radcom now expects $33-35 million in revenue, compared with its previous guidance of $43-47 million in May. The average revenue forecast by Wall Street analysts for the current year is $43.3 million.
The main reason why the company lowered its guidance was delays in orders, CEO Yaron Ravkaie explained in the conference call.
The company provided no forward guidance on profit per share, but Ravkaie commented, "The company is now working on the numbers for the third quarter. We're still confident about our strategy and are continuing our investment plan with no plans for slowing down in the coming quarter. The timeline for closing deals is being delayed, but we're still getting positive feedback from all of our customers. The direction is right, even though it's taking more time."
Radcom, part of the RAD group controlled by Zohar and Yehuda Zisapel, provides solutions for monitoring and assessing traffic on communications networks. The company's share has been under prolonged pressure that reached a peak last September, when the typhoon in the Philippines threatened the company's main customer, thereby wiping $65 million off Radcom's market cap. At the same time, in the conference call today, Ravkaie repeated to "Globes" what he told investors before Yom Kippur - that there was no bad news for Radcome from the customer in the Philippines.
Published by Globes [online], Israel business news - en.globes.co.il - on October 9, 2018
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