Radcom revenue up 61%

Service assurance solutions developer Radcom Ltd. (Nasdaq: RDCM) posted strong revenue and profits in 2010, recovering from the hit it received from the global economic crisis in 2009.

Revenue rose 60.8% to $19.2 million in 2010 from $11.9 million in 2009. The company posted a GAAP-based net profit of $570,000 ($0.22 per share), compared with a net loss of $2.6 million in 2009. Non-GAAP net profit was $1.7 million ($0.28 per share), compared with a net loss of $2.2 million in 2009.

Fourth quarter revenue rose 29% to $5.4 million from the $4.2 million fo rhte corresponding quarter. GAAP-based net profit fell 24% to $78,000 ($0.01 per share) from $102,000 in the corresponding quarter. Radcom attributed the drop to the granting of employees stock options worth $422,000 in the fourth quarter, and $564,000 in 2010 as a whole, double the amount in 2009.

Excluding the stock option grants, non-GAAP net profit doubled to $500,000 ($0.08 per share) for the fourth quarter from $245,000 for the corresponding quarter.

Fourth quarter gross profit fell 64.6% because the company pays import and other taxes on direct sales in Brazil, which it would not pay if the products were sold through distributors.

32% of Radcom's sales in 2010 were in Latin America, 25% were in Europe, 19% were in the Asia Pacific region, and 16% were in North America,.

Radcom CEO David Ripstein said, "2010 was a great year for RADCOM, and we believe we are positioned for an even better 2011. The trends that have been driving our growth - particularly the increased usage of smartphones, tablets and netbooks and their effect on the performance of telecom networks and the end-user experience - continue to strengthen. As network operators around the world struggle to service their bandwidth-hungry customers, they are increasing their budgets for service assurance solutions, leading to increasing sales of our products. We expect to see this trend continuing over the next several years, and believe that it, together with the increasing implementation of 4G/LTE technologies, will drive continued strong growth of our sales."

Radcom's share price fell 4.9% yesterday to $12.52, giving a market cap of $64 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2011

Radcom revenue up 61%

The service assurance solutions developer swung to profit in 2010 from losses in 2009.