Radware (RDWR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.13 million, or $ 0.05 a share in the quarter, against a net profit of $4.26 million, or $0.09 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.49 million, or $0.06 a share compared with $7.63 million or $0.17 a share, a year ago.
Revenue during the quarter dropped 6.41 percent to $51.71 million from $55.26 million in the previous year period. Gross margin for the quarter contracted 62 basis points over the previous year period to 81.44 percent. Operating margin for the quarter stood at negative 4.81 percent as compared to a positive 6.10 percent for the previous year period.
Operating loss for the quarter was $2.49 million, compared with an operating income of $3.37 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.80 million compared to $6.66 million in the prior year period. At the same time, adjusted operating margin contracted 857 basis points in the quarter to 3.47 percent from 12.05 percent in the last year period.
"We reported solid results for the fourth quarter of 2016 and are very pleased with the underlying business trends, which led to record bookings for the quarter, primarily due to the success of our subscription and cloud security solutions," said Roy Zisapel, Radware President & CEO. "Overall, our business continues its desired and strategic transition towards increased data center security sales and a growing proportion of service and subscription sales. We have expanded this offering last week with the acquisition of Seculert, which brings us cutting-edge cloud-based machine learning and big data analytics capabilities. Our comprehensive solution offering addresses the core challenges of applications delivery and security, and our flexible deployment models are aligned with the continued migration of applications to the cloud. Radware is therefore well positioned to deliver long term growth".
Operating cash flow falls marginally
Radware has generated cash of $38.61 million from operating activities during the year, down 1.34 percent or $0.52 million, when compared with the last year.
Cash flow from investing activities was $28.36 million from investing activities during the year as against cash outgo of $6.85 million in the last year.
The company has spent $21.08 million cash to carry out financing activities during the year as against cash outgo of $43.52 million in the last year period.
Cash and cash equivalents stood at $79.64 million as on Dec. 31, 2016, up 136.01 percent or $45.89 million from $33.74 million on Dec. 31, 2015.
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