November 2016
RADCOM Ltd (RDCM) Corporate Overview Safe Harbor Provision Certain - - PowerPoint PPT Presentation
RADCOM Ltd (RDCM) Corporate Overview Safe Harbor Provision Certain - - PowerPoint PPT Presentation
November 2016 RADCOM Ltd (RDCM) Corporate Overview Safe Harbor Provision Certain statements herein contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the
Safe Harbor Provision
Certain statements herein contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act
- f 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements include, but are
not limited to, those statements regarding expected revenues, being well positioned to capitalize on industry tailwinds and our NFV win, the market potential for NFV, expanding our direct presence in North America, Europe and Asia, investing in direct sales,
- ur capital position, growth objectives and statements concerning assumptions made or expectations as to any future events,
conditions, performance or other matters. In some cases, forward-looking statements are identified by terminology such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "intends," "estimates," "predicts," "potential," "opportunity"
- r "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those
- projected. These statements are only current predictions and are subject to known and unknown risks, uncertainties, and other
factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. In addition, past financial or operating performance is not necessarily a reliable indicator of future performance and you should not use our historical performance to anticipate results or future period trends. The forward-looking statements contained herein are subject to risks and uncertainties, including those described herein under "Risk Factors" and in our most recent Annual Report on Form 20-F, under Item 3.D. - "Risk Factors" and in
- ur other filings with the SEC. You are cautioned not to place undue reliance on these forward looking statements, which speak
- nly as of the date on which that statement is made. We cannot guarantee future results, levels of activity, performance,
achievements or that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition. Except as otherwise required by law, we are under no obligation to (and expressly disclaim any such obligation to) update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date hereof. In this presentation, management will be referring to certain non-GAAP financial measures, which are provided to enhance overall understanding of the company’s financial performance. By excluding certain non-cash charges, non-GAAP results provide information that is useful in assessing RADCOM's core operating performance, and in evaluating and comparing our results of
- perations on a consistent basis from period to period. The presentation of this additional information is not meant to be
considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting
- principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures which are included in
the “Appendix” section.
Company Overview
- Leading software-based solutions for service
assurance and customer experience management
- First to market with software-based and network
function virtualization (NFV) probes
- Groundbreaking NFV win with AT&T
- Enables migration to NFV while supporting both
traditional and next-generation networks
- Exceptional performance with terabit scalability for
mobile and fixed networks
- $28 - $29.5 million revenue guidance for 2016,
representing 50% to 58% growth over 2015
- Founded in 1991 and publicly traded since 1997
- Headquartered in Tel Aviv, Israel
The MaveriQ Solution Overview
Benefits and Use Cases
- Mission-critical network and service visibility
- Improve subscriber quality of experience
- Reduce customer churn
- Pro-actively identify and resolve network issues
- Accelerate deployment of new services and
migration to NFV
- Increase operational efficiency and lower costs
Software-Based Highly Scalable Traditional, NFV and Hybrid Suite of integrated applications Unified dashboard with visibility across networks and subscribers Service Assurance Customer Experience Management
2
>$1 Billion Market Opportunity for Probe Solutions
RADCOM delivers software-based probe solutions for service assurance and customer experience management Key Market Drivers
Data acquisition and big data analytics Customer experience management Revenue uplift from reduced customer churn Rapid increase in mobile data LTE, VoLTE, IoT, M2M, and LTE-A Increase
- perational
efficiency and lower costs
Market Challenges for Probe Solutions
- Alternative probe solutions historically based on
purpose-built hardware
- Physical probes costly to deploy and maintain
- Proprietary ASIC designs slow to develop
- Difficult to scale for next-generation services
- No migration path for NFV networks
RADCOM Solution
- Software-based solution running on standard
hardware
- Easy to deploy and manage
- Accelerates software product design lifecycle
- Highly scalable for next-generation services
- Enables migration to NFV while supporting
traditional networks 3
Global NFV and SDN Market
($ in billions)
$0.3 $1.7 $2.3 $3.3 $5.2 $6.9 $8.3 2013 2014 2015 2016P 2017P 2018P 2019P
Source: Software Defined Networking and Network Function Virtualization market, Gartner (March 2016).
Benefits of Software and Virtualization
- Accelerate time to market for new services
- Increase agility and flexibility for network design
- Increase scalability and lower operating costs
through NFV automation
- Reduce CapEx by replacing proprietary hardware
with commodity hardware
CSPs Need Software-Based Solutions To Transition to NFV
RADCOM has been a first mover in offering software-based and NFV solutions for service assurance
Virtualized software appliances High volume standard servers, storage and switches
Virtual Probes
NFV and Hybrid Networks
Legacy traditional network (Hybrid)
Traditional Network
DPI Router Probe Probe Probe Probe Firewall BRAS SGSN/GGSN SBC
Large CSPs Evaluating / Deploying NFV
5
- Despite the clear benefits NFV creates new
complexity for service assurance
- Large CSPs first to deploy NFV and many will
- perate hybrid networks
- Most probes solutions do not support NFV
and hybrid networks
Fragmented, purpose-built hardware appliances with hardware and/or software-based probes
AT&T Selected RADCOM for its NFV Solution
RADCOM’s transformational win with AT&T
- RADCOM announced the selection of its MaveriQ solution for deployment by a
AT&T in January 2016
- The $18 million initial order was within the framework of a multi-year sales
agreement for a virtual-probe-based monitoring solution for AT&T's mobile network
- Result of nine-months of intensive trials during which RADCOM’s virtual probe
solution was selected over competitors' offerings by receiving 100% test score
- Recognition by one of the industry's leading CSPs positions RADCOM as the
leader for NFV probe-based monitoring solutions
- Strong confirmation of RADCOM's multi-year strategy for its transformation
to software-based solutions
6
Packet Switch Core E-UTRAN Evolved Packet Core (EPC)
MaveriQ enables CSPs to Accelerate Migration to NFV
Highly scalable, software-based solution supporting traditional, hybrid and NFV networks Future Proof for NFV Migration Visibility Across 3G, LTE and IMS Networks
Interfaces Monitored by MaveriQ
PCRF SGSN GGSN MME MME
Serving Gateway
PDN GW
Internet PSTN
IP Multimedia Subsystem (IMS)
eNB
AS HSS P-CSCF S-CSCF BGCF
UTRAN
eNB
OCS HSS Virtual EPC Virtual IMS
Virtualized Network Functions (VNFs) NFV Infrastructure (NFVI)
NFV Management and Orchestration Orchestrator
VNF Manager
Virtualization Layer
Virtual Computing Virtual Network
Virtualized Infrastructure Managers
Virtual Storage
…they will need to upgrade or replace their service assurance and probe solutions As CSPs migrate all or parts of their networks to NFV… 7
The MaveriQ Solution for Service Assurance and Customer Experience Management
Software-based solution for 3G, LTE, VoLTE and NFV networks Highlights
- Manages next-generation mobile and fixed networks,
including LTE, VoLTE, IMS, VoIP, UMTS/GSM and mobile broadband
- Multi-technology solution monitors multiple networks
and services simultaneously
- Highly scalable, carrier grade architecture supporting
terabit networks
- Best processing capacity / footprint ratio in the industry
- Suite of pre-integrated software applications
- Advanced real-time visibility
for big data analytics
- Cost-effective solution for
any network size
Customer Care Quality of Experience Performance Analysis SLA Management KPI Alarms Network Monitoring Roaming QoS Inter- connection Quality Analytics
MaveriQ Subscriber Dashboard
Software-Based Highly Scalable Traditional, NFV and Hybrid Suite of Integrated Applications Unified dashboards with visibility across networks and subscribers Service Assurance Customer Experience Management
8
Solution Deployed in Many Leading Tier 1 CSPs
50 Customers in 25 Countries
Generating Growth and Go-to-Market Strategy
RADCOM is expanding its presence in North America and Europe. Continue to focus on Asia Pacific & Latin America Developing and Expanding Strategic Partnerships
RADCOM has partnered with solution integrators, such as Amdocs and HP, as well as technology partners, such as Intel, to unlock further opportunities in the sales channel
Network Cloud Ecosystem
OpenNFV Program
Asia Pacific
Direct Sales
Latin America
Direct Sales
North America
Direct Sales and Partnerships
Europe
Direct Sales and Partnerships
Network Builders Program
- Expand presence in
North America and Europe
- Invest in direct
salesforce and technical support to drive future large wins and scale deployments 10 CloudBand
Financial Highlights
- 3Q Earnings Highlights:
- Revenues of $7.7M, 62% YoY growth
- Reiterated our full-year revenue guidance range of $28-$29.5M;
Representing 50% to 58% growth over 2015
- Strong Balance sheet:
- As of September 30, 2016, the Company had cash and cash