Radware (Nasdaq: RDWR), the leading provider of intelligent integrated solutions for ensuring the fast, reliable and secure delivery of networked and Web-enabled applications over IP, today reported its results for the third quarter of 2005. Revenues totaled $19.0 million, an increase of 8% compared with revenues of $17.6 million for the third quarter of 2004 and an increase of 9% compared with revenues of $17.5 million for the second quarter of 2005.
Net income for the third quarter of 2005 was $1.6 million, compared with net income of $3.6 million in the third quarter of 2004 and net income of $1.0 million in the second quarter of 2005.
Diluted net earnings per share for the third quarter of 2005 were $0.08, compared to $0.19 in the third quarter of 2004 and $0.05 in the second quarter of 2005.
The Company continued to maintain a positive operational cash flow as in the last fifteen quarters. In the third quarter of 2005 the Company generated cash in the amount of $2.3 million. This led to a balance of $168.8 million in cash, short-term and long-term bank deposits and marketable securities.
The Company estimates that in the forth quarter of 2005 revenues will amount to $21 million and the diluted net earnings per share will be 11 cents.
"Our third quarter results are consistent with our expectation that our short term business fundamentals for the remainder of 2005 would improve and that we would continue leveraging our competitive advantages and grow revenues sequentially. This quarter we began seeing the impact of our new reseller programs in terms of more effective channel partners. Additionally, we continued closing significant repeat business with our installed customer base across all regions," said Roy Zisapel, President and CEO at Radware.
According to Zisapel, Q3 was also a pivotal quarter in terms of product introductions and marketing activities. "We unveiled our next generation APSolute application delivery solution for application-smart networking. APSolute provides customers with a unified product family designed to address the full array of availability, performance and security challenges associated with assuring fast, reliable, secure delivery of applications over IP networks. We also introduced our next generation 3020 application switch platform which was designed to fully leverage the power of our new APSolute operating system, and satisfy the demanding performance, availability and connectivity needs of large enterprises and carriers. We are looking forward to seeing the results of focused marketing activities on demand generation and building APSolute brand recognition."
During the quarter ended September 30, 2005, Radware released the following significant announcements:
- Radware to Host Partner Forum 2005 in Miami, October 6-9
- Telcom Carriers Worldwide Tap Radware to Safeguard Networks Against Botnet and Denial of Service Attacks
- Radware Announces Defense Pro 3020 - Extending the Performance and High Availability Capabilities of its Intrusion Prevention and DoS Protection Switches
- Radware Makes Campus Networks "Application-Smart" for 100,000 Students Back In School Around the World
- Radware Appoints Chief Marketing Officer to Drive Company's Market Focus
- Concordia University Selects Radware's Application Delivery Solution to Enhance Security, Performance and Reliability of its Networked Applications
- Radware Introduces Layer 4-7 VoIP Support for Enterprises and Carriers
- Radware Provides 10Gig IPS to Bolster Security, Reliability and Performance of Campus-wide Network for Top Korean University
- Radware Honored with the prestigious "Tomorrow's Technology Today - 2005" Award by Info Security Products Guide
Company management will host a quarterly investor conference call at 8:45 AM EDT on October 28, 2005. The call will focus on financial results for the quarter ended September 30, 2005, and certain other matters related to the Company's business.
The conference call will be webcast on October 28, 2005 at 8:45 AM EDT in the "listen only" mode via the Internet at:
http://www.radware.com/Company/InvestorRelations/default.aspx. Alternatively, the conference can be listened to by calling the following numbers: Participants in the U.S. TOLL FREE: 866-205-3921. Participants internationally: 651-291-0618.
About Radware
Radware (Nasdaq: RDWR) is the global leader in integrated application delivery solutions, assuring the full availability, maximum performance and complete security of all business critical networked applications while dramatically cutting operating and scaling costs. Over 3,000 enterprises and carriers worldwide use Radware application-smart switches to drive business productivity and improve profitability by adding critical application intelligence to their IP infrastructure, making networks more responsive to specific business processes. Radware's APSolute product family provides the most complete set of application front-end, remote access and security capabilities for application-smart networking to ensure faster, more reliable and secure business transactions. Learn more on how Radware application delivery solutions can enable you to get the most of your investments in IT infrastructure and people. 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.
Editorial Contacts:
Jon Rabinowitz, Radware Ltd.; +1-201-512-9771 ext.233 or jonr@radware.com
Investor Relations: Dennis S. Dobson; 203-255-7902 or IR@radware.com