Radware Ltd. Announces Fourth Quarter 2013 Results

Radware Ltd. Announces Fourth Quarter 2013 Results

* Record Annual Revenues of $193 Million

* Record Quarterly Revenues of $53 Million

* Quarterly Non-GAAP EPS $0.22

TEL AVIV, Israel, Jan. 28, 2014 (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 $53.0
million for the fourth quarter of 2013. This represents an increase of 10%
compared with revenues of $48.0 million for the third quarter of 2013, and an
increase of 6% compared with revenues of $49.8 million in the fourth quarter
of 2012.

Net income on a GAAP basis for the fourth quarter of 2013 was $5.7 million or
$0.12 per diluted share, compared with net income of $2.9 million or $0.06 per
diluted share for the third quarter of 2013 and to $9.1 million or $0.20 per
diluted share in the fourth quarter of 2012.

Net income on a Non-GAAP basis for the fourth quarter of 2013 was $10.1
million or $0.22 per diluted share, compared with net income of $7.8 million
or $0.17 per diluted share for the third quarter of 2013 and to $11.2 million
or $0.24 per diluted share in the fourth quarter of 2012.

Revenues for 2013 amounted to $193.0 million, an increase of 2% compared with
revenues of $189.2 million in 2012.

At the end of the fourth quarter 2013, the company's overall cash position
including cash, short-term and long term bank deposits and marketable
securities amounted to $285.7 million.

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

"We are pleased with record postings of our annual and quarterly revenues,"
says Roy Zisapel, president and chief executive officer, Radware.
"Specifically, the continued growth in the Americas coupled with the improved
results in EMEA, translated into strong momentum for our business. We believe
our industry leading application delivery and our fast growing application
security solutions will enable us to continue to grow our revenues in the
coming year."

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

  *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
  *Radware Joins Open Networking Foundation Working Group to Help Accelerate
    the Adoption of Open SDN
  *Radware to Discuss Future of Cloud Computing During OpenStack Summit in
    Hong Kong
  *Radware's Alteon Application Delivery Controller Natively Provides Load
    Balancing Services for OpenStack Private and Public Cloud Applications
  *High Abandonment Rate for Mobile Shopping Carts Is Attributed to Slow Load
    Times, According to Radware: Warning to Retailers Depending on Cyber
    Monday
  *Radware Positioned as a Leader in the Magic Quadrant for Application
    Delivery Controllers for Fifth Time – Recognized for Having Most
    Completeness of Vision in 2013
  *Radware Launches Alteon NG – Next Generation Application Delivery
    Controller
  *Radware's Alteon Virtual Appliance Cloud Now Available on AWS Marketplace
  *Radware Nominated as a Finalist for "Best Enterprise Security Solution" by
    SC Magazine
  *Retailers Beware: Radware Study Reveals Strong Correlation Between Slow
    Network Speed and Brand Perception

Company management will host a quarterly investor conference call at 8:45am ET
on January 28, 2014. The call will focus on financial results for the quarter
ending December 31, 2013 and other matters related to the Company's business.

The conference call will be webcast on January 28, 2014 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 fourth quarter
2013 call:

Participants in the US call: Toll Free (877) 260-8900
International participants call: +1 612 332-0634
Conference ID: 314833

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^®.

©2014 Radware, Ltd. All rights reserved. Radware and all other Radware product
and service names are registered trademarks or trademarks of Radware in the
U.S. and other countries. All other trademarks and names are property of their
respective owners.

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 tax settlement 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.

Consolidated Balance Sheets
(U.S. Dollars in thousands)
                                                      
                                          December 31, December 31,
                                           2012         2013
                                          (Audited)    (Unaudited)
Current assets                                         
Cash and cash equivalents                 20,048       20,067
Available-for-sale marketable securities  14,004       30,372
Short term bank deposits                   54,155       84,387
Trade receivables, net                     18,408       24,911
Other receivables and prepaid expenses     3,975        6,323
Inventories                                12,545       14,190
                                          123,135      180,250
Long-term investments                                  
Available-for-sale marketable securities  121,114      113,377
Long-term bank deposits                    65,625       37,497
Severance pay funds                        2,957        3,319
                                          189,696      154,193
                                                      
Property and equipment, net                13,589       17,523
Intangible assets, net                     5,128        5,070
Other long-term assets                     1,637        1,629
Goodwill                                  24,465       30,069
                                                      
Total assets                               357,650      388,734
                                                      
Current liabilities                                    
Trade payables                             9,915        8,798
Deferred revenues                          36,304       38,674
Other payables and accrued expenses        14,913       19,232
                                          61,132       66,704
                                                      
Long-term liabilities                                  
Deferred revenues                          16,486       20,036
Other long term Liabilities                8,802        7,874
                                          25,288       27,910
                                                      
Shareholders' equity                                   
Share capital                              599          611
Additional paid-in capital                 249,739      262,809
Accumulated other comprehensive income    2,078        1,733
Treasury stock, at cost                    (18,082)     (25,984)
Retained earnings                         36,896       54,951
Total shareholders' equity                 271,230      294,120
                                                      
Total liabilities and shareholders' equity 357,650      388,734



Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
                                                               
                                                               
                           For the three months ended For the Year ended
                             December 31,               December 31,
                            2012          2013         2012       2013
                            (Unaudited)   (Unaudited)  (Audited)  (Unaudited)
                                                               
Revenues                     49,838        53,027       189,171    192,997
Cost of revenues             (9,407)       (10,054)     (35,719)   (36,735)
Gross profit                 40,431        42,973       153,452    156,262
Operating expenses:                                             
Research and development,    8,968         10,723       36,187     40,983
net
Selling and marketing        19,902        21,928       76,646     82,815
General and administrative   2,476         4,708        9,696      14,895
Total operating expenses     31,346        37,359       122,529    138,693
Operating income            9,085         5,614        30,923     17,569
Financial income, net        1,038         1,101        4,792      4,494
Income before income taxes  10,123        6,715        35,715     22,063
Income taxes                (1,012)       (993)        (3,958)    (4,008)
Net income                  9,111         5,722        31,757     18,055
                                                               
                                                               
Basic net earnings per share $0.21         $0.13        $0.73      $0.40
                                                               
                                                               
Weighted average number of
shares used to compute basic                                    
net earnings per share
                            44,160,896    44,749,807   43,709,278 44,760,197
                                                               
Diluted net earnings per     $0.20         $0.12        $0.68      $0.39
share
                                                               
                                                               
Weighted average number of
shares used to compute                                          
diluted net earnings per
share
                            46,670,422    46,595,955   46,588,894 46,716,929
                                                               


*) 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 Year ended
                            December 31,               December 31,
                                                               
                           2012          2013         2012        2013
                            (Unaudited)   (Unaudited)  (Unaudited) (Unaudited)
                                                               
GAAP net income            9,111         5,722        31,757      18,055
                                                               
Stock-based compensation                                        
expenses, included in:
Cost of revenues            11            14           66          53
Research and development    212           434          1,103       1,562
Selling and marketing       599           667          3,298       2,550
General and administrative  196           516          916         1,207
                           1,018         1,631        5,383       5,372
                                                               
Amortization of intangible                                      
assets included in:
                                                               
Cost of revenues            467           550          1,869       2,165
Selling and marketing       292           229          1,166       917
                           759           779          3,035       3,082
                                                               
                                                               
Exchange rate differences,
net on balance sheet items  277           253          355         703
included in financial
income, net
                                                               
                                                               
Acquisition related         -             -            -           485
expenses
                                                               
Litigation costs            -             1,695        -           3,470
                                                               
Tax settlement             -             -            -           835
                                                               
                                                               
Non-GAAP net income        11,165        10,080       40,530      32,002
                                                               
                                                               
                                                               
Non-GAAP diluted net        $0.24         $0.22        $0.87       $0.69
earnings per share
                                                               
Weighted average number of
shares used to compute      46,670,422    46,595,955   46,588,894  46,716,929
Non-GAAP 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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