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RADCOM Shifts Focus to Growth Amid Second Quarter Revenue Dip

RADCOM Shifts Focus to Growth Amid Second Quarter Revenue Dip

RADCOM reported second-quarter revenue of $11.8 million, a 33.4% decline compared to the same period last year, as supply chain constraints and rising component costs slowed infrastructure deployments. Despite the shortfall, the company maintains its full-year guidance and has moved to initiate a $20 to $25 million share repurchase program.

The Tel Aviv-based firm attributed the lower figures to project timing rather than a fundamental loss of demand. While GAAP operating losses reached $3.8 million for the quarter, the company remains debt-free with $109.7 million in cash and short-term deposits. Management expects to return to double-digit revenue growth by 2027.

Following the quarter's close, RADCOM secured three new contracts, including a multi-year deal with CETIN Networks in Slovakia and a competitive win against an incumbent provider in the Asia-Pacific region. Chief Executive Benny Eppstein emphasized that no previous customer deployments have been canceled, framing the recent performance as a temporary shift in the deployment cycle. To signal confidence in long-term prospects, the board has begun the process of establishing a share buyback program, viewing the current valuation as an optimal time to return capital to shareholders.

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