• Record Quarterly Revenues of $41.1 Million
• Record Non-GAAP EPS $0.32
This represents an increase of 17% compared with revenues of $35.2 million for the second quarter of 2010, and an increase of 6% compared with revenues of $38.6 million in the first quarter of 2011.
Net income on a GAAP basis for the second quarter of 2011 was $4.9 million or $0.21 per diluted share, compared with net income of $1.4 million or $0.07 per diluted share for the second quarter of 2010.
Net income on a Non-GAAP basis for the second quarter of 2011 was $7.3 million or $0.32 per diluted share, compared with net income of $4.3 million or $0.21 per diluted share in the second quarter of 2010.
During the second quarter 2011 Radware generated $11 million in cash and ended the quarter with $204 million in cash, cash equivalents, deposits and marketable securities.
"Our competitive differentiation in ADC virtualization and attack mitigation solutions continue to fuel our growth," said Roy Zisapel, president and chief executive officer, Radware. "We believe we are very well positioned in the crossroad of the key IT trends such as data center consolidation, cloud networking, cyber security and carrier mobile data and traffic steering, and plan to continue to execute on these growth drivers."
During the quarter ended June 30, 2011, Radware released the following significant announcements:
• Radware Honored with a 2011 TMC Labs Innovation Award;
• Radware's Alteon VA Achieves VMware Ready Status;
• Radware's Alteon OS 27 Certified by SAP for Integration with SAP NetWeaver7.0 to Deliver Faster Response Time, High Availability and Improved Security;
• Radware Wins Third Consecutive NGN Magazine Leadership Award;
• Garanti Bank Purchases Radware's ADC-VX Virtualization Solution for Intranet and TCP/IP-based Banking Applications;
• Radware's Application Delivery Controller Solutions Provide Maximum Availability, Scalability, Performance and Security to Microsoft Exchange Server 2010;
• Fighting Back! Online Businesses Need to Adopt a More Offensive Line of Attack Against Cyber Crime;
• Radware Talks Application Delivery in the Virtual Data Center at Interop Las Vegas;
• Radware Raises the Bar for Virtual ADCs Introducing New Services to Its Virtual Application Delivery Infrastructure (VADI);
• Radware Earns Unified Communications 2010 Product of the Year Award;
• Radware's ADC Virtualization Solution Enables P&T Luxembourg to Expand into the Cloud.
Company management will host a quarterly investor conference call at 8:45am ET on July 26, 2011. The call will focus on financial results for the quarter ending June 30, 2011 and certain other matters related to the Company's business.
The conference call will be webcast on July 26, 2011 at 8:45am ET in the "listen only" mode via the Internet at radware.com and will be available for replay during the next 30 days.
Please use the following dial-in numbers to participate in the Second Quarter 2011 call:
Participants in the US call: Toll Free +1 877-392-9880
International participants call: +1 760-666-3769
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 more than 6,000 enterprises and carriers worldwide. With APSolute™, Radware's comprehensive and award-winning suite of intelligent front end, access, and 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, amortization and impairment of intangible assets and acquisition-related expenses, non-recurring retention expenses, write-off of deferred tax assets, one time inventory write-offs and unrealized losses 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.