FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of July, 2003
Commission File Number: 0-29452
RADCOM LTD.
(Translation of Registrant's Name into English)
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F:
Form 20-F X Form:40-F_______
-
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): N/A
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): N/A
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes _______ No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- N/A
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO RADCOM LTD.'S
("RADCOM") REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS.
333-13244, 333-13246, 333-13248, 333-13250, 333-13254, 333-13252, 333-13236),
AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE
EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OF FURNISHED.
CONTENTS
This report on Form 6-K of Radcom consists of the following documents, which is
attached hereto and incorporated by reference herein:
1. Press Release: RADCOM REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST SIX
MONTHS OF 2003. Dated July 21, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Radcom Ltd.
(Registrant)
Dated: July 31, 2003 By: /s/David Zigdon
-------------
David Zigdon
Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Description of Exhibit
10.1 Press Release: RADCOM REPORTS RESULTS FOR THE SECOND
QUARTER AND FIRST SIX MONTHS OF 2003.
Dated July 21, 2003.
EXHIBIT 10.1
Contact:
David Zigdon, CFO
(972) 3-6455004
davidz@radcom.com
RADCOM REPORTS RESULTS FOR THE SECOND QUARTER AND
FIRST SIX MONTHS OF 2003
-- 52% Sequential Revenue Growth Compared to Q1 2003 --
TEL-AVIV, Israel--July 21, 2003-- RADCOM Ltd. (RADCOM) (NASDAQ:
RDCM) today announced financial results for the second quarter and six
months ended June 30, 2003.
Revenues for the second quarter of 2003 increased by 52% to $2,436,000
compared to $1,600,000 for the first quarter of 2003. Revenues for the second
quarter of 2002 were $3,097,000. Net loss for the second quarter of 2003 was
$(1,680,000), or $(0.16) per ordinary share, compared to $(3,180,000), or
$(0.30) per ordinary share, for the first quarter of 2003, and $(1,488,000), or
$(0.14) per ordinary share, for the second quarter of 2002.
Revenues for the first six months of 2003 were $4,036,000 compared to
$7,502,000 for the first half of 2002. Net loss for the first six months of 2003
was $(4,860,000), or $(0.46) per ordinary share, compared to $(2,779,000), or
$(0.26) per ordinary share, for the first half of 2002.
Commenting on the results, Arnon Toussia-Cohen, President and CEO of
RADCOM, said, "The rise of our revenues compared to the first quarter was
attributable primarily to encouraging initial sales of our new product, the
award-winning Cellular Performer. Positive feedback from potential customers
affirms that the product's GEAR chip-based capabilities address the needs of
service providers and vendors - both those deploying 2.5G and 3G technologies,
and those adding cutting-edge multimedia capabilities to cellular networks.
Although sales cycles are long, we have succeeded in closing initial deals with
a number of major vendors and service providers, and have built an encouraging
sales pipeline.
"Our revenues for the second quarter of 2003 are down from last year,
due mainly to a slowdown in datacom sector sales. However, sales of our
converged network products, including the VoIP Performer and Omni-Q as well as
our new Cellular Performer, now account for the largest portion of our sales,
and are expected to drive our future growth."
Mr. Toussia-Cohen concluded, "As we rebuild our revenue base, we
continue to focus on close control of expenses and cash, with an eye to
balancing our short-term and long-term needs. Taken as a whole, the events of
the second quarter affirm our strategic direction."
RADCOM REPORTS/2
A teleconference to discuss the quarter will be held on Monday, July 21, 2003,
at 9:00 a.m. Eastern Time. To participate, please call +800-450-0785 from the
U.S., or +1-612-332-0632 from international locations, approximately five
minutes before the call is scheduled to begin. A replay of the call will be
available from 10:35 AM Eastern Time on July 21st until midnight July 28th. To
access the replay, please call +800-475-6701 from the U.S., or +1-365-3844 from
international locations, and use the access code 690333.
###
RADCOM designs, manufactures, markets and supports network test and quality
management solutions for service providers, developers and enterprises
worldwide. The company specializes in comprehensive performance measurement and
voice quality management systems for VoIP and cellular converged networks as
well as in a line of high quality, integrated, multitechnology WAN/LAN/ATM test
solutions. For more information, please visit www.RADCOM.com.
Certain statements made herein that use the words "estimate," "project,"
"intend," "expect, "believe" and similar expressions are intended to identify
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve known
and unknown risks and uncertainties which could cause the actual results,
performance or achievements of the Company to be materially different from those
which may be expressed or implied by such statements, including, among others,
changes in general economic and business conditions and specifically, decline in
demand to the Company's products, inability to timely develop and introduce new
technologies, products and applications and loss of market share and pressure on
prices resulting from competition. For additional information regarding these
and other risks and uncertainties associated with the Company's business,
reference is made to the Company's reports filed from time to time with the
Securities and Exchange Commission.
RADCOM REPORTS/3
RADCOM Ltd.
Consolidated Statements of Operations
(1000's of U.S. dollars, except per share data)
Three months ended Six months ended
June 30, June 30,
------------------------------------- ------------------------------------
2003 2002 2003 2002
---------------- ---- --------------- ---------------- ----------------
(unaudited) (unaudited) (unaudited) (unaudited)
---------------- ---- --------------- ---------------- ----------------
Sales $ 2,436 $ 3,097 $ 4,036 $ 7,502
Cost of sales 1,026 1,049 2,647 2,553
---------------- ---- --------------- ---------------- ----------------
Gross profit 1,410 2,048 1,389 4,949
Research and development, gross 1,486 1,625 2,903 3,382
Less - royalty-bearing participation 556 500 1,007 950
---------------- ---- --------------- ---------------- ----------------
Research and development, net 930 1,125 1,896 2,432
Sales and marketing 1,785 2,041 3,607 4,536
General and administrative 399 436 792 889
---------------- ---- --------------- ---------------- ----------------
Total operating expenses 3,114 3,602 6,295 7,857
---------------- ---- --------------- ---------------- ----------------
Operating loss (1,704) (1,554) (4,906) (2,908)
Financing income, net 24 66 46 129
---------------- --------------- ---------------- ----------------
Net loss (1,680) (1,488) (4,860) (2,779)
================ =============== ================ ================
Basic loss per ordinary share $ (0.16) $ (0.14) $ (0.46) $ (0.26)
================ =============== ================ ================
Weighted average number of 10,492,050 10,492,050 10,492,050 10,492,050
Ordinary shares (basic)
(Additional table to follow)
RADCOM REPORTS/4
RADCOM Ltd.
Consolidated Balance Sheets
(1000's of U.S. dollars)
As of As of
June 30, 2003 December 31, 2002
---------------------------- ------------------------
(unaudited) (audited)
Current Assets
Cash and cash equivalents 7,149 7,207
Short-term bank deposits - 3,006
Trade receivables, net 1,985 2,983
Inventories and inventory prepayments 1,882 2,182
Other current assets 712 601
---------------------------- ------------------------
Total Current Assets 11,728 15,979
---------------------------- ------------------------
Assets held for severance benefits 1,367 1,187
---------------------------- ------------------------
Property and equipment. net 1,860 2,263
---------------------------- ------------------------
Total Assets 14,955 19,429
============================ ========================
============================ ========================
Liabilities and Shareholders' Equity
Current Liabilities
Short-term bank credit 152 -
Trade payables 1,268 1,276
Other payables and accrued expenses 4,044 3,996
---------------------------- ------------------------
Total Current Liabilities 5,464 5,272
---------------------------- ------------------------
Liability for employees severance pay benefits 1,944 1,813
---------------------------- ------------------------
Total Liabilities 7,408 7,085
---------------------------- ------------------------
Shareholders' Equity
Share capital 57 57
Additional paid-in capital 38,209 38,146
Accumulated deficit (30,719) (25,859)
---------------------------- ------------------------
Total Shareholders' Equity 7,547 12,344
---------------------------- ------------------------
Total Liabilities and Shareholders' Equity 14,955 19,429
============================ ========================