Radware (Nasdaq: RDWR), a global leader of Intelligent Traffic Management (ITM) solutions that bring certainty to dynamic networks, today reported revenues of $9.4 million for the fourth quarter of 2001, in line with guidance previously provided by management and representing a 16% sequential growth over the third quarter of 2001. Annual revenues for the year 2001 increased by 13% to $43.3 million compared with revenues of $38.4 million during the year 2000.
Proforma Net loss for the fourth quarter of fiscal year 2001 was $1.97 million or $0.12 per diluted share. Proforma net loss excludes a one-time amortization in respect of the company's investment in the convertible debentures of WydeBand Inc., as result of a delay by WydeBand Inc. achieving certain planned milestones. Net loss for the fourth quarter of 2001 including this one time amortization is $8.3 million or $0.50 per diluted share.
Cash flow from operations for the quarter was positive at $1.3 million, increasing the Company's cash balance to $126 million. DSOs for the quarter decreased to 77 days, as compared to DSOs of 113 days in the third quarter of 2001.
"Overall, 2001 was a good year for Radware," said Roy Zisapel, President and CEO of Radware. "We are pleased with our ability to increase revenues by 13% in a challenging market, as many in our industry experienced declining revenues. We believe our ability to gain market share demonstrates our continuous technological leadership in the market. This is the third year in a row that we have increased our market share and we believe we'll continue to do so."
Remarking on the Company's fourth quarter performance, Zisapel noted the significant improvement in all the Company's business parameters including revenues, earnings, cash flow, DSOs and inventory levels.
"In addition we continued to execute in this quarter on the product development front with the release of Peer Director - the industry's first Internet route traffic management solution. Radware remains focused on expanding its product portfolio and increasing its market share by providing the industry with the most powerful intelligent Application Switching products. We also announced a higher end version for our SSL accelerator CertainT 100 allowing our customers to produce over 20,000 SSL transactions per second, the fastest in the industry. We believe that the CertainT 100 product will positively contribute to our future growth."
"We are particularly proud of our latest win in a head to head test with our FireProof product, receiving the Editor's Choice Award by Network Computing Magazine. Radware's FireProof was selected as the best security traffic manager highlighting our rich feature set and our application switch platform."
"We believe that all of our strengths - our technological leadership, broad product offering, diverse customer base, and the wide geographic spread of our sales - will continue to assist us next year to continue to gain market share."
The Company projects revenues of $9.5 million to $10 million for the first quarter of 2002 and expects to report a loss of $0.10 per share.
During the quarter ended December 31, 2001, Radware released the following additional significant announcements:
- Radware Names Vikram Desai as Chief Operating Officer
- Radware's FireProof fully supports Microsoft ISA Server
- Radware Achieves OPSEC Certification for Check Point Next Generation
- Radware to Deliver Accelerated Performance for Oracle9i Application Server Deployments
- Radware Reveals Its 7 Gigabit Application Switch II Platform
- Radware Announces the Latest Version Of Its Award-Winning Web Server Director
- Computershare Selects Radware for Intelligent Traffic Management Across Australian, UK and US Sites
Company management will host a quarterly investor conference call at 8:45 AM EST on January 30, 2002. The call will focus on financial results for the quarter and of the year ended December 31, 2001, and certain other matters related to the Company's business.
The conference call will be webcast on January 30, 2002 at 8:45 AM (EST) In the "listen only" mode via the Internet at www.radware.com/content/about/investor.htm
About Radware
Radware's suite of Intelligent Traffic Management (ITM) products are designed to optimize the end user experience by eliminating network uncertainty and downtime. Radware's product line combines proprietary next generation application switching technology and open architecture with the industry's leading proven traffic management software. Radware offers a broad range of customized ITM solutions to corporate enterprises, service providers, and e-commerce businesses through the implementation of one or more award winning ITM solutions, including: Web Server Director, Cache Server Director, FireProof and LinkProof. Radware's Application Switches bring certainty to dynamic networks with products that guarantee the best service from click to content. Get certain with Radware. For more information, please visit us at www.radware.com
Interim condensed financial statements for the three months ended December 31, 2001