EX-10.1 2 exhibit_10-1.htm EXHIBIT 10.1 exhibit_10-1.htm

Exhibit 10.1

Chief Financial Officer
Meir Moshe
Corporate Relations
Joyce Anne Shulman
+1 201 785 3209
For Immediate Release

Radware Ltd Announces 1Q11 Results

* Quarterly revenues of $38.6 million.
* Non-GAAP EPS $0.27

TEL AVIV, ISRAEL.; April 28, 2011 — Radware (NASDAQ: RDWR), a leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $38.6 million for the first quarter of 2011. This represents an increase of 17% compared with revenues of $33.1 million for the first quarter of 2010.

Net income on a GAAP basis for the first quarter of 2011 was $4.4 million or $0.19 per diluted share, compared with net income of $0.6 million or $0.03 per diluted share for the first quarter of 2010.

Net income on a Non-GAAP basis for the first quarter of 2011 was $6.1 million or $0.27 per diluted share, compared with net income of $3.5 million or $0.18 per diluted share in the first quarter of 2010.

During the first quarter Radware generated $14 million in cash and ended the quarter with $193 million in cash, cash equivalents, deposits and marketable securities.

“Our first-to-market advantage in application delivery virtualization, with our innovative VADI architecture and versatile offerings, has translated into meaningful revenues with large enterprises and carriers,” said Roy Zisapel, President and CEO Radware. “Customers such as these, in addition to those in the small- to mid-market, are turning to Radware because of the unique value we can provide. We continue to see this as a strong revenue generator for the company in the coming quarters with cloud providers and enterprise data center consolidation projects.”

During the quarter ended March 31, 2011, Radware released the following significant announcements:
Papa John’s Turns to Radware for Fast Delivery
At Black Hat Europe 2011, Security Experts to Demonstrate How Businesses Can Prevent Denial of Service (DoS) Attacks
Telenet Adopts Radware’s ADC-VX to Drive Data Center Virtualization
Radware Claims Two Info Security Products Guide Awards

Radware Receives INTERNET TELEPHONY® Magazine’s Thirteenth Annual Product of the Year Award
Critical Infrastructure: The Newest Target for Cyber Criminals
Radware Introduces its Mobile Service Edge Strategy to Better Streamline Mobile Data Centers
Radware Talks Wikileaks’ Operation Payback at 2011 RSA Conference
Radware Rolls Out Two New Key Components of its Virtual Application Delivery Infrastructure: Alteon VA and vDirect Plug-in
Buypass Purchases Radware’s ADC-VX Virtualization Solution for Critical ADC Consolidation

Company management will host a quarterly investor conference call at 8:45am EST on April 28, 2011. The call will focus on financial results for the quarter ending March 31, 2011, and certain other matters related to the Company’s business.

The conference call will be webcast on April 28, 2011 at 8:45am ET 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 first quarter 2011 call:
Participants in the US call: Toll Free 1 877 392 9880
International participants call: +1 760 666 3769 
About Radware
Radware (NASDAQ:RDWR), a global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for nearly 10,000 enterprises and carriers worldwide. With APSolute®, Radware’s comprehensive and award-winning suite of application delivery and network 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 ASC No. 718, amortization of intangible assets, 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.
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 and Network Security industry, changes in demand for Application Switching and 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.

Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31,
March 31,
Current assets
Cash and cash equivalents
    15,284       10,688  
Available-for-sale marketable securities
    24,200       11,941  
Short-term bank deposits
    51,441       55,758  
Trade receivables, net
    16,543       14,664  
Other receivables and prepaid expenses
    3,402       3,048  
    9,722       10,818  
      120,592       106,917  
Long-term investments
Available-for-sale marketable securities
    82,864       109,553  
Long-term bank deposits
    5,000       5,000  
Severance pay funds
    3,342       3,407  
      91,206       117,960  
Property and equipment, net
    11,801       11,552  
Other assets
Intangible assets, net
    12,011       11,052  
Other long-term assets
    560       611  
    24,465       24,465  
Total assets
    260,635       272,557  
Current liabilities
Trade payables
    5,913       4,331  
Deferred revenues, other payables and accrued expenses
    47,223       49,782  
      53,136       54,113  
Long-term liabilities
    22,509       23,373  
Shareholders’ equity
Share capital
    506       517  
Additional paid-in capital
    218,593       224,409  
Accumulated other comprehensive income (loss)
    125       (10 )
Treasury stock, at cost
    (18,036 )     (18,036 )
Accumulated deficit
    (16,198 )     (11,809 )
Total shareholders’ equity
    184,990       195,071  
Total liabilities and shareholders' equity
    260,635       272,557  

Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
For the Three months ended March 31,
    33,096       38,619  
Cost of revenues
    6,698       7,879  
Gross profit
    26,398       30,740  
Operating expenses:
Research and development
    7,387       8,704  
Selling and marketing
    15,701       16,406  
General and administrative
    2,570       2,349  
Total operating expenses
    25,658       27,459  
Operating income
    740       3,281  
Financial income, net
    53       1,339  
Income before taxes on income
    793       4,620  
Taxes on income
    (204 )     (231 )
Net income
Basic net earnings per share
  $ 0.03     $ 0.21  
Weighted average number of shares used to compute basic net earnings per share
    18,970,581       20,674,379  
Diluted net earnings per share
  $ 0.03     $ 0.19  
Weighted average number of shares used to compute diluted net earnings per share
    20,221,513       23,023,883  


Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the Three months ended March 31,
GAAP net income
    589       4,389  
Stock-based compensation expenses, included in:
Cost of revenues
    15       15  
Research and development
    298       253  
Selling and marketing
    502       610  
General and administrative
    504       318  
      1,319       1,196  
Amortization of intangible assets included in:
Cost of revenues
    379       541  
Selling and marketing
    630       421  
      1,009       962  
Exchange rate differences, net on balance sheet items included in finance income
     629       (429 )
Non-GAAP net income
     3,546        6,118  
Non-GAAP diluted net earnings per share
  $ 0.18     $ 0.27  
Weighted average number of shares used to compute Non-GAAP diluted net earnings per share
        20,221,513           23,023,883