Radware first-quarter loss widens as operating expenses rise

Israel-based network software maker Radware Ltd. said Monday that its first-quarter loss widened as rising operating expenses overshadowed a modest increase in revenue.

The company's stock fell $1.41, or 13.3 percent, to $9.23 in morning trading, after hitting a 52-week low of $9.17. In the past year, Radware shares have traded between $9.70 and $17.

For the quarter that ended March 31, Radware's loss totaled $8.3 million, or 42 cents per share, compared with a loss of $3.6 million, or 18 cents per share, in the year-ago quarter. On an adjusted basis, the company's loss totaled 32 cents per share.

Radware's revenue rose to $22.2 million from $19.7 million. The company said its quarterly shipments were within expectations but some decisions made in relation to recognition of revenue after the quarter ended resulted in recorded revenue that was a bit below its expectations.

Analysts polled by Thomson Financial expected a loss of 5 cents per share on $23.7 million in revenue. Analyst estimates generally exclude special items.

The company's operating expenses climbed to $27 million from $20 million, due mainly to an increase in sales and marketing expenses.

The company also said that weakness in the dollar against the Israeli shekel, the euro, the Australian dollar and Asian currencies led to a $1 million increase in operating expenses.

Radware said it expects to achieve an annual growth rate in the mid- to high teens and see operating profitability again by the fourth quarter.