Radware Managed to Curb Its Operating Expense in 2Q15
Operating margin remains high
Radware (RDWR) is a global leader of application delivery. It provides a security solution for virtual, cloud, and software-defined data centers. Radware generated 2Q15 revenue of $56 million—compared to $53 million the same quarter the previous year. This is a rise of 5.60%. Radware’s operating margin showed a rise of 13.60%—compared to 7.34% in the same quarter the previous year. In this quarter, Radware managed to decrease its operating expense. The majority of the cost reduction was in sales and administrative expenses by 219 basis points. This led to a rise the operating income by 95.69%.
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Roy Zisapel was disappointed with the quarterly earnings
On a GAAP (generally accepted accounting principles) basis, the net income for 2Q15 was $7.02 million—compared to the net income of $3.9 million for 2Q14. On a non-GAAP basis, it was $10.8 million in 2Q15—compared to $8.2 million in 2Q14. The diluted EPS (earnings per share) for 2Q15 on a non-GAAP basis remained at $0.23—compared to $0.18 in 2Q14.
The company’s overall cash position showed a rise of $19 million over the same quarter the previous year. This included cash from short-term and long-term bank deposits, marketable securities. Roy Zisapel is the president and CEO of Radware. He declared that “We were disappointed by our lower growth during this quarter. However, we continued our strategic progress on all front.”
Radware accounts for 0.07% of the First Trust NASDAQ Cybersecurity ETF (CIBR) and 0.20% of the SPDR S&P International Small CAP ETF (GWX).