Radware® (NASDAQ: RDWR), a leading provider of cyber security and
application delivery solutions, today announced its consolidated
financial results for the second quarter ended June 30, 2023.
“During the second quarter of 2023, we continued to execute on
our cloud security strategy, accelerating our cloud ARR growth 23%
year-over-year,” said Roy Zisapel, Radware’s president and CEO. “At
the same time, we encountered headwinds in on-premise appliance
sales. As the macroeconomic environment evolves, we will continue
to align our investments with our key priorities, which include
driving cloud security growth, enhancing our go-to-market
partnerships, and expanding into the mid-sized enterprise
market.”
Financial Highlights for the Second Quarter
2023Revenue for the second quarter of 2023 totaled $65.6
million:
- Revenue in the Americas region was $26.8 million for the second
quarter of 2023, a decrease of 10% from $29.7 million in the second
quarter of 2022.
- Revenue in the Europe, Middle East, and Africa (“EMEA”) region
was $22.6 million for the second quarter of 2023, a decrease of 24%
from $29.7 million in the second quarter of 2022.
- Revenue in the Asia-Pacific (“APAC”) region was $16.2 million
for the second quarter of 2023, an increase of 3% from $15.7
million in the second quarter of 2022.
GAAP net loss for the second quarter of 2023 was $5.8 million,
or $(0.13) per diluted share, compared to GAAP net income of $3.2
million, or $0.07 per diluted share, for the second quarter of
2022.
Non-GAAP net income for the second quarter of
2023 was $4.5 million, or $0.10 per diluted share, compared to
non-GAAP net income of $8.1 million, or $0.18 per diluted share,
for the second quarter of 2022.
As of June 30, 2023, the Company had cash, cash
equivalents, short-term bank deposits, and marketable securities of
$402.0 million. Net cash provided by operating activities was $4.9
million in the second quarter of 2023.
Non-GAAP results are calculated excluding, as
applicable, the impact of stock-based compensation expenses,
amortization of intangible assets, litigation costs, acquisition
costs, exchange rate differences, net on balance sheet items
included in financial income, net, and tax-related adjustments. A
reconciliation of each of the Company’s non-GAAP measures to the
most directly comparable GAAP measure is included at the end of
this press release.
Conference CallRadware
management will host a call today, August 2, 2023, at 8:30 a.m. EDT
to discuss its second quarter 2023 results and the Company’s third
quarter 2023 outlook. To participate on the call, please use the
following numbers:U.S. participants call toll free:
888-510-2008 International participants call: 1
646-960-0306Conference ID: 1864701
A replay will be available for two days, starting two hours
after the end of the call, on telephone number +1-647-362-9199 or
(US toll-free) 800-770-2030. Passcode 1864701.
The call will be webcast live on 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
and Key Performance IndicatorsIn addition to reporting
financial results in accordance with generally accepted accounting
principles (GAAP), Radware uses non-GAAP measures of gross profit,
research and development expense, selling and marketing expense,
general and administrative expense, total operating expenses,
operating income, financial income, net, income before taxes on
income, taxes on income, net income and diluted earnings per share,
which are adjustments from results based on GAAP to exclude, as
applicable, stock-based compensation expenses, amortization of
intangible assets, litigation costs, acquisition costs, exchange
rate differences, net on balance sheet items included in financial
income, net, and tax-related adjustments. Management believes that
exclusion of these charges allows for meaningful comparisons of
operating results across past, present, and future periods.
Radware’s management believes the non-GAAP financial measures
provided in this release are useful to investors for the purpose of
understanding and assessing Radware’s ongoing operations. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for results
prepared in accordance with GAAP. A reconciliation of each non-GAAP
financial measure to the most directly comparable GAAP financial
measure is included with the financial information contained in
this press release. Management uses both GAAP and non-GAAP
financial measures in evaluating and operating the business and, as
such, has determined that it is important to provide this
information to investors.
Annual recurring revenue ("ARR") is a key
performance indicator defined as the annualized value of booked
orders for term-based cloud services, subscription licenses, and
maintenance contracts that are in effect at the end of a reporting
period. ARR should be viewed independently of revenue and deferred
revenue and is not intended to be combined with or to replace
either of those items. ARR is not a forecast of future revenue,
which can be impacted by contract start and end dates and renewal
rates and does not include revenue reported as perpetual license or
professional services revenue in our consolidated statement of
operations. We consider ARR a key performance indicator of the
value of the recurring components of our business.
Safe Harbor Statement
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Any statements made herein that are not statements of
historical fact, including statements about Radware’s plans,
outlook, beliefs, or opinions, are forward-looking statements.
Generally, forward-looking statements may be identified by words
such as “believes,” “expects,” “anticipates,” “intends,”
“estimates,” “plans,” and similar expressions or future or
conditional verbs such as “will,” “should,” “would,” “may,” and
“could.” 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; natural disasters
and public health crises, such as the coronavirus disease 2019
(COVID-19) pandemic; a shortage of components or manufacturing
capacity could cause a delay in our ability to fulfill orders or
increase our manufacturing costs; our business may be affected by
sanctions, export controls and similar measures targeting Russia
and other countries and territories as well as other responses to
Russia’s military conflict in Ukraine, including indefinite
suspension of operations in Russia and dealings with Russian
entities by many multi-national businesses across a variety of
industries; our ability to successfully implement our strategic
initiative to accelerate our cloud business; our ability to expand
our operations effectively; timely availability and customer
acceptance of our new and existing solutions; risks and
uncertainties relating to acquisitions or other investments; 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; intense competition
in the market for cyber security and application delivery solutions
and in our industry in general, and changes in the competitive
landscape; changes in government regulation; outages,
interruptions, or delays in hosting services or our internal
network system; compliance with open source and third-party
licenses; the risk that our intangible assets or goodwill may
become impaired; our dependence on independent distributors to sell
our products; long sales cycles for our solutions; changes in
foreign currency exchange rates; undetected defects or errors in
our products or a failure of our products to protect against
malicious attacks; the ability of vendors to provide our hardware
platforms and components for our main accessories; our ability to
protect our proprietary technology; intellectual property
infringement claims made by third parties; changes in tax laws; our
ability to realize our investment objectives for our cash and
liquid investments; our ability to attract, train, and retain
highly qualified personnel; and other factors and risks over 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, refer to Radware’s Annual Report
on Form 20-F, filed 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 RadwareRadware® (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 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 the Radware website.
Radware encourages you to join our community and follow us on:
Facebook, LinkedIn, Radware Blog, Twitter, YouTube, and
Radware Mobile for iOS and Android.
©2023 Radware Ltd. All rights reserved. Any 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.
Radware believes the information in this document is accurate in
all material respects as of its publication date. However, the
information is provided without any express, statutory, or implied
warranties and is subject to change without notice.
The contents of any website or hyperlinks mentioned in this
press release are for informational purposes and the contents
thereof are not part of this press release.
CONTACTSInvestor
Relations:Yisca Erez, +972-72-3917211, ir@radware.com
Media Contact:Gerri Dyrek,
gerri.dyrek@radware.com
Radware Ltd. |
Condensed Consolidated Balance Sheets |
(U.S. Dollars in thousands) |
|
|
|
|
|
June 30, |
|
December 31, |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Unaudited) |
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
42,644 |
|
|
46,185 |
|
Available-for-sale marketable
securities |
77,222 |
|
|
44,180 |
|
Short-term bank deposits |
222,769 |
|
|
207,679 |
|
Trade receivables, net |
16,820 |
|
|
17,752 |
|
Other receivables and prepaid
expenses |
9,815 |
|
|
7,196 |
|
Inventories |
12,323 |
|
|
11,428 |
|
|
381,593 |
|
|
334,420 |
|
|
|
|
|
Long-term
investments |
|
|
|
Available-for-sale marketable
securities |
59,375 |
|
|
90,148 |
|
Long-term bank deposits |
0 |
|
|
43,765 |
|
Severance pay funds |
2,092 |
|
|
2,146 |
|
|
61,467 |
|
|
136,059 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
20,224 |
|
|
21,068 |
|
Intangible assets, net |
17,702 |
|
|
19,686 |
|
Other long-term assets |
41,168 |
|
|
41,269 |
|
Operating lease right-of-use
assets |
20,776 |
|
|
23,078 |
|
Goodwill |
68,008 |
|
|
68,008 |
|
Total assets |
610,938 |
|
|
643,588 |
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
Trade payables |
7,847 |
|
|
6,464 |
|
Deferred revenues |
111,309 |
|
|
108,243 |
|
Operating lease
liabilities |
4,633 |
|
|
4,685 |
|
Other payables and accrued
expenses |
36,391 |
|
|
44,643 |
|
|
160,180 |
|
|
164,035 |
|
|
|
|
|
Long-term
liabilities |
|
|
|
Deferred revenues |
70,369 |
|
|
72,219 |
|
Operating lease
liabilities |
17,210 |
|
|
19,461 |
|
Other long-term
liabilities |
18,809 |
|
|
19,430 |
|
|
106,388 |
|
|
111,110 |
|
|
|
|
|
Shareholders'
equity |
|
|
|
Share capital |
733 |
|
|
732 |
|
Additional paid-in
capital |
514,743 |
|
|
498,168 |
|
Accumulated other
comprehensive loss, net of tax |
(4,680) |
|
|
(4,844) |
|
Treasury stock, at cost |
(336,953) |
|
|
(303,299) |
|
Retained earnings |
132,513 |
|
|
141,402 |
|
Total Radware Ltd.
shareholder's equity |
306,356 |
|
|
332,159 |
|
|
|
|
|
Non–controlling interest |
38,014 |
|
|
36,284 |
|
|
|
|
|
Total shareholders' equity |
344,370 |
|
|
368,443 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
610,938 |
|
|
643,588 |
|
|
|
|
|
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 six months ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
|
65,607 |
|
|
75,114 |
|
134,648 |
|
|
148,822 |
Cost of revenues |
|
12,742 |
|
|
13,888 |
|
26,048 |
|
|
26,829 |
Gross profit |
|
52,865 |
|
|
61,226 |
|
108,600 |
|
|
121,993 |
|
|
|
|
|
|
|
|
|
Operating expenses, net: |
|
|
|
|
|
|
|
|
Research and development,
net |
|
21,141 |
|
|
21,623 |
|
42,291 |
|
|
41,993 |
Selling and marketing |
|
31,917 |
|
|
32,290 |
|
63,836 |
|
|
62,573 |
General and
administrative |
|
8,307 |
|
|
5,737 |
|
16,554 |
|
|
12,264 |
Total operating expenses,
net |
|
61,365 |
|
|
59,650 |
|
122,681 |
|
|
116,830 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(8,500) |
|
|
1,576 |
|
(14,081) |
|
|
5,163 |
Financial income, net |
|
3,419 |
|
|
2,986 |
|
6,910 |
|
|
4,684 |
Income (loss) before taxes on
income |
|
(5,081) |
|
|
4,562 |
|
(7,171) |
|
|
9,847 |
Taxes on income |
|
727 |
|
|
1,410 |
|
1,718 |
|
|
2,925 |
Net income (loss) |
|
(5,808) |
|
|
3,152 |
|
(8,889) |
|
|
6,922 |
|
|
|
|
|
|
|
|
|
Basic net earnings (loss) per
share |
|
(0.13) |
|
|
0.07 |
|
(0.20) |
|
|
0.15 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used to compute basic net
earnings (loss) per share |
|
43,400,635 |
|
|
44,914,427 |
|
43,725,443 |
|
|
45,288,463 |
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss)
per share |
|
(0.13) |
|
|
0.07 |
|
(0.20) |
|
|
0.15 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used to compute diluted net
earnings (loss) per share |
|
43,400,635 |
|
|
45,835,440 |
|
43,725,443 |
|
|
46,476,687 |
|
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 six months ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
GAAP gross
profit |
52,865 |
|
|
61,226 |
|
|
108,600 |
|
|
121,993 |
|
|
Share-based compensation |
113 |
|
|
94 |
|
|
226 |
|
|
184 |
|
|
Amortization of intangible assets |
992 |
|
|
1,256 |
|
|
1,984 |
|
|
1,720 |
|
Non-GAAP gross
profit |
53,970 |
|
|
62,576 |
|
|
110,810 |
|
|
123,897 |
|
|
|
|
|
|
|
|
|
|
GAAP research
and development, net |
21,141 |
|
|
21,623 |
|
|
42,291 |
|
|
41,993 |
|
|
Share-based compensation |
2,177 |
|
|
1,635 |
|
|
4,136 |
|
|
3,444 |
|
Non-GAAP
Research and development, net |
18,964 |
|
|
19,988 |
|
|
38,155 |
|
|
38,549 |
|
|
|
|
|
|
|
|
|
|
GAAP selling
and marketing |
31,917 |
|
|
32,290 |
|
|
63,836 |
|
|
62,573 |
|
|
Share-based compensation |
3,537 |
|
|
3,043 |
|
|
6,931 |
|
|
4,892 |
|
Non-GAAP
selling and marketing |
28,380 |
|
|
29,247 |
|
|
56,905 |
|
|
57,681 |
|
|
|
|
|
|
|
|
|
|
GAAP general
and administrative |
8,307 |
|
|
5,737 |
|
|
16,554 |
|
|
12,264 |
|
|
Share-based compensation |
3,068 |
|
|
876 |
|
|
6,599 |
|
|
1,544 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
Non-GAAP
general and administrative |
4,694 |
|
|
4,861 |
|
|
9,397 |
|
|
9,578 |
|
|
|
|
|
|
|
|
|
|
GAAP total
operating expenses, net |
61,365 |
|
|
59,650 |
|
|
122,681 |
|
|
116,830 |
|
|
Share-based compensation |
8,782 |
|
|
5,554 |
|
|
17,666 |
|
|
9,880 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
Non-GAAP total
operating expenses, net |
52,038 |
|
|
54,096 |
|
|
104,457 |
|
|
105,808 |
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) |
(8,500) |
|
|
1,576 |
|
|
(14,081) |
|
|
5,163 |
|
|
Share-based compensation |
8,895 |
|
|
5,648 |
|
|
17,892 |
|
|
10,064 |
|
|
Amortization of intangible assets |
992 |
|
|
1,256 |
|
|
1,984 |
|
|
1,720 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
Non-GAAP
operating income |
1,932 |
|
|
8,480 |
|
|
6,353 |
|
|
18,089 |
|
|
|
|
|
|
|
|
|
|
GAAP financial
income, net |
3,419 |
|
|
2,986 |
|
|
6,910 |
|
|
4,684 |
|
|
Exchange rate differences, net on balance sheet items included in
financial income, net |
(32) |
|
|
(1,920) |
|
|
(807) |
|
|
(2,814) |
|
Non-GAAP
financial income, net |
3,387 |
|
|
1,066 |
|
|
6,103 |
|
|
1,870 |
|
|
|
|
|
|
|
|
|
|
GAAP income
before taxes on income (loss) |
(5,081) |
|
|
4,562 |
|
|
(7,171) |
|
|
9,847 |
|
|
Share-based compensation |
8,895 |
|
|
5,648 |
|
|
17,892 |
|
|
10,064 |
|
|
Amortization of intangible assets |
992 |
|
|
1,256 |
|
|
1,984 |
|
|
1,720 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
|
Exchange rate differences, net on balance sheet items included in
financial income, net |
(32) |
|
|
(1,920) |
|
|
(807) |
|
|
(2,814) |
|
Non-GAAP income
before taxes on income |
5,319 |
|
|
9,546 |
|
|
12,456 |
|
|
19,959 |
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income |
727 |
|
|
1,410 |
|
|
1,718 |
|
|
2,925 |
|
|
Tax
related adjustments |
61 |
|
|
61 |
|
|
123 |
|
|
123 |
|
Non-GAAP taxes
on income |
788 |
|
|
1,471 |
|
|
1,841 |
|
|
3,048 |
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) |
(5,808) |
|
|
3,152 |
|
|
(8,889) |
|
|
6,922 |
|
|
Share-based compensation |
8,895 |
|
|
5,648 |
|
|
17,892 |
|
|
10,064 |
|
|
Amortization of intangible assets |
992 |
|
|
1,256 |
|
|
1,984 |
|
|
1,720 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
|
Exchange rate differences, net on balance sheet items included in
financial income, net |
(32) |
|
|
(1,920) |
|
|
(807) |
|
|
(2,814) |
|
|
Tax
related adjustments |
(61) |
|
|
(61) |
|
|
(123) |
|
|
(123) |
|
Non-GAAP net
income |
4,531 |
|
|
8,075 |
|
|
10,615 |
|
|
16,911 |
|
|
|
|
|
|
|
|
|
|
GAAP diluted
net earnings (loss) per share |
(0.13) |
|
|
0.07 |
|
|
(0.20) |
|
|
0.15 |
|
|
Share-based compensation |
0.20 |
|
|
0.12 |
|
|
0.40 |
|
|
0.22 |
|
|
Amortization of intangible assets |
0.02 |
|
|
0.03 |
|
|
0.05 |
|
|
0.04 |
|
|
Litigation costs |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
Acquisition costs |
0.01 |
|
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
|
Exchange rate differences, net on balance sheet items included in
financial income, net |
(0.00) |
|
|
(0.04) |
|
|
(0.02) |
|
|
(0.06) |
|
|
Tax
related adjustments |
(0.00) |
|
|
(0.00) |
|
|
(0.00) |
|
|
(0.00) |
|
Non-GAAP
diluted net earnings per share |
0.10 |
|
|
0.18 |
|
|
0.24 |
|
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used to compute non-GAAP diluted net
earnings per share |
44,268,786 |
|
|
45,835,440 |
|
|
44,513,899 |
|
|
46,476,687 |
|
Radware Ltd. |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flow |
|
|
|
|
|
|
|
|
(U.S. Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Cash
flow from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
(5,808) |
|
|
3,152 |
|
|
(8,889) |
|
|
6,922 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
3,113 |
|
|
3,229 |
|
|
6,191 |
|
|
5,717 |
|
Share-based compensation |
|
8,895 |
|
|
5,648 |
|
|
17,892 |
|
|
10,064 |
|
Amortization of premium, accretion of discounts and accrued
interest on marketable securities, net |
|
718 |
|
|
798 |
|
|
955 |
|
|
1,386 |
|
Loss
(gain) related to securities, net |
|
(1) |
|
|
(1) |
|
|
244 |
|
|
(60) |
|
Increase (decrease) in accrued interest on bank deposits |
|
229 |
|
|
39 |
|
|
(1,525) |
|
|
72 |
|
Increase (decrease) in accrued severance pay, net |
|
(36) |
|
|
(53) |
|
|
(105) |
|
|
94 |
|
Increase in trade receivables, net |
|
1,937 |
|
|
7,203 |
|
|
932 |
|
|
1,349 |
|
Increase (decrease) in other receivables and prepaid expenses and
other long-term assets |
|
532 |
|
|
(509) |
|
|
(2,326) |
|
|
(4,325) |
|
Decrease (increase) in inventories |
|
(1,044) |
|
|
(148) |
|
|
(895) |
|
|
177 |
|
Increase (decrease) in trade payables |
|
3,020 |
|
|
(713) |
|
|
1,383 |
|
|
3,130 |
|
Increase in deferred revenues |
|
470 |
|
|
18,064 |
|
|
1,216 |
|
|
20,500 |
|
Decrease in other payables and accrued expenses |
|
(6,944) |
|
|
(3,850) |
|
|
(11,442) |
|
|
(22,182) |
|
Decrease in operating lease liabilities, net |
|
(215) |
|
|
(1,335) |
|
|
(1) |
|
|
(1,772) |
|
Net
cash provided by operating activities |
|
4,866 |
|
|
31,524 |
|
|
3,630 |
|
|
21,072 |
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(1,595) |
|
|
(2,333) |
|
|
(3,363) |
|
|
(4,497) |
|
Proceeds from other long-term assets, net |
|
1 |
|
|
92 |
|
|
48 |
|
|
37 |
|
Proceeds from (investment in) bank deposits, net |
|
21,000 |
|
|
(42,550) |
|
|
30,200 |
|
|
(20,201) |
|
Proceeds from sale, redemption of and purchase of marketable
securities, net |
|
(3,857) |
|
|
(9,196) |
|
|
(1,881) |
|
|
(4,640) |
|
Payment for the business acquisition of SecurityDAM Ltd. |
|
0 |
|
|
0 |
|
|
0 |
|
|
(30,000) |
|
Net
cash provided (used in) investing activities |
|
15,549 |
|
|
(53,987) |
|
|
25,004 |
|
|
(59,301) |
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
88 |
|
|
239 |
|
|
308 |
|
|
801 |
|
Repurchase of shares |
|
(19,741) |
|
|
(18,060) |
|
|
(32,483) |
|
|
(40,886) |
|
Proceeds from issuance of Preferred A shares in subsidiary |
|
|
|
35,000 |
|
|
|
|
35,000 |
|
Net
cash provided by (used in) financing activities |
|
(19,653) |
|
|
17,179 |
|
|
(32,175) |
|
|
(5,085) |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
762 |
|
|
(5,284) |
|
|
(3,541) |
|
|
(43,314) |
|
Cash
and cash equivalents at the beginning of the period |
|
41,882 |
|
|
54,483 |
|
|
46,185 |
|
|
92,513 |
|
Cash
and cash equivalents at the end of the period |
|
42,644 |
|
|
49,199 |
|
|
42,644 |
|
|
49,199 |
|
|
|
|
|
|
|
|
|
|
|
Radware Ltd. |
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND
ADJUSTED EBITDA (NON-GAAP) |
|
|
|
|
(U.S Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
GAAP
net income (loss) |
(5,808) |
|
|
3,152 |
|
|
(8,889) |
|
|
6,922 |
|
|
Exclude: Financial income, net |
(3,419) |
|
|
(2,986) |
|
|
(6,910) |
|
|
(4,684) |
|
|
Exclude: Depreciation and amortization expense |
3,113 |
|
|
3,229 |
|
|
6,191 |
|
|
5,717 |
|
|
Exclude: Taxes on income |
727 |
|
|
1,410 |
|
|
1,718 |
|
|
2,925 |
|
EBITDA |
(5,387) |
|
|
4,805 |
|
|
(7,890) |
|
|
10,880 |
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
8,895 |
|
|
5,648 |
|
|
17,892 |
|
|
10,064 |
|
|
Litigation costs |
- |
|
|
- |
|
|
- |
|
|
288 |
|
|
Acquisition costs |
545 |
|
|
- |
|
|
558 |
|
|
1,142 |
|
Adjusted EBITDA |
4,053 |
|
|
10,453 |
|
|
10,560 |
|
|
22,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
992 |
|
|
1,256 |
|
|
1,984 |
|
|
1,720 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
2,121 |
|
|
1,973 |
|
|
4,207 |
|
|
3,997 |
|
|
|
|
|
|
|
|
|
|
|
|
3,113 |
|
|
3,229 |
|
|
6,191 |
|
|
5,717 |
|
|
|
|
|
|
|
|
|
|
RADWARE (NASDAQ:RDWR)
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