* Record quarterly revenues of $24.9 million
* Record annual revenues of $94.6 million
Radware (NASDAQ: RDWR), the leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $24.9 million for the fourth quarter of 2008. This represents an increase of 6% compared with revenues of $23.5 million for the third quarter of 2008 and an increase of 2% compared to revenues of $24.4 million for the fourth quarter of 2007.
Total revenues for 2008 were $94.6 million, an increase of 7% compared with revenues of $88.6 million in 2007.
Net loss on a GAAP basis for the fourth quarter of 2008 was $7.1 million or $0.38 per diluted share, compared to a net loss of $8.5 million or $0.44 per diluted share in the third quarter of 2008 and to a net loss of $1.8 million or $0.09 per diluted share in the fourth quarter of 2007.
Net loss on a Non-GAAP basis for the fourth quarter of 2008 was $0.4 million or $0.02 per diluted share, compared with a net loss of $4.3 million or $0.22 per diluted share in the third quarter of 2008 and to a net loss of $0.1 million or break-even per diluted share in the fourth quarter of 2007.
The net loss on a Non-GAAP basis for the fourth quarter of 2008 does not include the following items:
- $2.6M Write-off of deferred tax assets
- $2.0M Impairment of intangible assets arising from the Covelight acquisition in April 2007
- $1.4M stock based compensation expenses
- $0.3M Amortization of Intangible assets
- $0.4M Unrealized losses in severance pay funds
Net loss on a GAAP basis for 2008 was $31.0 million or $1.6 per diluted share compared with a net loss of $12.0 million or $0.62 per diluted share in 2007.
Net loss for 2008 on a Non-GAAP basis - excluding the effects of stock-based compensation expense, amortization and impairment of intangible assets and acquisition related expenses, non-recurring retention expenses, unrealized losses in severance pay funds and write-off of deferred tax assets, was $16.0 million or $0.82 per diluted share, compared with a net loss of $4.9 million or $0.25 per diluted share in 2007.
At the end of the fourth quarter 2008, the company’s overall cash position including cash, short-term and long-term bank deposits and marketable securities totaled $133.9 million.
“Despite the challenges present in today’s difficult economy, the competitive strength of Radware’s industry leading products has enabled us to continue to grow company revenue and achieve record sales for the fourth quarter,” stated Roy Zisapel, CEO Radware. “We have backed this with significant improvements made in operational efficiency to steer the company forward profitability.”
During the quarter ended December 31st, 2008, Radware released the following significant announcements:
- Radware Optimizes Global Corporate Network for HRS
- Radware Helps ibibo to Deliver Next-Generation Network in India
- Leading Korean e-Commerce Website Selects Radware to Drive Security Excellence
- Radware Improves Nedstat’s Ability to Deliver End-Users’ Online Purchasing Data to its Customers
- Radware Wins W³ Award from the International Academy of Visual Arts
- Radware Receives 2008 INTERNET TELEPHONY Excellence Award
- Radware Takes OnDemand Switch™ Platforms to the Next Level
Company management will host a quarterly investor conference call at 8:45 AM EDT on February 10, 2009. The call will focus on financial results for the quarter ended December 31st, 2008, and certain other matters related to the Company’s business.
The conference call will be webcast on February 10, 2009 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 fourth quarter 2008 call:
Participants in the US call: Toll Free 1 800 230 1096
International participants call: +1 612 288 0329
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 (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.