Radware Cuts Q3 Earnings, Sales Guidance

Radware Ltd. RDWR has slashed its earnings and revenue forecast for the third quarter. Although the company recorded growth in the third quarter, it was lower than the guided range.

According to the preliminary results, the company expects adjusted EPS to be $0.04 compared to its earlier guidance of $0.07–$0.09. Similarly, the company reduced its revenue expectations from $50–$53 million to about $47 million in the third quarter.

The Street expected Radware to report EPS of $0.08 on revenue of $51.66 million for the third quarter.

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Commenting the results, the company's president and CEO, Roy Zisapel said, "Our bookings in the third quarter grew by double digits compared to the third quarter of 2015, as the shift towards an increased proportion of service and subscription sales accelerated during the quarter."

He added, "As our business continues to transition to an increased proportion of long-term subscription and service contracts, this has a current impact of lowering reported revenues. Therefore, despite strong growth in bookings, revenues for the third quarter of 2016 fell short of our guidance."

The company would release its results on November 1 before the market opens.

The stock closed at $13.15 on Friday.

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