Radware LTD. Announces Record Results - Second Quarter 2005


Tel Aviv, Israel July 19, 2005 02:00 PM

Radware (Nasdaq: RDWR), the leader in Intelligent Application Switching, ensuring availability, performance and security of networked applications, today reported its results for the second quarter of 2005. Revenues totaled $17.5 million, an increase of 7% compared with revenues of $16.3 million for the second quarter of 2004. Revenues for the first quarter of 2005 totaled $20.0 million.

Net income for the second quarter of 2005 was $1.0 million, compared with net income of $3.0 million in the second quarter of 2004 and net income of $4.4 million in the first quarter of 2005.

Diluted net earnings per share for the first quarter of 2005 were $0.05, compared to $0.16 in the second quarter of 2004 and $0.22 in the first quarter of 2005.

The Company continued to maintain a positive operational cash flow as in the last fourteen quarters. In the second quarter of 2005 the Company generated cash in the amount of $5.0 million. This led to a balance of $166.5 million in cash, short-term and long-term bank deposits and marketable securities.

"As we announced in the preliminary earnings release, we are disappointed with the second quarter results," said Roy Zisapel, President and CEO at Radware. "However we believe that we have the technology, vision and business strategy to drive us back to growth and increased profitability."

During the quarter ended June 30, 2005, Radware released the following significant announcements:

  • Radware Announces New Channel Partnership Program
  • Radware Expands Intrusion Prevention Capabilities in New DefensePro Version to Safeguard Against SSL-Based Attacks
  • Radware Delivers Unprecedented Intrusion Prevention Capabilities and Denial of Service Protection in Real-World Tests
  • Independent Testing Confirms Radware's Intrusion Prevention Capabilities and Denial of Service Protection
  • Radware Security Service Responds to Mytob.CG Worm
  • Radware Expands its Intrusion Prevention and Denial of Service Protection Capabilities with DefensePro Product Line
  • Nu Horizons Selects Radware's Intrusion Prevention Solution for Sarbanes-Oxley Compliance

Company management will host a quarterly investor conference call at 8:45 AM EDT on July 19, 2005. The call will focus on financial results for the quarter ended June 30, 2005, and certain other matters related to the Company's business.

The conference call will be webcast on July 19, 2005 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) Radware is the Global Leader in Intelligent Application Switching, enabling the complete security, maximum performance and full availability of all mission critical networked applications while dramatically cutting operating and scaling costs.

Radware's integrated Application Security, Application Infrastructure and End-to-End Connectivity solutions are deployed by over 2,500 enterprises and carriers worldwide. Radware offers the broadest product line in the industry, meeting application needs at every critical point across the network including Web and Application Servers, Firewalls, VPNs, ISP links, Anti-Virus Gateways and Cache.
Learn more on how Radware Intelligent Application Switching Solutions can enable the security, performance and availability of mission critical applications at 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.

Editorial Contacts:
Jon Rabinowitz, Radware Ltd.; +1-201-512-9771 ext.233 or jonr@radware.com
Investor Relations: Dennis S. Dobson; 203-255-7902 or IR@radware.com

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