Record Quarterly Revenues of $29.2 Million; Non-GAAP Profitability Tripled Sequentially From Previous Quarter to $0.12 EPS
TEL AVIV, Israel, November 3 /PRNewswire-FirstCall/ -- Radware (NASDAQ: RDWR), the leading provider of integrated application delivery (http://www.radware.com/Products/ApplicationDelivery/default.aspx) solutions for business-smart networking, today reported record quarterly revenues of $29.2 million for the third quarter of 2009. This represents an increase of 24% compared with revenues of $23.5 million for the third quarter of 2008 and an increase of 8% compared with revenues of $27.1 in the second quarter of 2009.
Net income on a GAAP basis for the third quarter of 2009 was $0.2 million or $0.01 per diluted share compared with a net loss of $8.5 million or $0.44 per diluted share in the third quarter of 2008.
Net income on a Non-GAAP basis for the third quarter of 2009 was $2.3 million or $0.12 per diluted share, compared with a net loss of $4.3 million or $0.22 per diluted share in the third quarter of 2008.
At the end of the third quarter of 2009, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $120.2 million an increase of $5.4 million over previous quarter.
"We are pleased to report yet another record quarter of results along with a significant increase in profitability," advised Roy Zisapel, CEO Radware. "For several quarters now we have been able to sequentially increase market share. This is a direct result of our ability to competitively win key customer accounts, strike several new distribution and reseller partnerships and further capitalize on the Alteon acquisition while we continue to extend and innovate the capabilities of our solutions. In just a year we've cost-effectively and successfully driven the business to over 20% growth with strong profitability leverage."
During the quarter ended September 30, 2009, Radware released the
following significant announcements:
- Radware Receives a 2009 INTERNET TELEPHONY Excellence Award
- Radware Discusses Next-Generation Data Center Strategies at its Global
Executive Exchange Forums
- Radware Prevents Network Downtime for Carolinas HealthCare System, One
of the Largest Healthcare Systems in the U.S.
- Radware Upgrades DefensePro Security Solution to Protect Against
High-Volume Cybercriminal Activity
- Financial Express Selects Radware to Guarantee Performance and Security
for Web Applications
- Radware's AppDirector Achieves Oracle Validated Integration with
Oracle(R) E-Business Suite 12.0
- Optivor Signs Reseller Partnership with Radware for Alteon Products
- Radware's AppDirector Ensures 'Always Up' Communications on the
Microsoft Office Communications Server 2007 R2 Environment
- Radware Provides Full Availability, Performance and Security to Oracle
Customers
- Radware to Present at DEFCON; The Risk of Software Updates - How to
Protect Your Infrastructure When It is the Most Vulnerable?
- Radware and RSA Form Technology Partnership to Offer Service for
Increased Protection Against Trojan and Phishing Attacks
- Key [Nortel] Alteon Reseller Packet Fusion Signs with Radware
- Radware First to Offer Comprehensive Protection Against Recent Wave of
Cyber Attacks Which Strike US and South Korean Government and
Commercial Websites
In addition, Radware's Board of Directors has chosen Mr. Yehuda Zisapel to serve as non-employee Chairman of the Board. Mr. Zisapel has served as a member of the Board since the company's inception and served as Chairman of the Board until August 2006. Mr. Zisapel is also a founder and a director of RAD Data Communications Ltd., a worldwide data communications company headquartered in Israel, and BYNET Data Communications Ltd., a distributor of data communications products in Israel and serves as director of other companies in the RAD-Bynet Group, including SILICOM Ltd., and several private companies.
Company management will host a quarterly investor conference call at 8:45 AM EDT on November 3, 2009. The call will focus on financial results for the quarter ending September 30, 2009, and certain other matters related to the Company's business.
The conference call will be webcast on November 3, 2009 at 8:45 AM EST 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 2009 call: Participants in the US call: Toll Free 1-800-230-1059
International participants call: +1-612-234-9959
About Radware
Radware (NASDAQ:RDWR), the global leader in integrated application
delivery (http://www.radware.com/Products/ApplicationDelivery/default.aspx)
solutions, assures the full availability, maximum performance, and complete
security of business-critical applications for nearly 10,000 enterprises and
carriers worldwide. With APSolute(R), Radware's comprehensive and
award-winning suite of application delivery
(http://www.radware.com/Products/ApplicationDelivery/default.aspx) and
network security
(http://www.radware.com/Products/ApplicationNetworkSecurity/default.aspx)
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
http://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 SFAS 123R, non-recurring retention expenses , amortization of intangible assets and acquisition-related expenses. 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,
2008 2009
(Audited) (Unaudited)
Current assets
Cash and cash equivalents 28,065 26,130
Available-for-sale marketable
securities and deposits 60,731 39,954
Trade receivables, net 13,348 15,734
Other receivables and prepaid
expenses 2,046 2,259
Inventories 6,712 9,330
110,902 93,407
Long-term investments
Available-for-sale marketable
securities and deposits 45,112 54,068
Severance pay funds 1,995 2,416
47,107 56,484
Property and equipment, net 11,693 11,911
Other assets
Goodwill and other intangible
assets 15,762 41,692
Total assets 185,464 203,494
Current liabilities
Trade payables 4,646 5,726
Deferred revenues, other
payables and accrued expenses 23,964 36,170
28,610 41,896
Long-term liabilities 8,792 16,001
Shareholders' equity
Share capital 465 464
Additional paid-in capital 185,985 189,972
Accumulated other comprehensive
income (loss) (873) 716
Treasury stock, at cost (17,619) (18,036)
Accumulated deficit (19,896) (27,519)
Total shareholders' equity 148,062 145,597
Total liabilities and
shareholders' equity 185,464 203,494
Condensed Consolidated Statements of Operations
(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,
2008 2009 2008 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 23,507 29,212 69,693 76,786
Cost of revenues 4,864 5,999 14,402 15,767
Gross profit 18,643 23,213 55,291 61,019
Operating expenses:
Research and development 7,057 6,705 21,616 19,329
Selling and marketing 15,790 14,327 49,977 40,823
General and administrative 4,743 2,506 9,738 9,378
Total operating expenses 27,590 23,538 81,331 69,530
Operating loss (8,947) (325) (26,040) (8,511)
Financial income, net 869 682 3,093 1,481
Income (loss) before
income taxes (8,078) 357 (22,947) (7,030)
Income taxes (410) (206) (943) (593)
Net income (loss) (8,488) 151 (23,890) (7,623)
Basic net income (loss)
per share $ (0.44) $ 0.01 $ (1.22) $ (0.40)
Weighted average number of
shares used to compute
basic net income (loss)
per share 19,340,656 18,860,021 19,613,556 18,878,697
Diluted net income (loss)
per share $ (0.44) $ 0.01 $ (1.22) $ (0.40)
Weighted average number of
shares used to compute
diluted net income (loss)
per share 19,340,656 19,036,249 19,613,556 18,878,697
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,
2008 2009 2008 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net income (loss) (8,488) 151 (23,890) (7,623)
Stock-based
compensation
expenses, included
in:
Cost of revenues 24 13 77 55
Research and
development 361 176 1,157 791
Selling and
marketing 560 314 1,798 1,323
General and
administrative 730 579 2,234 1,591
1,675 1,082 5,266 3,760
Amortization of
intangible assets
included in:
Cost of revenues 189 427 564 948
Selling and
marketing 39 630 117 1,299
Income taxes 40 - 122 -
268 1,057 803 2,247
Non recurring
retention expenses 2,231 - 2,231 -
Acquisition related
expenses - - - 2,485
Non-GAAP net
income (loss) (4,314) 2,290 (15,590) 869
Non-GAAP diluted net
income (loss) per
share $ (0.22) $ 0.12 $ (0.79) $ 0.05
Weighted average
number of shares
used to compute
Non-GAAP diluted net
income (loss) per
share 19,340,656 19,036,249 19,613,556 18,963,382
CONTACTS
Chief Financial Officer
Meir Moshe
+972-3766-8610
Corporate Relations
Christine D. Aruza
+1-201-785-3236
christine.aruza@radware.com
SOURCE Radware Ltd
For further information: CONTACTS: Chief Financial Officer, Meir Moshe, +972-3766-8610. Corporate Relations, Christine D. Aruza, +1-201-785-3236, christine.aruza@radware.com.
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