2014

Radware Ltd. Announces Fourth Quarter 2012 Results Record Annual Revenues of $189.2 Million; Record Quarterly Revenues of $49.8 Million; Record Quarterly Non-GAAP EPS $0.48

TEL AVIV, Israel, January 29, 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 $49.8 million for the fourth quarter of 2012. This represents an increase of 5% compared with revenues of $47.5 million for the third quarter of 2012, and an increase of 11% compared with revenues of $45.1 million in the fourth quarter of 2011.

Net income on a GAAP basis for the fourth quarter of 2012 was $9.1 million or $0.39 per diluted share, compared with net income of $8.2 million or $0.35 per diluted share for the third quarter of 2012 and to $6.6 million or $0.29 per diluted share in the fourth quarter of 2011.

Net income on a Non-GAAP basis for the fourth quarter of 2012 was $11.2 million or $0.48 per diluted share, compared with net income of $10.4 million or $0.45 per diluted share for the third quarter of 2012 and to $9.5 million or $0.42 per diluted share in the fourth quarter of 2011.

Revenues for 2012 amounted to $189.2 million, an increase of 13% compared with revenues of $167.0 million in 2011.

Net income on a GAAP basis for 2012 amounted to $31.8 million or $1.36 per diluted share, representing an increase of 49% compared with net income of $21.3 million or $0.93 per diluted share in 2011.

Net income on a Non-GAAP basis for 2012 amounted to $40.5 million or $1.74 per diluted share, representing an increase of 32% compared with net income of $30.7 million or $1.34 per diluted share in 2011.

"2012 represented another record year for us," states Roy Zisapel president and chief executive officer, Radware. "The transition to virtual data center architectures, private and public cloud build-outs, the explosion of mobile data, as well as surge in cyber security attacks led the demand for our application delivery and attack mitigation solutions."

"Despite a year of ongoing macro-economic uncertainty, we are pleased by our solid execution in meeting critical industry demands and look for these IT growth trends to continue in 2013," added Zisapel.

During the fourth quarter 2012, Radware released the following significant announcements:

  • Radware Announces Third Quarter 2012 Earnings Conference Call
  • Brinkster Selects Radware's Attack Mitigation System to Protect its Cloud and Hosting Customers Against Cyber Attacks
  • Radware Launches In-Depth Resource for Information Security Professionals
  • Asiasoft Selects Radware to Defend Against Cyber Attacks
  • Radware's ADC Fabric Honored as a Bronze Stevie Winner at the 2012 American Business Awards Program
  • Radware Ltd. Announces Third Quarter 2012 Results
  • Radware Introduces Industry's Fastest Attack Mitigation Solution, DefensePro x420
  • Radware Reports Results of Annual General Meeting
  • New Report Reveals 65% of Organizations Experience Three DDoS Attacks a Year, But Majority are Unprepared to Mitigate Attacks
  • Radware Positioned in the Leaders Quadrant for Application Delivery Controllers' 2012 Magic Quadrant
  • Radware and VMware Integrated Virtual ADC Solution Now Generally Available
  • Radware Awarded Contract to Upgrade Existing Network Protection System for a Leading U.S. National Cellular Network Provider
  • Radware Launches Smart Choice Cloud Partner Program

Company management will host a quarterly investor conference call at 8:45am ET on January 29, 2013. The call will focus on financial results for the quarter ending December 31, 2012 and certain other matters related to the Company's business.

The conference call will be webcast on January 29, 2013 at 8:45a.m. 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 fourth quarter 2012 call:

Participants in the US call: Toll Free +1 (877) 392-9880

International participants call: +1 760-666-3769

Conference ID:  85827370

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® and our new security center DDoSWarriors.com that provides a comprehensive analysis on DDoS attack tools, trends and threats.

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, 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. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. 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.

                         Consolidated Balance Sheets
                         (U.S. Dollars in thousands)
 
                                       December 31,      December 31,
 
                                           2011              2012
                                        (Audited)        (Unaudited)
    Current assets
    Cash and cash equivalents                17,386              20,048
    Available-for-sale marketable
    securities                               10,334              14,004
    Short term bank deposits                 88,773              54,155
    Trade receivables, net                   12,565              18,408
    Other receivables and prepaid
    expenses                                  3,218               3,975
    Inventories                              12,147              12,545
                                            144,423             123,135
    Long-term investments
    Available-for-sale marketable
    securities                              102,644             121,114
    Long-term bank deposits                       -              65,625
    Severance pay funds                       3,047               2,957
                                            105,691             189,696
 
    Property and equipment, net              11,084              13,589
 
    Other assets
    Intangible assets, net                    8,163               5,128
    Other long-term assets                    1,365               1,637
    Goodwill                                 24,465              24,465
 
    Total assets                            295,191             357,650
 
    Current liabilities
    Trade payables                            5,099               9,915
    Deferred revenues                        35,516              36,304
    Other payables and accrued
    expenses                                 14,732              20,301
                                             55,347              66,520
 
    Long-term liabilities
    Deferred revenues                        16,978              16,486
    Other long term Liabilities               3,545               3,414
                                             20,523              19,900
 
    Shareholders' equity
    Share capital                               528                 553
    Additional paid-in capital              233,353             249,739
    Accumulated other comprehensive
    income (loss)                            (1,663)              2,078
    Treasury stock, at cost                 (18,036)            (18,036)
    Retained earnings                         5,139              36,896
    Total shareholders' equity              219,321             271,230
 
    Total liabilities and
    shareholders' equity                    295,191             357,650
 


                   Condensed Consolidated Statements of Income
           (U.S. Dollars in thousands, except share and per share data)
                                 For the three months
                                  ended December 31,      For the Year ended
                                                             December 31,
                                   2011        2012        2011       2012
                               (Unaudited)  (Unaudited) (Audited)  (Unaudited)
 
    Revenues                         45,090      49,838    167,020     189,171
    Cost of revenues                  8,626       9,407     33,357      35,719
    Gross profit                     36,464      40,431    133,663     153,452
    Operating expenses:
    Research and development          9,146       8,968     36,064      36,187
    Selling and marketing            18,516      19,902     69,543      76,646
    General and administrative        2,501       2,476      9,629       9,696
    Total operating expenses         30,163      31,346    115,236     122,529
    Operating income                  6,301       9,085     18,427      30,923
    Financial income, net               787       1,038      4,200       4,792
    Income before income taxes        7,088      10,123     22,627      35,715
    Income taxes                       (468)     (1,012)    (1,290)     (3,958)
    Net income                        6,620       9,111     21,337      31,757
    Basic net earnings per share     $ 0.31      $ 0.41     $ 1.02      $ 1.45
    Weighted average number of
    shares used to compute
    basic net earnings per share 21,149,334  22,080,448 20,952,866  21,854,639
    Diluted net earnings per
    share                            $ 0.29      $ 0.39     $ 0.93      $ 1.36
    Weighted average number of
    shares used to compute
    diluted net earnings per
    share                        22,716,083  23,335,211 22,888,064  23,294,447


                 Reconciliation of Supplemental Financial Information
             (U.S. Dollars in thousands, except share and per share data)
                     For the Three months ended           For the Year
                            December 31,               ended December 31,
                         2011           2012           2011           2012
 
                     (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)
    GAAP net income          6,620          9,111         21,337         31,757
    Stock-based
    compensation
    expenses,
    included in:
    Cost of
    revenues                    20             11             66             66
    Research and
    development                337            212          1,124          1,103
    Selling and
    marketing                1,013            599          3,135          3,298
    General and
    administrative             261            196          1,133            916
                             1,631          1,018          5,458          5,383
    Amortization of
    intangible
    assets included
    in:
 
    Cost of
    revenues                   541            467          2,164          1,869
    Selling and
    marketing                  421            292          1,684          1,166
                             ­  962            759          3,848          3,035
    Exchange rate
    differences, net on
    balance sheet items
    included in financial
    income, net                306            277             43            355
    Non-GAAP net
    income                   9,519         11,165         30,686         40,530
 
    Non-GAAP
    diluted net
    earnings per
    share                   $ 0.42         $ 0.48         $ 1.34         $ 1.74
    Weighted
    average number
    of shares used
    to compute
    Non-GAAP
    diluted net
    earnings per
    share
                        22,716,083     23,335,211     22,888,064     23,294,447
 


Contacts

Chief Financial Officer
Meir Moshe
+972-3766-8610

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

SOURCE Radware Ltd




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.