Radcom (RDCMF:Nasdaq) is an Israeli startup that tests and analyzes equipment for high-speed data networks. Though its products are barely visible now, they will become more important as demanding applications, like telephony, become more common on the Internet and performance improvements are a must, says Herring.com.
Israeli high-tech companies are the latest hot investment target, and Radcom has some solid credentials, including an exclusive agreement announced last week with Boeing (BA:NYSE) to commercialize a new, high-speed ATM analyzer product. Radcom also has positive cash flow, $23 million in cash and anticipated revenues of $25 million this year and $37.5 million next year, according to underwriter C.E. Unterberg, Towbin. Unterberg believes earnings will be 27 cents per share in 1998, rising to 50 cents the following year.
With a market cap of just $50 million, Radcom is still a relative unknown. The stock made its debut last fall at around $11, and has since slipped to 5. Unterberg analyst Craig Sultan has set a near-term target of $8.