radcom ltd (rdcm) corporate overview annual... · defined architecture to meet the growing demands...

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RADCOM Ltd (RDCM) Corporate Overview Founded: 1991, Publicly Traded Since: 1997

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Page 1: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

RADCOMLtd(RDCM)CorporateOverviewFounded:1991,PubliclyTradedSince:1997

Page 2: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

SAFEHARBORPROVISIONCertain statements herein contain "forward-looking statements" within the meaning of the Private Securities LitigationReform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-lookingstatements include, but are not limited to, those statements regarding expected revenues, being well positioned tocapitalize on industry tailwinds and our NFV win, the market potential for NFV, expanding our direct presence in NorthAmerica, Europe and Asia, investing in direct sales, our capital position, growth objectives and statements concerningassumptions 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" or "continue" or the negative of theseterms or other comparable terminology. Such forward-looking statements involve known and unknown risks, uncertaintiesand other factors that may cause actual results or performance to differ materially from those projected. These statementsare only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may causeour or our industry's actual results, levels of activity, performance or achievements to be materially different from thoseanticipated by the forward-looking statements. The forward-looking statements contained herein are subject to risks anduncertainties, 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 our other filings with the SEC. You are cautioned not to place undue reliance on theseforward looking statements, which speak only as of the date on which that statement is made. We cannot guarantee futureresults, levels of activity, performance, achievements or that any of the events anticipated by the forward-lookingstatements 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 orrevise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after thedate hereof.

RADCOM does not undertake to update forward-looking statements

This presentation and any and all content or material contained herein, are either exclusively owned by RADCOM Ltd., itssubsidiaries and/or affiliates ("RADCOM") or are subject to rights of use granted to RADCOM, are protected by nationaland/or international copyright laws and may be used by the recipient solely for its own internal review. Any other use,including the reproduction, incorporation, modification, distribution, transmission, republication, creation of a derivativework or display of this document and/or the content or material contained herein, is strictly prohibited without the expressprior written authorization of RADCOM.

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Page 3: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

FINDTHEDIFFERENCE…

2

2017

Page 4: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

ATRANSFORMATIONISTAKINGPLACEINTHETELECOMINDUSTRY

• Rapidincreaseinmobiledataleadingtoconstantcapacitysurges

• Growing operationalcosts• ContinualTechnologyAdvancement

LTE,VoLTE,5G,IoT,M2M,and5G• ARPUdeclines fromincreasingcompetition

fromwithinandoutsidetheindustry• Surgingproprietaryhardwarecosts• Increasingchurncausedbysubscriber

flexibilityinmovingbetweenoperators

Challenges

• Flexiblecapacitymanagement tosupportincreasingdatatraffic

• Increase scalability and loweroperatingcoststhroughNFVautomation

• Acceleratetimetomarketfornewservices• Agility tolaunchnewhighvaluerevenue

services• Reduce CAPEX byreplacingproprietary

hardwarewithsoftwaresolutions• Automation forinnovativeandresponsive

services

Solution

LTE

3G

5G

NetworkFunctionsVirtualization(NFV)

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Page 5: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

CSPSNEEDSOFTWARE-BASEDASSURANCETOTRANSITIONTONFVRADCOMhasbeenafirstmoverinofferingsoftware-basedandNFVsolutionsforserviceassurance

NFVandHybridNetworksTraditionalNetwork

DPI

Router

ProbeProbe

Probe

Probe

Firewall

BRAS

SGSN/GGSN

SBC

Fragmented,purpose-builthardwareapplianceswithhardwareand/orsoftware-basedprobes

Virtualizedsoftwareappliances

Highvolumestandardservers,storageandswitches

Legacytraditionalnetwork(Hybrid)

VirtualProbes

VirtualFunctions

VirtualFunctions

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Page 6: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

CSPSNEEDSOFTWARE-BASEDASSURANCETOTRANSITIONTONFVRADCOMhasbeenafirstmoverinofferingsoftware-basedandNFVsolutionsforserviceassurance

NFVenablesCSPsto

Lower ongoingOPEX andCAPEXbytransitioningtosoftwarecontrollednetwork

Increase timetomarketfornewservices

Flexiblecapacitymanagementtosupportincreasingtrafficdata

Large CSPsfirsttodeployNFVandmanywilloperatehybridnetworks

Legacyprobesolutionsdonotsupport NFVandhybridnetworks

DespitetheclearbenefitsNFVcreatesnewcomplexityforserviceassurance

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Page 7: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

NetworkIntelligence

DELIVERINGASSURANCETOENABLETHENFVTRANSFORMATION

BigDataAnalytics

Probes

Real-TimeProcessing

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MaveriQ Suite

Page 8: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

AssuringCustomerExperienceintheNFV Transformation

Real-Time Analytics§ Improvesubscriberqualityofexperience§ Pro-activelyidentifyandresolvenetworkissues§ AcceleratemigrationtoNFV§ Increaseoperationalefficiencyandlowercosts

RADCOMProbeAdvantages

• Softwareonlymodel(1sttoMarket)

• Patentpendingtechnology

• HardenedDomain2.0solutionatAT&T

• Supportsphysical,hybridandvirtualnetworks

• Supportsmultipletechnologies(3G,4G,M2M,IoT,VoIP)

DELIVERINGASSURANCETOENABLETHENFVTRANSFORMATION

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Page 9: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

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USECASE

NetworkCongestion

NFVOrchestration

VoLTEVoIPvIMSvEPC

RADCOM:ACSPseyesintothenetwork

LTE

Page 10: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

DISRUPTINGTRADITIONALSERVICEASSURANCEMODELSWithanAutomatedSoftwareOnlySolutionforUnlimitedNetworkCapacity

SusanA.Johnson,SeniorVicePresident,GlobalSupplyChain

“RADCOMisadisruptorintheserviceassurancearea...Wewereseekinganinnovativesolutiontovirtualizetheprobingfunctionfromasoftware-centriccompany.Webelievethatvirtualizationofserviceassurancecanprovidedistinctadvantages...”

“WeselectedRADCOMbecauseofitsfunctionalstrengths,especiallyinvirtualization,scalability,performanceandefficiency.WewilluseitsMaveriQ softwaretodeployvProbes asvirtualnetworkfunctionsrunningontheAT&TIntegratedCloud (AIC).”Source:AT&TNewsroom,August2016

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Page 11: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

AT&TSELECTEDRADCOMFORITSNFVSOLUTION

• Recognitionbyoneoftheindustry'sleadingCSPspositionsRADCOMastheleader forNFVprobe-basedmonitoringsolutions

• StrongconfirmationofRADCOM'smulti-yearstrategyforitstransformationtosoftware-basedsolutions

• Additionalfollow-onordersduring2016

• AT&TnewsannouncementinAugust2016ofourinnovativesolution

• RADCOMannouncedtheselectionofitsMaveriQ solutionfordeploymentbyaAT&T inJanuary2016

• The$18millioninitialorderwaswithintheframeworkofamulti-yearsalesagreement

• Resultof9monthsofintensivetrialsduringwhichRADCOM’svirtualprobesolution wasselectedovercompetitors'offeringsbyreceiving100%testscore

RADCOM’stransformationalwinwithAT&T

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“By2020,weplantovirtualizeandcontrolover75%ofournetworkusingthisnewsoftware-definedarchitecturetomeetthegrowingdemandsofdataandvideo-hungryusers.”

Page 12: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

GLOBALNFVANDSDNMARKET($inbillions)

$0.3

$1.7$2.3

$3.3

$5.2

$6.9

$8.3

2013 2014 2015 2016P 2017P 2018P 2019P

Source:SoftwareDefinedNetworkingandNetworkFunctionVirtualizationmarket,Gartner(March2016).

LargeCSPs Evaluating/DeployingNFV

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Page 13: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

>$1BILLIONMARKETOPPORTUNITYFORPROBESOLUTIONSDeliveringNetworkandServiceVisibility

• Networkandcustomeranalyticsusecaseswillexpandtheuseofprobesystemsbeyondthenetworkperformancemonitoring.

• NewservicessuchasVoLTE andvideooverLTE(ViLTE)willrequireincreasedmonitoringandnetworkdatacorrelationtoassureQoS.

Source:Serviceassurancesystems:worldwideforecast2015-2020,Analysys Mason,Sept2016

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Page 14: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

OURTRANSFORMATIONSINCETRANSITIONINGTOSOFTWARE

<2014 2014 20172015 2016

ProprietyHardware

Advancingfromproprietaryhardwaretosoftware-basedsolutions

2015December

LaunchedMaveriQOurSoftware-BasedSolution

LaunchedNFVSolution

SelectionByAT&TofourNFVSolution

9monthtrial–scored100%

FirstNFVtransformation

Wonagainstincumbentvendor

Engagedwith9toptiercarriers

Boostedseniormanagementforcompanygrowth

R&D&engineeringrampup

PublicOffering

Strongbalancesheet

Targetadditionaltop-tierwin

CaptureNFVtransformations

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Page 15: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

GO-TO-MARKETSTRATEGYRADCOMplanstoexpanditsdirectpresenceinNorthAmerica,Europe,andAsia

DevelopingandExpandingStrategicPartnerships

RADCOMhaspartneredwithsolutionintegrators,suchasAmdocsandHP,aswellastechnologypartners,suchasIntel,tounlockfurther

opportunitiesinthesaleschannelNetworkCloudEcosystem OpenNFVProgram NetworkBuildersProgram

§ Expansion tothedevelopedmarketsandgalaxies,whilecontinuefocusingindevelopingmarkets

§ SpecificallyfocusonNorthAmericaandEurope NFVcarriers

§ Targetlegacy accounts

§ Investindirectsalesforceandtechnicalsupporttodrivefuturelargewinsandscaledeployments

§ RampupR&Dresources toleveragetechnologyadvantage

TargetlegacyaccountswithHWsolutionsAggressivelytargetNFVcarriers

Offices:Asia,EMEA,LATAM,NorthAmericaHeadquarters:TelAviv

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Page 16: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

WithanExperiencedLeadershipTeam

YaronRavkaie|CEO• 25+yearsindustryexperience• PriorleadershiprolesatAmdocsandRRMedia•MBA,UniversityofBeersheba

RanVered|CFO• 10+yearsindustryexperience• PriorfinancerolesatAmdocs&KPMG•MBA,TelAvivUniversity• BB,CollegeofManagement• CertifiedinIsraelasaCPA

EyalHarari|COO&HeadofNorthAmerica• 15+yearsexperienceatRADCOM•MBA,TelAvivUniversity• LLM,BarIlanUniversity

HarelGivon|CBO• 15+yearsindustryexperience• PriorsalesandleadershiprolesatAmdocs•MBA,TelAvivUniversity

• PreviouslyservedasPresidentoftheAT&TdivisionatAmdocs,witha$1BP&L

• LedthetransitiontoMaveriQ,RADCOM’ssoftware-basedplatform

• Previously,HeadofFinanceforAmdocs’$500millionEMEADivision,from2011-2016

• PreviouslyatAmdocsledsignificantbusinessexpansionwithinEMEAandspecificallywithintheVodafoneaccounts

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Page 17: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

FINANCIALHIGHLIGHTS

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2015- $18.7M 2016-$28-$29.5M

StrongBalanceSheetSept30,2016

$43.2Mincash,Zerodebt

Revenue

2.7

6.57.2 7.7

0.0

2.0

4.0

6.0

8.0

10.0

Q4-15 Q1-16 Q2-16 Q3-16

Page 18: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

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SUMMARY

RADCOMhasattractivegrowthopportunities

>$1BillionMarketOpportunityDrivenbyLTE,VoLTE,IoTandNFV

HighlyScalableandDifferentiated Software-BasedSolution

Groundbreaking NFVWinwithAT&T

FirstMoverAdvantage inSoftware-BasedandNFVProbeSolutions

ProductAdvantagetoIncreaseviaDeploymentHardening

CompellingGrowthEngines

StrongRevenueGrowthandHighlyScalableOperatingModel

ExperiencedLeadershipTeamwithExtensiveDomainKnowledge

Page 19: RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands of data and video-hungry users.” GLOBAL NFV AND SDN MARKET ($ in billions) $0.3

THANKYOU