Radware Ltd. Announces Second Quarter 2011 Results
TEL AVIV, Israel, July 26, 2011 /PRNewswire/ --
* Record Quarterly Revenues of $41.1 Million
* Record Non-GAAP EPS $0.32
Radware(NASDAQ: RDWR), a leading provider of application delivery and application security solutions for virtual and cloud data centers today reported record quarterly revenues of $41.1 million for the second quarter of 2011. This represents an increase of 17% compared with revenues of $35.2 million for the second quarter of 2010, and an increase of 6% compared with revenues of $38.6 million in the first quarter of 2011.
Net income on a GAAP basis for the second quarter of 2011 was $4.9 million or $0.21 per diluted share, compared with net income of $1.4 million or $0.07 per diluted share for the second quarter of 2010.
Net income on a Non-GAAP basis for the second quarter of 2011 was $7.3 million or $0.32 per diluted share, compared with net income of $4.3 million or $0.21 per diluted share in the second quarter of 2010.
During the second quarter 2011 Radware generated $11 million in cash and ended the quarter with $204 million in cash, cash equivalents, deposits and marketable securities.
"Our competitive differentiation in ADC virtualization and attack mitigation solutions continue to fuel our growth," said Roy Zisapel, president and chief executive officer, Radware. "We believe we are very well positioned in the crossroad of the key IT trends such as data center consolidation, cloud networking, cyber security and carrier mobile data and traffic steering, and plan to continue to execute on these growth drivers."
During the quarter ended June 30, 2011, Radware released the following significant announcements:
- Radware Honored with a 2011 TMC Labs Innovation Award
- Radware's Alteon VA Achieves VMware Ready Status
- Radware's Alteon OS 27 Certified by SAP for Integration with SAP NetWeaver7.0 to Deliver Faster Response Time, High Availability and Improved Security
- Radware Wins Third Consecutive NGN Magazine Leadership Award
- Garanti Bank Purchases Radware's ADC-VX Virtualization Solution for Intranet and TCP/IP-based Banking Applications
- Radware's Application Delivery Controller Solutions Provide Maximum Availability, Scalability, Performance and Security to Microsoft Exchange Server 2010
- Fighting Back! Online Businesses Need to Adopt a More Offensive Line of Attack Against Cyber Crime
- Radware Talks Application Delivery in the Virtual Data Center at Interop Las Vegas
- Radware Raises the Bar for Virtual ADCs Introducing New Services to Its Virtual Application Delivery Infrastructure (VADI)
- Radware Earns Unified Communications 2010 Product of the Year Award
- Radware's ADC Virtualization Solution Enables P&T Luxembourg to Expand into the Cloud
Company management will host a quarterly investor conference call at 8:45am ET on July 26, 2011. The call will focus on financial results for the quarter ending June 30, 2011 and certain other matters related to the Company's business.
The conference call will be webcast on July 26, 2011 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 2011 call:
Participants in the US call: Toll Free +1 877-392-9880
International participants call: +1 760-666-3769
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 http://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 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, 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.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31, June 30,
2010 2011
(Unaudited)
Current assets
Cash and cash equivalents 15,284 19,349
Available-for-sale marketable
securities 24,200 11,327
Short term bank deposits 51,441 58,001
Trade receivables, net 16,543 16,050
Other receivables and prepaid
expenses 3,402 3,982
Inventories 9,722 11,310
120,592 120,019
Long-term investments
Available-for-sale marketable
securities 82,864 109,927
Long-term bank deposits 5,000 5,000
Severance pay funds 3,342 3,493
91,206 118,420
Property and equipment, net 11,801 11,863
Other assets
Intangible assets, net 12,011 10,090
Other long-term assets 560 642
Goodwill 24,465 24,465
Total assets 260,635 285,499
Current liabilities
Trade payables 5,913 6,314
Deferred revenues, other
payables and accrued expenses 47,223 52,765
53,136 59,079
Long-term liabilities 22,509 23,180
Shareholders' equity
Share capital 506 521
Additional paid-in capital 218,593 227,137
Accumulated other comprehensive
income 125 497
Treasury stock, at cost (18,036) (18,036)
Accumulated deficit (16,198) (6,879)
Total shareholders' equity 184,990 203,240
Total liabilities and
shareholders' equity 260,635 285,499
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
For the Three months
ended June 30, For the Six months
ended June 30,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 35,206 41,115 68,302 79,734
Cost of revenues 7,090 8,318 13,788 16,197
Gross profit 28,116 32,797 54,514 63,537
Operating expenses:
Research and development 7,753 9,092 15,140 17,796
Selling and marketing 16,027 17,339 31,728 33,745
General and administrative 2,560 2,436 5,130 4,785
Total operating expenses 26,340 28,867 51,998 56,326
Operating income 1,776 3,930 2,516 7,211
Financial income (loss),
net (145) 1,298 (92) 2,637
Income before taxes on
income 1,631 5,228 2,424 9,848
Taxes on income (228) (298) (432) (529)
Net Income 1,403 4,930 1,992 9,319
Basic net earnings per
share
$ 0.07 $ 0.24 $ 0.10 $ 0.45
Weighted average number of
shares used to compute
basic net earnings per
share 19,170,659 20,927,549 19,071,288 20,801,998
Diluted net earnings per
share
$ 0.07 $ 0.21 $ 0.10 $ 0.41
Weighted average number of
shares used to compute
diluted net earnings per
share 21,001,863 22,976,000 20,624,283 23,001,985
Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the Three months For the Six months ended
ended June 30, June 30,
2010 2011 2010 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net
Income 1,403 4,930 1,992 9,319
Stock-based
compensation
expenses,
included in:
Cost of
revenues 14 16 29 31
Research and
development 280 286 578 539
Selling and
marketing 553 781 1,055 1,391
General and
administrative 406 345 _ 910 _ 663
1,253 1,428 2,572 2,624
Amortization
of intangible
assets
included in:
Cost of
revenues 399 541 778 1,082
Selling and
marketing 592 421 1,222 842
991 962 2,000 1,924
Exchange rate
differences, net on
balance sheet items
included in finance
income 696 (67) 1,325 (496)
Non-GAAP net
income 4,343 7,253 7,889 13,371
Non-GAAP
diluted net
earnings per
share $ 0.21 $ 0.32 $ 0.38 $ 0.58
Weighted
average number
of shares used
to compute
Non-GAAP
diluted net
earnings per
share 21,001,863 22,976,000 20,624,283 23,001,985
Contacts
Chief Financial Officer
Meir Moshe
+972-3766-8610
Corporate Media Relations
Michael Lordi
+1 201-675-3664
[email protected]
SOURCE Radware Ltd
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