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.