IB Net Payout Yields Model

Radware Refines Guidance Within Previous Range

Somehow I missed this, but last week Radware (RDWR) refined guidance to within the previous range. of $42-43M in revenue and $.33 to $.34 in earnings. This cuts off the higher end of the previously range, but clearly the market had no expectations for RDWR hitting those numbers.

The numbers are actually higher than the estimates provided by Yahoo! Finance and are still supportive of strong growth. 

RDWR is a leader of application delivery and application security solutions for virtual and cloud data centers. The stock remains one of the cheapest technology companies and a solid investment in our Opportunistic models. 

The company also announced a $20M stock repurchase (this was the part we saw last week). With a market cap of only $475M now, $20M does provide for a decent percentage of the outstanding shares, but it's not how we prefer small cap techs too spend money. 

Per the RDWR PR:
  • the company refined its expectations for its third quarter 2011 results to be within previously provided guidance. Quarterly revenues are expected to range between $42 to $42.2 million for the third quarter of 2011 within previously provided guidance of $42 to $43 million and Non-GAAP EPS is expected to range between $0.33 to $0.34 per diluted share within previously provided guidance of $0.33 to $0.35.
  • announced that its board of directors has authorized a share repurchase plan allowing the repurchase of up to $20 million of ordinary shares.

Disclosure: Long RDWR. Please review the disclaimer page for more details. 


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