Radware Ltd Announces 2Q10 Results

TEL AVIV, Israel, July 27 /PRNewswire-FirstCall/ -- Radware (Nasdaq: RDWR), a leading provider of integrated application delivery solutions for business-smart networking, today reported record quarterly revenues of $35.2 million for the second quarter of 2010. This represents an increase of 30% compared with revenues of $27.1 million for the second quarter of 2009 and an increase of 6% compared with revenues of $33.1 million in the first quarter of 2010.

Net income on a GAAP basis for the second quarter of 2010 was $1.4 million or $0.07 per diluted share, compared with a net loss of $1.7 million or $0.09 per diluted share for the second quarter of 2009.

Net income on a Non-GAAP basis for the second quarter of 2010 was $4.3 million or $0.21 per diluted share, compared with a net income of $0.6 million or $0.03 per diluted share in the second quarter of 2009.

At the end of the second quarter of 2010, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $149.2 million, representing an increase of approximately $35 million in the company's cash position in the last 12 months.

"Radware has steadily delivered quarter-over-quarter gains for five quarters running now. This continued increase in revenues, in combination with our increase in market share, is a clear indication of our sustained business strength," stated Roy Zisapel, President & CEO Radware. "We believe with our investments in R&D, differentiated market opportunities and expanded field operations that we can continue to grow both the top and bottom lines."

During the quarter ended June 30, 2010, Radware released the following significant announcements:

• Info Security Products Guide Names Radware's DefensePro® Winner of the 2010 Global Excellence in Intrusion Prevention Solution Customer Trust Award
• Radware Plays Key Role in the 2010 World Expo
• With Faster Speeds than Ever Before, Radware's LinkProof® Provides Customers Increased Network Multi homing Capabilities at Throughput Levels up to 16Gbps
• Radware Significantly Reduces Network Downtime for Hooters Restaurants
• Radware's Alteon® 5-series Taken to New Heights
• Radware's DefensePro® Successfully Awarded Three United States Patents Based on Real-time Signatures to Protect and Secure Application and Network Traffic
• Shanghai General Motors Adopts Radware APSolute® Application Delivery Solution to Create a High-Availability and Performance Enterprise Network
• Radware Launches All-inclusive Security Solution to Protect Data Centers and Networks from New Hybrid Attacks: APSolute Attack Prevention
• Radware Wins NGN Magazine's 2010 NGN Leadership Award

Company management will host a quarterly investor conference call at 8:45 AM ET on Tuesday, July 27, 2010. The call will focus on financial results for the quarter ending June 30, 2010, and certain other matters related to the company's business.

Please use the following dial-in numbers to participate in the second quarter 2010 call:

Participants in the US call: Toll Free 1 877 392 9880

International participants call: +1 760 666 3769 

The conference call will be webcast on Tuesday, July 27, 2010 at 8:45 AM ET in "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.

About Radware

Radware (Nasdaq: RDWR), a global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for nearly 10,000 enterprises and carriers worldwide. With APSolute®, Radware's comprehensive and award-winning suite of application delivery and network security products, companies in every industry can drive business productivity, improve profitability, and reduce IT operating and infrastructure costs by making their networks "business smart". 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, 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 forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching and Network Security industry, changes in demand for Application Switching and Network Security products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware's filings with the Securities and Exchange Commission, including Radware's Form 20-F.

SOURCE Radware