Radware Ltd. Announces Fourth Quarter 2012 Results
Record Annual Revenues of $189.2 Million; Record Quarterly Revenues of $49.8 Million; Record Quarterly Non-GAAP EPS $0.48
TEL AVIV, Israel, January 29, 2013 /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 $49.8 million for the fourth quarter of 2012. This represents an increase of 5% compared with revenues of $47.5 million for the third quarter of 2012, and an increase of 11% compared with revenues of $45.1 million in the fourth quarter of 2011.
Net income on a GAAP basis for the fourth quarter of 2012 was $9.1 million or $0.39 per diluted share, compared with net income of $8.2 million or $0.35 per diluted share for the third quarter of 2012 and to $6.6 million or $0.29 per diluted share in the fourth quarter of 2011.
Net income on a Non-GAAP basis for the fourth quarter of 2012 was $11.2 million or $0.48 per diluted share, compared with net income of $10.4 million or $0.45 per diluted share for the third quarter of 2012 and to $9.5 million or $0.42 per diluted share in the fourth quarter of 2011.
Revenues for 2012 amounted to $189.2 million, an increase of 13% compared with revenues of $167.0 million in 2011.
Net income on a GAAP basis for 2012 amounted to $31.8 million or $1.36 per diluted share, representing an increase of 49% compared with net income of $21.3 million or $0.93 per diluted share in 2011.
Net income on a Non-GAAP basis for 2012 amounted to $40.5 million or $1.74 per diluted share, representing an increase of 32% compared with net income of $30.7 million or $1.34 per diluted share in 2011.
"2012 represented another record year for us," states Roy Zisapel president and chief executive officer, Radware. "The transition to virtual data center architectures, private and public cloud build-outs, the explosion of mobile data, as well as surge in cyber security attacks led the demand for our application delivery and attack mitigation solutions."
"Despite a year of ongoing macro-economic uncertainty, we are pleased by our solid execution in meeting critical industry demands and look for these IT growth trends to continue in 2013," added Zisapel.
During the fourth quarter 2012, Radware released the following significant announcements:
- Radware Announces Third Quarter 2012 Earnings Conference Call
- Brinkster Selects Radware's Attack Mitigation System to Protect its Cloud and Hosting Customers Against Cyber Attacks
- Radware Launches In-Depth Resource for Information Security Professionals
- Asiasoft Selects Radware to Defend Against Cyber Attacks
- Radware's ADC Fabric Honored as a Bronze Stevie Winner at the 2012 American Business Awards Program
- Radware Ltd. Announces Third Quarter 2012 Results
- Radware Introduces Industry's Fastest Attack Mitigation Solution, DefensePro x420
- Radware Reports Results of Annual General Meeting
- New Report Reveals 65% of Organizations Experience Three DDoS Attacks a Year, But Majority are Unprepared to Mitigate Attacks
- Radware Positioned in the Leaders Quadrant for Application Delivery Controllers' 2012 Magic Quadrant
- Radware and VMware Integrated Virtual ADC Solution Now Generally Available
- Radware Awarded Contract to Upgrade Existing Network Protection System for a Leading U.S. National Cellular Network Provider
- Radware Launches Smart Choice Cloud Partner Program
Company management will host a quarterly investor conference call at 8:45am ET on January 29, 2013. The call will focus on financial results for the quarter ending December 31, 2012 and certain other matters related to the Company's business.
The conference call will be webcast on January 29, 2013 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 fourth quarter 2012 call:
Participants in the US call: Toll Free +1 (877) 392-9880
International participants call: +1 760-666-3769
Conference ID: 85827370
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. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. 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.
Consolidated Balance Sheets (U.S. Dollars in thousands) December 31, December 31, 2011 2012 (Audited) (Unaudited) Current assets Cash and cash equivalents 17,386 20,048 Available-for-sale marketable securities 10,334 14,004 Short term bank deposits 88,773 54,155 Trade receivables, net 12,565 18,408 Other receivables and prepaid expenses 3,218 3,975 Inventories 12,147 12,545 144,423 123,135 Long-term investments Available-for-sale marketable securities 102,644 121,114 Long-term bank deposits - 65,625 Severance pay funds 3,047 2,957 105,691 189,696 Property and equipment, net 11,084 13,589 Other assets Intangible assets, net 8,163 5,128 Other long-term assets 1,365 1,637 Goodwill 24,465 24,465 Total assets 295,191 357,650 Current liabilities Trade payables 5,099 9,915 Deferred revenues 35,516 36,304 Other payables and accrued expenses 14,732 20,301 55,347 66,520 Long-term liabilities Deferred revenues 16,978 16,486 Other long term Liabilities 3,545 3,414 20,523 19,900 Shareholders' equity Share capital 528 553 Additional paid-in capital 233,353 249,739 Accumulated other comprehensive income (loss) (1,663) 2,078 Treasury stock, at cost (18,036) (18,036) Retained earnings 5,139 36,896 Total shareholders' equity 219,321 271,230 Total liabilities and shareholders' equity 295,191 357,650
Condensed Consolidated Statements of Income (U.S. Dollars in thousands, except share and per share data) For the three months ended December 31, For the Year ended December 31, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Audited) (Unaudited) Revenues 45,090 49,838 167,020 189,171 Cost of revenues 8,626 9,407 33,357 35,719 Gross profit 36,464 40,431 133,663 153,452 Operating expenses: Research and development 9,146 8,968 36,064 36,187 Selling and marketing 18,516 19,902 69,543 76,646 General and administrative 2,501 2,476 9,629 9,696 Total operating expenses 30,163 31,346 115,236 122,529 Operating income 6,301 9,085 18,427 30,923 Financial income, net 787 1,038 4,200 4,792 Income before income taxes 7,088 10,123 22,627 35,715 Income taxes (468) (1,012) (1,290) (3,958) Net income 6,620 9,111 21,337 31,757 Basic net earnings per share $ 0.31 $ 0.41 $ 1.02 $ 1.45 Weighted average number of shares used to compute basic net earnings per share 21,149,334 22,080,448 20,952,866 21,854,639 Diluted net earnings per share $ 0.29 $ 0.39 $ 0.93 $ 1.36 Weighted average number of shares used to compute diluted net earnings per share 22,716,083 23,335,211 22,888,064 23,294,447
Reconciliation of Supplemental Financial Information (U.S. Dollars in thousands, except share and per share data) For the Three months ended For the Year December 31, ended December 31, 2011 2012 2011 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP net income 6,620 9,111 21,337 31,757 Stock-based compensation expenses, included in: Cost of revenues 20 11 66 66 Research and development 337 212 1,124 1,103 Selling and marketing 1,013 599 3,135 3,298 General and administrative 261 196 1,133 916 1,631 1,018 5,458 5,383 Amortization of intangible assets included in: Cost of revenues 541 467 2,164 1,869 Selling and marketing 421 292 1,684 1,166 962 759 3,848 3,035 Exchange rate differences, net on balance sheet items included in financial income, net 306 277 43 355 Non-GAAP net income 9,519 11,165 30,686 40,530 Non-GAAP diluted net earnings per share $ 0.42 $ 0.48 $ 1.34 $ 1.74 Weighted average number of shares used to compute Non-GAAP diluted net earnings per share 22,716,083 23,335,211 22,888,064 23,294,447
Chief Financial Officer
Corporate Media Relations
SOURCE Radware Ltd
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