2014

Radware Ltd. Announces First Quarter 2013 Results Quarterly Revenues of $45.1 Million; Quarterly Non-GAAP EPS $0.15

TEL AVIV, Israel, April 25, 2013 /PRNewswire/ --

Radware® (NASDAQ: RDWR), a global leader of application delivery and application security solutions for virtual and cloud data centers, today reported quarterly revenues of $45.1 million for the first quarter of 2013 and announced it will host a Financial Analyst day for Monday, May 6th, 2013.

Net income on a GAAP basis for the first quarter of 2013 was $4.5 million or $0.10 per diluted share, compared with net income of $6.9 million or $0.15 per diluted share for the first quarter of 2012.

Net income on a Non-GAAP basis for the first quarter of 2013 was $7.0 million or $0.15 per diluted share, compared with net income of $9.0 million or $0.19 per diluted share for the first quarter of 2012.

At the end of the first quarter 2013, following the cash payment related to the acquisition of Strangeloop Networks Inc. in the amount of approximately $8.4 million, the company's overall cash position including cash, short-term and long term bank deposits and marketable securities amounted to $273.6 million, representing a decrease in the company's cash position of approximately $1.3 million in the first quarter of 2013.

The earnings per share presented for all prior periods were restated to reflect the effects of the stock split that occurred April 12, 2013.

"Despite lower than expected quarterly revenues, we continue to see a long term strong market need for delivering and securing applications across enterprise, carrier and cloud data centers. We believe we will be able to translate the growth in mobile data, cyber threats and attacks, and cloud computing to revenue growth in 2013," stated Roy Zisapel president and chief executive officer, Radware. 

During the first quarter 2013, Radware released the following significant announcements:

  • Radware Releases Global Security Report - Reveals New Cyber Attack Methods Uncovering Blind-Spots Unrecognized by Security Professionals and Organizations
  • Radware Ltd. Announces Fourth Quarter 2012 Results
  • Radware Acquires Strangeloop Networks, Leader in Web-Performance Optimization (WPO) Solutions for e-commerce and Enterprise Applications
  • Radware to Present at 2013 RSA Conference: Stock Exchanges in the Line of Fire - Morphology of Cyber-Attacks
  • Radware Unveils New Network Cloud Platform to Provide an Application Provider-Edge and Advanced Attack Mitigation System for Mobile Carriers
  • Radware Introduces its New Cloud Based Attack Mitigation Solution to Protect Customers Against Internet Pipe Saturation
  • Radware and Mellanox Combine Technology to Enable Mobile Carriers to Leverage Network Functions Virtualization (NFV) and Software Defined Networking (SDN)
  • Radware and Level 3 Announce Key Findings on Page Speed of Europe's Top 400 Retail Websites
  • Radware to Present at Admin & Infrastructure 2013
  • New Radware Report Reveals Top Retailers Continue to Struggle with Slow Website Load Times, Often Ignoring Industry Best Practices
  • Radware to Keynote at SecureWorld Boston 2013: Information Security Adaptation: Survival in an Evolving Threat Landscape
  • Radware Announces a 2-for-1 Forward Share Split

Company management will host a quarterly investor conference call at 8:45am ET on April 25, 2013. The call will focus on financial results for the quarter ending March 31, 2013 and other matters related to the Company's business.

The conference call will be webcast on April 25, 2013 at 8:45am ET in the "listen only" mode via the Internet at: http://www.radware.com/Company/InvestorRelations/default.aspx and will be available for replay during the next 30 days.  

Please use the following dial-in numbers to participate in the first quarter 2013 call:

Participants in the US call: Toll Free +1 800- 230-1085

International participants call: +1 612- 332-0107  

Conference ID:  286846

Financial Analyst Day

Radware is pleased to announce it will host a Financial Analyst Day on Monday, May 6th, 2013 from 8:00 am to 11:30 am.

The meeting and breakfast will be held at the New York Hilton Midtown, 1335 Avenue of the Americas, New York, NY 10019. Participation is by registration only. To register, please go to: http://www.radware.com/Forms/AnalystDayPresentations.aspx

About Radware

Radware (NASDAQ: RDWR), is a global leader of application delivery and application security solutions for virtual and cloud data centers. Its award-winning solutions portfolio delivers full resilience for business-critical applications, maximum IT efficiency, and complete business agility.  

Radware's solutions empower more than 10,000 enterprise and carrier customers worldwide to adapt to market challenges quickly, maintain business continuity and achieve maximum productivity while keeping costs down.  For more information, please visit http://www.radware.com.

Radware encourages you to join our community and follow us on LinkedIn, Radware Blog, Twitter, YouTube and the Radware Connect app for iPhone®.

###

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of net income and earnings per share, which are adjustments from results based on GAAP to exclude stock-based compensation expenses, in accordance with ASC No. 718, amortization of intangible assets, acquisition related expenses, and exchange rate differences, net on balance sheet items included in finance income. Such exchange rate differences may vary from period to period due to changes in exchange rates driven by general market conditions or other circumstances outside of the normal course of Radware's operations. Management believes that exclusion of these charges allows comparisons of operating results that are consistent across past, present and future periods. Radware's management believes the non-GAAP financial information provided in this release is useful to investors for the purpose of understanding and assessing Radware's ongoing operations. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release, to the most directly comparable GAAP financial measures, is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and, as such, has determined that it is important to provide this information to investors.

This press release may contain statements concerning Radware's future prospects that are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995.  These statements are based on current expectations and projections that involve a number of risks and uncertainties.  There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates.  These risks and uncertainties, as well as others, are discussed in greater detail in Radware's Annual Report on Form 20-F and Radware's other filings with the Securities and Exchange Commission.  Forward-looking statements speak only as of the date on which they are made and Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.  Radware's public filings are available from the Securities and Exchange Commission's website at http://www.sec.gov  or may be obtained on Radware's website at http://www.radware.com.

   
                         Condensed Consolidated Balance Sheets
                              (U.S. Dollars in thousands)

                                         December 31,      March 31,
                                              2012            2013
                                                          (Unaudited)
    Current assets
    Cash and cash equivalents                  20,048          15,375
    Available-for-sale marketable
    securities                                 14,004          18,849
    Short-term bank deposits                   54,155          28,556
    Trade receivables, net                     18,408          20,740
    Other receivables and prepaid
    expenses                                    3,975           5,264
    Inventories                                12,545          13,254
                                              123,135         102,038
    Long-term investments
    Available-for-sale marketable
    securities                                121,114         114,168
    Long-term bank deposits                    65,625          96,696
    Severance pay funds                         2,957           3,088
                                              189,696         213,952

    Property and equipment, net                13,589          14,664
    Intangible assets, net                      5,128           7,423
    Other long-term assets                      1,637           1,631
    Goodwill                                   24,465          30,069

    Total assets                              357,650         369,777

    Current liabilities
    Trade payables                              9,915           6,365
    Deferred revenues, other
    payables and accrued expenses              56,605          62,180
                                               66,520          68,545

    Long-term liabilities                      19,900          21,690

    Shareholders' equity
    Share capital                                 599             605
    Additional paid-in capital                249,739         253,558
    Accumulated other comprehensive
    income                                      2,078           2,079
    Treasury stock, at cost                  (18,082)        (18,082)
    Retained earnings                          36,896          41,382
    Total shareholders' equity                271,230         279,542

    Total liabilities and
    shareholders' equity                      357,650         369,777





                   Condensed Consolidated Statements of Income
           (U.S. Dollars in thousands, except share and per share data)

                               For the Three months ended
                                        March 31,
                                      2012          2013
                                  (Unaudited)   (Unaudited)

    Revenues                          45,021        45,126
    Cost of revenues                   8,532         8,580
    Gross profit                      36,489        36,546
    Operating expenses:
    Research and development,
    net                                9,152         9,869
    Selling and marketing             18,687        19,540
    General and administrative         2,404         3,010
    Total operating expenses          30,243        32,419
    Operating income                   6,246         4,127
    Financial income, net              1,502         1,115
    Income before taxes on
    income                             7,748         5,242
    Taxes on income                    (875)         (756)
    Net income                         6,873         4,486

    Basic net earnings per
    share *)                          $ 0.16        $ 0.10
    Weighted average number of
    shares used to compute
    basic net earnings per
    share*)                       42,989,414    44,615,888

    Diluted net earnings per
    share *)                          $ 0.15        $ 0.10
    Weighted average number of
    shares used to compute
    diluted net earnings per
    share*)                       46,232,222    46,995,738


*) On April 12, 2013, the Company affected a  stock split of the Company's ordinary shares of two (2) for one (1). The earning per share amounts and the share data presented for all prior periods were restated to reflect the effects of the stock split.


               Reconciliation of Supplemental Financial Information
           (U.S. Dollars in thousands, except share and per share data)

                                For the Three months
                                   ended March 31,
                                  2012        2013
                               (Unaudited) (Unaudited)


    GAAP net income                  6,873       4,486
    Stock-based compensation
    expenses, included in:
    Cost of revenues                    21          14
    Research and development           328         271
    Selling and marketing              966         607
    General and administrative         274         234
                                     1,589       1,126
    Amortization of intangible
    assets included in:
    Cost of revenues                   468         516
    Selling and marketing              291         210
                                       759         726

    Exchange rate differences,
    net on balance sheet items
    included in finance income       (268)         216

    Acquisition related
    expenses                             -         485
    Non-GAAP net income              8,953       7,039

    Non-GAAP diluted net
    earnings per share*)            $ 0.19      $ 0.15
    Weighted average number of
    shares used to compute
    Non-GAAP diluted net
    earnings per share *)       46,232,222  46,995,738




*) On April 12, 2013, the Company affected a  stock split of the Company's ordinary shares of two (2) for one (1). The earnings per share amounts and the share data presented for all prior periods were restated to reflect the effects of the stock split.


CONTACTS

Chief Financial Officer
Meir Moshe
+972-3766-8610

Corporate Media Relations
Brian Gallagher
+1 201-785-3206
briang@radware.com

 

SOURCE Radware Ltd




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