Radware Ltd Announces 4Q10 Results

TEL AVIV, Israel, Feb. 3, 2011 /PRNewswire/ -- Radware (Nasdaq: RDWR), a leading provider of integrated application delivery solutions for business-smart networking, today reported record quarterly revenues of $39.1 million for the fourth quarter of 2010. This represents an increase of 6% compared with revenues of $36.8 million for the third quarter of 2010, and an increase of 22% compared with revenues of $32.1 million in the fourth quarter of 2009.

Total revenues for 2010 were $144.1 million, an increase of 32% compared with revenues of $108.9 million in 2009.

Net income on a GAAP basis for the fourth quarter of 2010 was $3.9 million or $0.17 per diluted share, compared with a net income of $3.7 million or $0.17 per diluted share for the third quarter of 2010 and to $1.7 million or $0.09 million per diluted share in the fourth quarter of 2009.

Net income on a Non-GAAP basis for the fourth quarter of 2010 was $6.6 million or $0.29 per diluted share, compared with a net income of $5.6 million or $0.26 per diluted share for the third quarter of 2010 and to $4.0 million or $0.21 per diluted share in the fourth quarter of 2009.

Net income on a GAAP basis for 2010 was $9.6 million or $0.44 per diluted share compared with a net loss of $5.9 million or $0.31 per diluted share in 2009.

Net income on a Non-GAAP basis for 2010 was $20.1 million or $0.92 per diluted share compared with a net gain of $4.6 million or $0.24 per diluted share in 2009.

At the end of the fourth quarter of 2010, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $178.8 million, representing an increase in the company's cash position of approximately $6.5 million in the fourth quarter or $52.7 million in the last 12 months.

"We see our industry lead in virtualization of the application delivery layer as a strong market share and revenue growth catalyst and we were very pleased to already see in Q4 a significant contribution from our newly announced VADI architecture," stated Roy Zisapel, President and CEO Radware. "In addition, strong customer account success with our attack mitigation products, and continued penetration of the service provider market in Q4, has contributed to our increased profits and market share. It is our belief that these trends will continue to attain even more positive results in 2011."

During the quarter ended December 31, 2010, Radware released the following significant announcements:

• Radware Accelerates Applications with New Alteon Version
• LifeWay Christian Resources Relies on Radware's Application Delivery Services to Support its Rapidly Growing e-Commerce and Corporate Networks
• Radware's DefensePro Earns "Recommend" Rating from NSS Labs for Attack Mitigation
• Radware Offers Multichannel Retailers Best Practices for Cyber Monday
• Radware takes APSolute Attack Prevention to the Next Level to Empower the Fight Against Online Fraud
• Radware Collects 2010 INTERNET TELEPHONY Excellence Award
• Radware Positioned in the Leaders Quadrant of the Magic Quadrant for Application Delivery Controllers
• Radware Launches its Smart Choice Partner Program
• Radware Helps SK Group Support Next-Generation Unified Communications Platform

Company management will host a quarterly investor conference call at 8:45 AM ET on Thursday, February 3rd, 2011. The call will focus on financial results for the quarter ending December 31, 2010, and certain other matters related to the company's business.

Please use the following dial-in numbers to participate in the fourth quarter 2010 call:

Participants in the US call: Toll Free 1 877 392 9880

International participants call: +1 760 666 3769 

The conference call will be webcast on Thursday February 3rd 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.

About Radware

Radware (NASDAQ: RDWR), a global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for nearly 10,000 enterprises and carriers worldwide. With APSolute®, Radware's comprehensive and award-winning suite of application delivery and network security products, companies in every industry can drive business productivity, improve profitability, and reduce IT operating and infrastructure costs by making their networks "business smart". For more information, please visit www.radware.com.

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 operating income, 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, unrealized gains up to the amount of losses recorded in previous quarters, in severance pay funds 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 forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching and Network Security industry, changes in demand for Application Switching and Network Security products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware's filings with the Securities and Exchange Commission, including Radware's Form 20-F.

SOURCE Radware