Radware Ltd. Announces Fourth Quarter 2011 Results
Record Annual Revenues of $167.0 Million; Record Quarterly Revenues of $45.1 Million; Record Quarterly Non-GAAP EPS $0.42; Record Quarterly Non-GAAP Operating Margin of 20%
TEL AVIV, Israel, February 1, 2012 /PRNewswire/ --
Radware (NASDAQ: RDWR), a global leader of application delivery and application security solutions for virtual and cloud data centers, today reported record quarterly revenues of $45.1 million for the fourth quarter of 2011. This represents an increase of 7% compared with revenues of $42.2 million for the third quarter of 2011, and an increase of 15% compared with revenues of $39.1 million in the fourth quarter of 2010.
Net income on a GAAP basis for the fourth quarter of 2011 was $6.6 million or $0.29 per diluted share, compared with net income of $5.4 million or $0.24 per diluted share for the third quarter of 2011 and to $3.9 million or $0.17 per diluted share in the fourth quarter of 2010.
Net income on a Non-GAAP basis for the fourth quarter of 2011 was $9.5 million or $0.42 per diluted share, compared with net income of $7.8 million or $0.34 per diluted share for the third quarter of 2011 and to $6.6 million or $0.29 per diluted share in the fourth quarter of 2010.
Revenues for 2011 amounted to $167.0 million, an increase of 16% compared with revenues of $144.1 million in 2010.
Net income on a GAAP basis for 2011 amounted to $21.3 million or $0.93 per diluted share, representing an increase of 121% compared with net income of $9.6 million or $0.44 per diluted share in 2010.
Net income on a Non-GAAP basis for 2011 amounted to $30.7 million or $1.34 per diluted share, representing an increase of 53% compared with net income of $20.1 million or $0.92 per diluted share in 2010.
At the end of the fourth quarter of 2011, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $219.1 million, representing an increase in the company's cash position of approximately $12.5 million in the fourth quarter or $40 million in the last 12 months.
"We're very pleased with our continued record results both quarterly and yearly," stated Roy Zisapel, president and chief executive officer, Radware. "Strong demand for our traditional and ADC virtualization products, in combination with our string of attack mitigation successes that have protected high-profile public and private sector customers, is key to this growth."
During the fourth quarter 2011, Radware released the following significant announcements:
- Radware Provides Application Delivery Control for Juniper Networks MX Series 3D Universal Edge Router
- Radware Ltd. Announces Third Quarter 2011 Results
- Radware Announces $20 Million Share Buyback And Refines Guidance for Third Quarter 2011
- Radware Wins Fourth Consecutive INTERNET TELEPHONY Excellence Award
- Radware Announces the First Application Delivery Fabric For the ITaaS Economy
- Radware to Deliver Attack Mitigation System Solution To Tier 1 Wireless Carrier in North America
- Radware Joins OpenStack Community
- Radware's Attack Mitigation System Helps Installazioni Impianti Ensure Business Continuity and Defend Against Malicious Network Attacks
Company management will host a quarterly investor conference call at 8:45am ET on February 1, 2012. The call will focus on financial results for the quarter ending December 31, 2011 and certain other matters related to the Company's business.
The conference call will be webcast on February 1, 2012 at 8:45am 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 fourth quarter 2011 call:
Participants in the US call: Toll Free +1 877-392-9880
International participants call: +1 760-666-3769
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.
Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31, December 31,
2010 2011
(Audited) (Unaudited)
Current assets
Cash and cash equivalents 15,284 17,386
Available-for-sale marketable
securities 24,200 10,334
Short term bank deposits 51,441 88,773
Trade receivables, net 16,543 12,565
Other receivables and prepaid
expenses 3,402 3,625
Inventories 9,722 12,147
120,592 144,830
Long-term investments
Available-for-sale marketable
securities 82,864 102,644
Long-term bank deposits 5,000 -
Severance pay funds 3,342 3,047
91,206 105,691
Property and equipment, net 11,801 11,084
Other assets
Intangible assets, net 12,011 8,163
Deferred tax asset, net 41 811
Other long-term assets 519 554
Goodwill 24,465 24,465
Total assets 260,635 295,598
Current liabilities
Trade payables 5,913 5,099
Deferred revenues 32,907 28,593
Other payables and accrued
expenses 14,316 15,139
53,136 48,831
Long-term liabilities
Deferred revenues 18,610 23,901
Accrued severance pay 3,899 3,545
22,509 27,446
Shareholders' equity
Share capital 506 528
Additional paid-in capital 218,593 233,353
Accumulated other comprehensive
income (loss) 125 (1,663)
Treasury stock, at cost (18,036) (18,036)
Retained earnings (accumulated
deficit) (16,198) 5,139
Total shareholders' equity 184,990 219,321
Total liabilities and
shareholders' equity 260,635 295,598
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
For the three months For the Year ended
ended December 31, December 31,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Audited) (Unaudited)
Revenues 39,054 45,090 144,119 167,020
Cost of revenues 7,968 8,626 29,204 33,357
Gross profit 31,086 36,464 114,915 133,663
Operating expenses:
Research and development 8,280 9,146 31,660 36,064
Selling and marketing 16,947 18,516 64,609 69,543
General and administrative 2,534 2,501 10,190 9,629
Total operating expenses 27,761 30,163 106,459 115,236
Operating income 3,325 6,301 8,456 18,427
Financial income, net 855 787 2,057 4,200
Income before income taxes 4,180 7,088 10,513 22,627
Income taxes (256) (468) (879) (1,290)
Net income 3,924 6,620 9,634 21,337
Basic net earnings per
share $ 0.19 $ 0.31 $ 0.49 $ 1.02
Weighted average number of
shares used to compute
basic net earnings per
share
20,360,557 21,149,334 19,557,545 20,952,866
Diluted net earnings per
share $ 0.17 $ 0.29 $ 0.44 $ 0.93
Weighted average number of
shares used to compute
diluted net earnings per
share
22,796,721 22,716,083 21,733,638 22,888,064
Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the Three months ended For the Year
December 31, ended December 31,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net income 3,924 6,620 9,634 21,337
Stock-based
compensation
expenses,
included in:
Cost of
revenues 16 20 63 66
Research and
development 304 337 1,247 1,124
Selling and
marketing 627 1,013 2,393 3,135
General and
administrative 409 261 1,789 1,133
1,356 1,631 5,492 5,458
Amortization of
intangible
assets included
in:
Cost of
revenues 540 541 1,757 2,164
Selling and
marketing 531 421 2,284 1,684
1,071 962 4,041 3,848
Exchange rate
differences, net on
balance sheet items
included in financial
income, net 212 306 921 43
Non-GAAP net
income 6,563 9,519 20,088 30,686
Non-GAAP
diluted net
earnings per
share $ 0.29 $ 0.42 $ 0.92 $ 1.34
Weighted
average number
of shares used
to compute
Non-GAAP
diluted net
earnings per
share 22,796,721 22,716,083 21,733,638 22,888,064
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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