Radware Ltd. Announces Third Quarter 2012 Results
Record Quarterly Revenues of $47.5 Million; Record Quarterly Non-GAAP EPS $0.45
TEL AVIV, Israel, October 26, 2012 /PRNewswire/ --
Radware® (NASDAQ: RDWR), a global leader of application delivery and application security solutions for virtual and cloud data centers, today reported quarterly revenues of $47.5 million for the third quarter of 2012. This represents an increase of 13% compared with revenues of $42.2 million for the third quarter of 2011.
Net income on a GAAP basis for the third quarter of 2012 was $8.2 million or $0.35 per diluted share, compared with net income of $5.4 million or $0.24 per diluted share for the third quarter of 2011.
Net income on a Non-GAAP basis for the third quarter of 2012 was $10.4 million or $0.45 per diluted share, compared with net income of $7.8 million or $0.34 per diluted share for the third quarter of 2011.
At the end of the third quarter 2012, the company's overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $264.9 million, representing an increase in the company's cash position of approximately $14.7 million in the third quarter of 2012.
"Our best-of-breed application delivery solutions for consolidation, mobile data and virtualization and cloud build-outs along with our industry-leading attack mitigation offering, are the main drivers for our growth amid an even more challenging global economic environment," said Roy Zisapel president and chief executive officer, Radware. "These capabilities are continuing to address the critical needs of our customers and help serve their key strategic initiatives."
During the third quarter 2012, Radware released the following significant announcements:
- Radware Announces 2012 Annual General Meeting
- Radware's Alteon 10000 Helps Global Mobile Carrier Reduce its Data Center Footprint and Manage Mobile Data Traffic
- Radware Partners with VMware, Bluelock to Deliver A Virtual ADC Service for the Cloud
- Radware's Alteon 10000 Delivers Highly-performing, Resilient and Scalable Mobile Data Services to Two Major North American Mobile Carriers
- Radware's Attack Mitigation System Wins 2012 Innovation Award from TMC Labs
- Radware Ltd. Announces Second Quarter 2012 Results
- Radware Confirms Its Juniper Partnership Remains Intact
- Radware's Attack Mitigation Black Belt Challenge Reveals IT Professionals' Strengths and Weaknesses of Top Security Threats
- FireHost Selects Radware's Attack Mitigation System for Real-Time Network Attack Prevention
Company management will host a quarterly investor conference call at 8:45am ET on October 26, 2012. The call will focus on financial results for the quarter ending September 30, 2012 and certain other matters related to the Company's business.
The conference call will be webcast on October 26, 2012 at 8:45a.m. 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 third quarter 2012 call:
Participants in the US call: Toll Free +1 (877) 392-9880
International participants call: +1 760-666-3769
Conference ID: 35789262
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.
Radware encourages you to join our community and follow us on LinkedIn, Radware Blog, Twitter, YouTube and the Radware Connect app for iPhone® and our new security center DDoSWarriors.com that provides a comprehensive analysis on DDoS attack tools, trends and threats.
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 statements concerning Radware's future prospects that are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. 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 http://www.sec.gov or may be obtained on Radware's website at http://www.radware.com.
Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) December 31, September 30, 2011 2012 (Unaudited) Current assets Cash and cash equivalents 17,386 16,877 Available-for-sale marketable securities 10,334 8,847 Short-term bank deposits 88,773 97,539 Trade receivables, net 12,565 15,713 Other receivables and prepaid expenses 3,625 4,276 Inventories 12,147 12,938 144,830 156,190 Long-term investments Available-for-sale marketable securities 102,644 118,909 Long-term bank deposits - 22,729 Severance pay funds 3,047 2,792 105,691 144,430 Property and equipment, net 11,084 11,420 Other assets Intangible assets, net 8,163 5,879 Other long-term assets 1,365 1,217 Goodwill 24,465 24,465 Total assets 295,598 343,601 Current liabilities Trade payables 5,099 7,379 Deferred revenues, other payables and accrued expenses 43,732 55,074 48,831 62,453 Long-term liabilities 27,446 21,511 Shareholders' equity Share capital 528 549 Additional paid-in capital 233,353 247,260 Accumulated other comprehensive income (loss) (1,663) 2,079 Treasury stock, at cost (18,036) (18,036) Retained earnings 5,139 27,785 Total shareholders' equity 219,321 259,637 Total liabilities and shareholders' equity 295,598 343,601
Condensed Consolidated Statements of Income (U.S. Dollars in thousands, except share and per share data) For the Nine months For the Three months ended ended September 30, September 30, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues 42,196 47,510 121,930 139,333 Cost of revenues 8,534 8,970 24,731 26,312 Gross profit 33,662 38,540 97,199 113,021 Operating expenses: Research and development,net 9,122 9,124 26,918 27,219 Selling and marketing 17,282 19,040 51,027 56,744 General and administrative 2,343 2,389 7,128 7,220 Total operating expenses 28,747 30,553 85,073 91,183 Operating income 4,915 7,987 12,126 21,838 Financial income, net 776 1,263 3,413 3,754 Income before taxes on income 5,691 9,250 15,539 25,592 Taxes on income (293) (1,028) (822) (2,946) Net Income 5,398 8,222 14,717 22,646 Basic net earnings per share $ 0.26 $ 0.37 $ 0.70 $ 1.04 Weighted average number of shares used to compute basic net earnings per share 21,052,835 21,977,781 20,886,623 21,778,658 Diluted net earnings per share $ 0.24 $ 0.35 $ 0.64 $ 0.97 Weighted average number of shares used to compute diluted net earnings per share 22,782,410 23,321,397 22,936,293 23,280,294
Reconciliation of Supplemental Financial Information (U.S. Dollars in thousands, except share and per share data) For the Nine months ended For the Three months ended September 30, September 30, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP net Income 5,398 8,222 14,717 22,646 Stock-based compensation expenses, included in: Cost of revenues 15 17 46 55 Research and development, net 248 284 787 891 Selling and marketing 731 873 2,122 2,699 General and administrative 209 192 872 720 1,203 1,366 3,827 4,365 Amortization of intangible assets included in: Cost of revenues 541 467 1,623 1,402 Selling and marketing 421 291 1,263 874 962 758 2,886 2,276 Exchange rate differences, net on balance sheet items included in financial income, net 233 59 (263) 78 Non-GAAP net income 7,796 10,405 21,167 29,365 Non-GAAP diluted net earnings per share $ 0.34 $ 0.45 $ 0.92 $ 1.26 Weighted average number of shares used to compute Non-GAAP diluted net earnings per share 22,782,410 23,321,397 22,936,293 23,280,294
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SOURCE Radware Ltd