Radware Ltd. Announces Third Quarter 2011 Results
Record Quarterly Revenues of $42.2 Million; Record Non-GAAP EPS $0.34; Record Non-GAAP Operating Margin 17%
TEL AVIV, Israel, October 26, 2011 /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 $42.2 million for the third quarter of 2011. This represents an increase of 15% compared with revenues of $36.8 million for the third quarter of 2010, and an increase of 3% compared with revenues of $41.1 million in the second quarter of 2011.
Net income on a GAAP basis for the third quarter of 2011 was $5.4 million or $0.24 per diluted share, compared with net income of $3.7 million or $0.17 per diluted share for the third quarter of 2010.
Net income on a Non-GAAP basis for the third quarter of 2011 was $7.8 million or $0.34 per diluted share, compared with net income of $5.6 million or $0.26 per diluted share in the third quarter of 2010.
During the third quarter 2011 Radware generated $3 million in cash and ended the quarter with $207 million in cash, cash equivalents, deposits and marketable securities.
"This quarter represents yet another record posting for company revenues, earnings per share, and operating margins," stated Roy Zisapel, president and chief executive officer, Radware. "This sustained growth is driven by market interest in our recently announced Attack Mitigation System along with our continued success with our innovative application delivery solutions for data center consolidation, virtualization, and cloud computing."
During the third quarter 2011, Radware released the following significant announcements:
- Radware Ltd. Announces Second Quarter 2011 Results
- Radware Announces 2011 Annual General Meeting
- Radware Claims Three 2010 Communications Solutions Product of the Year Awards
- Radware Introduces New vDirect Plug-In Joint Solution with VMware vCloud® Director
- KONAMI Selects Radware's ADC-VX Virtualization Solution For its Online Entertainment Site
- Radware Reports Results of Annual General Meeting
- Radware Announces Its Participation in SAP® EcoHub and SAP PartnerEdge™ Program
- Radware's Attack Mitigation System Delivers the First Fully Integrated Solution to Fight Cyber Attacks in Real Time
- Radware Announces Third Quarter 2011 Earnings Conference Call
- Radware Announces $20 Million Share Buyback And Refines Guidance for Third Quarter 2011
Company management will host a quarterly investor conference call at 8:45am ET on October 26, 2011. The call will focus on financial results for the quarter ending September 30, 2011 and certain other matters related to the Company's business.
The conference call will be webcast on October 26, 2011 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 Second 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 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.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31, September 30,
2010 2011
(Unaudited)
Current assets
Cash and cash equivalents 15,284 15,729
Available-for-sale marketable
securities 24,200 14,995
Short term bank deposits 51,441 70,157
Trade receivables, net 16,543 17,661
Other receivables and prepaid
expenses 3,402 3,453
Inventories 9,722 11,438
120,592 133,433
Long-term investments
Available-for-sale marketable
securities 82,864 100,777
Long-term bank deposits 5,000 5,000
Severance pay funds 3,342 3,134
91,206 108,911
Property and equipment, net 11,801 11,664
Other assets
Intangible assets, net 12,011 9,134
Other long-term assets 560 603
Goodwill 24,465 24,465
Total assets 260,635 288,210
Current liabilities
Trade payables 5,913 5,844
Deferred revenues, other
payables and accrued expenses 47,223 51,337
53,136 57,181
Long-term liabilities 22,509 22,533
Shareholders' equity
Share capital 506 524
Additional paid-in capital 218,593 229,286
Accumulated other comprehensive
income (loss) 125 (1,797)
Treasury stock, at cost (18,036) (18,036)
Accumulated deficit (16,198) (1,481)
Total shareholders' equity 184,990 208,496
Total liabilities and
shareholders' equity 260,635 288,210
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
For the Three months For the Nine months
ended September 30, ended September 30,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 36,763 42,196 105,065 121,930
Cost of revenues 7,448 8,534 21,236 24,731
Gross profit 29,315 33,662 83,829 97,199
Operating expenses:
Research and development 8,240 9,122 23,380 26,918
Selling and marketing 15,934 17,282 47,662 51,027
General and administrative 2,526 2,343 7,656 7,128
Total operating expenses 26,700 28,747 78,698 85,073
Operating income 2,615 4,915 5,131 12,126
Financial income, net 1,294 776 1,202 3,413
Income before taxes on
income 3,909 5,691 6,333 15,539
Taxes on income (191) (293) (623) (822)
Net Income 3,718 5,398 5,710 14,717
Basic net earnings per
share
$ 0.19 $ 0.26 $ 0.30 $ 0.70
Weighted average number of
shares used to compute
basic net earnings per
share 19,711,311 21,052,835 19,286,258 20,886,623
Diluted net earnings per
share
$ 0.17 $ 0.24 $ 0.27 $ 0.64
Weighted average number of
shares used to compute
diluted net earnings per
share 21,921,819 22,782,410 21,146,646 22,936,293
Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the Three months For the Nine months
ended September 30, ended September 30,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net
Income 3,718 5,398 5,710 14,717
Stock-based
compensation
expenses,
included in:
Cost of
revenues 18 15 47 46
Research and
development 365 248 943 787
Selling and
marketing 711 731 1,766 2,122
General and
administrative 470 209 1,380 872
1,564 1,203 4,136 3,827
Amortization
of intangible
assets
included in:
Cost of
revenues 439 541 1,217 1,623
Selling and
marketing 531 421 1,753 1,263
970 962 2,970 2,886
Exchange rate
differences, net on
balance sheet items
included in finance
income (616) 233 709 (263)
Non-GAAP net
income 5,636 7,796 13,525 21,167
Non-GAAP
diluted net
earnings per
share $ 0.26 $ 0.34 $ 0.64 $ 0.92
Weighted
average number
of shares used
to compute
Non-GAAP
diluted net
earnings per
share
21,921,819 22,782,410 21,146,646 22,936,293
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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