Radware Ltd. Announces First Quarter 2012 Results
Quarterly Revenues of $45.0 Million; Quarterly Non-GAAP EPS $0.39
TEL AVIV, Israel, May 1, 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 $45.0 million for the first quarter of 2012. This represents an increase of 17% compared with revenues of $38.6 million for the first quarter of 2011.
Net income on a GAAP basis for the first quarter of 2012 was $6.9 million or $0.30 per diluted share, compared with net income of $4.4 million or $0.19 per diluted share for the first quarter of 2011.
Net income on a Non-GAAP basis for the first quarter of 2012 was $9.0 million or $0.39 per diluted share, compared with net income of $6.1 million or $0.27 per diluted share for the first quarter of 2011.
At the end of the first quarter 2012, the company's overall cash position including cash, short-term bank deposits and marketable securities amounted to $238.8 million, representing an increase in the company's cash position of approximately $19.7 million in the first quarter of 2012.
"We enjoyed very strong business traction this past quarter," stated Roy Zisapel president and chief executive officer, Radware. "Increased demand in the Americas for our application delivery and security solutions has stimulated this growth as key customers and channels benefit from and recognize the unique differentiators we have to offer in these areas."
During the first quarter 2012, Radware released the following significant announcements:
- Radware Announces Fourth Quarter 2011 Earnings Conference Call
- Radware Extends Red Hat Enterprise Virtualization Ecosystem by Offering Virtual Application Delivery Solution for Red Hat Users
- Radware's Alteon 5224 ADC Platform Sets New Industry Standard for Enterprise Market Application Delivery Needs
- Radware's Emergency Response Team Says Recent Cyber Attacks Proved Again the Need To Fight DDoS Attacks on All Fronts
- Radware Ltd. Announces Fourth Quarter 2011 Results
- Radware Security Report Debunks Prevailing Myths About Distributed Denial of Service (DDoS) Attacks
- Radware's Alteon® 10000 Earns INTERNET TELEPHONY® Magazine's Fourteenth Annual Product of the Year Award
- Radware's ADC-VX Powers KPN's Data Center Hosting and Cloud Services with Advanced ADC Virtualization Capabilities
- Radware Wins TMC's 2011 Cloud Computing Excellence Award
- Radware Announces First Quarter 2012 Earnings Conference Call
Company management will host a quarterly investor conference call at 8:45am ET on May 1, 2012. The call will focus on financial results for the quarter ending March 31, 2012 and certain other matters related to the Company's business.
The conference call will be webcast on May 1, 2012 at 8:45 a.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 first quarter 2012 call:
Participants in the US call: Toll Free +1-877-392-9880
International participants call: +1-760-666-3769
Conference ID: 67067191
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®.
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, March 31,
2011 2012
(Unaudited)
Current assets
Cash and cash equivalents 17,386 14,903
Available-for-sale marketable
securities 10,334 7,058
Short-term bank deposits 88,773 108,526
Trade receivables, net 12,565 14,858
Other receivables and prepaid
expenses 3,625 3,283
Inventories 12,147 12,244
144,830 160,872
Long-term investments
Available-for-sale marketable
securities 102,644 108,309
Severance pay funds 3,047 2,993
105,691 111,302
Property and equipment, net 11,084 10,986
Other assets
Intangible assets, net 8,163 7,404
Other long-term assets 1,365 1,375
Goodwill 24,465 24,465
Total assets 295,598 316,404
Current liabilities
Trade payables 5,099 6,144
Deferred revenues, other
payables and accrued expenses 43,732 54,036
48,831 60,180
Long-term liabilities 27,446 20,075
Shareholders' equity
Share capital 528 542
Additional paid-in capital 233,353 240,728
Accumulated other comprehensive
income (loss) (1,663) 903
Treasury stock, at cost (18,036) (18,036)
Retained earnings 5,139 12,012
Total shareholders' equity 219,321 236,149
Total liabilities and
shareholders' equity 295,598 316,404
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
For the Three months ended
March 31,
2011 2012
(Unaudited) (Unaudited)
Revenues 38,619 45,021
Cost of revenues 7,879 8,532
Gross profit 30,740 36,489
Operating expenses:
Research and development 8,704 9,152
Selling and marketing 16,406 18,687
General and administrative 2,349 2,404
Total operating expenses 27,459 30,243
Operating income 3,281 6,246
Financial income, net 1,339 1,502
Income before taxes on
income 4,620 7,748
Taxes on income (231) (875)
Net income 4,389 6,873
Basic net earnings per
share $ 0.21 $ 0.32
Weighted average number of
shares used to compute
basic net earnings per 20,674,379 21,494,707
share
Diluted net earnings per
share $ 0.19 $ 0.30
Weighted average number of
shares used to compute
diluted net earnings per 23,023,883 23,116,111
share
Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the Three months
ended March 31,
2011 2012
(Unaudited) (Unaudited)
GAAP net income 4,389 6,873
Stock-based compensation
expenses, included in:
Cost of revenues 15 21
Research and development 253 328
Selling and marketing 610 966
General and administrative 318 274
1,196 1,589
Amortization of intangible
assets included in:
Cost of revenues 541 468
Selling and marketing 421 291
962 759
Exchange rate differences,
net on balance sheet items (429) (268)
included in finance income
Non-GAAP net income 6,118 8,953
Non-GAAP diluted net $ 0.27 $ 0.39
earnings per share
Weighted average number of
shares used to compute
Non-GAAP diluted net
earnings per share 23,023,883 23,116,111
CONTACTS
Chief Financial Officer
Meir Moshe
+972-3766-8610
Corporate Media Relations
Michael Lordi
+1-201-785-3206
[email protected]
SOURCE Radware Ltd
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