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Radware Ltd. Announces Second Quarter 2013 Results



Radware Ltd. Announces Second Quarter 2013 Results

* Quarterly Revenues of $46.8 Million

* Quarterly Non-GAAP EPS $0.15

TEL AVIV, Israel, July 25, 2013 (GLOBE NEWSWIRE) -- Radware^® (Nasdaq:RDWR), a
global leader of application delivery and application security solutions for
virtual and cloud data centers, today reported quarterly revenues of $46.8
million for the second quarter of 2013.

Net income on a GAAP basis for the second quarter of 2013 was $4.9 million or
$0.11 per diluted share, compared with net income of $7.6 million or $0.16 per
diluted share for the second quarter of 2012.

Net income on a Non-GAAP basis for the second quarter of 2013 was $7.1 million
or $0.15 per diluted share, compared with net income of $10.0 million or $0.21
per diluted share for the second quarter of 2012.

At the end of the second quarter 2013, following the cash payment related to
the shares repurchase in the amount of approximately $2.8 million, the
company's overall cash position including cash, short-term and long term bank
deposits and marketable securities amounted to $272.4 million.

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

"We maintain a strong focus on the application delivery and network security
markets with our ADC and attack mitigation solutions. As drivers in the
marketplace such as mobile data, SDN, cloud computing and cyber security
continue to increase, we feel we can grow our market share and revenues for
the coming years," stated Roy Zisapel president and chief executive officer,
Radware. "In North America, where these trends are impacting the market ahead
of the international markets, we are already seeing strong revenue growth and
we are focused on expanding this growth to the international markets."

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

  * Radware's DDoS Mitigation Technology Selected by Data Foundry
     
  * Radware's Attack Mitigation System Wins 2013 Network World Asia
    Information Management Award
     
  * Radware Introduces DefenseFlow™ Using Cisco eXtensible Network Controller
    to Offer SDN DoS and DDoS Protection as a Native Network Service
     
  * Radware Ltd. Announces First Quarter 2013 Results 
     
  * Radware Announces $40 Million Share Buyback Plan
      
  * Radware Unveils Comprehensive SDN Strategy and Introduces New SDN
    Application: DefenseFlow™

Company management will host a quarterly investor conference call at 8:45am ET
on July 25, 2013. The call will focus on financial results for the quarter
ending June 30, 2013 and other matters related to the Company's business.

The conference call will be webcast on July 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 second quarter
2013 call:

Participants in the US call: Toll Free +1 800-230-1074
International participants call: +1 612 332-0530
Conference ID: 296032

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 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. Statements preceded by, followed by, or that
otherwise include the words "believes", "expects", "anticipates", "intends",
"estimates", "plans", and similar expressions or future or conditional verbs
such as "will", "should", "would", "may" and "could" are generally
forward-looking in nature and not historical facts. 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 www.sec.gov or may be obtained on Radware's website at
www.radware.com

Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
                                                                    
                                                      December 31, June 30,
                                                       2012         2013
                                                                   (Unaudited)
Current assets                                                      
Cash and cash equivalents                             20,048       16,535
Available-for-sale marketable securities              14,004       29,036
Short-term bank deposits                              54,155       9,266
Trade receivables, net                                18,408       26,351
Other receivables and prepaid expenses                3,975        5,556
Inventories                                           12,545       13,942
                                                      123,135      100,686
                                                                    
Available-for-sale marketable securities              121,114      105,250
Long-term bank deposits                               65,625       112,328
                                                      186,739      217,578
                                                                    
                                                                    
Property and equipment, net                           13,589       16,329
Intangible assets, net                                5,128        6,628
Other assets                                          4,594        4,726
Goodwill                                              24,465       30,069
                                                                    
Total assets                                          357,650      376,016
                                                                    
Current liabilities                                                 
Trade payables                                        9,915        8,896
Deferred revenues, other payables and accrued         56,605       60,844
expenses
                                                      66,520       69,740
                                                                    
Long-term liabilities                                 19,900       23,912
                                                                    
Shareholders' equity                                                
Share capital                                         599          607
Additional paid-in capital                            249,739      255,236
Accumulated other comprehensive income                 2,078       1,078
Treasury stock, at cost                               (18,082)     (20,884)
Retained earnings                                     36,896       46,327
Total shareholders' equity                            271,230      282,364
                                                                    
Total liabilities and shareholders' equity            357,650      376,016

 
 
 
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
                                                       
                                                       
                           For the Three months ended For the Six months ended
                           June 30,                   June 30,
                           2012          2013         2012         2013
                           (Unaudited)   (Unaudited)  (Unaudited)  (Unaudited)
                                                                    
Revenues                   46,802        46,822       91,823       91,948
Cost of revenues            8,810         8,936       17,342       17,516
Gross profit               37,992        37,886       74,481       74,432
Operating expenses:                                                 
Research and development,  8,943         10,244       18,095       20,113
net
Selling and marketing      19,017        20,419       37,704       39,959
General and administrative  2,427         2,791        4,831        5,801
Total operating expenses   30,387        33,454       60,630       65,873
Operating income           7,605         4,432        13,851       8,559
Financial income, net       989           1,235        2,491        2,350
Income before taxes on     8,594         5,667        16,342       10,909
income
Taxes on income            (1,043)        (722)       (1,918)      (1,478)
Net Income                 7,551         4,945        14,424       9,431
                                                                    
 
Basic net earnings per     $0.17         $0.11        $0.33        $0.21
share
Weighted average number of
shares used to compute                                              
basic net earnings per     43,719,250    44,828,701   43,335,396   44,728,138
share
                                                                    
Diluted net earnings per   $0.16         $0.11        $0.31        $0.20
share
Weighted average number of
shares used to compute                                              
diluted net earnings per   46,798,988    46,689,174   46,536,900   46,848,299
share
                                                                    
                                                                    
                                                                    

*) 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.

 
 
Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
                                                                              
                       For the Three months ended For the Six months ended    
                       June 30                    June 30,
                                                                
                       2012          2013         2012         2013
                       (Unaudited)   (Unaudited)  (Unaudited)  (Unaudited)
                                                                
GAAP net Income         7,551        4,945        14,424       9,431
Stock-based
compensation expenses,                                          
included in:
Cost of revenues       17            12           38           26
Research and           279           402          607          673
development
Selling and marketing  860           640          1,826        1,247
General and             254           258          528          492
administrative
                        1,410        1,312         2,999        2,438
 
Amortization of                                                 
intangible assets
included in:
Cost of revenues       467           550          935          1,066
Selling and marketing   292           249          583          459
                        759           799          1,518        1,525
 
Exchange rate                                                   
differences, net on                                             
balance sheet items       287         63           19           279
included in finance
expenses
                                                                
Acquisition related     --            --           --           485
expenses
                                                                
Non-GAAP net income    10,007        7,119        18,960       14,158
                                                                
                                                                
Non-GAAP diluted net   $0.21         $0.15        $0.41        $0.30
earnings per share
 
Weighted average                                                
number of shares used                                           
to compute Non-GAAP     46,798,988    46,689,174   46,536,900   46,848,299
diluted net earnings
per share
                                                                
                                                                
                                                                

*) 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.

CONTACT: Chief Financial Officer
         Meir Moshe
         +972-3766-8610
        
         Corporate Media Relations
         Brian Gallagher
         +1 201-785-3206
         briang@radware.com

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