Document:

EXHIBIT
      10.1

     

    
      
        	Contact:
                David
                  Zigdon

                CFO

                (972)
                  3-6455004

                davidz@radcom.com

              	 

      

       

      FOR
        IMMEDIATE RELEASE

    

    

    

    RADCOM
      REPORTS Q4 AND FULL YEAR 2005 FINANCIAL RESULTS

    --
      Revenues
      for the Year Up 39% To $22.3M; Q4 Revenues Up 30% YOY to $6.6M
      -

    --
      4th
      Consecutive Profitable Quarter with $0.05 EPS for Q4, $0.10 EPS for 2005
      -

    

    

    TEL-AVIV,
      Israel—February 6, 2006-- RADCOM Ltd. (RADCOM) (NASDAQ: RDCM) today announced
      financial results for the fourth quarter and full year ended December 31, 2005.
      

    

    Financial
      Results

     

    Revenues
      for the fourth quarter of 2005 were $6,578,000, an increase of 30% compared
      to
      $5,078,000 for the fourth quarter of 2004, representing the Company’s fourth
      consecutive quarter of 30% or more year-over-year growth. Net income for the
      fourth quarter of 2005 was $798,000, or $0.05 per ordinary share (basic and
      diluted), representing the Company’s fourth consecutive profitable quarter. This
      compared to a net loss of $243,000, or $0.02 per ordinary share (basic and
      diluted) for the fourth quarter of 2004. 

    

    Revenues
      for the year ended December 31, 2005 increased by 39% to $22,340,000 compared
      to
      $16,055,000 in 2004. Net income for 2005 was $1,527,000, or $0.10 per ordinary
      share (basic and diluted), completing four profitable quarters for the year.
      This compared to a net loss of $1,678,000, or $0.12 per ordinary share (basic
      and diluted) recorded in 2004. 

    

    Comments
      of Management

     

    Commenting
      on the results, Arnon Toussia-Cohen, President and CEO of RADCOM, said, “The
      fourth quarter was a strong end to a great year. After returning to
      profitability in Q1 our momentum continued to build, enabling us to deliver
      four
      straight profitable quarters with 39% year-over-year revenue growth and positive
      cash flow. Taken as a whole, we are growing faster than the telecom monitoring
      market, reflecting the growing recognition by 3G and VoIP service providers
      that
      RADCOM solutions are strategic for achieving profitable, high quality services.
      

    

    “During
      the year, we focused on the U.S. sales effort and succeeded in penetrating
      both
      Tier-1 and Tier 2 players. We also stepped up our activities in China to
      position RADCOM to benefit from its emerging 3G marketplace. In 2006, our focus
      will be to expand on this base, build our European sales and capitalize on
      our
      open-platform technology advantage through strategic cooperations with many
      types of applications providers.” 

    

    The
      following statement is forward-looking in nature, and actual results may differ
      materially. See below under “Risks Regarding Forward Looking Statements”.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Normal
      seasonality of the Company’s business usually results in a first quarter with
      revenues lower than those of the preceding fourth quarter. However, the Company
      projects that its revenues for the first quarter of 2006 will be $6.3 million
      to
      $6.8 million.

     

    A
      teleconference to discuss the results will be held today, February 6th, at
      9:00
      a.m. Eastern Time. To participate, please call 1-888-428-4470 from the U.S.,
      or
      +1-612-332-0720 from international locations, approximately five minutes before
      the call is scheduled to begin. A replay of the call will be available from
      11:00 AM Eastern Time on February 6th
      until
      midnight February 20th.
      To
      access the replay, please call 1-800-475-6701 from the U.S.,
      or +1-320-365-3844
      from international locations, and use the access code 813009. The conference
      call can also be accessed online at www.radcom.com.

     

    ###

     

    RADCOM
      develops, manufactures, markets and supports innovative network test and service
      monitoring solutions for communications service providers and equipment vendors.
      The company specializes in Next Generation Cellular as well as Voice, Data
      and
      Video over IP networks. Its solutions are used in the development and
      installation of network equipment and in the maintenance of operational
      networks. The company’s products facilitate fault management, network service
      performance monitoring and analysis, troubleshooting and pre-mediation. For
      more
      information, please visit www.RADCOM.com.

     

    Risks
      Regarding Forward Looking Statements

     

    Certain
      statements made herein that use the words ``estimate,'' ``project,'' ``intend,''
      ``expect”, ''believe`` and similar expressions are intended to identify
      forward-looking statements within the meaning of the Private Securities
      Litigation Reform Act of 1995. These forward-looking statements involve known
      and unknown risks and uncertainties which could cause the actual results,
      performance or achievements of the Company to be materially different from
      those
      which may be expressed or implied by such statements, including, among others,
      changes in general economic and business conditions and specifically, decline
      in
      demand to the Company's products, inability to timely develop and introduce
      new
      technologies, products and applications and loss of market share and pressure
      on
      prices resulting from competition. For additional information regarding these
      and other risks and uncertainties associated with the Company's business,
      reference is made to the Company's reports filed from time to time with the
      Securities and Exchange Commission. The Company does not undertake to update
      forward-looking statements. 

    

    (Financial
      tables follow)

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      RADCOM REPORTS/3

       

      
        RADCOM
          Ltd.

      

      
        Consolidated
          Statements of Operations

        
          (1000's
            of U.S. dollars, except per share data)

           

        

      

    

    
      	 	
              Three
                months ended 

              December
                31,

            	 	
              Twelve
                months ended 

              December
                31,

            
	 	
              2005

            	
               

            	
              2004

            	 	
              2005

            	 	
              2004

            
	 	
              (unaudited)

            	
               

            	
              (unaudited)

            	 	
              (unaudited)

            	 	
              (unaudited)

            
	
              Sales
                

            	
              6,578
                

            	 	
              5,078
                

            	 	
              22,340

            	 	
              16,055
                

            
	
              Cost
                of sales

            	
              2,197
                

            	
               

            	
              1,612
                

            	 	
              7,398

            	 	
              5,127

            
	
              Gross
                profit 

            	
              4,381

            	 	
              3,466
                

            	 	
              14,942

            	 	
              10,928

            
	 	 	 	 	 	 	 	 
	
              Research
                and development, gross

            	
              1,525
                

            	 	
              1,376
                

            	 	
              5,815
                

            	 	
              5,232

            
	
              Less
                - royalty-bearing participation

            	
              401
                

            	
               

            	
              420
                

            	 	
              1,735

            	 	
              1,722

            
	
              Research
                and development, net

            	
              1,124

            	 	
              956
                

            	 	
              4,080
                

            	 	
              3,510

            
	
              Sales
                and marketing 

            	
              2,081
                

            	 	
              1,884
                

            	 	
              7,881
                

            	 	
              6,983
                

            
	
              General
                and administrative

            	
              453

            	
               

            	
              899
                

            	 	
              1,689

            	 	
              2,191

            
	
              Total
                operating expenses

            	
              3,658
                

            	
               

            	
              3,739
                

            	 	
              13,650

            	 	
              12,684

            
	
              Operating
                income (loss)

            	
              723

            	 	
              (273)

            	 	
              1,292

            	 	
              (1,756)

            
	
              Financing
                income, net

            	
              75
                

            	
               

            	
              30
                

            	 	
              235

            	 	
              78
                

            
	
              Net
                income (loss)

            	
              798

            	
               

            	
              (243)

            	 	
              1,527

            	 	
              (1,678)

            
	
              Basic
                net income (loss) per ordinary share

            	
              0.05

            	
               

            	
              (0.02)

            	 	
              0.10

            	 	
              (0.12)

            
	
              Diluted
                net income (loss) per ordinary share

            	
              0.05

            	
               

            	
              (0.02)

            	 	
              0.10

            	 	
              (0.12)

            
	
              Weighted
                average number of ordinary
                shares used in computing
                basic net income (loss)
                per ordinary share

            	
              14,879,074

            	 	
              14,417,980

            	 	
              14,696,090
                

            	 	
              13,453,509
                

            
	
              Weighted
                average number of ordinary
                shares used in computing
                diluted net income (loss)
                per ordinary share

            	
              15,894,937

            	 	
              14,417,980

            	 	
              15,561,585

            	 	
              13,453,509

            

    

     

     

    (Additional
      table to follow)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    RADCOM
      REPORTS/4

     

    
      RADCOM
        Ltd.

    

    
      Consolidated
        Balance Sheets

    

    
      (1000's
        of U.S. dollars) 

       

    

    
      	
            
	 	
              As
                of

            	 	
              As
                of

            
	 	
              December
                31, 2005

            	 	
              December
                31, 2004

            
	
              Current
                Assets

            	
              (unaudited)

            	 	
              (unaudited)

            
	
              Cash
                and cash equivalents 

            	
              10,520

            	 	
              6,558

            
	
              Marketable
                securities

            	
              -
                

            	 	
              1,992

            
	
              Trade
                receivables, net 

            	
              7,856
                

            	 	
              5,341

            
	
              Inventories
                

            	
              1,938
                

            	 	
              2,400
                

            
	
              Other
                current assets 

            	
              380

            	 	
              880
                

            
	
              Total
                Current Assets

            	
              20,694

            	 	
              17,171
                

            
	 	 	 	 
	
              Assets
                held for severance benefits

            	
              1,863

            	 	
              1,784

            
	
               

            	 	 	 
	
              Property
                and equipment, net

            	
              1,233

            	 	
              1,174

            
	
               

            	 	 	 
	
              Total
                Assets

            	
              23,790

            	 	
              20,129

            
	 	
               

            	 	
               

            
	
              Liabilities
                and Shareholders' Equity

            	 	 	 
	
              Current
                Liabilities 

            	 	 	 
	
              Trade
                payables 

            	
              2,148

            	 	
              2,027

            
	
              Current
                deferred revenue

            	
              1,545

            	 	
              889

            
	
              Other
                payables and accrued expenses 

            	
              4,014

            	 	
              4,204

            
	
              Total
                Current Liabilities

            	
              7,707

            	 	
              7,120

            
	 	 	 	 
	
              Long-Term
                Liabilities 

            	 	 	 
	
              Long-term
                deferred revenue

            	
              1,161
                

            	 	
              583
                

            
	
              Liability
                for employees’ severance pay benefits

            	
              2,437

            	 	
              2,402

            
	
              Total
                Long-Term Liabilities

            	
              3,598

            	 	
              2,985

            
	 	 	 	 
	
              Total
                Liabilities

            	
              11,305

            	 	
              10,105

            
	 	 	 	 
	
              Shareholders'
                Equity 

            	 	 	 
	
              Share
                capital 

            	
              107

            	 	
              101

            
	
              Additional
                paid-in capital

            	
              44,613

            	 	
              43,698

            
	
              Accumulated
                other comprehensive loss

            	
              -

            	 	
              (13)

            
	
              Accumulated
                deficit

            	
              (32,235)

            	 	
              (33,762)

            
	
              Total
                Shareholders' Equity

            	
              12,485
                

            	 	
              10,024

            
	 	 	 	 
	
              Total
                Liabilities and Shareholders' Equity

            	
               23,790

            	 	
              20,129SECURED
      PROMISSORY NOTE

     

    
      	$45,750.00	
              Los
                Angeles,
                California

            

    

    February
      1, 2006

    

    FOR
      VALUE
      RECEIVED, Patient Safety Technologies, Inc. (the “Maker”), a Delaware
      corporation with an office located at 1800 Century Park East, Suite 200, Los
      Angeles, CA 90067, hereby promises to pay to the order of Ault Glazer Bodnar
      Acquisition Fund LLC (the “Payee”), a Delaware limited liability company, the
      principal sum of forty five thousand seven hundred fifty dollars ($45,750.00)
      plus any accrued interest thereon in lawful money of the United States on April
      1, 2006 (the “Maturity Date”).

    

    Maker
      further promises to pay interest on the unpaid principal balance hereof at
      the
      rate of seven percent (7%) per annum, such interest to be paid on the Maturity
      Date. Interest shall commence accruing on the issue date and shall be calculated
      on the basis of a 365-day year and actual days elapsed. In no event shall the
      interest charged hereunder exceed the maximum permitted under the laws of the
      State of California.
      At the
      option of Maker, payments of principal and interest hereunder may be made in
      lawful money of the United States of America or, in whole or in part, of
      like-kind exchange including without limitation shares of any securities owned
      by the Maker (“Common Stock”), which shall be valued at the closing price of the
      Common Stock on the day before the Maturity Date obtained from the respective
      exchange.

    

    This
      Note
      may be prepaid in whole or in part at any time without the consent of the Maker
      provided that Payee shall pay Maker an amount in cash equal to the principal
      amount of this Note plus all accrued interest on the principal. 

    

    The
      entire unpaid principal balance of this Note and interest accrued with respect
      thereto shall be immediately due and payable upon the occurrence of any of
      the
      following (each, an “Event of Default”):

    

    a.
       The
      Maker
      filing for relief under any bankruptcy law;

    

    b. The
      filing of a lien, the issuance of a levy or execution, or the seizure,
      attachment or garnishment, or the entry of judgment on or against Maker or
      any
      of Maker’s property which shall not be released, satisfied of record or bonded
      within twenty (20) days thereafter, except liens which exist as the date hereof
      or liens to which the Payee shall consent; 

    

    c. The
      Maker
      creates, incurs, assumes or suffers to exist any liability for borrowed money,
      except borrowings in existence or committed on the date hereof and indebtedness
      to trade creditors or financial institutions incurred in the ordinary course
      of
      business; or

    

    d. The
      Maker
      has failed to pay the principal and any accrued and unpaid interest on the
      Maturity Date.

    

    The
      obligations under this Note shall be secured by certain collateral of Maker
      in
      accordance with the terms of a Security Agreement entered into on the date
      hereof. 

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    All
      rights and remedies available to the Payee pursuant to the provisions of
      applicable law and otherwise are cumulative, not exclusive and enforceable
      alternatively, successively and/or concurrently after default by Maker pursuant
      to the provisions of this Note.

    

    The
      Maker
      waives demand, presentment, protest and notice of any kind and consents to
      the
      extension of time of payments, the release, surrender or substitution of any
      and
      all security or guarantees for the obligations evidenced hereby or other
      indulgence with respect to this Note, all without notice.

    

    This
      Note
      may not be changed, modified or terminated orally, but only by an agreement
      in
      writing, signed by the party to be charged. The Maker hereby authorizes the
      Payee to complete this Note and any particulars relating thereto according
      to
      the terms of the indebtedness evidenced hereby.

    

    In
      the
      event of any litigation with respect to the obligations evidenced by this Note,
      the Maker waives the right to a trial by jury and all rights of set-off and
      rights to interpose permissive counterclaims and cross-claims. In
      the
      event this Note shall be in default, and placed with an attorney for collection,
      then Maker agrees to pay all reasonable attorney fees and costs of collection
      of
      Holder. This
      Note
      shall be governed by and construed in accordance with the laws of the State
      of
      California and shall be binding upon the successors, assigns, heirs,
      administrators and executors of the Maker and inure to the benefit of the Payee,
      his successors, endorsees, assigns, heirs, administrators and
      executors.

    

    The
      Maker
      hereby irrevocably consents to the jurisdiction of the state and federal courts
      in Los Angeles County, California in connection with any action or proceeding
      arising out of or relating to this Note. If any term or provision of this Note
      shall be held invalid, illegal or unenforceable, the validity of all other
      terms
      and provisions hereof shall in no way be affected thereby.

     

    
      	 	 	 
	 	PATIENT SAFETY TECHNOLOGIES, INC.
	 
 	 
 	 
 
	 	By:  	Louis
              Glazer M.D.
	 	
              
Name:
              Dr. Louis Glazer
	 	Title:
              Chief Executive Officer and Chairman

    

    
 

    
      
         

      

      
        -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]