Radware LTD. Announces Q409 Results
TEL AVIV, Israel, Feb. 2 /PRNewswire-FirstCall/ — Radware (Nasdaq: RDWR), the leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $32.1 million for the fourth quarter of 2009. This represents an increase of 10% compared with revenues of $29.2 million for the third quarter of 2009 and an increase of 29% compared to revenues of $24.9 million for the fourth quarter of 2008.
Total revenues for 2009 were $108.9 million, an increase of 15% compared with revenues of $94.6 million in 2008.
Net income on a GAAP basis for the fourth quarter of 2009 was $1.7 million or $0.09 per diluted share, compared to a net income of 0.2 million or $0.01 per diluted share in the third quarter of 2009 and to a net loss of $7.1 million or $0.38 per diluted share in the fourth quarter of 2008.
Net income on a Non-GAAP basis for the fourth quarter of 2009, excluding the effects of stock-based compensation expense and amortization of intangible assets was $4.0 million or $0.21 per diluted share, compared with a net income of $2.3 million or $0.12 per diluted share in the third quarter of 2009 and to a net loss of $0.4 million or $0.02 per diluted share in the fourth quarter of 2008.
Net loss on a GAAP basis for 2009 was $5.9 million or $0.31 per diluted share compared with a net loss of $31.0 million or $1.6 per diluted share in 2008.
Net income for 2009 on a Non-GAAP basis – excluding the effects of stock-based compensation expense, amortization of intangible assets, acquisition related expenses and unrealized gains in severance pay funds was $4.4 million or $0.23 per diluted share, compared with a net loss of $16.0 million or $0.82 per diluted share in 2008.
At the end of the fourth quarter 2009, the company’s overall cash position including cash, short-term and long-term bank deposits and marketable securities totaled $126.1 million.
“This year marked a key turning point for Radware – 2009 saw record revenues along with acceleration in growth rates throughout the year, resulting our crossing the $100 million revenue mark for the year with strong profitability momentum,” stated Roy Zisapel, CEO Radware. “We are confident that with continuous execution on the growth opportunities in our market and specifically with next-generation enterprise data center and mobile data drivers, we will be able to continue to grow our market share, revenues and profits in 2010.”
During the quarter ended December 31st, 2009, Radware released the following significant announcements:
- Pomeroy, Radware Sign Distribution Agreement
- Radware’s LinkProof Multi-WAN Load Balancing Solution Offers Customers Enhanced Connectivity and Application Performance
- Alteon is Back; Radware Delivers on Promise to Advance Acquired Product Line
- Radware Leverages VMware Virtualization to Extend Its Application Delivery Solution for the Virtual Data Center
- Radware Opens New R&D Center in India
- Radware Appoints New Vice-President of EMEA
- Radware Signs with Fuji Xerox for Distribution of Alteon Products in Japan
Company management will host a quarterly investor conference call at 8:45 am EDT on February 2nd 2010. The call will focus on financial results for the quarter ended December 31st, 2009, and certain other matters related to the Company’s business.
The conference call will be webcast on February 2, 2010 at 8:45 am EST 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 fourth quarter 2009 call:
Participants in the US call: Toll Free 1 888 203 1112
International participants call: +1 719 325 2138
About Radware
Radware (Nasdaq: RDWR), the 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 income and earnings per share, which are adjustments from results based on GAAP to exclude stock-based compensation expenses, in accordance with ASC 718-10, amortization and impairment of intangible assets and acquisition-related expenses, non-recurring retention expenses, write-off of deferred tax assets and unrealized losses and gains up to the amount of losses recorded in previous quarters, in severance pay funds. 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, December 31,
------------ ------------
2008 2009
---- ----
(Audited) (Unaudited)
Current assets
Cash and cash equivalents 28,065 19,843
Available-for-sale marketable securities 60,731 29,117
Short term bank deposits - 10,130
Trade receivables, net 13,348 16,097
Other receivables and prepaid expenses 2,046 2,934
Inventories 6,712 9,792
----- -----
110,902 87,913
------- ------
Long-term investments
Available-for-sale marketable
securities 45,112 42,021
Long-term bank deposits - 25,000
Severance pay funds 1,995 2,514
----- -----
47,107 69,535
------ ------
Property and equipment, net 11,693 11,220
------ ------
Other assets
Intangible assets, net 1,856 15,587
Other long-term assets 432 467
Goodwill 13,474 24,616
------ ------
15,762 40,670
------ ------
Total assets 185,464 209,338
======= =======
Current liabilities
Trade payables 4,646 5,699
Deferred revenues 14,096 20,734
Other payables and accrued expenses 9,868 11,907
----- ------
28,610 38,340
------ ------
Long-term liabilities
Deferred Revenues 4,946 16,919
Accrued severance pay 3,846 3,662
----- -----
8,792 20,581
----- ------
Shareholders' equity
Share capital 465 465
Additional paid-in capital 185,985 192,885
Accumulated other comprehensive
income (loss) (873) 935
Treasury stock, at cost (17,619) (18,036)
Accumulated deficit (19,896) (25,832)
------- -------
Total shareholders' equity 148,062 150,417
------- -------
Total liabilities and
shareholders' equity 185,464 209,338
======= =======
Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except share and per share data)
For the Three months ended For the Year ended
December 31, December 31,
-------------------------- ------------------
2008 2009 2008 2009
---- ---- ---- ----
(Unaudited) Unaudited) (Audited) (Unaudited)
Revenues 24,888 32,118 94,581 108,904
Cost of revenues 7,172 6,564 21,574 22,331
----- ----- ------ ------
Gross profit 17,716 25,554 73,007 86,573
------ ------ ------ ------
Operating expenses:
Research
and development 6,741 6,723 28,357 26,052
Selling and
marketing 13,614 14,873 63,591 55,696
General and
administrative 2,328 2,552 12,066 11,930
----- ----- ------ ------
Total
operating expenses 22,683 24,148 104,014 93,678
------ ------ ------- ------
Operating income
(loss) (4,967) 1,406 (31,007) (7,105)
Financial
income, net 519 506 3,612 1,987
--- --- ----- -----
Income (loss)
before income
taxes (4,448) 1,912 (27,395) (5,118)
Income taxes (2,684) (225) (3,627) (818)
------ ---- ------ ----
Net income (loss) (7,132) 1,687 (31,022) (5,936)
====== ====== ======= ======
Basic net income
(loss) per share $(0.38) $0.09 $(1.60) $(0.31)
====== ===== ====== =======
Weighted average
number of shares
used to compute
basic net income
(loss) per
share 18,918,438 18,881,697 19,439,776 18,879,230
Diluted net
income (loss)
per share $(0.38) $0.09 $(1.60) $(0.31)
====== ===== ====== =======
Weighted average
number of shares
used to compute
diluted net
income (loss)
per share 18,918,438 19,347,159 19,439,776 18,879,230
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,
-------------------------- ------------------
2008 2009 2008 2009
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net
income (loss) (7,132) 1,687 (31,022) (5,936)
------ ----- ------- ------
Stock-based
compensation
expenses, included
in:
Cost of revenues 26 16 103 71
Research and
development 302 217 1,459 1,008
Selling and
marketing 539 407 2,337 1,730
General and
administrative 503 585 2,737 2,176
--- --- ----- -----
1,370 1,225 6,636 4,985
----- ----- ----- -----
Amortization
and impairment
of intangible
assets included
in:
Cost of revenues 2,218 427 2,782 1,375
Selling and
marketing 39 629 156 1,928
Income taxes 41 - 163 -
--- --- --- ---
2,298 1,056 3,101 3,303
----- ----- ----- -----
Write-off
of deferred
tax assets 2,600 - 2,600 -
----- --- ----- ---
Non
recurring
retention
expenses,
Included in
General
and Administrative - - 2,231 -
--- --- ----- ---
Acquisition
related expenses - - - 2,485
--- --- --- -----
Unrealized losses
(gains) in
severance pay funds,
included in:
Research
and development 303 - 303 (303)
Selling and
marketing 63 - 63 (63)
General and
administrative 55 - 55 (55)
--- --- ---- ------
421 - 421 (421)
--- --- --- ------
Non-GAAP
net income
(loss) (443) 3,968 (16,033) 4,416
==== ===== ======= =====
Non-GAAP
diluted
net income
(loss) per
share $(0.02) $0.21 $(0.82) $0.23
====== ===== ====== =====
Weighted average
number of shares
used to compute
Non-GAAP
diluted net income
(loss) per
share 18,918,438 19,347,159 19,439,776 18,945,289
CONTACTS
Chief Financial Officer
Meir Moshe
+972-3766-8610
Corporate Relations
Joyce Anne Shulman
+1 201 785 3209
joyceannes@radware.com
SOURCE Radware Ltd