Radware Ltd. Announces Q2 2007 Results
Radware (NASDAQ: RDWR), the leading provider of integrated application delivery solutions for business-smart networking, today reported record revenues of $21.5 million for the second quarter of 2007. The results represent an increase of 9% compared with revenues of $19.7 million for the first quarter of 2007 and an increase of 7% compared with revenues of $20.1 million for the second quarter of 2006.
Net loss on a GAAP basis for the second quarter of 2007 was $4.0 million or $0.21 per diluted share, compared to a net loss of $3.6 million or $0.18 per diluted share in the first quarter of 2007 and a net loss of $0.6 million or $0.03 per diluted share in the second quarter of 2006. The loss for this quarter takes into account operating expenses resulting from the acquisition and consolidation of Covelight Systems, Inc.
For comparative purposes, net loss for the second quarter of 2007, excluding the effects of stock-based compensation expense and amortization of intangible assets and acquisition related expenses, was $2.4 million or $0.12 per diluted share, compared with a net loss of $1.2 million or $0.06 per diluted share in the first quarter of 2007 and net income of $0.5 million or $0.03 per diluted share in the second quarter of 2006.
In the second quarter of 2007 the company continued to maintain a positive operational cash flow. The company's overall cash position, including cash, short-term and long-term bank deposits and marketable securities decreased to a total amount of $158.2 million. Disallowing the amount invested in the acquisition of Covelight Systems, cash-on-hand would have represented an increase of $0.9 million.
"During this quarter we received important validation of our technology leadership in the application delivery space from independent reviewers and testers as well as federal contractors and best-of-breed providers that additionally chose us as their premier partner," said Roy Zisapel, CEO of Radware. "We intend to leverage these strengths in the upcoming quarters as an integral part of rolling out an 'industry-differentiated', go-to-market strategy for business-smart networking."
During the quarter ended June 30, 2007, Radware released the following significant announcements:
- Radware Teams With Harris Corporation to Provide Network-Centric Security Solutions to Federal Agencies Under NETCENTS Contract
- Radware and Riverbed Partner to Deliver High Performance and Fault Tolerant Remote Office Infrastructure
- Radware Appoints Christopher R. McCleary Executive Chairman
- Radware Security Operations Center Issues Advisory for YATE Vulnerabilities that Can Disrupt VoIP Infrastructures
- Radware Provides Recent Protection for Oracle Application Vulnerabilities
- Radware Launches Next Generation "Business-Smart Network" Strategy (Covelight Acquisition)
- Radware Takes Top Honors in IDG TechWorld Application Delivery Product Test Comparison
- Radware Security Update Service Responds to Windows .ANI
- Radware Earns Top Ratings in Extensive Lab Testing of VoIP Traffic Resiliency and Quality
Company management will host a quarterly investor conference call at 8:45 AM EDT on July 26, 2007. The call will focus on financial results for the quarter ended June 30, 2007, and certain other matters related to the Company's business.
The conference call will be webcast on July 26, 2007 at 8:45 AM EDT in the "listen only" mode via the Internet at: http://www.radware.com/content/company/investorrelations/default.asp
Please use the following dial-in numbers to participate in the second quarter 2007 call:
Participants in the U.S. call: 1-877-260-8900 (Toll Free)
Participants outside the U.S. call: 1-612-332-0637
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 more than 5,000 enterprises and carriers worldwide. With APSoluteâ„¢, 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". For more information, please visit www.radware.com.
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 industry, changes in demand for Application Switching 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.