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

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 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, 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
 


Contacts

Chief Financial Officer
Meir Moshe
+972-3766-8610

Corporate Media Relations
Michael Lordi
+1 201-785-3206
mikel@radware.com


SOURCE Radware Ltd




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