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 record revenues of $21.0 million for the fourth quarter of 2005, an increase of 11% compared with revenues of $19.0 million for the fourth quarter of 2004 and for the third quarter of 2005.
Total revenues for 2005 were a record $77.6 million, an increase of 13% compared with revenues of $68.4 million in 2004.
Net income for the fourth quarter of 2005 was $2.4 million, compared with net income of $4.3 million in the fourth quarter of 2004 and $1.6 million in the third quarter of 2005.
Diluted net earnings per share for the fourth quarter of 2005 were $0.12, compared to $0.22 in the fourth quarter of 2004 and $0.08 in the third quarter of 2005.
Net income for 2005 was $9.3 million or $0.47 per diluted share, compared to net income of $13.8 million or $0.70 per diluted share for 2004.
In the fourth quarter of 2005 the Company continued to maintain a positive operational cash flow. In 2005 the Company generated cash in the amount of $7.5 million, after deduction of the amount invested in the purchase of the V- Secure Assets. This led to a balance of $164.5 million in cash, short-term and long-term bank deposits and marketable securities.
"We are pleased with the traction we are seeing from the recent launch of our APSolute Application Delivery solution," said Roy Zisapel President and CEO at Radware. "As evident from our strong fourth Quarter earnings, we are successfully implementing our business model and increasing market share in the growing Application Delivery space. We continue to increase our sales force and our technical and channel partnerships to leverage our application- smart solution suite across all geographies."
During the quarter ended December 31, 2005, Radware released the following significant announcements:
* Radware Showcases Application-Smart Networking with Innovative Approach
to IP Traffic Management at Interop NY
* Radware Vice President of Research and Development to Overview Network
Application Security Challenges at Infosecurity Show NY
* Radware To Acquire V-Secure Technologies
* Unicomm Turns to Radware's Integrated Application Delivery Solution for
Rapidly Growing Network
* Radware Announces SecureFlow, New Unified Security Switch to Simplify
Management and Optimize Performance of Best of Breed Enterprise
Security Tools
* Finjan and Radware Partner to Launch Integrated High Performance
Security Solution for Enterprises
* Radware Unveils APSolute(TM) Application Delivery Solution for
Application-Smart Networking
Company management will host a quarterly investor conference call at 8:45 AM EST on January 30, 2006. The call will focus on financial results for the quarter ended December 31, 2005, and certain other matters related to the Company's business.
The conference call will be webcast on January 30, 2006 at 8:45 AM EDT in the "listen only" mode via the Internet at: http://www.radware.com/content/company/investorrelations/default.asp
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. http://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.
Condensed Consolidated Balance Sheets
(U.S. Dollars in Thousands)
December 31, December 31,
2004 2005
(Audited) (Audited)
Current assets
Cash and cash equivalents 8,792 (*) 56,263
Short-term bank deposits 64,892 10,195
Short-term marketable securities 35,336 (*) 60,443
Trade receivables, net 13,166 14,661
Other receivables and prepaid expenses 1,332 1,451
Inventories 4,094 5,254
127,612 148,267
Long-term investments
Long-term bank deposit 9,224 9,458
Long-term marketable securities 38,797 28,134
Severance pay funds 1,921 2,178
49,942 39,770
Property and equipment, net 4,452 5,968
Other assets
Intangible assets, net, long-term
deferred taxes and other
long-term assets 1,235 3,888
Goodwill - 6,454
1,235 10,342
Total assets 183,241 204,347
Current liabilities
Trade payables 5,075 5,329
Deferred revenues 9,888 12,424
Other payables and accrued expenses 4,962 6,509
19,925 24,262
Accrued severance pay 2,399 2,659
Total liabilities 22,324 26,921
Shareholders' equity
Share capital 457 470
Additional paid-in capital 145,439 153,010
Accumulated other comprehensive loss (52) (404)
Deferred stock compensation - (67)
Retained earnings 15,073 24,417
Total shareholders' equity 160,917 177,426
Total liabilities and
shareholders' equity 183,241 204,347
(*) Reclassified
Condensed Consolidated Statements Of Operations
(U.S. Dollars In thousands, except share and per share
data)
For the Three For the Three For the For the
months ended months ended Year Year
December 31, December 31, ended ended
2004 2005 December 31, December 31,
2004 2005
(Unaudited) (Unaudited) (Audited) (Audited)
Revenues 19,047 21,038 68,439 77,584
Cost of revenues 3,395 4,053 12,184 14,896
Gross profit 15,652 16,985 56,255 62,688
Operating expenses:
Research and
development, net 2,878 3,362 10,342 13,017
Sales and
marketing 8,402 11,110 31,898 40,002
General and
administrative 1,243 1,371 4,493 5,244
Total operating
expenses 12,523 15,843 46,733 58,263
Operating income 3,129 1,142 9,522 4,425
Financial income, net 1,353 1,342 4,565 5,159
Income before
taxes on income 4,482 2,484 14,087 9,584
Taxes on income 135 130 341 240
Income before
minority interest
in losses of a
subsidiary 4,347 2,354 13,746 9,344
Minority interest
in losses of a
subsidiary - - 34 -
Net income 4,347 2,354 13,780 9,344
Basic net earnings
per share $0.24 $0.12 $0.77 $0.50
Weighted average
number of shares
used to compute
basic net earnings
per share 18,243,688 19,008,564 17,995,207 18,800,474
Diluted net
earnings per share $0.22 $0.12 $0.70 $0.47
Weighted average
number of shares
used to compute
diluted net
earnings per
share 20,167,394 19,932,691 19,804,896 20,072,192