Radware Ltd. Announces Third Quarter 2012 Results Record Quarterly Revenues of $47.5 Million; Record Quarterly Non-GAAP EPS $0.45

TEL AVIV, Israel, October 26, 2012 /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 $47.5 million for the third quarter of 2012. This represents an increase of 13% compared with revenues of $42.2 million for the third quarter of 2011.

Net income on a GAAP basis for the third quarter of 2012 was $8.2 million or $0.35 per diluted share, compared with net income of $5.4 million or $0.24 per diluted share for the third quarter of 2011.

Net income on a Non-GAAP basis for the third quarter of 2012 was $10.4 million or $0.45 per diluted share, compared with net income of $7.8 million or $0.34 per diluted share for the third quarter of 2011.

At the end of the third quarter 2012, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $264.9 million, representing an increase in the company's cash position of approximately $14.7 million in the third quarter of 2012.

"Our best-of-breed application delivery solutions for consolidation, mobile data and virtualization and cloud build-outs along with our industry-leading attack mitigation offering, are the main drivers for our growth amid an even more challenging global economic environment," said Roy Zisapel president and chief executive officer, Radware. "These capabilities are continuing to address the critical needs of our customers and help serve their key strategic initiatives."

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

  • Radware Announces 2012 Annual General Meeting
  • Radware's Alteon 10000 Helps Global Mobile Carrier Reduce its Data Center Footprint and Manage Mobile Data Traffic
  • Radware Partners with VMware, Bluelock to Deliver A Virtual ADC Service for the Cloud
  • Radware's Alteon 10000 Delivers Highly-performing, Resilient and Scalable Mobile Data Services to Two Major North American Mobile Carriers
  • Radware's Attack Mitigation System Wins 2012 Innovation Award from TMC Labs
  • Radware Ltd. Announces Second Quarter 2012 Results
  • Radware Confirms Its Juniper Partnership Remains Intact
  • Radware's Attack Mitigation Black Belt Challenge Reveals IT Professionals' Strengths and Weaknesses of Top Security Threats
  • FireHost Selects Radware's Attack Mitigation System for Real-Time Network Attack Prevention

Company management will host a quarterly investor conference call at 8:45am ET on October 26, 2012. The call will focus on financial results for the quarter ending September 30, 2012 and certain other matters related to the Company's business.

The conference call will be webcast on October 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 third quarter 2012 call:

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

International participants call: +1 760-666-3769

Conference ID:  35789262

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.  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,     September 30,
 
                                             2011             2012
                                                           (Unaudited)
    Current assets
    Cash and cash equivalents                  17,386            16,877
    Available-for-sale marketable
    securities                                 10,334             8,847
    Short-term bank deposits                   88,773            97,539
    Trade receivables, net                     12,565            15,713
    Other receivables and prepaid
    expenses                                    3,625             4,276
    Inventories                                12,147            12,938
                                              144,830           156,190
    Long-term investments
    Available-for-sale marketable
    securities                                102,644           118,909
    Long-term bank deposits                         -            22,729
    Severance pay funds                         3,047             2,792
                                              105,691           144,430
 
    Property and equipment, net                11,084            11,420
 
    Other assets
    Intangible assets, net                      8,163             5,879
    Other long-term assets                      1,365             1,217
    Goodwill                                   24,465            24,465
 
    Total assets                              295,598           343,601
 
    Current liabilities
    Trade payables                              5,099             7,379
    Deferred revenues, other
    payables and accrued expenses              43,732            55,074
                                               48,831            62,453
 
    Long-term liabilities                      27,446            21,511
 
    Shareholders' equity
    Share capital                                 528               549
    Additional paid-in capital                233,353           247,260
    Accumulated other comprehensive
    income (loss)                              (1,663)            2,079
    Treasury stock, at cost                   (18,036)          (18,036)
    Retained earnings                           5,139            27,785
    Total shareholders' equity                219,321           259,637
 
    Total liabilities and
    shareholders' equity                      295,598           343,601
 


                   Condensed Consolidated Statements of Income
           (U.S. Dollars in thousands, except share and per share data)
                                                         For the Nine months
                                For the Three months            ended
                                 ended September 30,
                                                            September 30,
                                  2011        2012        2011        2012
                               (Unaudited) (Unaudited) (Unaudited) (Unaudited)
 
    Revenues                        42,196      47,510     121,930     139,333
    Cost of revenues                 8,534       8,970      24,731      26,312
    Gross profit                    33,662      38,540      97,199     113,021
    Operating expenses:
    Research and
    development,net                  9,122       9,124      26,918      27,219
    Selling and marketing           17,282      19,040      51,027      56,744
    General and administrative       2,343       2,389       7,128       7,220
    Total operating expenses        28,747      30,553      85,073      91,183
    Operating income                 4,915       7,987      12,126      21,838
    Financial income, net              776       1,263       3,413       3,754
    Income before taxes on
    income                           5,691       9,250      15,539      25,592
    Taxes on income                   (293)     (1,028)       (822)     (2,946)
    Net Income                       5,398       8,222      14,717      22,646
 
    Basic net earnings per
    share
                                    $ 0.26      $ 0.37      $ 0.70      $ 1.04
    Weighted average number of
    shares used to compute
    basic net earnings per
    share                       21,052,835  21,977,781  20,886,623  21,778,658
 
    Diluted net earnings per
    share
                                    $ 0.24      $ 0.35      $ 0.64      $ 0.97
    Weighted average number of
    shares used to compute
    diluted net earnings per
    share                       22,782,410  23,321,397  22,936,293  23,280,294


                 Reconciliation of Supplemental Financial Information
             (U.S. Dollars in thousands, except share and per share data)
 
                                                    For the Nine months ended
                     For the Three months ended
                            September 30,                 September 30,
 
                         2011           2012           2011           2012
 
                     (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)
    GAAP net Income          5,398          8,222         14,717         22,646
    Stock-based
    compensation
    expenses,
    included in:
    Cost of
    revenues                    15             17             46             55
    Research and
    development,
    net                        248            284            787            891
    Selling and
    marketing                  731            873          2,122          2,699
    General and
    administrative             209            192            872            720
                             1,203          1,366          3,827          4,365
    Amortization of
    intangible
    assets included
    in:
    Cost of
    revenues                   541            467          1,623          1,402
    Selling and
    marketing                  421            291          1,263            874
                              ­ 962            758          2,886          2,276
    Exchange rate
    differences, net on
    balance sheet items
    included in financial
    income, net                233             59           (263)            78
    Non-GAAP net
    income                   7,796         10,405         21,167         29,365
 
    Non-GAAP
    diluted net
    earnings per
    share                   $ 0.34         $ 0.45         $ 0.92         $ 1.26
    Weighted
    average number
    of shares used
    to compute
    Non-GAAP
    diluted net
    earnings per
    share               22,782,410     23,321,397     22,936,293     23,280,294

                         


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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