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TEL AVIV, Israel, April 28 /PRNewswire-FirstCall/ — Radware , the leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $22.2 million for the first quarter of 2008. This represents an increase of 12% compared with revenues of $19.7 million for the first quarter of 2007. Revenues for the fourth quarter of 2007 were $24.4 million.
Revenues of $22.2M were just below the company’s guidance for the quarter, which ranged between $23M and $24.5M. While the shipments for the quarter were within company’s expectations, certain decisions made by the company with respect to revenue recognition after the end of the quarter caused our recorded revenues to fall slightly below expectations.
Net loss on a GAAP basis for the first quarter of 2008 was $8.3 million or $0.42 per diluted share, compared to a net loss of $3.6 million or $0.18 per diluted share in the first quarter of 2007 and to a net loss of $1.8 million or $0.09 per diluted share in the fourth quarter of 2007.
For comparative purposes, net loss for the first quarter of 2008, excluding the effects of stock-based compensation expense and amortization of intangible assets and acquisition related expenses, was $6.3 million or $0.32 per diluted share, compared with a net loss of $1.2 million or $0.06 per diluted share in the first quarter of 2007 and to a net loss of $0.1 million or break-even diluted earnings per share in the fourth quarter of 2007.
During the first quarter, the devaluation of the US dollar against the Israeli Shekel, the Euro, the Australian dollar and Asian currencies resulted in an increase in operating expenses of $1 million. In addition, certain one time expenses were realized in the first quarter.
At the end of the first quarter the company’s overall cash position, including cash, short-term and long-term bank deposits and marketable securities increased by $0.8 million, compared to the end of the fourth quarter of 2007, increasing to an amount of $155.7 million.
“During the past few months, we have been focused on developing and implementing strategic and tactical plans to ensure that our business remains healthy and productive,” said Roy Zisapel, President & CEO of Radware. “We believe that by implementing such plans coupled with our new product introductions of OnDemand Switches and SIP Director we will be able to accelerate growth and return to profitability.”
Management’s expectation is to reach an annual growth rate in the mid to high teens and return to operating profitability by the fourth quarter of 2008.
During the quarter ended March 31, 2008, Radware released the following significant announcements:
- Radware Leads the Next Wave of Evolution in the Application Delivery
Market

- Radware Drives Application Delivery Innovation with First OnDemand
Switch Providing Customer-focused Capabilities

- Radware First-to-Market with SIP Director a Fully SIP-aware Intelligent
Application Delivery Controller

- Radware Receives INTERNET TELEPHONY(R) Magazine’s Product of the Year
Award

- Radware Delivers First-to-Market IMS Service Delivery Solution

- Radware and IPtego Partner to Deliver Enhanced SIP-Based VoIP Service
Delivery

- Radware Wins Info Security Products Guide 2008 Global Product
Excellence Award

- Radware and Splunk to Cooperate on business Smart Networks

- Radware is Named a Finalist for by the 2008 SC Magazine Awards Europe

- Radware Joins the University of New Hampshire’s InterOperability
Laboratory VoIP Technology Consortium

- Radware Becomes a Global BEA Select Partner; Expanding Support Across
Both IT and Telecommunications Networks

Company management will host a quarterly investor conference call at 8:45 AM EDT on April 28, 2008. The call will focus on financial results for the quarter ended March 31, 2008, and certain other matters related to the Company’s business.
The conference call will be webcast on April 28, 2008 at 8:45 AM EST in the “listen only” mode via the Internet at: and would be available for replay during the next 30 days.
Please use the following dial-in numbers to participate in the first quarter 2008 call:
Participants in the US call: Toll Free 1-800-230-1085
Participants outside of the US call: 1-612-288-0337
About Radware

Radware , the global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for more than 5,000 enterprises and carriers worldwide. With APSolute(TM), Radware’s comprehensive and award-winning suite of intelligent front end, access, and security products, companies in every industry can drive business productivity, improve profitability, and reduce IT operating and infrastructure costs by making their networks “business smart”. For more information, please visit .
This press release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching and Network Security industry, changes in demand for Application Switching and Network Security products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware’s filings with the Securities and Exchange Commission, including Radware’s Form 20-F.
Condensed Consolidated Balance Sheets
(U.S. Dollars in Thousands)

December 31, March 31,
2007 2008
(Audited) (Unaudited)
Current assets
Cash and cash equivalents 61,376 72,160
Short-term marketable
securities 80,498 40,256
Trade receivables, net 17,192 11,967
Other receivables and prepaid
expenses 3,195 4,390
Inventories 5,428 5,956
167,689 134,729
Long-term investments
Long-term bank deposit 10,236 10,069
Long-term marketable securities 2,735 33,191
Severance pay funds 3,940 4,464
16,911 47,724

Property and equipment, net 12,217 12,763

Other assets
Intangible assets, net,
long-term deferred taxes and
other long-term assets 5,776 5,640
Goodwill 13,474 13,474
19,250 19,114

Total assets 216,067 214,330

Current liabilities
Trade payables 7,537 6,120
Deferred revenues, other
payables and accrued expenses 26,438 30,801
33,975 36,921

Accrued severance pay 5,379 6,008

Total liabilities 39,354 42,929

Shareholders’ equity
Share capital 482 488
Additional paid-in capital 176,004 179,654
Accumulated other comprehensive
income (loss) 150 (488)
Treasury stock, at cost (11,049) (11,049)
Retained earnings 11,126 2,796
Total shareholders’ equity 176,713 171,401

Total liabilities and
shareholders’ equity 216,067 214,330

Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except share and per share data)

For the Three For the Three
months ended months ended
March 31, March 31,
2007 2008
(Unaudited) (Unaudited)

Revenues 19,719 22,165
Cost of revenues 5,087 4,596
Gross profit 14,632 17,569
Operating expenses:
Research and development, net 5,207 7,298
Sales and marketing 13,026 17,260
General and administrative 1,756 2,417
Total operating expenses 19,989 26,975
Operating loss (5,357) (9,406)
Financial income, net 1,763 1,303
Income (loss) before income taxes (3,594) (8,103)
Income taxes 23 (227)
Net income (loss) (3,571) (8,330)

Basic net earnings (loss) per $ (0.18) $ (0.42)
share
Weighted average number of shares
used to compute basic net
earnings (loss) per share 19,424,479 19,701,258

Diluted net earnings (loss) per $ (0.18) $ (0.42)
share

Weighted average number of shares
used to compute diluted net
earnings (loss) per share 19,424,479 19,701,258

Reconciliation of Supplemental Financial Information
(U.S. Dollars in thousands, except share and per share data)

For the Three For the Three
months ended months ended
March 31, March 31,
2007 2008

GAAP Net income (loss) (3,571) (8,330)
Stock-based compensation expenses,
included in:
Cost of revenues 18 29
Research and development, net 217 409
Sales and marketing 318 638
General and administrative 381 668
Income taxes - -
934 1,744
Amortization of intangible assets
and acquisition related expenses,
included in:
Cost of revenues 74 188
Research and development, net 79 -
Sales and marketing 39 39
General and administrative - -
Income taxes 24 41
216 268

One-time inventory write-off 1,200 -

Non-GAAP Net income (loss) (1,221) (6,318)

Non-GAAP Diluted net earnings
(loss) per share $ (0.06) $ (0.32)

Weighted average number of shares
used to compute Non-GAAP Diluted
net earnings (loss) per share 19,424,479 19,701,258

Radware Ltd

STOCKHOLM, April 28 /PRNewswire/ — Ascade, the global market-leader in advanced Routing & Trading, Billing and Quality solutions for the Interconnect market, today announced that REACH, the Hong Kong based global wholesale carrier, has awarded an upgrade contract for the latest release of Carrier Cockpit(TM). Additionally, REACH has also agreed to acquire Ascade’s market leading quality management modules and test services. REACH has for several years used Carrier Cockpit(TM) as a central part of its advanced business decision and management environment. The decision to upgrade the mission critical implementation of Carrier Cockpit(TM) is a result of growing volumes of voice traffic, increased business complexity and preparation of additional growth.
With Release 6.0 of Carrier Cockpit(TM), REACH will further strengthen its end-to-end business process for wholesale and interconnect services and set the general operations team in a solid position to handle expected growth in the years to come. Furthermore, the additional integrated Quality Management functionalities in Carrier Cockpit(TM) will enable REACH to offer an increased granularity of differential and innovative quality products to its customers.
Based on a range of continuous intrusive and non-intrusive quality measurements of it’s vast network of international routes, REACH will be able to deliver exact and documented quality levels of services. In the highly competitive international carrier business, there is a fast growing demand for services to follow-up on committed QoS levels in SLAs. REACH will also benefit from Ascade’s unique Global Test Network(TM), which enables carriers to test for the successful delivery of Caller Line ID in 200 mobile networks across the globe. The delivery of Caller Line ID (the ability to display the correct number of a calling party on a mobile handset) has a great impact on the roaming revenues of mobile operators, which is the key customer segment for REACH. The Global Test Network(TM) will also enable carriers to verify the correct delivery of SMS, MMS and Video Calls.
The CEO of REACH, Mr. John Wright explains: “The international telecommunications market for voice is becoming more competitive and demanding, and as such, we must continue to improve our capabilities to ensure we are exceeding customer’s requirements. REACH is focused on continuous improvements in terms of efficiency, operational excellence and flexibility. We are dedicated to expanding our capabilities and service for our ever increasing traffic volumes and customer expectations. We have chosen to continue and expand our relationship with Ascade based on their demonstrated responsiveness to our requirements, and ability to deliver the enhanced functionality and capabilities that will enable us to meet our objectives. Our expectation is that the upgrade to release 6.0 of Carrier Cockpit and the implementation of the Global Test Network(TM) will provide us with the tools to continue to grow our international voice business in 2008 and beyond.”
Mr. Henrik Anderberg, CEO of Ascade contributes: ” REACH is one of the largest global carrier’s in the market, and we see REACH’s upgrade and implementation of our flagship product as a clear stamp of approval of Carrier Cockpit(TM)’s performance and market relevance. Release 6.0 of Carrier Cockpit(TM) is the product of more than 10 years of global market experience and it’s great to see the combined benefits it brings to the operations of our customers.”
About REACH
REACH is headquartered in Hong Kong, with a significant presence in Australia and substantial businesses across Asia, North America and Europe.
REACH is the premier provider of international voice and satellite services in Asia and has interests in more than 40 submarine cables and international satellite systems.
REACH has established commercial relationships with more than 400 carriers across the globe, facilitating access to more than 240 countries and territories. One of the cornerstones of REACH’s success is the reliability of its global network. REACH has built strategically located world-class operations centres where it monitors and manages customers’ traffic flows 24 hours a day, 7 days a week.
About ASCADE AB
Ascade is the global market-leader of Interconnect Solutions for Carriers and Mobile Operators. Our software, Carrier Cockpit(TM) Suite, enables customers worldwide to increase profitability and revenue growth. It optimizes and automates all aspects of the Interconnect business including route quality testing and integrated interconnect billing, while providing management with real-time business planning and steering capabilities.
Carrier Cockpit(TM) Suite is the most advanced, mature and widely used Interconnect Solution for managing the wholesale business worldwide. Customers include Reach, Telenor Global Services, SingTel, Telekom Malaysia, Etisalat, Allstream, Elisa, Gateway, TEO, Rostelecom, PT Telekom, Korea Telecom, Hrvatski Telekom, Telekom Serbia, Lattelecom, Bell Canada, Sunrise, Telekom Austria, MobileOne, VSNL, TeliaSonera IC and more.
Ascade AB is a privately held company owned by founders and leading Nordic investment firms CapMan, listed on the Helsinki Stock Exchange, and SEB Venture Capital, the venture capital division of Nordic financial services group SEB, listed on the Stockholm Stock Exchange. Through its presence in Sweden, US, Dubai, and Singapore, Ascade provides support to its customers worldwide.
For more information please visit:

Contact: Patrik Ferlenius, Ascade AB
Email:
Ascade AB Fax: 46-8-545-90-427
Stockholm, Sweden Tel: 46-8-616-73-00

Ascade AB

FORT LEE, N.J., April 29 /PRNewswire/ — FreeFi Networks (), a Los Angeles-based company offering content and advertiser-supported Internet access, today announced the addition of Michael Blumenfeld to the team. In his new role as a project integration manager, Blumenfeld will promote the unique advertising environment of FreeFi to marketers and the general public. He will also oversee the integration of new project launches to ensure a smooth transition and successful results for clients.
Prior to joining FreeFi Networks, Blumenfeld attended the McCallum Graduate School of business at Bentley College where he worked on a number of consulting projects with companies such as Mazda Motor Corporation, Welch’s Foods, Sperry Top-Sider, Microsoft, and Toshiba through Bentley’s “Corporate Immersion” program. While in business school, Blumenfeld also served as the manager of the Center for Marketing Technology where he managed a staff, conducted focus groups, taught undergraduate and graduate level classes, and created and analyzed qualitative and quantitative research.
“Michael’s experience in project management as well as the excellent educational foundation he received at Bentley College in marketing and sales analysis will serve as an incredible asset to FreeFi Networks while we continue to grow and expand our service into airports, universities and other public venues” said Richard Bogen, managing director of FreeFi Networks.
Blumenfeld holds a Master of business Administration, with concentrations in International business and Marketing, and a Bachelor of Science in Marketing, both from Bentley College.
About FreeFi Networks
FreeFi provides free Wi-Fi access services while driving revenue to host venues, which will include airports, hotels, convention facilities, college campuses, chain restaurants, shopping centers and cafes. The private, closely held company is led by media and business professionals with background in online and traditional advertising, wireless infrastructure, real estate and technology and has offices in Los Angeles and Fort Lee, New Jersey.
FreeFi Networks