UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2020

Commission file number: 0-30324

RADWARE LTD.
(Name of registrant)

22 Raoul Wallenberg Street, Tel Aviv 6971917, Israel
 (Address of principal executive office)
_____________________

        Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.  

Form 20-F ☒    Form 40-F ☐

        Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

        Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

____________________

CONTENTS
 
This report on Form 6-K of Radware Ltd. consists of the following documents, which are attached hereto and incorporated by reference herein:


1.
Radware Announces Second Quarter 2020 Earningsdated July 29, 2020


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
RADWARE LTD.
 
       
Date: July 29, 2020
By:
/s/ Doron Abramovitch  
   
Doron Abramovitch
 
   
Chief Financial Officer
 
 


EXHIBIT INDEX
 
Exhibit Number
Description of Exhibits
 
 




Exhibit 99.1


RADWARE ANNOUNCES SECOND QUARTER 2020 EARNINGS
 
Second Quarter 2020 Results and Financial Highlights

Revenues of $58.4 million

Non-GAAP EPS of $0.13; GAAP EPS of $0.01

Net cash provided by operating activities of $18 million

First Six Months 2020 Results and Financial Highlights

Revenues of $118.5 million

Non-GAAP EPS of $0.26; GAAP EPS of $0.07

Net cash provided by operating activities of $39 million; net cash provided by operating activities of $63 million for the last twelve months
 
TEL AVIV, ISRAEL, JULY 29, 2020— Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the quarter ended June 30, 2020.

“We are pleased with the results for the second quarter, despite the unusual COVID-19 related circumstances as our strong business fundamentals continued to provide us with resilience,” said Roy Zisapel, Radware’s President & CEO. “Strong bookings performance in North America, coupled with continued progress with our OEM partners and strong performance in our security business were the highlights of the quarter and we expect them to continue throughout the year”.


Financial Highlights for the Second Quarter of 2020
 
Revenues for the second quarter of 2020 totaled $58.4 million, down 3% from revenues of $60.5 million for the second quarter of 2019. Revenues for the first six months of 2020 totaled $118.5 million, down 3% from revenues of $121.9 million for the first six months of 2019:
 

Revenues in the Americas region were $27.5 million for the second quarter of 2020, down 1% compared to revenues of $27.6 million in the second quarter of 2019. For the first six months of 2020, revenues in the Americas region increased 8% over the same period in 2019.
 

Revenues in the Europe, Middle East and Africa (“EMEA”) region were $17.7 million for the second quarter of 2020, up 5% from revenues of $16.9 million in the second quarter of 2019. For the first six months of 2020, revenues in the EMEA region increased 2% over the same period in 2019.
 

Revenues in the Asia-Pacific (“APAC”) region were $13.3 million for the second quarter of 2020, down 17% from revenues of $15.9 million in the second quarter of 2019. For the first six months of 2020, revenues in the APAC region decreased 25% over the same period in 2019.
 
Net income on a GAAP basis for the second quarter of 2020 was $0.7 million, or $0.01 per diluted share, compared with net income of $3.7 million, or $0.08 per diluted share, for the second quarter of 2019.
 
Non-GAAP net income for the second quarter of 2020 was $6.0 million, or $0.13 per diluted share, compared with non- GAAP net income of $8.9 million, or $0.18 per diluted share, for the second quarter of 2019.
 
Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, acquisition costs, litigation costs, exchange rate differences, net on balance sheet items included in finance income, other loss (gain) adjustment and tax related adjustments. A reconciliation of each of the Company’s non-GAAP measures to the comparable GAAP measure is included at the end of this press release.

As of June 30, 2020, the Company had cash, cash equivalents, short-term and long-term bank deposits and marketable securities of $442.8 million. Net cash provided by operating activities in the second quarter of 2020 totaled $18.0 million. Net cash spent on share repurchases in the second quarter of 2020 totaled $5.0 million.

Conference Call

Radware management will host a call on Wednesday, July 29, 2020 at 8:30 a.m. ET to discuss its second quarter 2020 results and the Company’s outlook for the third quarter of 2020.

Participants in the US call: Toll Free 833-968-2213

Participants Internationally call:  +1-778-560-2898

Conference ID: 1278452

A replay will be available for 2 days, starting 2 hours after the end of the call, on telephone number +1-416-621-4642 or (US toll-free) 800-585-8367.

A live webcast of the conference call can also be heard by accessing the Company's website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.

###

2

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, income before taxes on income, taxes on income, net income and earnings per share, which are adjustments from results based on GAAP to exclude stock-based compensation expenses, amortization of intangible assets, acquisition costs, litigation costs, exchange rate differences, net on balance sheet items included in finance income, other loss (gain) adjustment and tax related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present and future periods. Radware’s management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware’s ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measures is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors.

Safe Harbor Statement

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could.” Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions and volatility of the market for our products; natural disasters and public health crises, such as the coronavirus disease 2019 (COVID-19) pandemic; our ability to expand our operations effectively; timely availability and customer acceptance of our new and existing solutions; risks and uncertainties relating to acquisitions or other investments; the impact of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; intense competition in the market for cyber security and application delivery solutions and in our industry in general and changes in the competitive landscape; changes in government regulation; outages, interruptions or delays in hosting services or our internal network system; compliance with open source and third-party licenses; the risk that our intangible assets or goodwill may become impaired; our dependence on independent distributors to sell our products; long sales cycles for our solutions; changes in foreign currency exchange rates; undetected defects or errors in our products or a failure of our products to protect against malicious attacks; the availability of components and manufacturing capacity; the ability of vendors to provide our hardware platforms and components for our main accessories; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; changes in tax laws; our ability to realize our investment objectives for our cash and liquid investments; our ability to attract, train and retain highly qualified personnel; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC) and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.

3

About Radware

Radware® (NASDAQ: RDWR), is a global leader of cyber security and application delivery solutions for physical, cloud, and software defined data centers. Its award-winning solutions portfolio secures the digital experience by providing infrastructure, application, and corporate IT protection and availability services to enterprises globally. Radware’s solutions empower more than 12,500 enterprise and carrier customers worldwide to adapt to market challenges quickly, maintain business continuity and achieve maximum productivity while keeping costs down. For more information, please visit www.radware.com.
 
©2020 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents and pending patent applications of Radware in the U.S. and other countries. For more details please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

CONTACTS
 
Investor Relations:
Anat Earon-Heilborn
+972 723917548
ir@radware.com
 
Media Contacts:
Deborah Szajngarten
Radware
201-785-3206
deborah.szajngarten@radware.com

4


Radware Ltd.
 
Condensed Consolidated Balance Sheets
 
(U.S. Dollars in thousands)
 
 
           
 
 
June 30,
   
December 31,
 
 
 
2020
   
2019
 
 
 
(Unaudited)
   
(Unaudited)
 
Assets
           
 
           
Current assets
           
Cash and cash equivalents
   
48,650
     
40,751
 
Marketable securities
   
63,568
     
36,924
 
Short-term bank deposits
   
114,137
     
100,276
 
Trade receivables, net
   
17,195
     
22,610
 
Other receivables and prepaid expenses
   
8,444
     
7,469
 
Inventories
   
14,106
     
13,940
 
 
   
266,100
     
221,970
 
 
               
Long-term investments
               
Marketable securities
   
83,647
     
112,696
 
Long-term bank deposits
   
132,765
     
137,095
 
Severance pay funds
   
2,191
     
2,300
 
 
   
218,603
     
252,091
 
 
               
Property and equipment, net
   
23,663
     
22,971
 
Other long-term assets
   
25,358
     
24,398
 
Operating lease right-of-use assets
   
24,117
     
18,144
 
Goodwill and intangible assets, net
   
54,663
     
55,625
 
Total assets
   
612,504
     
595,199
 
 
               
Liabilities and shareholders' equity
               
 
               
Current Liabilities
               
Trade payables
   
4,896
     
6,315
 
Deferred revenues
   
97,703
     
79,239
 
Operating lease liabilities
   
4,573
     
5,193
 
Other payables and accrued expenses
   
33,672
     
34,794
 
 
   
140,844
     
125,541
 
 
               
Long-term liabilities
               
Deferred revenues
   
54,091
     
50,888
 
Operating lease liabilities
   
20,469
     
13,914
 
Other long-term liabilities
   
10,004
     
9,525
 
 
   
84,564
     
74,327
 
 
               
Shareholders' equity
               
Share capital
   
713
     
710
 
Additional paid-in capital
   
425,466
     
414,581
 
Accumulated other comprehensive income, net of tax
   
2,444
     
1,145
 
Treasury stock, at cost
   
(168,895
)
   
(145,226
)
Retained earnings
   
127,368
     
124,121
 
Total shareholders' equity
   
387,096
     
395,331
 
 
               
Total liabilities and shareholders' equity
   
612,504
     
595,199
 

5

Radware Ltd.
 
Condensed Consolidated Statements of Income
 
(U.S Dollars in thousands, except share and per share data)
 
 
                       
 
 
For the three months ended
   
For the six months ended
 
 
 
June 30,
   
June 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
 
 
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
 
                       
Revenues
   
58,445
     
60,454
     
118,457
     
121,851
 
Cost of revenues
   
10,558
     
10,644
     
21,247
     
21,653
 
Gross profit
   
47,887
     
49,810
     
97,210
     
100,198
 
 
                               
Operating expenses, net:
                               
Research and development, net
   
16,509
     
15,400
     
32,341
     
30,630
 
Selling and marketing
   
26,755
     
26,680
     
54,957
     
53,341
 
General and administrative
   
4,889
     
5,042
     
9,601
     
9,806
 
Total operating expenses, net
   
48,153
     
47,122
     
96,899
     
93,777
 
 
                               
Operating income (loss)
   
(266
)
   
2,688
     
311
     
6,421
 
Financial income, net
   
1,783
     
2,119
     
4,507
     
3,910
 
Income before taxes on income
   
1,517
     
4,807
     
4,818
     
10,331
 
Taxes on income
   
844
     
1,061
     
1,571
     
2,217
 
Net income
   
673
     
3,746
     
3,247
     
8,114
 
 
                               
Basic net earnings per share
   
0.01
     
0.08
     
0.07
     
0.17
 
 
                               
   Weighted average number of shares used to compute basic net earnings per share
   
46,387,585
     
46,899,813
     
46,652,734
     
46,757,981
 
 
                               
Diluted net earnings per share
   
0.01
     
0.08
     
0.07
     
0.17
 
 
                               
   Weighted average number of shares used to compute diluted net earnings per share
   
47,632,309
     
48,722,684
     
47,927,268
     
48,649,438
 

6

Radware Ltd.
 
Reconciliation of GAAP to Non-GAAP Financial Information
 
(U.S Dollars in thousands, except share and per share data)
 
 
                       
 
 
For the three months ended
   
For the six months ended
 
 
 
June 30,
   
June 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
 
 
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
GAAP gross profit
   
47,887
     
49,810
     
97,210
     
100,198
 
Stock-based compensation
   
49
     
59
     
87
     
114
 
Amortization of intangible assets
   
464
     
410
     
962
     
821
 
Non-GAAP gross profit
   
48,400
     
50,279
     
98,259
     
101,133
 
 
                               
GAAP research and development, net
   
16,509
     
15,400
     
32,341
     
30,630
 
Stock-based compensation
   
1,089
     
714
     
1,898
     
1,424
 
Non-GAAP Research and development, net
   
15,420
     
14,686
     
30,443
     
29,206
 
 
                               
GAAP selling and marketing
   
26,755
     
26,680
     
54,957
     
53,341
 
Stock-based compensation
   
1,845
     
1,735
     
3,731
     
3,304
 
Amortization of intangible assets
   
-
     
18
     
-
     
35
 
Non-GAAP selling and marketing
   
24,910
     
24,927
     
51,226
     
50,002
 
 
                               
GAAP general and administrative
   
4,889
     
5,042
     
9,601
     
9,806
 
Stock-based compensation
   
931
     
782
     
1,834
     
1,549
 
Acquisition costs
   
-
     
-
     
-
     
264
 
Litigation costs
   
140
     
777
     
259
     
859
 
Non-GAAP general and administrative
   
3,818
     
3,483
     
7,508
     
7,134
 
 
                               
GAAP total operating expenses, net
   
48,153
     
47,122
     
96,899
     
93,777
 
Stock-based compensation
   
3,865
     
3,231
     
7,463
     
6,277
 
Amortization of intangible assets
   
-
     
18
     
-
     
35
 
Acquisition costs
   
-
     
-
     
-
     
264
 
Litigation costs
   
140
     
777
     
259
     
859
 
Non-GAAP total operating expenses, net
   
44,148
     
43,096
     
89,177
     
86,342
 
 
                               
GAAP operating income (loss)
   
(266
)
   
2,688
     
311
     
6,421
 
Stock-based compensation
   
3,914
     
3,290
     
7,550
     
6,391
 
Amortization of intangible assets
   
464
     
428
     
962
     
856
 
Acquisition costs
   
-
     
-
     
-
     
264
 
Litigation costs
   
140
     
777
     
259
     
859
 
Non-GAAP operating income
   
4,252
     
7,183
     
9,082
     
14,791
 
 
                               
GAAP financial income, net
   
1,783
     
2,119
     
4,507
     
3,910
 
Other loss (gain) adjustment
   
-
     
(310
)
   
247
     
(310
)
Exchange rate differences, net on balance sheet items included in financial income, net
   
859
     
909
     
552
     
1,540
 
Non-GAAP financial income, net
   
2,642
     
2,718
     
5,306
     
5,140
 
 
                               
GAAP income before taxes on income
   
1,517
     
4,807
     
4,818
     
10,331
 
Stock-based compensation
   
3,914
     
3,290
     
7,550
     
6,391
 
Amortization of intangible assets
   
464
     
428
     
962
     
856
 
Acquisition costs
   
-
     
-
     
-
     
264
 
Litigation costs
   
140
     
777
     
259
     
859
 
Other loss (gain) adjustment
   
-
     
(310
)
   
247
     
(310
)
Exchange rate differences, net on balance sheet items included in financial income, net
   
859
     
909
     
552
     
1,540
 
Non-GAAP income before taxes on income
   
6,894
     
9,901
     
14,388
     
19,931
 
 
                               
GAAP taxes on income
   
844
     
1,061
     
1,571
     
2,217
 
Tax related adjustments
   
61
     
(71
)
   
183
     
(71
)
Non-GAAP taxes on income
   
905
     
990
     
1,754
     
2,146
 
 
                               
GAAP net income
   
673
     
3,746
     
3,247
     
8,114
 
Stock-based compensation
   
3,914
     
3,290
     
7,550
     
6,391
 
Amortization of intangible assets
   
464
     
428
     
962
     
856
 
Acquisition costs
   
-
     
-
     
-
     
264
 
Litigation costs
   
140
     
777
     
259
     
859
 
Other loss (gain) adjustment
   
-
     
(310
)
   
247
     
(310
)
Exchange rate differences, net on balance sheet items included in financial income, net
   
859
     
909
     
552
     
1,540
 
Tax related adjustments
   
(61
)
   
71
     
(183
)
   
71
 
Non-GAAP net income
   
5,989
     
8,911
     
12,634
     
17,785
 
 
                               
GAAP diluted net earnings per share
   
0.01
     
0.08
     
0.07
     
0.17
 
Stock-based compensation
   
0.08
     
0.07
     
0.16
     
0.13
 
Amortization of intangible assets
   
0.01
     
0.01
     
0.02
     
0.02
 
Acquisition costs
   
0.00
     
0.00
     
0.00
     
0.01
 
Litigation costs
   
0.00
     
0.02
     
0.01
     
0.02
 
Other loss (gain) adjustment
   
0.00
     
(0.01
)
   
0.01
     
(0.01
)
Exchange rate differences, net on balance sheet items included in financial income, net
   
0.02
     
0.02
     
0.01
     
0.03
 
Tax related adjustments
   
(0.00
)
   
0.00
     
(0.00
)
   
0.00
 
Non-GAAP diluted net earnings per share
   
0.13
     
0.18
     
0.26
     
0.37
 
 
                               
Weighted average number of shares used to compute Non-GAAP diluted net earnings per share
   
47,632,309
     
48,722,684
     
47,927,268
     
48,649,438
 

7

Radware Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)
 
                       
 
 
For the three months ended
   
For the six months ended
 
 
 
June 30,
   
June 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
 
 
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
Cash flow from operating activities:
                       
 
                       
Net income
   
673
     
3,746
     
3,247
     
8,114
 
Adjustments to reconcile net income to net cash provided by operating activities:
                               
Depreciation and amortization
   
2,637
     
2,701
     
5,267
     
5,388
 
Stock-based compensation
   
3,914
     
3,290
     
7,550
     
6,391
 
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net
   
114
     
149
     
310
     
327
 
Gain related to securities, net
   
(226
)
   
(310
)
   
(63
)
   
(310
)
Accrued interest on bank deposits
   
(178
)
   
3,160
     
(373
)
   
2,331
 
Increase (decrease) in accrued severance pay, net
   
(29
)
   
65
     
187
     
933
 
Decrease (increase) in trade receivables, net
   
9,444
     
(641
)
   
5,415
     
2,529
 
Increase in other receivables and prepaid expenses and other long-term assets
   
(1,471
)
   
(1,721
)
   
(1,930
)
   
(3,686
)
Decrease (increase) in inventories
   
748
     
1,221
     
(166
)
   
2,437
 
Decrease in trade payables
   
(3
)
   
(28
)
   
(1,419
)
   
(738
)
Increase (decrease) in deferred revenues
   
1,637
     
(7,237
)
   
21,667
     
3,783
 
Increase (decrease) in other payables and accrued expenses
   
(100
)
   
463
     
(721
)
   
472
 
Operating lease liabilities, net
   
800
     
285
     
(38
)
   
660
 
Net cash provided by operating activities
   
17,960
     
5,143
     
38,933
     
28,631
 
 
                               
Cash flows from investing activities:
                               
 
                               
Purchase of property and equipment
   
(2,545
)
   
(2,382
)
   
(4,997
)
   
(4,343
)
Investment in other long-term assets, net
   
(9
)
   
(33
)
   
(11
)
   
(62
)
Proceeds from (investment in) bank deposits, net
   
(4,652
)
   
19,529
     
(9,158
)
   
19,447
 
Proceeds from (investment in) sale, redemption of and purchase of marketable securities ,net
   
940
     
(33,574
)
   
3,463
     
(43,235
)
Payment for acquisition of subsidiary, net of cash acquired
   
0
     
43
     
0
     
(12,239
)
Net cash used in investing activities
   
(6,266
)
   
(16,417
)
   
(10,703
)
   
(40,432
)
 
                               
Cash flows from financing activities:
                               
 
                               
Proceeds from exercise of stock options
   
1,749
     
3,109
     
3,338
     
10,842
 
Repurchase of shares
   
(5,000
)
   
(10,005
)
   
(23,669
)
   
(10,053
)
Net cash provided by (used in) financing activities
   
(3,251
)
   
(6,896
)
   
(20,331
)
   
789
 
 
                               
Increase (decrease) in cash and cash equivalents
   
8,443
     
(18,170
)
   
7,899
     
(11,012
)
Cash and cash equivalents at the beginning of the period
   
40,207
     
52,361
     
40,751
     
45,203
 
Cash and cash equivalents at the end of the period
   
48,650
     
34,191
     
48,650
     
34,191
 

8