OREANDA-NEWS. Radware® (NASDAQ:RDWR), a leading provider of cyber security and application delivery solutions ensuring optimal service level for applications in virtual, cloud and software defined data centers, today announced its consolidated financial results for the second quarter ended June 30, 2016.

“Despite challenging market conditions this year, we have made solid progress this past quarter with our subscription booking and revenues,” said Roy Zisapel, Radware President & CEO.  “We are starting to bear the fruit of our technological investments with the launch of our new Cloud WAF, the expansions of our DDoS Scrubbing services and our technological achievements in ADC with NFV.  Their availability in the market should help allow us to resume revenues growth in the second half of 2016.”

Financial Highlights for the second quarter of 2016

Revenues for the second quarter of 2016 totaled $49.6 million, representing a decrease of 11% compared with revenues of $56.0 million for the second quarter of 2015, and an increase of 2% compared with revenues of $48.4 million for the first quarter of 2016.

Net loss on a GAAP basis for the second quarter of 2016 was $1.3 million or ($0.03) per share, compared with net income of $7.2 million or $0.15 per diluted share for the second quarter of 2015 and compared with net loss of $2.8 million or ($0.06) per diluted share for the first quarter of 2016.

Excluding the impact of the patent litigation expense, stock-based compensation, exchange rate differences, net on balance sheet items and amortization of intangible assets, non-GAAP net income was $2.6 million or $0.06 per diluted share, compared with non-GAAP net income of $10.8 million or $0.23 per diluted share for the second quarter of 2015 and compared with non-GAAP net income of $2.3 million or $0.05 per diluted share for the first quarter of 2016.

As of June 30, 2016 the Company had cash, cash equivalents, short-term and long-term bank deposits and marketable securities of $314.8 million.

Cash generated from operations in the second quarter of 2016 totaled $7.8 million.

During the second quarter we repurchased our shares in a total amount of $4.9 million.

A reconciliation of each of the company’s non-GAAP measures to the comparable GAAP me

About Radware

Radware® (NASDAQ:RDWR), is a global leader of application delivery and cyber security solutions for virtual, cloud and software defined data centers. Its award-winning solutions portfolio delivers service level assurance for business-critical applications, while maximizing IT efficiency. Radware’s solutions empower more than 10,000 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

Radware encourages you to join our community and follow us on: Facebook, Google+, LinkedIn, Radware Blog, SlideShare, Twitter, YouTube, Radware Connect app for iPhone® and our security center DDoSWarriors.com that provides a comprehensive analysis on DDoS attack tools, trends and threats.
©2016 Radware Ltd. All rights reserved. Radware and all other Radware product and service names are registered trademarks or trademarks of Radware in the U.S. and other countries. All other trademarks and names are property of their respective owners.

   
 Radware Ltd.
 Condensed Consolidated Balance Sheets
 (U.S. Dollars in thousands)
   
    June 30,
 2016		   December 31,
 2015
    (Unaudited)    
Assets        
         
Current assets        
Cash and cash equivalents     21,928       33,744  
Available-for-sale marketable securities     16,341       16,003  
Short-term bank deposits     183,465       80,922  
Trade receivables, net     26,057       26,410  
Other receivables and prepaid expenses     4,382       5,042  
Inventories     16,181       16,322  
      268,354       178,443  
Long-term investments        
Available-for-sale marketable securities     83,904       87,814  
Long-term bank deposits     9,143       96,643  
Severance pay funds     2,699       2,724  
      95,746       187,181  
         
Property and equipment, net     27,177       26,203  
Intangible assets, net     2,959       3,518  
Other assets     6,677       5,473  
Goodwill     30,069       30,069  
         
Total assets     430,982       430,887  
         
Liabilities and shareholders’ equity        
         
Current liabilities        
Trade payables     6,087       9,255  
Deferred revenues     52,530       46,061  
Other payables and accrued expenses     22,547       22,098  
      81,164       77,414  
Long-term liabilities        
Deferred revenues     27,261       25,136  
Other long-term liabilities     14,088       9,214  
      41,349       34,350  
         
Shareholders’ equity        
Share capital     661       661  
Additional paid-in capital     318,331       312,784  
Accumulated other comprehensive income, net of tax     847       1,257  
Treasury stock, at cost     (105,761 )     (94,049 )
Retained earnings     94,391       98,470  
Total shareholders’ equity     308,469       319,123  
         
Total liabilities and shareholders' equity     430,982       430,887  
Radware Ltd.
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except share and per share data)
 
  For the Three months ended
June 30,
   For the Six months ended
 June 30,
   2016      2015      2016      2015  
  (Unaudited)     (Unaudited)       (Unaudited)       (Unaudited)  
         
Revenues   49,585       56,027       98,010       113,251  
Cost of revenues   8,887       9,684       17,541       19,784  
Gross profit   40,698       46,343       80,469       93,467  
Operating expenses:        
Research and development, net   13,001       12,239       26,425       24,190  
Selling and marketing   25,865       22,082       50,777       45,662  
General and administrative   3,893       4,400       9,662       8,497  
Total operating expenses   42,759       38,721       86,864       78,349  
Operating income (loss)   (2,061 )     7,622       (6,395 )     15,118  
Financial income, net   1,232       1,450       3,172       2,100  
Income (loss) before taxes on income   (829 )     9,072       (3,223 )     17,218  
Taxes on income   498       1,886       856       3,573  
Net income (loss)   (1,327 )     7,186       (4,079 )     13,645  
                               
Basic net earnings (loss) per share $ (0.03 )   $ 0.16     $ (0.09 )   $ 0.29  
                               
Weighted average number of shares used to compute basic net earnings (loss) per share   43,944,924       46,304,373       44,206,677       46,350,151  
         
Diluted net earnings (loss) per share $ (0.03 )   $ 0.15     $ (0.09 )   $ 0.29  
                               
Weighted average number of shares used to compute diluted net earnings (loss) per share   43,944,924       47,659,321       44,206,677       47,552,869  
                               
Radware Ltd.
Non-GAAP Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)
 
  For the Three months ended
 June 30,		   For the Six months ended
June 30,
  
  2016   2015   2016   2015
  (Unaudited)   (Unaudited)
   (Unaudited)
   (Unaudited)
         
GAAP net Income (loss)   (1,327 )     7,186       (4,079 )     13,645  
         
Stock-based compensation expenses, included in:        
Cost of revenues   39       35       81       69  
Research and development, net   667       644       1,450       1,262  
Selling and marketing   1,394       1,017       2,662       1,906  
General and administrative   644       716       1,428       1,392  
    2,744       2,412       5,621       4,629  
Amortization of intangible assets included in:        
Cost of revenues   254       294       507       607  
Selling and marketing   26       28       52       66  
    280       322       559       673  
                               
Exchange rate differences, net on balance sheet items included in financial income   460       (107 )     157       525  
                               
Litigation costs   433       959       2,597       1,771  
                               
Non-GAAP net income   2,590       10,772       4,855       21,243  
         
Non-GAAP diluted net earnings per share $ 0.06     $ 0.23     $ 0.11     $ 0.45  
                               
Weighted average number of shares used to compute Non-GAAP diluted net earnings per share    44,101,539       47,659,321       44,354,630       47,552,869  
                               
         
Radware Ltd.
Condensed Consolidated Statements of Cash Flows
(U.S. Dollars in thousands)
         
    For the Three months ended
on June 30,		   For the Six months ended
on June 30,
      2016       2015       2016       2015  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Cash flows from operating activities:                
                                 
Net income (loss)     (1,327 )     7,186       (4,079 )     13,645  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
Depreciation and amortization     2,561       2,348       5,095       4,553  
Stock based compensation     2,744       2,412       5,621       4,629  
Gain from sale of available-for-sale marketable securities     (549 )     (229 )     (1,126 )     (423 )
Amortization of premiums, accretion of discounts and accrued interest on available-for-sale marketable securities, net     514       486       892       1,921  
Accrued interest on bank deposits     6       (490 )     (655 )     (831 )
Increase (decrease) in accrued severance pay, net     19       (6 )     341       41  
Decrease in trade receivables, net     1,848       2,188       353       1,879  
Increase in other current assets and prepaid expenses and deferred income taxes, net     (106 )     (709 )     (410 )     (829 )
Decrease (increase) in inventories     395       (60 )     141       531  
Increase (decrease) in trade payables     1,010       207       (3,168 )     (2,503 )
Increase (decrease) in deferred revenues     (73 )     (2,448 )     8,594       2,947  
Increase in other payables and accrued expenses and other long-term liabilities     679       3,760       4,931       1,087  
Excess tax benefit from stock-based compensation     74       (230 )     74       (460 )
                 
Net cash provided by operating activities     7,795       14,415       16,604       26,187  
                 
Cash flows from investing activities:                
                 
Purchase of property and equipment     (2,881 )     (4,247 )     (5,510 )     (7,200 )
Proceeds from (investment in) other long-term assets     (16 )     -       3       (51 )
Investment in bank deposits, net     (9,952 )     (17,652 )     (14,388 )     (40,845 )
Proceeds from (investment in) available-for-sale marketable securities     155       (869 )     3,261       16,518  
                 
Net cash used in investing activities     (12,694 )     (22,768 )     (16,634 )     (31,578 )
                 
         
Radware Ltd.
Condensed Consolidated Statements of Cash Flows
(U.S. Dollars in thousands)
         
    For the Three months
ended on June 30,		   For the Six months
ended on June 30,
      2016       2015       2016       2015  
     (Unaudited)   (Unaudited)    (Unaudited)   (Unaudited)
                 
Cash flows from financing activities:                
                 
Proceeds from exercise of stock options     -       5,493       -       7,703  
Excess tax benefit from stock-based compensation     (74 )     230       (74 )     460  
Repurchase of shares     (4,932 )     -       (11,712 )     (19,727 )
                 
Net cash provided by (used in) financing activities     (5,006 )     5,723       (11,786 )     (11,564 )
                 
Decrease in cash and cash equivalents     (9,905 )     (2,630 )     (11,816 )     (16,955 )
Cash and cash equivalents at the beginning of the period     31,833       30,654       33,744       44,979  
                 
Cash and cash equivalents at the end of the period     21,928       28,024       21,928       28,024