Application switching vendor Radware Ltd. (Nasdaq: RDWR) posted second-quarter revenues of $17.5 million, up 7 percent on the same period last year. But the company's shares fell $0.11 (0.65%) to $16.84, as its results were still shy of analysts' expectations (see Radware Reports Q2).
Radware reported a second-quarter profit of $1 million, or 5 cents a share, compared with year-ago earnings of $3 million, or 16 cents a share. Analysts were expecting the company to report revenues of $18.5 million and earnings of 7 cents a share.
Execs on a conference call this morning blamed the M&A market for some delayed orders, implying that companies weren't buying as briskly while in the process of digesting new acquisitions. Specifically cited were acquisitions by Cisco Systems Inc. (Nasdaq: CSCO), Juniper Networks Inc. (Nasdaq: JNPR), and Citrix Systems Inc. (Nasdaq: CTXS) in the networking space (see Cisco Chomps FineGround, Juniper Takes Two: Peribit & Redline, and Citrix to Buy NetScaler for $300M).
Roy Zisapel, Radwares CEO, said that, despite a degree of initial confusion from end-users and channel partners, particularly during June, the situation is now calming down. We now have a good estimate of when and where things should close, he said. Were already seeing some good signs of improvement in the channel and end-users.
Radware says it will increase its marketing investment by between $1 million and $1.5 million over the coming quarters, according to the CEO.
