Partner picks Radcom monitoring solution for Orange 3G
Radcom's share has gone down 36% since issuing a revenue warning last week.
Shiri Habib 10 Apr 06 17:07
Network test and service monitoring solutions provider Radcom (Nasdaq: RDCM) today announced that Partner Communications (Nasdaq: PTNR; TASE: PTNR; LSE:PCCD) has selected its universal mobile telecommunications system (UMTS) monitoring solution for the Orange 3G network. The volume of the contract was not mentioned.
Omni-Q's open architecture allows Partner to leverage its existing OSS management system. The Omni-Q system will enable Partner to manage 3G service performance across various local sites from a single control center.
Orange 3G currently has 100,000 subscribers.
Radcom last week announced that it expects its revenues for the first quarter of 2006 to range between $5-5.2 million, rather than the $6.3-6.8 million forecast previously. The shortfall reflects the timing of a major order from an existing customer, which was originally scheduled for delivery during the first quarter. The company plans to publish its full results for the quarter on April 24, 2006.
Radcom president and CEO Arnon Toussia-Cohen said, "We are obviously disappointed to report a revenue shortfall for the first quarter due primarily to a delay in the closing of a large order from an existing customer. We received only part of the expected order this quarter and we believe the remainder will be placed in the next few months. As we have explained in the past, the majority of our revenues now derive from a relatively small number of sizeable orders, a model that lends itself to quarterly fluctuations. As such, the timing of a single large order can have a very significant effect, boosting quarterly results above forecasts in the case of an earlier-than-expected closure, or negatively impacting results in the case of a delay.
"Nonethless, we continue to progress according to our strategic plan and to win new deals. We continue to see steady growth in demand in all our markets. Although we expect to continue to experience quarterly fluctuations from time to time, we are optimistic looking forward and believe that we shall see growth in 2006 as a whole."
Radcom's share has gone down 36% since the announcement was made. The company trades on Nasdaq and the TASE at $40 million market capitalization. Radcom is part of the Zisapel brother's RAD group. The brothers are also the primary shareholders: Zohar Zisapel owns 22% and Yehuda Zisapel owns 13.6%.
Published by Globes [online], Israel business news - www.globes.co.il - on April 10, 2006
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