FOR IMMEDIATE RELEASE
RADCOM’S STRONG POSITIVE MOMENTUM CONTINUES IN Q2:
QUARTERLY SALES RISE TO $4.6M WITH $0.5M NON-GAAP NET INCOME
TEL-AVIV, Israel – July 26, 2010— RADCOM Ltd. (RADCOM) (NASDAQ: RDCM), a leading
network Service Assurance provider, today announced its unaudited financial results for the second quarter
ended June 30, 2010.
Financial Results for the Second Quarter of 2010
Revenues for the second quarter of 2010 were $4.6 million, an increase of 77% compared with $2.6 million for
the second quarter of 2009, and an increase of 5% compared with $4.4 million for the first quarter of 2010.
Operating income for the period was $541,000, representing an operating margin of 11.9%, compared with
8.8% for the first quarter of 2010 and an operating net loss in the second quarter of 2009.
According to U.S. generally accepted accounting principles (GAAP), net income for the second quarter was
$80,000, or $0.02 per ordinary share (basic) and $0.01 per ordinary share (diluted), compared with a net loss of
$856,000, or $(0.17) per ordinary share (basic and diluted), for the second quarter of 2009, and net income of
$51,000, or $0.01 per ordinary share (basic and diluted), for the first quarter of 2010. Net income was
adversely impacted by a $332,000 financial expense derived from the mark-to-market of outstanding warrants
based on their exercise price of $2.56 per warrant share, which is well below RADCOM's share price of $5.00
as of the close of trade on NASDAQ on June 30, 2010 and $5.61 as of the close of trade on NASDAQ on July
23, 2010. This expense was triggered by the significant appreciation of RADCOM’s share price during the
To provide investors with insight into the Company’s underlying operating results, financial results are also being
presented on a non-GAAP basis excluding share-based compensation expenses and change in fair value of
warrants from all period