Radware Ltd. Announces Third Quarter 2013 Results

Radware Ltd. Announces Third Quarter 2013 Results

* Quarterly Revenues of $48.0 Million

* Quarterly Non-GAAP EPS $0.17

TEL AVIV, Israel, Oct. 24, 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 $48.0
million for the third quarter of 2013.

Net income on a GAAP basis for the third quarter of 2013 was $2.9 million or
$0.06 per diluted share, compared with net income of $8.2 million or $0.18 per
diluted share for the third quarter of 2012.

Net income on a Non-GAAP basis for the third quarter of 2013 was $7.8 million
or $0.17 per diluted share, compared with net income of $10.4 million or $0.22
per diluted share for the third quarter of 2012.

At the end of the third quarter 2013, the company's overall cash position
including cash, short-term and long term bank deposits and marketable
securities amounted to $270.8 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 are pleased with the continued improvement in our results as we remain
focused on our application delivery and attack mitigation solutions," says Roy
Zisapel, president and chief executive officer, Radware. "With increased
activity levels across our SDN, cloud and cyber security solutions we feel
confident in the long term growth opportunities we have both domestically and
internationally."

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

  *Radware's Web Application Firewall - AppWall® Receives ICSA Labs
    Certification
    
  *Radware Provides Critical Solutions for Network Administrators as Mobile
    Device Usage Increases
    
  *New Radware Report Reveals Top Retailers Barely Keeping Up with Online
    Customer Demands, Web Performance on the Decline
    
  *Radware Introduces DefenseFlow™ Using Cisco eXtensible Network Controller
    to Offer SDN DoS and DDoS Protection as a Native Network Service
    
  *Radware Receives Frost & Sullivan Award for 2013 South Korea Application
    Delivery Controller Company of the Year
    
  *Preparing for Notorious Cyber Attack Dates: Radware Provides Five Steps to
    Secure Your Network
    
  *Chunghwa System Integration Selects Radware to Meet Virtualization
    Requirement of its Customers
    
  *Radware Honored as Silver Stevie® Award Winner in 2013 American Business
    Awards
    
  *Radware and Brinkster Extend Cyber Security Coverage with Hybrid Attack
    Mitigation Solution
    
  *Radware Joins HP's Partnership Program Furthering its SDN Strategy
    
  *Radware Announces Lineup of Fall Speaking Engagements
    
  *Radware Announces Lineup of European and UK Speaking Engagements
    
  *Radware Announces ElasticScale SDN-Based Network Service Scalability
    Solution
    
  *New Radware Research Reveals Top Retailers Sites Too Slow, Struggle to
    Meet Customer Needs

Company management will host a quarterly investor conference call at 8:45am ET
on October 24, 2013. The call will focus on financial results for the quarter
ending September 30, 2013 and other matters related to the Company's business.

The conference call will be webcast on October 24, 2013 at 8:45am ET in the
"listen only" mode via the Internet at: http://www.radware.com/IR/ and will be
available for replay during the next 30 days.

Please use the following dial-in numbers to participate in the third quarter
2013 call:

Participants in the US call: Toll Free +1 800- 230-1096
International participants call: +1 612 234-9960
Conference ID: 304217

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,
litigation costs and expenses related to settlement with Israeli tax
authorities 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, September 30,
                                                    2012        2013
                                                               (Unaudited)
Current assets                                                  
Cash and cash equivalents                           20,048       20,568
Available-for-sale marketable securities           14,004       29,491
Short-term bank deposits                            54,155       40,835
Trade receivables, net                              18,408       29,970
Other receivables and prepaid expenses              3,975        8,728
Inventories                                         12,545       13,835
                                                   123,135      143,427
                                                               
Available-for-sale marketable securities           121,114      104,373
Long-term bank deposits                             65,625       75,568
                                                   186,739      179,941
                                                               
                                                               
Property and equipment, net                         13,589       16,899
Intangible assets, net                              5,128        5,849
Other assets                                        4,594        4,783
Goodwill                                            24,465       30,069
                                                               
Total assets                                        357,650      380,968
                                                               
Current liabilities                                             
Trade payables                                      9,915        6,005
Deferred revenues, other payables and accrued       56,605       61,139
expenses
                                                   66,520       67,144
                                                               
Long-term liabilities                               19,900       24,396
                                                               
Shareholders' equity                                            
Share capital                                       599          609
Additional paid-in capital                          249,739      259,125
Accumulated other comprehensive income                          1,349
                                                    2,078
Treasury stock, at cost                             (18,082)     (20,884)
Retained earnings                                   36,896       49,229
Total shareholders' equity                          271,230      289,428
                                                               
Total liabilities and shareholders' equity          357,650      380,968
                                                               


Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)

                     For the Three months ended    For the nine months ended
                      September 30,                 September 30,
                     2012           2013           2012          2013
                     (Unaudited)    (Unaudited)    (Unaudited)   (Unaudited)
                                                              
Revenues              47,510         48,022         139,333       139,970
Cost of revenues      8,970         9,165         26,312        26,681
Gross profit          38,540         38,857         113,021       113,289
Operating expenses:                                            
Research and          9,124          10,147         27,219        30,260
development, net
Selling and marketing 19,040         20,928         56,744        60,887
General and           2,389         4,386        7,220        10,187
administrative
Total operating       30,553         35,461         91,183        101,334
expenses
Operating income      7,987          3,396          21,838        11,955
Financial income, net 1,263        1,043         3,754        3,393
Income before taxes   9,250          4,439          25,592        15,348
on income
Taxes on income       (1,028)        (1,537)       (2,946)       (3,015)
Net Income            8,222          2,902          22,646        12,333
                                                              
Basic net earnings    $0.19          $0.06          $0.52         $0.28
per share
                                                              
Weighted average
number of shares used                                          
to compute basic net  43,955,562     44,832,480     43,557,316    44,763,111
earnings per share
                                                              
Diluted net earnings  $0.18          $0.06          $0.49         $0.26
per share
                                                              
Weighted average
number of shares used                                          
to compute diluted    46,642,794     46,572,938     46,560,588    46,756,705
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.




Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
                                                                          
                    For the Three months ended   For the nine months ended  
                     September 30,                September 30,
                                                                        
                    2012           2013          2012          2013         
                    (Unaudited)    (Unaudited)   (Unaudited)   (Unaudited)  
                                                                        
GAAP net Income      8,222          2,902         22,646        12,333
Stock-based
compensation                                                             
expenses, included
in:
Cost of revenues     17             13            55            39           
Research and         284            455           891           1,128        
development
Selling and          873            636           2,699         1,883        
marketing
General and          192           199          720         691         
administrative
                    1,366         1,303         4,365        3,741        
Amortization of
intangible assets                                                        
included in:
Cost of revenues     467            549           1,402         1,615        
Selling and          291           229          874          688         
marketing
                    758           778          2,276        2,303       
Exchange rate
differences, net on
balance sheet items  59             171           78            450
included in finance
expenses
                                                                        
Acquisition related  --             --           --           485         
expenses
Litigation costs     --            1,775        --           1,775       
Tax settlement       --            835         --           835        
                                                                        
Non-GAAP net income  10,405         7,764         29,365        21,922
                                                                        
Non-GAAP diluted net $0.22          $0.17         $0.63         $0.47        
earnings per share
Weighted average                                              
number of shares                                             
used to compute                                                          
Non-GAAP diluted net 46,642,794     46,572,938    46,560,588    46,756,705
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

Radware Logo
 
Press spacebar to pause and continue. Press esc to stop.