"I am pleased that there were no weak points in the current quarter," Radware Ltd. (Nasdaq: RDWR) CFO Meir Moshe told "Globes" in response to the company's financial report for the second quarter, which showed that its business momentum was continuing.
The integrated smart networking solutions developer posted $35.2 million revenue for the second quarter, 30% more than the $27.1 million for the corresponding quarter of 2009, and 6% more than for the preceding quarter.
GAAP-based net profit was $1.4 million ($0.07 per share) for the second quarter, compared with a net loss of $1.7 million for the corresponding quarter. Non-GAAP net profit rose nearly eight-fold to $4.3 million ($0.21 per share) from $557,000 for the corresponding quarter.
In February 2009, Radware acquired Nortel Networks unit Alteaon for $17 million. The current results are therefore the first to reflect full-year in-house growth, including Altheon.
Moshe said, "We added almost 200 new customers during the quarter. 80% of our revenue now comes from current customers, and 20% from new customers with whom we will grow in the future. For example, our first order from Ebay in 2006 totaled $60,000, and we've sold them $10 million of system to date. France Telecom also has more than 1,000 units of our products, when their initial order was for just one unit."
42% of Radware's second quarter revenue came from Asia, 30% from the US, and 28% from Europe. The company's cash flow from operations was $10.4 million for the second quarter, similar to the preceding quarter, and its cash and cash equivalents totaled $149.2 million at the end of June, up $35 million from a year earlier.
Moshe added, "I expect that this trend will continue in the second half of the year, and that our cash position will increase by $20 million."
In its guidance, Radware predicts non-GAAP earnings per share of $0.25 on $36.5 million revenue for the third quarter. Moshe said, "We're not lowering prices to meet revenue targets. We expect that each of the next two quarters will be better than the current quarter."
Radware's share price rose 0.5% in premarket trading today to $23.50, giving a market cap of NIS 446 million. The share price has risen 55% since the beginning of the year.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2010
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