2022 Q4 Form 20-F Financial Statement
#000117891323001195 Filed on March 30, 2023
Income Statement
| Concept | 2022 Q4 | 2022 | 2021 Q4 |
|---|---|---|---|
| Revenue | $74.08M | $293.4M | $76.64M |
| YoY Change | -3.34% | 2.42% | 10.99% |
| Cost Of Revenue | $13.92M | $53.88M | $14.05M |
| YoY Change | -0.93% | 2.74% | 15.24% |
| Gross Profit | $60.17M | $239.5M | $62.59M |
| YoY Change | -3.88% | 2.35% | 10.08% |
| Gross Profit Margin | 81.21% | 81.64% | 81.67% |
| Selling, General & Admin | $41.97M | $154.4M | $37.83M |
| YoY Change | 10.93% | 9.85% | 7.45% |
| % of Gross Profit | 69.76% | 64.44% | 60.44% |
| Research & Development | $22.49M | $86.56M | $19.60M |
| YoY Change | 14.74% | 16.82% | 10.41% |
| % of Gross Profit | 37.37% | 36.14% | 31.31% |
| Depreciation & Amortization | $2.878M | $11.69M | $2.484M |
| YoY Change | 15.86% | 14.67% | -7.31% |
| % of Gross Profit | 4.78% | 4.88% | 3.97% |
| Operating Expenses | $64.46M | $240.9M | $57.43M |
| YoY Change | 12.23% | 12.26% | 8.44% |
| Operating Profit | -$4.289M | -$1.378M | $5.164M |
| YoY Change | -183.06% | -107.09% | 32.41% |
| Interest Expense | $2.018M | $8.052M | -$463.0K |
| YoY Change | -535.85% | 93.14% | -218.72% |
| % of Operating Profit | -8.97% | ||
| Other Income/Expense, Net | $8.052M | ||
| YoY Change | 3283.19% | ||
| Pretax Income | -$3.090M | $4.713M | $4.405M |
| YoY Change | -170.15% | -79.18% | 2.68% |
| Income Tax | $1.034M | $4.879M | $9.996M |
| % Of Pretax Income | 103.52% | 226.92% | |
| Net Earnings | -$4.124M | -$166.0K | -$5.591M |
| YoY Change | -26.24% | -102.13% | -299.68% |
| Net Earnings / Revenue | -5.57% | -0.06% | -7.29% |
| Basic Earnings Per Share | $0.00 | ||
| Diluted Earnings Per Share | -$0.09 | $0.00 | -$121.5K |
| COMMON SHARES | |||
| Basic Shares Outstanding | 44.31M shares | 44.94M shares | |
| Diluted Shares Outstanding | 44.94M shares |
Balance Sheet
| Concept | 2022 Q4 | 2022 | 2021 Q4 |
|---|---|---|---|
| SHORT-TERM ASSETS | |||
| Cash & Short-Term Investments | $298.0M | $298.0M | $287.9M |
| YoY Change | 3.53% | 3.53% | -7.28% |
| Cash & Equivalents | $46.19M | $46.19M | $92.51M |
| Short-Term Investments | $251.9M | $251.9M | $195.4M |
| Other Short-Term Assets | $7.196M | -$4.232M | $8.046M |
| YoY Change | -10.56% | -152.6% | 23.78% |
| Inventory | $11.43M | $11.43M | $11.58M |
| Prepaid Expenses | |||
| Receivables | $17.75M | $17.75M | $13.19M |
| Other Receivables | $8.646M | $8.646M | $0.00 |
| Total Short-Term Assets | $335.9M | $335.9M | $320.7M |
| YoY Change | 4.73% | 4.73% | -7.79% |
| LONG-TERM ASSETS | |||
| Property, Plant & Equipment | $44.15M | $44.15M | $45.07M |
| YoY Change | -2.05% | -2.05% | -11.28% |
| Goodwill | $68.01M | $41.14M | |
| YoY Change | 65.29% | ||
| Intangibles | $19.69M | $10.73M | |
| YoY Change | 83.45% | ||
| Long-Term Investments | $133.9M | $133.9M | $177.9M |
| YoY Change | -24.74% | -24.74% | 28.66% |
| Other Assets | $45.78M | $45.78M | $39.79M |
| YoY Change | 15.06% | 15.06% | 21.68% |
| Total Long-Term Assets | $311.5M | $311.5M | $314.7M |
| YoY Change | -0.99% | -0.99% | 14.22% |
| TOTAL ASSETS | |||
| Total Short-Term Assets | $335.9M | $335.9M | $320.7M |
| Total Long-Term Assets | $311.5M | $311.5M | $314.7M |
| Total Assets | $647.4M | $647.4M | $635.4M |
| YoY Change | 1.89% | 1.89% | 1.94% |
| SHORT-TERM LIABILITIES | |||
| YoY Change | |||
| Accounts Payable | $8.067M | $8.067M | $4.310M |
| YoY Change | 87.17% | 87.17% | 10.51% |
| Accrued Expenses | $4.685M | $4.685M | $5.090M |
| YoY Change | -7.96% | -86.75% | -75.41% |
| Deferred Revenue | $108.2M | $99.92M | |
| YoY Change | 8.33% | ||
| Short-Term Debt | $0.00 | $0.00 | $0.00 |
| YoY Change | |||
| Long-Term Debt Due | |||
| YoY Change | |||
| Total Short-Term Liabilities | $166.4M | $166.4M | $165.9M |
| YoY Change | 0.33% | 0.33% | 15.44% |
| LONG-TERM LIABILITIES | |||
| Long-Term Debt | $0.00 | $0.00 | $0.00 |
| YoY Change | |||
| Other Long-Term Liabilities | $112.5M | $112.5M | $99.49M |
| YoY Change | 13.1% | 13.1% | 9.21% |
| Total Long-Term Liabilities | $112.5M | $112.5M | $99.49M |
| YoY Change | 13.1% | 13.1% | 9.21% |
| TOTAL LIABILITIES | |||
| Total Short-Term Liabilities | $166.4M | $166.4M | $165.9M |
| Total Long-Term Liabilities | $112.5M | $112.5M | $99.49M |
| Total Liabilities | $315.2M | $315.2M | $265.4M |
| YoY Change | 18.79% | 18.79% | 13.02% |
| SHAREHOLDERS EQUITY | |||
| Retained Earnings | $141.4M | $141.6M | |
| YoY Change | -0.12% | ||
| Common Stock | $498.9M | $471.9M | |
| YoY Change | 5.72% | ||
| Preferred Stock | |||
| YoY Change | |||
| Treasury Stock (at cost) | $303.3M | $243.0M | |
| YoY Change | 24.8% | ||
| Treasury Stock Shares | 17.04M shares | 14.77M shares | |
| Shareholders Equity | $332.2M | $332.2M | $370.0M |
| YoY Change | |||
| Total Liabilities & Shareholders Equity | $647.4M | $647.4M | $635.4M |
| YoY Change | 1.89% | 1.89% | 1.94% |
Cashflow Statement
| Concept | 2022 Q4 | 2022 | 2021 Q4 |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | -$4.124M | -$166.0K | -$5.591M |
| YoY Change | -26.24% | -102.13% | -299.68% |
| Depreciation, Depletion And Amortization | $2.878M | $11.69M | $2.484M |
| YoY Change | 15.86% | 14.67% | -7.31% |
| Cash From Operating Activities | $9.560M | $32.15M | $28.93M |
| YoY Change | -66.96% | -55.21% | 59.5% |
| INVESTING ACTIVITIES | |||
| Capital Expenditures | $1.768M | $38.81M | -$1.653M |
| YoY Change | -206.96% | -792.74% | -18.97% |
| Acquisitions | $30.00M | ||
| YoY Change | |||
| Other Investing Activities | $7.393M | -$17.20M | $16.65M |
| YoY Change | -55.59% | -227.89% | -399.42% |
| Cash From Investing Activities | $5.625M | -$56.02M | $15.00M |
| YoY Change | -62.49% | -813.7% | -297.04% |
| FINANCING ACTIVITIES | |||
| Cash Dividend Paid | |||
| YoY Change | |||
| Common Stock Issuance & Retirement, Net | -$11.47M | -$22.46M | -$14.62M |
| YoY Change | -21.56% | -46.38% | 586.43% |
| Debt Paid & Issued, Net | |||
| YoY Change | |||
| Cash From Financing Activities | -11.47M | -22.46M | -14.62M |
| YoY Change | -21.56% | -46.38% | 248.95% |
| NET CHANGE | |||
| Cash From Operating Activities | 9.560M | 32.15M | 28.93M |
| Cash From Investing Activities | 5.625M | -56.02M | 15.00M |
| Cash From Financing Activities | -11.47M | -22.46M | -14.62M |
| Net Change In Cash | 3.716M | -46.33M | 29.31M |
| YoY Change | -87.32% | -222.75% | 362.27% |
| FREE CASH FLOW | |||
| Cash From Operating Activities | $9.560M | $32.15M | $28.93M |
| Capital Expenditures | $1.768M | $38.81M | -$1.653M |
| Free Cash Flow | $7.792M | -$6.666M | $30.59M |
| YoY Change | -74.53% | -108.61% | 51.57% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2022 | dei |
Document Type
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20-F | |
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2022-12-31 | |
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--12-31 | |
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2022 | |
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000-30324 | |
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RADWARE LTD. | |
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L3 | |
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22 Raoul Wallenberg Street | |
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Tel Aviv | |
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6971917 | |
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IL | |
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Ordinary Shares,NIS 0.05 par value per share | |
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NASDAQ | |
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44306891 | shares |
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KOST FORER GABBAY & KASIERER | |
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Tel-Aviv, Israel | |
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Use Of Estimates
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<div> <table cellpadding="0" cellspacing="0" style="font-family:'Times New Roman', Times, serif;font-size:10pt;width:100%;text-align:left;color:#000000"> <tr> <td style="width:56.7pt"> </td> <td style="width:28.35pt;vertical-align:top"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">a.</span></span></td> <td style="width:auto;vertical-align:top;text-align:justify"> <div><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Use of estimates:</span></span></div> </td> </tr> </table> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</span></span></div> </div> | |
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Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
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<div> <div style="line-height:1.25"> </div> <table cellpadding="0" cellspacing="0" style="font-family:'Times New Roman', Times, serif;font-size:10pt;width:100%;text-align:left;color:#000000"> <tr> <td style="width:56.7pt"> </td> <td style="width:28.35pt;vertical-align:top"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">v.</span></span></td> <td style="width:auto;vertical-align:top;text-align:justify"> <div><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Derivative and hedging activities:</span></span></div> </td> </tr> </table> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, an entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85pt;line-height:1.25;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Gains and losses on derivatives instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that are attributable to a particular risk), are recorded in accumulated other comprehensive income (loss) and reclassified into consolidated statements of income (loss) in the same accounting period in which the designated forecasted transaction or hedged item affects earnings.</span></span></div> <div style="text-align:justify;margin-left:85pt;line-height:1.25;margin-bottom:0pt"> </div> <div/> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">During 2022 and 2020, the Company entered into forward contracts to hedge a portion of anticipated New Israeli Shekel ("NIS") payroll and benefit payment. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured in fair value. These transactions are effective and, as a result, gain or loss on the derivative instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified as payroll expenses at the time that the hedged income or expense is recorded.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">As of December 31, 2022, we had outstanding currency forwards contracts in the total amount of approximately $62,200 to hedge portions of our forecasted expenses denominated in NIS. These forwards contracts expire on various dates until September 30, 2023.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">As of December 31, 2022, the Company recorded a liability in other payables and accrued expenses on its consolidated balance sheet in the amount of $632. The Company did not hold any outstanding forward contracts as of December 31, 2021.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">For the year ended December 2022, 2021 and 2020, the Company recorded expenses of $318, nil and $79, respectively, in cost of revenues and $2,477, nil and $1,043, in operating expenses, respectively, related to its hedging forward contracts.</span></span></div> <div style="line-height:1.25"> </div> <div style="text-align:justify;margin-left:85.05pt;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2022, the Company expects to reclassify all of its unrealized losses from accumulated other comprehensive loss to earnings during the next twelve months.</span></span></div> </div> | |
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