Radware Ltd. Announces Fourth Quarter 2015 Earnings

2015 Fourth Quarter Highlights

  • Revenues of $55.3 Million
  • Non-GAAP EPS of $0.17
  • Non-GAAP gross margin of 82.6%
  • Repurchase of shares in a total amount of $8.4 Million

2015 Full Year Highlights

  • Revenues of $216.6 Million
  • Non-GAAP EPS of $0.72
  • Non-GAAP gross margin of 82.9%
  • Repurchase of shares in a total amount of $52.9 Million

Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions ensuring optimal service level for applications in virtual, cloud and software defined data centers, today announced its consolidated financial results for the fourth quarter and 12 months ended December 31, 2015.

“In the midst of uncertain market conditions, we are pleased to report on a solid fourth quarter for bookings and subscriptions,” said Roy Zisapel, president and chief executive officer, Radware. “We believe our dedication to data center cyber security and application delivery coupled with our growing success in delivering our solutions as cloud services will help us navigate this volatile market and to lead us back to growth”

Financial Highlights for the fourth quarter of 2015

Revenues for the fourth quarter of 2015 totaled $55.3 million, representing a decrease of 9% compared with revenues of $61.0 million for the fourth quarter of 2014.

Net income on a GAAP basis for the fourth quarter of 2015 was $4.3 million or $0.09 per diluted share, compared with net income of $9.2 million or $0.19 per diluted share for the fourth quarter of 2014.

Net income on a Non-GAAP basis for the fourth quarter of 2015 was $7.6 million or $0.17 per diluted share, compared with net income of $13.1 million or $0.28 per diluted share for the fourth quarter of 2014.

As of December 31, 2015 the company’s deferred revenues totaled $101.2 million, including amounts invoiced to customers for whom revenue has not yet been recognized with corresponding offset of trade receivables balance. This represents an increase of 19% from December 31, 2014.

As of December 31, 2015 the Company had cash, cash equivalents, short-term and long-term bank deposits and marketable securities of $315.1 million.

Cash generated from operations in the fourth quarter of 2015 totaled $15.7 million

During the fourth quarter we repurchased our shares in a total amount of $8.4 million.

Financial Highlights for the full year 2015

Revenues for the full year of 2015 totaled $216.6 million, representing a decrease of 2%, compared with revenues of $221.9 million for the full year of 2014.

Net income on a GAAP basis for 2015 full year was $18.6 million or $0.40 per diluted share, compared with net income of $25.0 million or $0.53 per diluted share for the 2014 full year.

Net income on a Non-GAAP basis for the 2015 full year was $33.7 million or $0.72 per diluted share, compared with net income of $40.3 million or $0.86 per diluted share for the 2014 full year.

Cash generated from operations in 2015 totaled $39.1 million

During 2015 we repurchased our shares in a total amount of $52.9 million.

A reconciliation of each of the company’s non-GAAP measures to the comparable GAAP measured is included at the end of this press release.

During the fourth quarter of 2015, Radware released the following significant announcements:

Product

Radware Study Reveals 76% Of Travel Industry Websites Aren’t Fully Optimized For Mobile Customers

Business

Financial

Other significant product announcement during the first three quarters of 2015:

Conference Call

Company management will host a quarterly investor conference call at 8:45am ET on February 3, 2016. The call will focus on financial results for the quarter ending December 31, 2015 and other matters related to the Company’s business.

The conference call will be webcast on February 3, 2016 at 8:45am ET in the “listen only” mode via the Internet at: http://www.radware.com/IR/ and will be available for replay during the next 12 months.

Participants in the US call: Toll Free 1 (800) 230-1059
International participants call: +1- 612-234-9959
Conference ID:  383063

Please find a link to the upcoming webcast presentation on the following web page: http://www.radware.com/IR/

About Radware

Radware® (NASDAQ: RDWR), is a global leader of application delivery and cyber security solutions for virtual, cloud and software defined data centers. Its award-winning solutions portfolio delivers service level assurance for business-critical applications, while maximizing IT efficiency. Radware’s solutions empower more than 10,000 enterprise and carrier customers worldwide to adapt to market challenges quickly, maintain business continuity and achieve maximum productivity while keeping costs down. For more information, please visit www.radware.com

Radware encourages you to join our community and follow us on: Facebook, Google+, LinkedIn, Radware Blog, SlideShare, Twitter, YouTube, Radware Connect app for iPhone® and our security center DDoSWarriors.com that provides a comprehensive analysis on DDoS attack tools, trends and threats.

©2016 Radware Ltd. All rights reserved. Radware and all other Radware product and service names are registered trademarks or trademarks of Radware in the U.S. and other countries. All other trademarks and names are property of their respective owners.

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 ASC No. 718, amortization of intangible assets, litigation costs and exchange rate differences, net on balance sheet items included in finance income. Such exchange rate differences may vary from period to period due to changes in exchange rates driven by general market conditions or other circumstances outside of the normal course of Radware's operations. Management believes that exclusion of these charges allows comparisons of operating results that are consistent across past, present and future periods. 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.

Safe Harbor Statement

This press release may contain statements concerning Radware’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions and volatility of the market for our products; changes in the competitive landscape; inability to realize our investment objectives; timely availability and customer acceptance of our new and existing products; risks and uncertainties relating to acquisitions; the impact of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; Competition in the market for Application Delivery and Network Security solutions and our industry in general is intense; and other factors and risks on which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, reference is made to Radware’s Annual Report on Form 20-F which is on file with the Securities and Exchange Commission (SEC) and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.

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