Technology company Radcom Ltd. (Nasdaq: RDCM) today published good results, and also announced the extension of its contract with Globe Telecom, a Philippines communications provider with over 60 million subscribers. Radcom, managed by CEO Yaron Ravkaie, provides solutions for monitoring and examining traffic on communications networks. Radcom's share price has risen 13.6% since the beginning of the year, pushing the company's market cap up to $265 million.
Radcom's revenue totaled $9.7 million in the third quarter, higher than the analysts' forecasts and 24.8% more than in the corresponding quarter last year. The company's revenue totaled $26.6 million in the first three quarters of 2017, 23.9% more than in the corresponding period in 2016. Radcom's third-quarter GAAP net profit was $1.2 million, compared with breaking even in the third quarter of last year, but its net profit in the first three quarters of this year was $643,000, down 75.8%, compared with the first three quarters of 2016. The company's non-GAAP net profit, which excludes capital-based remuneration for employees, totaled $1.7 million in the third quarter, $0.14 per share and 64.4% more than in the corresponding quarter last year, while the two analysts covering Radcom expected an average profit per share of only $0.01. Radcom's non-GAAP net profit totaled $2.4 million, $0.20 per share, in the first three quarters of this year. The company raised $28 million in a secondary offering, and had $33.6 million in cash at the end of the third quarter. This amount was increased by the new offering after the end of the quarter, and is likely to grow by an additional $6.1 million if the underwriters in the offering exercise their greenshoe option to buy additional shares.
Under the three-year extension of Radcom's contract with Globe Telecom, Radcom will provide the Philippine company with service guarantee services for the latter's communications network, and will ensure its transition to an NFV-based network. Radcom did not state the value of its contract with Globe Telecom, but its prospectus publsihed three weeks ago for its secondary offering stated, "We are in the final stages of signing a three year contract extension with an existing leading Tier 1 CSP in the APAC region" amounting to $15 million.
Published by Globes [online], Israel Business News - www.globes-online.com - on November 6, 2017
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