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Allot Communications Reports 43% Revenue Rise for Second Quarter of 2012

Date : 07/31/2012 @ 1:01AM
Source : PR Newswire (US)
Stock : Allot Communications Ltd. - Ordinary Shares (MM) (ALLT)
Quote : 12.83  0.25 (1.99%) @ 7:22AM
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Allot Communications Reports 43% Revenue Rise for Second Quarter of 2012

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HOD HASHARON, Israel, July 31, 2012 /PRNewswire/ --

Key highlights:

- Second quarter revenues increased to $26.4 million, a 43% increase over the second quarter of 2011 and 9% increase over the previous quarter

- Second quarter non-GAAP net profit reaches $5.0 million, 83% increase over second quarter 2011; non-GAAP EPS of $0.15, similar to first quarter level, despite dilutive effect from Ortiva acquisition in the quarter

- Cash, cash equivalents and marketable securities totaled $159.8 million after acquisition closing; generated approximately $4.8 million in cash from operations during the quarter

Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile data worldwide, today announced continued growth in sales during the second quarter of 2012.  

Total revenues for the second quarter of 2012 reached $26.4 million, a 43% increase from the $18.5 million of revenues reported for the second quarter of 2011, and a 9% increase from the $24.2 million of revenues reported for the first quarter of 2012.  On a GAAP basis, net profit for the second quarter of 2012 was $2.7 million, or $0.08 per basic and diluted share. This compares with net profit of $1.6 million, or $0.07 per basic share and $0.06 per diluted share, in the second quarter of 2011, and net profit of $3.2 million, or $0.10 per basic and diluted share, in the first quarter of 2012.  

On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and certain one-time charges incurred related to M&A activities and compliance with regulatory matters, non-GAAP net profit for the second quarter of 2012 totaled $5.0 million, or $0.16 per basic share and $0.15 per diluted share, compared with non-GAAP net profit of $2.7 million, or $0.11 per basic share and $0.10 per diluted share, for the second quarter of 2011, and non-GAAP net profit $5.0 million, or $0.16 per basic share and $0.15 per diluted share, for the first quarter of 2012.  The results reflect added operating expenses from the Ortiva Wireless acquisition, which closed on May 15, 2012.  

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures.  The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are provided in the accompanying Tables 2 and 3.  The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance.  Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

"Allot continued to demonstrate sustained revenue growth during the quarter," commented Rami Hadar, Allot Communications' President and Chief Executive Officer.  "The demand for network optimization and revenue generating solutions which we offer through our Service Gateway continues to increase as data traffic continues to grow throughout the world.  With today's announcement regarding the acquisition of Oversi, we now offer the most comprehensive video solution in the industry."

Recently, the Company achieved the following significant goals:

  • During the quarter, received large orders from 14 service providers, 6 of which represented new customers;  
  • 6 of the large orders came from mobile service providers, 2 of which were new customers
  • Announced closing the acquisition of Ortiva Wireless on May 15, which provides Allot with a best-of-breed video optimization solution.
  • Announced the deployment of Ortiva's video optimization solution at 3UK, a subsidiary of the Hutchison Group;
  • Announced the acquisition of Oversi Networks, a leading provider of video caching solutions.

As of June 30, 2012, cash, cash equivalents, short term deposits and marketable securities totaled $159.8 million, post-closing the Ortiva acquisition, with no debt. The preliminary allocation of the purchase price for Ortiva is based upon estimates and assumptions that are subject to change within the purchase price allocation period, which is generally one year from the acquisition date.  The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities.

Conference Call & Webcast

The Allot management team will host a conference call to discuss its second quarter 2012 earnings results today at 8:30 AM ET, 3:30 PM Israel time.

To access the conference call, please dial one of the following numbers: US: +1 646 254 3362, UK: +44 (0)20 3450 9987, Israel: +972 3763 0146, participant code 7208054.

A replay of the conference call will be available from 12:01 am ET on August 1, 2012 through August 31, 2012 at 11:59 pm UK time.  To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 3427 0598, access code: 7208054#.

A live webcast of the conference call can be accessed on the Allot Communications website at http://www.allot.com. The webcast will also be archived on the website following the conference call.

About Allot Communications

Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent data traffic optimization and monetization solutions for fixed and mobile broadband operators and large enterprises worldwide. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing fixed and mobile data, enhancing user experience, containing operating costs, and enabling service providers to generate revenues from their broadband networks.  Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value added Internet services. For more information, please visit http://www.allot.com.

Safe Harbor Statement

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to: our ability to increase the breadth and functionality of the Service Gateway platform, changes in general economic and business conditions; the Company's inability to develop and introduce new technologies, products and applications; loss of market; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

                                       TABLE - 1
                                ALLOT COMMUNICATIONS LTD.
                                  AND ITS SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                (U.S. dollars in thousands, except share and per share data)




 
                                               Three Months Ended        Six Months Ended
                                                     June 30,                June 30,
                                                 2012       2011         2012        2011
                                                   (Unaudited)              (Unaudited)
 
    Revenues                                  $ 26,405    $ 18,454    $ 50,622    $ 35,637
    Cost of revenues                             7,755       5,305      14,656      10,157
    Gross profit                                18,650      13,149      35,966      25,480
 
    Operating expenses:
    Research and development costs, net          5,332       3,092       9,342       6,064
    Sales and marketing                          8,126       6,388      15,881      12,701
    General and administrative                   2,659       1,979       5,433       3,406
    Total operating expenses                    16,117      11,459      30,656      22,171
    Operating profit                             2,533       1,690       5,310       3,309
    Financial and other income (expenses), net     187         (63)        649          29
    Profit before income tax expenses            2,720       1,627       5,959       3,338
 
    Tax expenses                                    21          16          24         101
    Net profit                                   2,699       1,611       5,935       3,237
 
    Basic net profit per share                  $ 0.08      $ 0.07      $ 0.19      $ 0.14
 
    Diluted net profit per share                $ 0.08      $ 0.06      $ 0.18      $ 0.12
  
    Weighted average number of shares
    used in computing basic net
    earnings per share                      31,873,752  24,195,495  31,548,294  23,948,546
 
    Weighted average number of shares
    used in computing diluted net
    earnings per share                      33,356,308  26,253,139  33,169,640  25,963,671




                                            TABLE - 2
                                    ALLOT COMMUNICATIONS LTD.
                                      AND ITS SUBSIDIARIES
               RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
                       (U.S. dollars in thousands, except per share data)

                                                Three Months Ended       Six Months Ended
                                                     June 30,                June 30,
                                                 2012        2011        2012        2011
                                                    (Unaudited)             (Unaudited)
 
    GAAP net profit as reported                $ 2,699     $ 1,611     $ 5,935     $ 3,237
 
    Non-GAAP adjustments
    Expenses recorded for stock-based compensation
       Cost of revenues                             52          27          97          50
       Research and development costs, net         240          96         428         188
       Sales and marketing                         446         238         763         459
       General and administrative                  288         186         454         367
    Expenses related to M&A activities and 
    compliance with regulatory matters (*)
       General and administrative                  666         538       1,711         538
       Research and development costs, net         250           -         250           -
       Sales and marketing                          93           -          93           -
    Intangible assets amortization - cost 
    of revenues                                    262          30         293          60
 
    Total adjustments                            2,297       1,115       4,089       1,662
 
    Non-GAAP net profit                        $ 4,996     $ 2,726    $ 10,024     $ 4,899
 
    Non- GAAP basic net profit per share        $ 0.16      $ 0.11      $ 0.32      $ 0.20
 
    Non- GAAP diluted net profit per share      $ 0.15      $ 0.10      $ 0.30      $ 0.19
 
    Weighted average number of shares
    used in computing basic net
    earnings per share                      31,873,752  24,195,495  31,548,294  23,948,546
 
    Weighted average number of shares
    used in computing diluted net
    earnings per share                      33,662,390  26,399,604  33,401,374  26,116,991

    (*) Mostly legal, finance and compensation expenses related to the acquisition




                                           TABLE - 3
                                   ALLOT COMMUNICATIONS LTD.
                                     AND ITS SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS on a NON-GAAP BASIS
                   (U.S. dollars in thousands, except share and per share data)
 
                                                Three Months Ended       Six Months Ended
                                                     June 30,                June 30,
                                                 2012        2011        2012        2011
                                                    (Unaudited)             (Unaudited)
 
    Revenues                                  $ 26,405    $ 18,454    $ 50,622    $ 35,637
    Cost of revenues                             7,441       5,248      14,266      10,047
    Gross profit                                18,964      13,206      36,356      25,590
 
    Operating expenses:
    Research and development costs, net          4,842       2,996       8,664       5,876
    Sales and marketing                          7,587       6,150      15,025      12,242
    General and administrative                   1,705       1,255       3,268       2,501
    Total operating expenses                    14,134      10,401      26,957      20,619
    Operating profit                             4,830       2,805       9,399       4,971
    Financial and other income (expenses), net     187         (63)        649          29
    Profit before income tax expenses            5,017       2,742      10,048       5,000
 
    Tax expenses                                    21          16          24         101
    Net profit                                   4,996       2,726      10,024       4,899
 
    Basic net profit per share                  $ 0.16      $ 0.11      $ 0.32      $ 0.20
 
    Diluted net profit per share                $ 0.15      $ 0.10      $ 0.30      $ 0.19
 
    Weighted average number of shares
    used in computing basic net
    earnings per share                      31,873,752  24,195,495  31,548,294  23,948,546
 
    Weighted average number of shares
    used in computing diluted net
    earnings per share                      33,662,390  26,399,604  33,401,374  26,116,991




                                 TABLE - 4
                         ALLOT COMMUNICATIONS LTD.
                            AND ITS SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                        (U.S. dollars in thousands)
 
                                                   June 30,   December 31,
                                                     2012         2011
                                                  (Unudited)   (Audited)
 
    ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents                      $ 70,083    $ 116,682
    Short term deposits                              71,000       24,000
    Marketable securities and restricted cash        18,692       18,718
    Trade receivables, net                           17,454       11,926
    Other receivables and prepaid expenses            4,387        5,950
    Inventories                                      11,673       10,501
    Total current assets                            193,289      187,777
 
    LONG-TERM ASSETS:
    Severance pay fund                                  181          178
    Other assets and deferred taxes                     355          356
    Total long-term assets                              536          534
 
    PROPERTY AND EQUIPMENT, NET                       5,913        5,352
    GOODWILL AND INTANGIBLE ASSETS, NET              17,424        3,395
 
    Total assets                                  $ 217,162    $ 197,058
 
    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Trade payables                                  $ 7,316      $ 2,684
    Deferred revenues                                17,156       16,694
    Other payables and accrued expenses              12,787        9,462
    Total current liabilities                        37,259       28,840
 
    LONG-TERM LIABILITIES:
    Deferred revenues                                 5,135        5,430
    Accrued severance pay                               229          219
    Total long-term liabilities                       5,364        5,649
 
    SHAREHOLDERS' EQUITY                            174,539      162,569
 
    Total liabilities and shareholders' equity    $ 217,162    $ 197,058




                                            TABLE - 5
                                    ALLOT COMMUNICATIONS LTD.
                                       AND ITS SUBSIDIARIES
                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (U.S. dollars in thousands)
 
                                                 Three Months Ended     Six Months Ended
                                                       June 30,              June 30,
                                                   2012       2011       2012       2011
                                                     (Unaudited)           (Unaudited)
 
    Cash flows from operating activities:
 
    Net income                                   $ 2,699    $ 1,611    $ 5,935    $ 3,237
    Adjustments to reconcile net income to net 
    cash provided by operating activities:
    Depreciation                                     718        679      1,363      1,336
    Stock-based compensation related to options 
    granted to employees and non-employees         1,026        547      1,742      1,064
    Amortization of intangible assets                262         31        293         61
    Capital loss                                       -         13          4          9
    Increase in accrued severance pay, net            13          3          7          6
    Decrease (Increase) in other assets                2          2          1         (1)
    Decease in accrued interest and amortization 
    of premium on marketable securities               11         48         48         47
    Increase (Decrease) in trade receivables      (1,112)     2,364     (5,499)      (403)
    Decrease (Increase) in other receivables
    and prepaid expenses                           1,402     (1,240)     1,626     (1,334)
    Decrease in inventories                          472      1,920        321      1,106
    Increase (Decrease) in trade payables           (763)    (3,075)     2,492     (3,046)
    Increase (Decrease) in employees and 
    payroll accruals                                 113        (17)       378       (609)
    Increase (Decrease) in deferred revenues      (2,847)      (396)    (1,636)     1,064
    Increase in other payables and 
    accrued expenses                               2,794        405      2,117      1,323
 
    Net cash provided by operating activities      4,790      2,895      9,192      3,860
 
    Cash flows from investing activities:
 
    Decrease (Increase) in restricted deposit         65         (1)        21       (487)
    Investment in short-term deposit             (65,000)         -    (47,000)         -
    Purchase of property and equipment              (766)      (588)    (1,469)    (1,298)
    Proceeds from sale of property and equipment       -          -          -         30
    Investment in marketable securities           (1,000)    (1,061)    (1,251)    (1,914)
    Proceeds from redemption or sale of 
    marketable securities                            750        800      1,200      1,600
    Acquisition of Ortiva                        (10,399)         -    (10,399)         -
    Loan issued to Ortiva                         (1,000)         -     (1,000)         -
 
    Net cash used in investing activities        (77,350)      (850)   (59,898)    (2,069)
 
    Cash flows from financing activities:
 
    Exercise of warrants and employee stock 
    options                                        1,741        214      4,107      1,467
 
    Net cash provided by financing activities      1,741        214      4,107      1,467
 
    Increase (Decrease) in cash and cash 
    equivalents                                  (70,819)     2,259    (46,599)     3,258
    Cash and cash equivalents at the beginning
    of the period                                140,902     43,857    116,682     42,858
 
    Cash and cash equivalents at 
    the end of the period                       $ 70,083   $ 46,116   $ 70,083   $ 46,116




Investor Relations Contact:  

Jay Kalish

Executive Director Investor Relations

International access code +972-54-221-1365

jkalish@allot.com

SOURCE Allot Communications Ltd.

Copyright 2012 PR Newswire



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