* Quarterly revenues of $23.5 million
** GAAP loss per share $0.44, Non-GAAP loss per share $0.22
Radware (NASDAQ: RDWR), the leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $23.5 million for the third quarter of 2008. This represents an increase of 2% compared with revenues of $23.0 million for the third quarter of 2007 and a decrease of 2% compared to revenues of $24.0 million for the second quarter of 2008.
Net loss on a GAAP basis for the third quarter of 2008 was $8.5 million or $0.44 per diluted share, compared to a net loss of $7.1 million or $0.36 per diluted share in the second quarter of 2008 and to a net loss of $2.6 million or $0.14 per diluted share in the third quarter of 2007.
Net loss on a non-GAAP basis for the third quarter of 2008 was $4.3 million or $0.22 per diluted share, compared with a net loss of $5 million or $0.25 per diluted share in the second quarter of 2008 and to a net loss of $1.2 million or $0.06 per diluted share in the third quarter of 2007. Non-GAAP results exclude the effects of stock-based compensation expense, amortization of intangible assets and acquisition related expenses, and non-recurring retention expenses.
At the end of the third quarter 2008 the company’s overall cash position, including cash, short-term and long-term bank deposits and marketable securities totaled an amount of $137.4 million.
“We remain more than ever committed to returning our business to profitability. As part of this undertaking, we expect to grow our revenues and control our expenses. We are confident in our “on demand” strategy – providing innovative high-performance solutions based on pay-as-you-grow model - which enables our customers to manage their IT infrastructures more cost effectively. This approach provides Radware with the ability to attain our business objectives, all whilst helping our customers to face the new challenges brought on by today’s economic environment,” stated Roy Zisapel, CEO Radware.
Management reiterates its expectation to return to operating profitability by the fourth quarter of 2008.
During the quarter ended September 30, 2008, Radware released the following significant announcements:
- China Eastern Airlines Selects Radware to Handle Peak Traffic for the Olympic Games
- Radware Reveals Critical Vulnerability in Firefox 3, Mozilla’s Latest Web Browser Application
- Radware Uncovers Security Vulnerabilities in New Web 2.0 Environments
- Radware’s SIP Director Awarded INTERNET TELEPHONY’s 2008 TMC Labs Innovation Award
- Radware’s AppDirector Wins 2008 Network Products Guide Reader Trust Award for Best in Global Load Balancing
- Australia’s IRESS Optimizes Next-Generation Data Center with Radware’s OnDemand Switch
- Radware to Present at INTERNET TELEPHONY® Conference & EXPO West 2008
- Radware Brings Hope To Chinese Children in Earthquake-hit Sichuan Province
- Radware Wins China “SP” Magazine 2008 Innovative Product Award
- Hong Kong Mercantile Exchange Penetrates Asia Commodities Exchange Market with Radware’s New Application Delivery Platform
- Radware Joins VMware Technology Alliance Partner Program
- Radware Introduces a New Virtualization Solution as Part of its Business-Smart Data Center Strategy
Company management will host a quarterly investor conference call at 8:45 AM EDT on November 3rd, 2008. The call will focus on financial results for the quarter ended September 30, 2008, and certain other matters related to the Company’s business.
The conference call will be webcast on November 3rd 2008 at 8:45 AM EST 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 third quarter 2008 call:
Participants in the US call: Toll Free 1 800 230 1093
International participants call: +1 612 234 9960
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 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”. For more information, please visit www.radware.com.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or 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 expense, in accordance with SFAS 123R, amortization of intangible assets and acquisition related expenses, and non-recurring retention expenses. Radware’s management believes the non-GAAP financial information provided in this release is useful to investors for the purpose of understanding and assessment of 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 and Network Security industry, changes in demand for Application Switching and 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.