1

Reference Slides Earnings Call for Q4-15 Results

2 February 16

Safe Harbor Provision

Forward-looking statements in the conference call involve a number of risks and uncertainties, including but not limited to product demand, pricing, market acceptance, changing economic conditions, product technology development, the effect of the company’s accounting policies, and other risk factors detailed in the company’s SEC filings. The Company does not undertake to update forward-looking statements. In this conference call, management will be referring to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the company’s financial performance. By excluding certain non-cash charges, non-GAAP results provide information that is useful in assessing RADCOM's core operating performance, and in evaluating and comparing our results of operations on a consistent basis from period to period. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures which are included in the quarter’s earnings release.

3 February 16

Overview

• Biggest-ever win secured in late December 2015

• Entering 2016 with record backlog – visibility for 3 years of growth

• RADCOM now positioned as CLEAR LEADER of NFV SERVICE ASSURANCE

4 February 16

RADCOM’s Unique Positioning

Vetting and selection by top-tier

North American operator positions

RADCOM’s MaveriQ as the

clear leader in NFV Service Assurance

• Ideal for the transitional environment

• Robust & scalable

• Industrial strength

• Open and interoperable with multiple vendors

5 February 16

The Challenge of Service Assurance During the NFV Transition

Virtual Probe

Legacy Probe

Legacy Probe

Legacy Probe

Legacy Probe Virtual Probe

• Virtualized elements can’t be monitored effectively by legacy probes

• In transitioning networks service assurance solutions need to monitor both physical and virtual elements

6 February 16

The NFV Transformation – 10 Years

Physical

Network

Transition to NFV

(Physical + Virtual)

Next 10 yrs

NFV Dominant

10+ yrs

7 February 16

When? Not if…

Infonetics Research, 2014

Pe

rce

nt

of

Re

spo

nd

en

ts In an Infonetics

Research survey, 93% of operators said that they will be deploying NFV

8 February 16

Operators Are Beginning the Move to NFV

Kyle Malady, SVP of Global Network Operations for Verizon “SDN and NFV hold a lot of promise, and Verizon is banking on it."

“NFV has real potential as a technology, which is why we have a wider program in place to determine exactly which network functions can be virtualized.” Dr. Tim Whitley, MD of Research & Innovation for BT

“NFV is essential. It's now too expensive to run a network built in silos.” Farid Feisullin , CTO at Sprint

“We can change how we operate, reduce the total cost of operation by up to 30% and at the same time upgrade our platforms.”

Carta Blanco, Global CTO for Telefónica

9 February 16

NFV: Significant Benefits

An NFV study from ACG Research shows rapid investment payback

“…adopting a virtualized evolved packet core can reduce CAPEX by an average of 68% and OPEX by 67%; and that the deployment of virtualized network components can happen within 6 months, compared with an average of 15 months for traditional network hardware, resulting in a quicker time to market and return on investment.”

ACG Research, July 2015

10

Financials

11 February 16

Income Statement (Non-GAAP, US$ 000’s)

Q4-15 Q4-14 2015 2014 Sales 2,715 7,188 18,673 23,636 Cost of sales 963 1,823 4,123 6,881 Gross Profit 1,752 5,365 14,550 16,755

Gross margin 64.5% 74.6% 77.9% 70.9% R&D Gross 1,524 1,286 5,542 5,634 Less participation 576 358 1,582 1,664 R&D Net 948 928 3,960 3,970 Sales & Marketing 2,000 1,738 7,454 6,976 General & Administration 458 441 1,926 2,019 Operating expenses 3,406 3,107 13,340 12,965

Operating profit (1,654) 2,258

1,210

3,790

Financial income (expense) 48 (280)

(433)

(332)

Net profit (1,606) 1,978

777

3,458

Net taxes - (180)

(121)

(180)

Net profit (1,606) 1,798

656

3,278 EPS (basic) ($0.19) $0.22 $0.08 $0.40 EPS (diluted) ($0.19) $0.20 $0.07 $0.38

12 February 16

Gross Margin (Non-GAAP)

60.8% 61.5% 70.9%

77.9%

40

50

60

70

80

90

100

2012 2013 2014 20152015

13 February 16

Operating Expenses (Non GAAP, US $ 000’S)

Q4-15 Q4-14 2015 2014

R&D Gross 1,524 1,286 5,542 5,634

Less OCS participation 576 358 1,582 1,664

R&D Net 948 928 3,960 3,970

Sales & Marketing 2,000 1,738 7,454 6,976

General & Administration 458 441 1,926 2,019

Operating expenses 3,406 3,107 13,340 12,965

14 February 16

Operating Income (Non GAAP, US $ 000’S)

(1,667) (415)

42 1,280

(1,611)

442 309

627

(1,677)

(932)

1,181

957

73 273

2,255

(1,654)

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

2012 2013 2014 2015

Q4

Q3

Q2

Q1

(4,882) (632)

3,787

1,210

15 February 16

Net Income (Non GAAP, US $ 000’S)

(1859)

(512) 248

822

(1,715)

419 360

605

(1,684)

(1017)

872

835

-58

187

1795

(1,606)

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

2012 2013 2014 2015

Q4

Q3

Q2

Q1

(5,316)

(932)

3,275

656

16 February 16

Balance Sheet (US$ 000’s)

US$ ‘000s

Dec-15 Dec-14 Cash and Deposits 8,759 6,880

Trade Receivables 3,684 5,477

Inventories 1,532 2,699

Other receivables 2,087 1,411

Current assets 16,062 16,467

Assets for severance benefits 3,181 3,051

Other long-term receivables 508 600

Property & Equipment-Net 384 200

Total Assets 20,135 20,318

Trade payables 1,465 1,524

Current deferred revenues 931 599

Advances from customers 0 166

Other payables 4,023 4,116

Current Liabilities 6,419 6,405

Long-term deferred revenues 197 198

Liability For Employees 3,656 3,453

Equity 9,863 10,262

Total Liabilities & Equity 20,135 20,318

17 February 16

Current Assets vs. Current Liabilities

15.8 16.4 16

8

6.4 6.4

0

2

4

6

8

10

12

14

16

18

Q4-13 Q4-14 Q4-15

Current Assets Current Liabilities

98%

156% 150%

18 February 16

Equity to Total Assets

37%

26% 25% 23%

39% 40% 38%

42% 44%

48% 51%

54% 56% 55%

49%

0%

10%

20%

30%

40%

50%

60%Q

2-1

2

Q3

-12

Q4

-12

Q1

-13

Q2

-13

Q3

-13

Q4

-13

Q1

-14

Q2

-14

Q3

-14

Q4

-14

Q1

-15

Q2

-15

Q3

-15

Q4

-15

19

Thank You

February 16