Radware Ltd 6-K, filed Nov 1, 2023

Radware Ltd (RDWR)

6-K 2023-11-01 For: 2023-11-01

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Added on April 12, 2026

About this 6-K

Radware Ltd filed this 6-K on November 1, 2023.

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	RADWARE LTD.

Date: November 1, 2023	By:	/s/ Gadi Meroz
		Gadi Meroz
		Vice President & General Counsel

Exhibit Number	Description of Exhibits

99.1	Radware Reports Third Quarter 2023 Financial Results

	September 30,			December 31,
	2023			2022
	(Unaudited)			(Unaudited)
Assets

Current assets
Cash and cash equivalents		32,422			46,185
Available-for-sale marketable securities		85,409			44,180
Short-term bank deposits		203,913			207,679
Trade receivables, net		12,372			17,752
Other receivables and prepaid expenses		10,915			7,196
Inventories		12,994			11,428
		358,025			334,420

Long-term investments
Available-for-sale marketable securities		49,898			90,148
Long-term bank deposits		0			43,765
Severance pay funds		2,061			2,146
		51,959			136,059

Property and equipment, net		19,321			21,068
Intangible assets, net		16,710			19,686
Other long-term assets		40,047			41,269
Operating lease right-of-use assets		20,132			23,078
Goodwill		68,008			68,008
Total assets		574,202			643,588

Liabilities and shareholders' equity

Current Liabilities
Trade payables		6,069			6,464
Deferred revenues		106,109			108,243
Operating lease liabilities		4,439			4,685
Other payables and accrued expenses		33,206			44,643
		149,823			164,035

Long-term liabilities
Deferred revenues		63,258			72,219
Operating lease liabilities		15,956			19,461
Other long-term liabilities		20,172			19,430
		99,386			111,110

Shareholders' equity
Share capital		733			732
Additional paid-in capital		521,196			498,168
Accumulated other comprehensive loss, net of tax		(4,174	)		(4,844	)
Treasury stock, at cost		(356,969	)		(303,299	)
Retained earnings		125,662			141,402
Total Radware Ltd. shareholder's equity		286,448			332,159

Non–controlling interest		38,545			36,284

Total shareholders' equity		324,993			368,443

Total liabilities and shareholders' equity		574,202			643,588

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2023			2022			2023			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Revenues		61,612			70,521			196,260			219,343
Cost of revenues		12,838			13,138			38,886			39,967
Gross profit		48,774			57,383			157,374			179,376

Operating expenses, net:
Research and development, net		20,614			22,083			62,905			64,076
Selling and marketing		30,532			31,416			94,368			93,989
General and administrative		7,824			7,278			24,378			19,542
Total operating expenses, net		58,970			60,777			181,651			177,607

Operating income (loss)		(10,196	)		(3,394	)		(24,277	)		1,769
Financial income, net		3,778			1,350			10,688			6,034
Income (loss) before taxes on income		(6,418	)		(2,044	)		(13,589	)		7,803
Taxes on income		433			920			2,151			3,845
Net income (loss)		(6,851	)		(2,964	)		(15,740	)		3,958

Basic net earnings (loss) per share		(0.16	)		(0.07	)		(0.36	)		0.09

Weighted average number of shares used to compute basic net earnings (loss) per share		42,261,637			44,623,247			43,232,405			45,063,925

Diluted net earnings (loss) per share		(0.16	)		(0.07	)		(0.36	)		0.09

Weighted average number of shares used to compute diluted net earnings (loss) per share		42,261,637			44,623,247			43,232,405			46,189,437

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2023			2022			2023			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
GAAP gross profit		48,774			57,383			157,374			179,376
Share-based compensation		177			103			403			287
Amortization of intangible assets		992			992			2,976			2,712
Non-GAAP gross profit		49,943			58,478			160,753			182,375

GAAP research and development, net		20,614			22,083			62,905			64,076
Share-based compensation		2,064			1,775			6,200			5,219
Non-GAAP Research and development, net		18,550			20,308			56,705			58,857

GAAP selling and marketing		30,532			31,416			94,368			93,989
Share-based compensation		2,134			3,356			9,065			8,248
Restructuring costs		1,273			-			1,273			-
Non-GAAP selling and marketing		27,125			28,060			84,030			85,741

GAAP general and administrative		7,824			7,278			24,378			19,542
Share-based compensation		2,884			2,397			9,483			3,941
Acquisition costs		211			-			769			-
Litigation costs		-			-			-			1,142
Non-GAAP general and administrative		4,729			4,881			14,126			14,459

GAAP total operating expenses, net		58,970			60,777			181,651			177,607
Share-based compensation		7,082			7,528			24,748			17,408
Acquisition costs		211			-			769			-
Litigation costs		-			-			-			1,142
Restructuring costs		1,273			-			1,273			-
Non-GAAP total operating expenses, net		50,404			53,249			154,861			159,057

GAAP operating income (loss)		(10,196	)		(3,394	)		(24,277	)		1,769
Share-based compensation		7,259			7,631			25,151			17,695
Acquisition costs		211			-			769			-
Amortization of intangible assets		992			992			2,976			2,712
Litigation costs		-			-			-			1,142
Restructuring costs		1,273			-			1,273			-
Non-GAAP operating income		(461	)		5,229			5,892			23,318

GAAP financial income, net		3,778			1,350			10,688			6,034
Exchange rate differences, net on balance sheet items included in financial income, net		37			1,100			(770	)		(1,714	)
Non-GAAP financial income, net		3,815			2,450			9,918			4,320

GAAP income before taxes on income (loss)		(6,418	)		(2,044	)		(13,589	)		7,803
Share-based compensation		7,259			7,631			25,151			17,695
Acquisition costs		211			-			769			-
Amortization of intangible assets		992			992			2,976			2,712
Litigation costs		-			-			-			1,142
Restructuring costs		1,273			-			1,273			-
Exchange rate differences, net on balance sheet items included in financial income, net		37			1,100			(770	)		(1,714	)
Non-GAAP income before taxes on income		3,354			7,679			15,810			27,638

GAAP taxes on income		433			920			2,151			3,845
Tax related adjustments		62			62			185			185
Non-GAAP taxes on income		495			982			2,336			4,030

GAAP net income (loss)		(6,851	)		(2,964	)		(15,740	)		3,958
Share-based compensation		7,259			7,631			25,151			17,695
Acquisition costs		211			-			769			-
Amortization of intangible assets		992			992			2,976			2,712
Litigation costs		-			-			-			1,142
Restructuring costs		1,273			-			1,273			-
Exchange rate differences, net on balance sheet items included in financial income, net		37			1,100			(770	)		(1,714	)
Tax related adjustments		(62	)		(62	)		(185	)		(185	)
Non-GAAP net income		2,859			6,697			13,474			23,608

GAAP diluted net earnings (loss) per share		(0.16	)		(0.07	)		(0.36	)		0.09
Share-based compensation		0.17			0.17			0.57			0.38
Acquisition costs		0.00			0.00			0.02			0.00
Amortization of intangible assets		0.03			0.02			0.07			0.06
Litigation costs		0.00			0.00			0.00			0.03
Restructuring costs		0.03			0.00			0.03			0.00
Exchange rate differences, net on balance sheet items included in financial income, net		0.00			0.02			(0.02	)		(0.04	)
Tax related adjustments		0.00			(0.00	)		0.00			(0.00	)
Non-GAAP diluted net earnings per share		0.07			0.15			0.31			0.51

Weighted average number of shares used to compute non-GAAP diluted net earnings per share		43,163,159			45,623,336			44,058,549			46,189,437

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2023			2022			2023			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cash flow from operating activities:

Net income (loss)		(6,851	)		(2,964	)		(15,740	)		3,958
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,025			3,097			9,216			8,814
Share-based compensation		7,259			7,631			25,151			17,695
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net		161			193			1,116			1,579
Loss (gain) related to securities, net		0			(4	)		244			(64	)
Decrease in accrued interest on bank deposits		(2,289	)		(1,128	)		(3,814	)		(1,056	)
Decrease in accrued severance pay, net		(401	)		(176	)		(506	)		(82	)
Decrease (increase) in trade receivables, net		4,448			(1,509	)		5,380			(160	)
Decrease (increase) in other receivables and prepaid expenses and other long-term assets		(215	)		3,852			(2,541	)		(473	)
Decrease (increase) in inventories		(671	)		549			(1,566	)		726
Increase (decrease) in trade payables		(1,778	)		(670	)		(395	)		2,460
Increase (decrease) in deferred revenues		(12,311	)		(8,609	)		(11,095	)		11,891
Increase (decrease) in other payables and accrued expenses		644			1,463			(10,798	)		(20,719	)
Decrease in operating lease liabilities, net		(804	)		(209	)		(805	)		(1,981	)
Net cash provided by (used in) operating activities		(9,783	)		1,516			(6,153	)		22,588

Cash flows from investing activities:

Purchase of property and equipment		(1,130	)		(2,549	)		(4,493	)		(7,046	)
Proceeds from other long-term assets, net		29			69			77			106
Proceeds from (investment in) bank deposits, net		21,145			1,000			51,345			(19,201	)
Proceeds from sale, redemption of and purchase of marketable securities, net		2,228			(862	)		347			(5,502	)
Payment for the business acquisition of SecurityDAM Ltd.		(2,063	)		0			(2,063	)		(30,000	)
Net cash provided (used in) investing activities		20,209			(2,342	)		45,213			(61,643	)

Cash flows from financing activities:

Proceeds from exercise of stock options		0			401			308			1,202
Repurchase of shares		(20,648	)		(6,305	)		(53,131	)		(47,191	)
Proceeds from issuance of Preferred A shares in subsidiary		0			0			0			35,000
Net cash used in financing activities		(20,648	)		(5,904	)		(52,823	)		(10,989	)

Decrease in cash and cash equivalents		(10,222	)		(6,730	)		(13,763	)		(50,044	)