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What: Shares of Radware (RDWR -7.08%) have fallen by as much as 24% after the company announced disappointing preliminary earnings for the first quarter.
So what: Revenue is expected to be $45 million, which is well below Radware's previous guidance of $48.5 million to $49.5 million. Analysts were expecting the company to report $49.2 million. Non-GAAP earnings per share should be approximately $0.30, leaving a lot to be desired compared to guidance of $0.40 to $0.43 per share in adjusted profits. The Street was modeling for $0.43 per share.
Now what: CEO Roy Zisapel said that sales in the U.S. market were strong, but weak performance in the Europe, Middle East, Africa, and China geographical segments dragged down overall results. Needham analyst Alex Henderson told Bloomberg that existing customers are taking longer to order for projects. Networking peer F5 Networks also posted preliminary earnings yesterday that were worse than expected, showing that the broader sector is facing headwinds.
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