Research: Radcom Q2 Results

by Lsigurd on September 7, 2020

Radcom ACE

RADCOM ACE, which is a very advanced cloud-native containerized architecture product
an outcome of hard work of multiple years
already introduced this technology to some of our selective customers
early adopters of 5G are moving already to this cloud-native architecture

On 5G evolution

are now in really the very early adopter stage when we start to see the first operators globally
announcing they are moving to the next stage with their 5G networks and starting to invest in their 5G core
while we see operator announced their 5G and the 5G investment and some even nationwide,
most of them are still in a very early stage in their 5G investment, primarily focused on the radio side
most operators start with investments only on the radio side
still use their 4G network core in order to support this new radio connection
this is stage we are at, once they move to the next stage of 5G after the initial launch and want to go more strategically with that, they need to upgrade their network core
we commented all along that the time line for the 5G assurance solution is likely to be late in 2020 and primarily in 2021
expect to see contracts in the service assurance space, second part of 2020 and primarily in 2021, while the market is expecting to get to peak in 2022, 2023
early adopters will select their solutions in the next 6 to 12 months
vast majority of the carrier will select a solution of service assurance in order to assure that they get visibility

COVID slowdown:

despite the COVID-19, the transformation to 5G continues. Overall, it is going as planned. So we don’t see any significant effect
actually see some acceleration in some operators in terms of the 5G implementation
are very busy these days already to continue and build and increase the pipeline for 2021
this year is mainly about building the engagements, releasing the product that we are very excited to release and securing our contracts towards 2021

Competition

from Henderson, Needham: is the competition able to deliver a cloud-based architecture? Or are they still well behind you guys?“believe that our deep knowledge on virtualization, being engaged with the top carriers doing virtualization in the last 4, 5 years, giving us a clear advantage in this space. We were waiting for the virtualization technology to start, pick up pace. And we are very excited that in 5G, everything is going to be virtualized. So we believe our deep experience, including a very large scalable implementation in virtualization, which is going to come to play once we are starting to implement 5G. So yes, it’s definitely an advantage for us”

Overall commentary seems a little more bullish to me this quarter than in the past. Nothing imminent yet but still seems like one to watch closely for an inflection.