Radware LTD. Announces Results 1Q 2006


TEL AVIV, ISRAEL January 30, 2006 02:00 PM

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 APSoluteâ„¢ Application Delivery Solution for Application-Smart Networking

Company management will host a quarterly investor conference call at 8:45 AM EDT 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/Company/InvestorRelations/default.aspx

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. www.radware.com.

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the Company's products, successful implementation of the Company's products, economic and competitive factors, international market conditions, technological developments, the ability to finance operations and other factors which are detailed in the Company's SEC filings.

 

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