Radware Ltd. Announces First Quarter 2013 Results

              Radware Ltd. Announces First Quarter 2013 Results

Quarterly Revenues of $45.1 Million; Quarterly Non-GAAP EPS $0.15

PR Newswire

TEL AVIV, Israel, April 25, 2013

TEL AVIV, Israel, April 25, 2013 /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 $45.1 million for the first quarter of 2013 and
announced it will host a Financial Analyst day for Monday, May 6th, 2013.

Net income on a GAAP basis for the first quarter of 2013 was $4.5 million or
$0.10 per diluted share, compared with net income of $6.9 million or $0.15 per
diluted share for the first quarter of 2012.

Net income on a Non-GAAP basis for the first quarter of 2013 was $7.0 million
or $0.15 per diluted share, compared with net income of $9.0 million or $0.19
per diluted share for the first quarter of 2012.

At the end of the first quarter 2013, following the cash payment related to
the acquisition of Strangeloop Networks Inc. in the amount of approximately
$8.4 million, the company's overall cash position including cash, short-term
and long term bank deposits and marketable securities amounted to $273.6
million, representing a decrease in the company's cash position of
approximately $1.3 million in the first quarter of 2013.

The earnings per share presented for all prior periods were restated to
reflect the effects of the stock split that occurred April 12, 2013.

"Despite lower than expected quarterly revenues, we continue to see a long
term strong market need for delivering and securing applications across
enterprise, carrier and cloud data centers. We believe we will be able to
translate the growth in mobile data, cyber threats and attacks, and cloud
computing to revenue growth in 2013," stated Roy Zisapel president and chief
executive officer, Radware.

During the first quarter 2013, Radware released the following significant
announcements:

  oRadware Releases Global Security Report - Reveals New Cyber Attack Methods
    Uncovering Blind-Spots Unrecognized by Security Professionals and
    Organizations
  oRadware Ltd. Announces Fourth Quarter 2012 Results
  oRadware Acquires Strangeloop Networks, Leader in Web-Performance
    Optimization (WPO) Solutions for e-commerce and Enterprise Applications
  oRadware to Present at 2013 RSA Conference: Stock Exchanges in the Line of
    Fire - Morphology of Cyber-Attacks
  oRadware Unveils New Network Cloud Platform to Provide an Application
    Provider-Edge and Advanced Attack Mitigation System for Mobile Carriers
  oRadware Introduces its New Cloud Based Attack Mitigation Solution to
    Protect Customers Against Internet Pipe Saturation
  oRadware and Mellanox Combine Technology to Enable Mobile Carriers to
    Leverage Network Functions Virtualization (NFV) and Software Defined
    Networking (SDN)
  oRadware and Level 3 Announce Key Findings on Page Speed of Europe's Top
    400 Retail Websites
  oRadware to Present at Admin & Infrastructure 2013
  oNew Radware Report Reveals Top Retailers Continue to Struggle with Slow
    Website Load Times, Often Ignoring Industry Best Practices
  oRadware to Keynote at SecureWorld Boston 2013: Information Security
    Adaptation: Survival in an Evolving Threat Landscape
  oRadware Announces a 2-for-1 Forward Share Split

Company management will host a quarterly investor conference call at 8:45am ET
on April 25, 2013. The call will focus on financial results for the quarter
ending March 31, 2013 and other matters related to the Company's business.

The conference call will be webcast on April 25, 2013 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 first quarter
2013 call:

Participants in theUScall: Toll Free +1 800- 230-1085

International participants call: +1 612- 332-0107 

Conference ID: 286846

Financial Analyst Day

Radware is pleased to announce it will host a Financial Analyst Day on Monday,
May 6th, 2013 from 8:00 am to 11:30 am.

The meeting and breakfast will be held at the New York Hilton Midtown, 1335
Avenue of the Americas, New York, NY 10019. Participation is by registration
only. To register, please go to:
http://www.radware.com/Forms/AnalystDayPresentations.aspx

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, 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 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 athttp://www.sec.govor may be obtained on Radware's
website athttp://www.radware.com.

  
                         Condensed Consolidated Balance Sheets
                              (U.S. Dollars in thousands)

                                         December 31,      March 31,
                                              2012            2013
                                                          (Unaudited)
    Current assets
    Cash and cash equivalents                  20,048          15,375
    Available-for-sale marketable
    securities                                 14,004          18,849
    Short-term bank deposits                   54,155          28,556
    Trade receivables, net                     18,408          20,740
    Other receivables and prepaid
    expenses                                    3,975           5,264
    Inventories                                12,545          13,254
                                              123,135         102,038
    Long-term investments
    Available-for-sale marketable
    securities                                121,114         114,168
    Long-term bank deposits                    65,625          96,696
    Severance pay funds                         2,957           3,088
                                              189,696         213,952
    
    Property and equipment, net                13,589          14,664
    Intangible assets, net                      5,128           7,423
    Other long-term assets                      1,637           1,631
    Goodwill                                   24,465          30,069
    
    Total assets                              357,650         369,777
    
    Current liabilities
    Trade payables                              9,915           6,365
    Deferred revenues, other
    payables and accrued expenses              56,605          62,180
                                               66,520          68,545
    
    Long-term liabilities                      19,900          21,690
    
    Shareholders' equity
    Share capital                                 599             605
    Additional paid-in capital                249,739         253,558
    Accumulated other comprehensive
    income                                      2,078           2,079
    Treasury stock, at cost                  (18,082)        (18,082)
    Retained earnings                          36,896          41,382
    Total shareholders' equity                271,230         279,542
    
    Total liabilities and
    shareholders' equity                      357,650         369,777
    


   
                   Condensed Consolidated Statements of Income
           (U.S. Dollars in thousands, except share and per share data)
    
                               For the Three months ended
                                        March 31,
                                      2012          2013
                                  (Unaudited)   (Unaudited)
    
    Revenues                          45,021        45,126
    Cost of revenues                   8,532         8,580
    Gross profit                      36,489        36,546
    Operating expenses:
    Research and development,
    net                                9,152         9,869
    Selling and marketing             18,687        19,540
    General and administrative         2,404         3,010
    Total operating expenses          30,243        32,419
    Operating income                   6,246         4,127
    Financial income, net              1,502         1,115
    Income before taxes on
    income                             7,748         5,242
    Taxes on income                    (875)         (756)
    Net income                         6,873         4,486
    
    Basic net earnings per
    share *)                          $ 0.16        $ 0.10
    Weighted average number of
    shares used to compute
    basic net earnings per
    share*)                       42,989,414    44,615,888 
    
    Diluted net earnings per
    share *)                          $ 0.15        $ 0.10
    Weighted average number of
    shares used to compute
    diluted net earnings per
    share*)                       46,232,222    46,995,738

*) On April 12, 2013, the Company affected a stock split of the Company's
ordinary shares of two (2) for one (1). The earning per share amounts and the
share data presented for all prior periods were restated to reflect the
effects of the stock split.


               Reconciliation of Supplemental Financial Information
           (U.S. Dollars in thousands, except share and per share data)
    
                                For the Three months
                                   ended March 31,
                                  2012        2013
                               (Unaudited) (Unaudited)
   
    
    GAAP net income                  6,873       4,486
    Stock-based compensation
    expenses, included in:
    Cost of revenues                    21          14
    Research and development           328         271
    Selling and marketing              966         607
    General and administrative         274         234
                                     1,589       1,126
    Amortization of intangible
    assets included in:
    Cost of revenues                   468         516
    Selling and marketing              291         210
                                       759         726
    
    Exchange rate differences,
    net on balance sheet items
    included in finance income       (268)         216
    
    Acquisition related
    expenses                             -         485
    Non-GAAP net income              8,953       7,039
    
    Non-GAAP diluted net
    earnings per share*)            $ 0.19      $ 0.15
    Weighted average number of
    shares used to compute
    Non-GAAP diluted net
    earnings per share *)       46,232,222  46,995,738



*) On April 12, 2013, the Company affected a stock split of the Company's
ordinary shares of two (2) for one (1). The earnings per share amounts and the
share data presented for all prior periods were restated to reflect the
effects of the stock split.

CONTACTS

Chief Financial Officer
Meir Moshe
+972-3766-8610

Corporate Media Relations
Brian Gallagher
+1 201-785-3206
briang@radware.com



SOURCE Radware Ltd