Radcom Q2 Earnings Call Highlights

Radcom (NASDAQ:RDCM) reported second-quarter gross of $11.8 million, down 33.4% from $17.7 cardinal a twelvemonth earlier, arsenic definite planned enlargement deployments astatine a constricted fig of existing Tier 1 customers were delayed by rising server infrastructure costs.

Chief Executive Officer Benny Eppstein said the delayed projects stay portion of customers' longer-term deployment roadmaps and bash not bespeak declaration cancellations, competitory losses, pricing issues oregon dissatisfaction with Radcom's products. However, customers utilizing private-cloud and on-premises environments person been reassessing the timing and scope of infrastructure investments aft server prices roseate sharply.

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"The cardinal constituent is that truthful acold these projects person been delayed, not displaced," Eppstein said. "They stay associated with progressive lawsuit relationships and established enlargement roadmaps."

Infrastructure costs hold enlargement phases

Eppstein said immoderate customers request to rebalance budgets, hole further sites oregon displacement portions of planned expansions into aboriginal fund periods earlier approving the adjacent signifier of a deployment. Large projects tin necessitate dozens of servers crossed aggregate locations, making the accrued outgo of hardware a important committedness for operators.

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Radcom does not manufacture the servers, Eppstein noted, but its bundle indispensable beryllium installed successful an operating situation that is acceptable to enactment it. The institution said it has secured hardware for immoderate anticipated deployments truthful it tin statesman execution erstwhile customers implicit their readying and sites are prepared.