• Record quarterly revenues of $32.1 million.
• Record annual revenues of $108.9 million.
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: radware.com/Company/InvestorRelations/ 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
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 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 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.