Fourth Quarter 2017 Results and Financial Highlights

• Revenues of $58 Million, up 13% from the fourth quarter of 2016
• Non-GAAP EPS of $0.09; GAAP EPS of 0.05

Full Year 2017 Results and Financial Highlights

• Revenues of $211 Million, up 8% from 2016
• Non-GAAP EPS of $0.17; GAAP EPS of )$0.17)

TEL AVIV, Israel, Feb. 07, 2018 (GLOBE NEWSWIRE) -- Radware^® (NASDAQ:RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the quarter and year ended December 31, 2017.

“We ended 2017 on a very strong note, delivering record bookings and strong revenue growth. The quarter concluded a strong year for Radware, which was highlighted by robust performance in our security business, and high growth in cloud services and product subscriptions,” said Roy Zisapel, Radware President & CEO. “This success provides us with excellent visibility entering 2018, and we have confidence in our growth prospects for the year.”

Financial Highlights for the Fourth Quarter of 2017

Revenues for the fourth quarter of 2017 totaled $58.5 million, up 13% from revenues of $51.7 million for the fourth quarter of 2016:

• Revenues in the Americas region were $28.7 million for the fourth quarter of 2017, up 27% from revenues of $22.7 million in the fourth quarter of 2016.
• Revenues in the EMEA region were $15.1 million for the fourth quarter of 2017, up 1% from revenues of $14.9 million in the fourth quarter of 2016.
• Revenues in the APAC region were $14.6 million for the fourth quarter of 2017, up 4% from revenues of $14.1 million in the fourth quarter of 2016.

Net income on a GAAP basis for the fourth quarter of 2017 was $2.1 million or $0.05 per diluted share, compared with net loss of ($2.1) million or ($0.05) per diluted share for the fourth quarter of 2016.

Non-GAAP net income for the fourth quarter of 2017 was $3.9 million or $0.09 per diluted share, compared with non- GAAP net income of $2.5 million or $0.06 per diluted share for the fourth quarter of 2016.

Financial Highlights for the Full Year of 2017

Revenues for the full year of 2017 totaled $211.4 million, up 8% from revenues of $196.6 million for the full year of 2016:

• Revenues in the Americas region were $97.9 million for the full year of 2017, up 16% from revenues of $84.7 in the full year of 2016.
• Revenues in the EMEA region were $56.6 million for the full year of 2017, up 5% from revenues of $53.7 in the full year of 2016.
• Revenues in the APAC region were $56.9 million for the full year of 2017, down 2% from revenues of $58.1 in the full year of 2016.

Net loss on a GAAP basis for the full year of 2017 was ($7.5) million or ($0.17) per share, compared with net loss of ($8.7) million or ($0.20) per diluted share for the full year of 2016.

Non-GAAP net income for the full year of 2017 was $7.6 million or $0.17 per diluted share, compared with non-GAAP net income of $8.9 million or $0.20 per diluted share for the full year of 2016.

Non-GAAP results are calculated excluding the impact of stock-based compensation, exchange rate differences, net on balance sheet items included in financial income, amortization of intangible assets, acquisition costs, litigation costs and gains, and changes in federal tax rate. 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.

As of December 31, 2017, the Company had cash, cash equivalents, short-term and long-term bank deposits and marketable securities of $344.3 million. Cash generated from operations in the fourth quarter of 2017 totaled $8.0 million. Cash generated from operations in the full year of 2017 totaled $31.5 million.

Investor Meeting

The Company will host a meeting with analysts and institutional investors on February 20, 2018, in New York, where members of Radware’s executive team will provide an update on the Company’s business and outlook. To register for attendance, please email ir@radware.com. The presentation materials and a live webcast of the meeting will be available on the Company’s website. The webcast will remain available for replay during the next 12 months. 

Conference Call

Radware management will host a call on Wednesday, February 7, 2018 at 8:30 am ET to discuss its fourth quarter and full year 2017 results and the company’s outlook for the first quarter of 2018.

Participants in the US call: Toll Free 866-393-4306

Participants Internationally call:  +1-734-385-2616 

Conference ID: 7879889

A replay will be available for 2 days, starting 2 hours after the end of the call, on telephone number +1-416-621-4642 or (US toll-free) 800-585-8367.  

A live webcast of the conference call can also be heard by accessing the Company's website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months. 

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 gross profit, operating income, financial income, 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, acquisition costs, litigation costs and gains, exchange rate differences, net on balance sheet items included in finance income and changes in the federal rate. 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. Furthermore, Radware uses a measure called “total deferred revenues” which is defined as the sum of short and long term deferred revenues on the balance sheet and uncollected billed amounts that were offset against trade receivables, and are not presented on the balance sheet. 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, as amended, 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.

About Radware

Radware® (NASDAQ:RDWR), is a global leader of cyber security and application delivery solutions for physical, cloud, and software defined data centers. Its award-winning solutions portfolio secures the digital experience by providing infrastructure, application, and corporate IT protection and availability services to enterprises globally. Radware’s solutions empower more than 12,500 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.

©2018 Radware Ltd. All rights reserved. The Radware products and solutions mentioned in this press release are protected by trademarks, patents and pending patent applications of Radware in the U.S. and other countries. For more details please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

CONTACTS

Investor Relations:
Anat Earon-Heilborn
+972 723917548
ir@radware.com

Media Contacts:
Deborah Szajngarten
Radware
201-785-3206
deborah.szajngarten@radware.com

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
		December 31,			December 31,
		2017			2016
		(Unaudited)			(Unaudited)
Assets
Current assets
Cash and cash equivalents		65,237			79,639
Available-for-sale marketable securities		42,573			20,452
Short-term bank deposits		93,151			125,995
Trade receivables, net		16,150			19,407
Other receivables and prepaid expenses		12,252			4,159
Inventories		18,772			17,114
		248,135			266,766
Long-term investments
Available-for-sale marketable securities		54,427			74,967
Long-term bank deposits		88,911			19,092
Severance pay funds		3,251			2,597
		146,589			96,656
Property and equipment, net		23,642			26,354
Intangible assets, net		10,415			2,399
Other long-term assets		8,133			8,092
Goodwill		32,174			30,069
Total assets		469,088			430,336
Liabilities and shareholders' equity
Current Liabilities
Trade payables		5,367			5,971
Deferred revenues		69,829			53,061
Other payables and accrued expenses		32,174			26,232
		107,370			85,264
Long-term liabilities
Deferred revenues		43,482			31,100
Other long-term liabilities		2,880			14,209
		46,362			45,309
Shareholders' equity
Share capital		673			663
Additional paid-in capital		349,250			325,338
Accumulated other comprehensive loss, net of tax		(443	)		(20	)
Treasury stock, at cost		(116,442	)		(116,029	)
Retained earnings		82,318			89,811
Total shareholders' equity		315,356			299,763
Total liabilities and shareholders' equity		469,088			430,336

Radware Ltd.
Condensed Consolidated Statements of Income (Loss)
(U.S Dollars in thousands, except share and per share data)
		For the three months ended						For the year ended
		December 31,						December 31,
		2017			2016			2017			2016
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues		58,454			51,712			211,369			196,585
Cost of revenues		11,060			9,596			39,616			35,695
Gross profit		47,394			42,116			171,753			160,890
Operating expenses:
Research and development, net		15,072			12,235			59,003			51,732
Selling and marketing		29,166			28,144			108,744			103,774
General and administrative		4,265			4,226			17,577			18,133
Other income		(6,900	)		-			(6,900	)		-
Total operating expenses		41,603			44,605			178,424			173,639
Operating income (loss)		5,791			(2,489	)		(6,671	)		(12,749	)
Financial income, net		935			863			4,830			5,741
Income (loss) before taxes on income		6,726			(1,626	)		(1,841	)		(7,008	)
Taxes on income		(4,605	)		(507	)		(5,652	)		(1,651	)
Net income (loss)		2,121			(2,133	)		(7,493	)		(8,659	)
Basic net earnings (loss) per share		0.05			(0.05	)		(0.17	)		(0.20	)
Weighted average number of shares used to compute basic net earnings (loss) per share		43,859,400			43,313,644			43,475,844			43,868,221
Diluted net earnings (loss) per share		0.05			(0.05	)		(0.17	)		(0.20	)
Weighted average number of shares used to compute diluted net earnings (loss) per share		45,728,792			43,313,644			43,475,844			43,868,221

Radware Ltd.
Reconciliation of GAAP to Non-GAAP Financial Information
(U.S Dollars in thousands, except share and per share data)
	For the three months ended						For the year ended
	December 31,						December 31,
	2017			2016			2017			2016
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP gross profit	47,394			42,116			171,753			160,890
Stock-based compensation	60			52			241			180
Amortization of intangible assets	86			254			1,137			1,014
Acquisition costs	550			-			550			-
Non-GAAP gross profit	48,090			42,422			173,681			162,084
GAAP research and development, net	15,072			12,235			59,003			51,732
Stock-based compensation	984			948			3,867			3,339
Acquisition costs	204			-			204			-
Non-GAAP Research and development, net	13,884			11,287			54,932			48,393
GAAP selling and marketing	29,166			28,144			108,744			103,774
Stock-based compensation	1,717			1,743			6,894			5,661
Amortization of intangible assets	24			26			94			105
Non-GAAP selling and marketing	27,425			26,375			101,756			98,008
GAAP general and administrative	4,265			4,226			17,577			18,133
Stock-based compensation	456			478			2,029			2,340
Acquisition costs	-			-			340			-
Litigation costs	76			784			2,052			4,270
Non-GAAP general and administrative	3,733			2,964			13,156			11,523
GAAP other income	(6,900	)		-			(6,900	)		-
Court verdict	(6,900	)		-			(6,900	)		-
Non-GAAP other income	-			-			-			-
GAAP total operating expenses	41,603			44,605			178,424			173,639
Stock-based compensation	3,157			3,169			12,790			11,340
Acquisition costs	204			-			544			-
Amortization of intangible assets	24			26			94			105
Litigation costs	76			784			2,052			4,270
Court verdict	(6,900	)		-			(6,900	)		-
Non-GAAP total operating expenses	45,042			40,626			169,844			157,924
GAAP operating income (loss)	5,791			(2,489	)		(6,671	)		(12,749	)
Stock-based compensation	3,217			3,221			13,031			11,520
Acquisition costs	754			-			1,094			-
Amortization of intangible assets	110			280			1,231			1,119
Litigation costs	76			784			2,052			4,270
Court verdict	(6,900	)		-			(6,900	)		-
Non-GAAP operating income	3,048			1,796			3,837			4,160
GAAP finance income	935			863			4,830			5,741
Exchange rate differences, net on balance sheet items included in financial income	558			341			635			674
Non-GAAP finance income	1,493			1,204			5,465			6,415
GAAP income (loss) before taxes on income	6,726			(1,626	)		(1,841	)		(7,008	)
Stock-based compensation	3,217			3,221			13,031			11,520
Acquisition costs	754			-			1,094			-
Amortization of intangible assets	110			280			1,231			1,119
Litigation costs	76			784			2,052			4,270
Court verdict	(6,900	)		-			(6,900	)		-
Exchange rate differences, net on balance sheet items included in financial income	558			341			635			674
Non-GAAP income before taxes on income	4,541			3,000			9,302			10,575
GAAP taxes on income	(4,605	)		(507	)		(5,652	)		(1,651	)
Change in the federal rate	3,249			-			3,249			-
Court verdict	724			-			724			-
Non-GAAP taxes on income	(632	)		(507	)		(1,679	)		(1,651	)
GAAP net income (loss)	2,121			(2,133	)		(7,493	)		(8,659	)
Stock-based compensation	3,217			3,221			13,031			11,520
Acquisition costs	754			-			1,094			-
Amortization of intangible assets	110			280			1,231			1,119
Litigation costs	76			784			2,052			4,270
Exchange rate differences, net on balance sheet items included in financial income	558			341			635			674
Change in the federal rate	3,249			-			3,249			-
Court verdict	(6,176	)		-			(6,176	)		-
Non-GAAP net income	3,909			2,493			7,623			8,924
GAAP Net earnings (loss) per diluted share	0.05			(0.05	)		(0.17	)		(0.20	)
Stock-based compensation	0.07			0.07			0.30			0.26
Acquisition costs	0.02			-			0.02			-
Amortization of intangible assets	-			0.01			0.03			0.03
Litigation costs	-			0.02			0.05			0.10
Exchange rate differences, net on balance sheet items included in financial income	0.01			0.01			0.01			0.01
Change in the federal rate	0.08			-			0.07			-
Court verdict	(0.14	)		-			(0.14	)		-
Non GAAP Net earnings per diluted share	0.09			0.06			0.17			0.20
Weighted average number of shares used to compute non-GAAP diluted net earnings per share	45,728,792			43,721,973			44,756,732			44,125,436

Radware Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)
		For the three months ended						For the year ended
		December 31,						December 31,
		2017			2016			2017			2016
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cash flow from operating activities:
Net income (loss)		2,121			(2,133	)		(7,493	)		(8,659	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		2,567			2,663			11,234			10,372
Stock based compensation		3,217			3,221			13,031			11,520
Loss (gain) from sale of available-for-sale marketable securities		(18	)		6			(18	)		(1,771	)
Amortization of premium, accretion of discounts and accrued interest on available-for- sale marketable securities, net		465			672			1,546			1,949
Accrued interest on bank deposits		(586	)		1,633			226			1,179
Increase (decrease) in accrued severance pay, net		(430	)		111			(210	)		401
Decrease (increase) in trade receivables, net		(3,836	)		1,939			3,390			7,003
Increase in other current assets, prepaid expenses and deferred income taxes, net		(8,258	)		(1,542	)		(7,879	)		(1,804	)
Increase in inventories		(48	)		(302	)		(1,658	)		(792	)
Increase (decrease) in trade payables		817			920			(734	)		(3,284	)
Increase in deferred revenues		11,119			11,143			28,781			12,964
Increase (decrease) in other payables and accrued expenses		826			4,344			(8,753	)		8,855
Excess tax benefit from stock-based compensation		-			473			-			547
Net cash provided by operating activities		7,956			23,148			31,463			38,480
Cash flows from investing activities:
Purchase of property and equipment		(1,613	)		(1,333	)		(7,210	)		(9,404	)
Investment in other long-term assets, net		(18	)		(53	)		(6	)		(53	)
Proceeds from (investment in) bank deposits, net		-			29,586			(37,200	)		31,295
Proceeds from (investment in) sale, redemption of and purchase of available-for-sale marketable securities ,net		(2,119	)		(1,079	)		(3,657	)		6,521
Payment for acquisition of subsidiary, net of cash acquired		-			-			(8,269	)		-
Net cash provided (used in) in investing activities		(3,750	)		27,121			(56,342	)		28,359
Cash flows from financing activities:
Proceeds from exercise of stock options		7,501			1,253			10,890			1,583
Excess tax benefit from stock-based compensation		-			(473	)		-			(547	)
Repurchase of shares		-			(10,268	)		(413	)		(21,980	)
Net cash provided by (used in) financing activities		7,501			(9,488	)		10,477			(20,944	)
Increase (decrease) in cash and cash equivalents		11,707			40,781			(14,402	)		45,895
Cash and cash equivalents at the beginning of the period		53,530			38,858			79,639			33,744
Cash and cash equivalents at the end of the period		65,237			79,639			65,237			79,639

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.