) is down big on Friday after finishing far below expectations on
its preliminary earnings report.
The Tel Aviv firm expects first quarter EPS of $0.30 - on par
with its Q1 2012 results. However, at this figure, it would fall
nearly 29 percent short of the $0.42 analysts want to see.
First quarter revenue is expected to close at $45 million -
also on par with its Q1 2012 results. As with EPS, though, the
company would finish short of the Wall Street consensus of over
On March 28, Radware announced a two-for-one forward share
split of its ordinary shares. The split will have a record date
of April 8 and take effect on April 12.
On the payable date, every share will be split into two. The
number of authorized ordinary shares will double from 30 to 60
million and the par value will decrease from 0.10 to 0.05 NIS
(~$0.03 to $0.015) per share. Investors who hold this stock will
retain their existing ownership stake.
Cyber Attacks on the Rise
According to a
March report by Fox Business
, cyber attacks on federal agencies have jumped 786 percent since
2006, with nearly 49,000 incidents in 2012.
And, the report noted that companies such as Apple (NASDAQ:
), PNC (NYSE:
), The New York Times (NYSE:
) and Twitter have experienced recent attacks.
With such high profile attacks in the news, its no surprise
that, according to Fox Business, a Deloitte survey found that 58
percent of executives plan to boost cyber security spending over
the next year. Meanwhile, 79 percent are not confident in the
efficacy of their existing measures, as Fox Business notes.
However, as Fox Business points out, the cyber security
business has a lot to gain from the recent hype, and not everyone
is convinced it's as bad as it seems. Just take Radware CEO Roy
Zisapel's comments as an example of how industry players view the
According to Fox Business, Zisapel stated, "It's the best it's
been and I hope it will even get better. For us, the level of
activity, engagement and budgets in Fortune 100 accounts to cyber
security is dramatically higher than any year before. It's night
and day." In other words, at least from a business perspective,
Zisapel appears to welcome the growing threats to cyber
Still, there is a fine line between perception and reality in
the minds of many. Thus, whether the situation is being
over-hyped by the industry and news media or is as described,
companies like Radware stand to see a boost from the increasing
focus on cyber security.
Radware's lackluster preliminary earnings have sent it
tumbling as the week draws to a close. The stock has dropped
close to $30 in the morning hours of trading, reaching its lowest
point in the past eight months.
Radware is down around 19.5 percent on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga