April 28, 2008 / 3:16 PM / 10 years ago

Radware posts wider Q1 loss; sees profitablity in Q4, shrs slip

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April 28 (Reuters) - Radware Ltd (RDWR.O), which makes equipment to manage traffic on the Internet, posted a wider quarterly loss on higher expenses, and forecast a return to profitability later than what analysts had expected, sending its shares to their lowest in four years.

The company expects to return to operating profitability by the fourth quarter. Analysts were expecting the Israel-based company to turn in profits in the third quarter itself, according to Reuters Estimates data.

The company posted a loss of $8.3 million, or 42 cents a share, in the first quarter, compared with a loss of $3.6 million, or 18 cents a share, a year earlier.

Excluding exceptional items, the company reported a loss of 32 cents a share for the quarter.

Sales rose 12 percent to $22.2 million.

Analysts were expecting a loss of 5 cents a share, on revenue of $23.4 million.

Certain decisions with respect to revenue recognition after the end of the quarter caused recorded revenue to fall slightly below expectations, the company said in a statement.

Operating expenses rose almost 35 percent to $27 million.

Radware, whose shares have lost about 46 percent of their value from a high of $17 in November, said the devaluation of the dollar against the Israeli shekel resulted in an increase in operating expenses of $1 million.

The company, which competes with Cisco Systems (CSCO.O) and F5 Networks (FFIV.O), said it expects to reach an annual growth rate in the mid to high teens.

Shares of the company fell almost 14 percent to $9.17, before recovering some losses to trade at $9.37 Monday morning on Nasdaq. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Amitha Rajan)

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