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  Radware Logo