*Record quarterly revenues of $29.2 million
Non-GAAP profitability tripled sequentially from previous quarter to $0.12 EPS
Radware, the leading provider of integrated application delivery solutions for business-smart networking, reported record quarterly revenues of $29.2 million for the third quarter of 2009. This represents an increase of 24% compared with revenues of $23.5 million for the third quarter of 2008 and an increase of 8% compared with revenues of $27.1 in the second quarter of 2009.
Net income on a GAAP basis for the third quarter of 2009 was $0.2 million or $0.01 per diluted share compared with a net loss of $8.5 million or $0.44 per diluted share in the third quarter of 2008.
Net income on a Non-GAAP basis for the third quarter of 2009 was $2.3 million or $0.12 per diluted share, compared with a net loss of $4.3 million or $0.22 per diluted share in the third quarter of 2008.
At the end of the third quarter of 2009, the company’s overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $120.2 million an increase of $5.4 million over previous quarter.
“We are pleased to report yet another record quarter of results along with a significant increase in profitability,” advised Roy Zisapel, CEO Radware. “For several quarters now we have been able to sequentially increase market share. This is a direct result of our ability to competitively win key customer accounts, strike several new distribution and reseller partnerships and further capitalize on the Alteon acquisition while we continue to extend and innovate the capabilities of our solutions. In just a year we’ve cost-effectively and successfully driven the business to over 20% growth with strong profitability leverage.”
During the quarter ended September 30, 2009, Radware released the following significant announcements:
• Radware Receives a 2009 INTERNET TELEPHONY Excellence Award;
• Radware Discusses Next-Generation Data Center Strategies at its Global Executive Exchange Forums;
• Radware Prevents Network Downtime for Carolinas HealthCare System, One of the Largest Healthcare Systems in the U.S;
• Radware Upgrades DefensePro Security Solution to Protect Against High-Volume Cybercriminal Activity;
• Financial Express Selects Radware to Guarantee Performance and Security for Web Applications;
• Radware’s AppDirector Achieves Oracle Validated Integration with Oracle® E-Business Suite 12.0;
• Optivor Signs Reseller Partnership with Radware for Alteon Products;
• Radware’s AppDirector Ensures ‘Always Up’ Communications on the Microsoft Office Communications Server 2007 R2 Environment;
• Radware Provides Full Availability, Performance and Security to Oracle Customers;
• Radware to Present at DEFCON; The Risk of Software Updates - How to Protect Your Infrastructure When It is the Most Vulnerable?
• Radware and RSA Form Technology Partnership to Offer Service for Increased Protection Against Trojan and Phishing Attacks;
• Key [Nortel] Alteon Reseller Packet Fusion Signs with Radware;
• Radware First to Offer Comprehensive Protection Against Recent Wave of Cyber Attacks Which Strike US and South Korean Government and Commercial Websites.
In addition, Radware's Board of Directors has chosen Mr. Yehuda Zisapel to serve as non-employee Chairman of the Board. Mr. Zisapel has served as a member of the Board since the company’s inception and served as Chairman of the Board until August 2006. Mr. Zisapel is also a founder and a director of RAD Data Communications Ltd., a worldwide data communications company headquartered in Israel, and BYNET Data Communications Ltd., a distributor of data communications products in Israel and serves as director of other companies in the RAD-Bynet Group, including SILICOM Ltd., and several private companies.
Company management will host a quarterly investor conference call at 8:45 am EDT on November 3, 2009. The call will focus on financial results for the quarter ending September 30, 2009, and certain other matters related to the Company’s business.
The conference call will be webcast on November 3, 2009 at 8:45 am EST in the “listen only” mode via the Internet at: 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 2009 call:
Participants in the US call: Toll Free 1 800 230 1059
International participants call: +1 612 234-9959
Radware (radware.com), 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”.
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 SFAS 123R, non-recurring retention expenses, amortization of intangible assets and acquisition-related expenses. 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 or Network Security industry, changes in demand for Application Switching or 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.