Radware Ltd. Announces Second Quarter 2012 Results
TEL AVIV, Israel, July 26, 2012 /PRNewswire/ --
* Record Quarterly Revenues of $46.8 Million
* Record Quarterly Non-GAAP EPS $0.43
* Record Quarterly Non-GAAP Operating Margin 21%
Radware® (NASDAQ: RDWR), a global leader of application delivery and application security solutions for virtual and cloud data centers, today reported quarterly revenues of $46.8 million for the second quarter of 2012. This represents an increase of 14% compared with revenues of $41.1 million for the second quarter of 2011.
Net income on a GAAP basis for the second quarter of 2012 was $7.6 million or $0.32 per diluted share, compared with net income of $4.9 million or $0.21 per diluted share for the second quarter of 2011.
Net income on a Non-GAAP basis for the second quarter of 2012 was $10.0 million or $0.43 per diluted share, compared with net income of $7.3 million or $0.32 per diluted share for the second quarter of 2011.
At the end of the second quarter 2012, the company's overall cash position including cash, short-term bank deposits and marketable securities amounted to $250.2 million, representing an increase in the company's cash position of approximately $11.4 million in the second quarter of 2012.
"We are continuing to see steady growth for the business," stated Roy Zisapel president and chief executive officer, Radware. "This is fueled by not only increased traction for our solutions in the Americas but also our ability to secure large deals with carriers and cloud/service providers to help them address burgeoning mobile data, security, and managed services demands. In addition, strong demand for our attack mitigation solution continues as seen both by our growing install base and by our new partnership with CheckPoint."
During the second quarter 2012, Radware released the following significant announcements:
- Radware Joins Open Networking Foundation
- Multiple Social Networking Companies Select Radware to Defend Against Cyber Attacks
- Radware Earns 2011 Unified Communications Product of the Year Award
- Radware's Alteon® 10000 Delivers the Capacity and Performance Needed to Help a U.S. Tier 1 Carrier Expand Its DNS Application
- Radware Collaborates with IBM to Help Customers Achieve Superior Value from Cloud Computing and Virtualization
- Radware Ltd. Announces First Quarter 2012 Results
- Radware Speakers at Interop to Address Software Defined Networking in the Virtual Data Center and Optimizing the Cloud
- Radware and NEC Collaborate to Take OpenFlow Security to the Next Level
- Knorr-Bremse Deploys Radware's Alteon® 5224 to Ensure Cost-Effective Application Delivery During Recent Data Center Upgrade
- Radware's Carl Herberger to Deliver Keynote at SecureWorld: Philadelphia May 24
- Yes Satellite Television Service Provider Says 'Yes' to Radware's ADC and Application Security Solutions
- Radware's DefensePro® Earns Common Criteria Evaluation Assurance Level 4+
- Radware Unveils Attack Mitigation Black Belt Challenge
- Radware Provides Leading Attack Mitigation Capabilities for Check Point's DDoS Protector™ Appliance Line
- Radware Announces Second Quarter 2012 Earnings Conference Call
- Radware's FastView™ Technology Raises the Bar for Web Performance Optimization
- Radware's Attack Mitigation System Protects Online Businesses Against Encrypted DoS & DDoS Attacks
Company management will host a quarterly investor conference call at 8:45am ET on July 26, 2012. The call will focus on financial results for the quarter ending June 30, 2012 and certain other matters related to the Company's business.
The conference call will be webcast on July 26, 2012 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 second quarter 2012 call:
Participants in the US call: Toll Free +1-(866)-966-9439
International participants call: +44-(0)1452-555-566
Conference ID: 94844084
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 www.radware.com.
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. 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 www.sec.gov or may be obtained on Radware's website at www.radware.com.
Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) December 31, June 30, 2011 2012 (Unaudited) Current assets Cash and cash equivalents 17,386 12,044 Available-for-sale marketable securities 10,334 5,671 Short-term bank deposits 88,773 118,041 Trade receivables, net 12,565 17,733 Other receivables and prepaid expenses 3,625 3,332 Inventories 12,147 12,493 144,830 169,314 Long-term investments Available-for-sale marketable securities 102,644 114,479 Severance pay funds 3,047 2,823 105,691 117,302 Property and equipment, net 11,084 10,663 Other assets Intangible assets, net 8,163 6,645 Other long-term assets 1,365 1,143 Goodwill 24,465 24,465 Total assets 295,598 329,532 Current liabilities Trade payables 5,099 4,798 Deferred revenues, other payables and accrued expenses 43,732 56,899 48,831 61,697 Long-term liabilities 27,446 20,675 Shareholders' equity Share capital 528 546 Additional paid-in capital 233,353 244,559 Accumulated other comprehensive income (loss) (1,663) 528 Treasury stock, at cost (18,036) (18,036) Retained earnings 5,139 19,563 Total shareholders' equity 219,321 247,160 Total liabilities and shareholders' equity 295,598 329,532
Condensed Consolidated Statements of Income (U.S. Dollars in thousands, except share and per share data) For the Three months For the Six months ended June 30, ended June 30, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues 41,115 46,802 79,734 91,823 Cost of revenues 8,318 8,810 16,197 17,342 Gross profit 32,797 37,992 63,537 74,481 Operating expenses: Research and development 9,092 8,943 17,796 18,095 Selling and marketing 17,339 19,017 33,745 37,704 General and administrative 2,436 2,427 4,785 4,831 Total operating expenses 28,867 30,387 56,326 60,630 Operating income 3,930 7,605 7,211 13,851 Financial income, net 1,298 989 2,637 2,491 Income before taxes on income 5,228 8,594 9,848 16,342 Taxes on income (298) (1,043) (529) (1,918) Net Income 4,930 7,551 9,319 14,424 Basic net earnings per share $ 0.24 $ 0.35 $ 0.45 $ 0.67 Weighted average number of shares used to compute basic net earnings per share 20,927,549 21,859,625 20,801,998 21,677,698 Diluted net earnings per share $ 0.21 $ 0.32 $ 0.41 $ 0.62 Weighted average number of shares used to compute diluted net earnings per share 22,976,000 23,399,494 23,001,985 23,268,450
Reconciliation of Supplemental Financial Information (U.S. Dollars in thousands, except share and per share data) For the Three months For the Six months ended June 30, ended June 30, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP net Income 4,930 7,551 9,319 14,424 Stock-based compensation expenses, included in: Cost of revenues 16 17 31 38 Research and development 286 279 539 607 Selling and marketing 781 860 1,391 1,826 General and administrative 345 254 663 528 1,428 1,410 2,624 2,999 Amortization of intangible assets included in: Cost of revenues 541 467 1,082 935 Selling and marketing 421 292 842 583 962 759 1,924 1,518 Exchange rate differences, net on balance sheet items included in finance expenses (income) (67) 287 (496) 19 Non-GAAP net income 7,253 10,007 13,371 18,960 Non-GAAP diluted net earnings per share $ 0.32 $ 0.43 $ 0.58 $ 0.81 Weighted average number of shares used to compute Non-GAAP diluted net earnings per share 22,976,000 23,399,494 23,001,985 23,268,450
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SOURCE Radware Ltd