HOD HASHARON, Israel,
Nov. 4, 2014 /PRNewswire/
-- Allot Communications Ltd. (NASDAQ: ALLT), a leading
supplier of service optimization and revenue generation solutions
for fixed and mobile broadband operators and cloud providers
worldwide, today announced its third quarter 2014 results, with
non-GAAP revenues reaching $30.1
million.
Q3 2014 - Key Highlights:
- Non-GAAP Revenues grew 25% year on year and 7%
sequentially
- Non-GAAP Gross Margin was 75% (73% on a GAAP basis)
- Non-GAAP Operating Margin was 10% (2% on a GAAP
basis)
- Book-to-bill above one
- Generated $2.9 million of
Operating Cash Flow
- Net Cash as of September 30,
2014 totaled $125.4
million
Financial results:
On a non-GAAP basis, total revenues for Q3 2014 reached
$30.1 million, compared with
$24.1 million of non-GAAP revenue
reported for Q3 2013 and $28.2
million of non-GAAP revenue reported for Q2 2014. On a
non-GAAP basis, net profit for Q3 2014 was $3.1 million, or $0.09 per basic and diluted share. This compares
with non-GAAP net profit of $1.1
million, or $0.03 per basic
and diluted share, in Q3 2013 and a non-GAAP net profit of
$1.9 million, or $0.06 per basic and diluted share, in Q2
2014.
Total GAAP revenues for Q3 2014 reached $30.1 million compared to $24.0 million of revenue reported for Q3 2013 and
$28.2 million of GAAP revenue
reported for Q2 2014. On a GAAP basis, net profit for Q3 2014 was
$0.8 million, or of $0.02 per basic and diluted share. This compares
with a net loss of $1.9 million, or
$0.06 per basic and diluted share, in
Q3 2013 and a net loss of $0.6
million, or $0.02 per basic
and diluted share, in Q2 2014.
Q3 2014 - Key Achievements:
- During Q3 2014, 10 large orders were received, 2 of which are
new customers
- 3 of the large orders came from mobile-service providers and 4
were from fixed-line service providers
- In addition, 3 large orders were received for private and
public cloud deployments
- Received an expansion order of more than $15 million from a Tier-1 operator. The order
includes Allot Service Gateway Tera and Allot
ServiceProtector.
- Received an expansion order of over $5
million for the Tera platform from two Tier-1 service
providers.
- Secured 3 orders from major cloud service providers to ensure
user experience and productivity through greater application
visibility, control and security.
"We are pleased with our performance during the third quarter
and the ongoing strong momentum in our booking flow. During the
third quarter we continued to execute well on all fronts, increased
our revenues by 25% YoY and 7% sequentially, improved our gross
margin and book to bill was once again above 1," said Andrei
Elefant, President & CEO of Allot Communications. "We
continue to see a strong demand from service provides for revenue
generating services. The advanced value added services provided on
our Service Gateway Tera continue to gain tractions among Service
Provides."
Conference Call & Webcast:
The Allot management team will host a conference call to discuss
third quarter 2014 earnings results today at 8:30 AM ET, 3:30
p.m. Israel time. To access
the conference call, please dial one of the following numbers: US:
+1646 254 3361, UK: +44(0)2034271907,
Israel:
+97237630145, participant code 1230659.
A replay of the conference call will be available from
12:00 PM ET on November 4 2014 for 30 days. To access the
replay, please dial: US: +1 347 366 9565; UK:
+44(0)2034270598, access code: 1230659. A live
webcast of the conference call can be accessed on the Allot
Communications website at www.allot.com. The webcast also will be
archived on the website following the conference call.
About Allot Communications
Allot Communications Ltd. (NASDAQ, TASE: ALLT) empowers service
providers to monetize and optimize their networks, enterprises to
enhance productivity and consumers to enjoy an always-on digital
lifestyle. Allot's advanced DPI-based broadband solutions identify
and leverage network intelligence to analyze, protect, improve and
enrich mobile, fixed and cloud service delivery and user
experience. Allot's unique blend of innovative technology, proven
know-how and collaborative approach to industry standards and
partnerships enables network operators worldwide to elevate their
role in the digital lifestyle ecosystem and to open the door to a
wealth of new business opportunities. For more information, please
visit www.allot.com.
GAAP to Non-GAAP Reconciliation:
The discrepancy between GAAP and non-GAAP revenues is related to
the acquisitions made by the Company and represents revenues
adjusted for the impact of the fair value adjustment to acquired
deferred revenue related to purchase accounting. Non-GAAP net
profit is defined as GAAP net profit after including deferred
revenues related to the fair value adjustment resulting from
purchase accounting and excluding stock-based compensation
expenses, amortization of acquisition-related intangible assets,
regulatory matters, acquisition-related expenses and compensation
expenses related to the acquisitions.
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 Table 2. The Company provides
these non-GAAP financial measures because it believes 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 they are useful to
investors in enhancing an understanding of the Company's operating
performance.
Safe Harbor Statement
This release may contain forward-looking statements, which
express the current beliefs and expectations of Company management.
Such statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include risks relating to: our ability to compete
successfully with other companies offering competing technologies;
the loss of one or more significant customers; consolidation of,
and strategic alliances by, our competitors, government regulation;
lower demand for key value-added services; our ability to keep pace
with advances in technology and to add new features and value-added
services; managing lengthy sales cycles; operational risks
associated with large projects; our dependence on third party
channel partners for a material portion of our revenues; 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. Forward-looking statements in this release are made
pursuant to the safe harbor provisions contained in the Private
Securities Litigation Reform Act of 1995. 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.
Investor Relations Contact:
Rami Rozen
AVP
Corporate Development
International access code +972-52-569-4441
rrozen@allot.com
Public Relations Contact:
Maya Lustig
Director
Corporate Communications
International access code +972-54-677-8100
mlustig@allot.com
|
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
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
|
September
30,
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 30,101
|
|
$ 23,949
|
|
|
$ 86,551
|
|
$ 69,274
|
|
Cost of
revenues
|
8,059
|
|
6,568
|
|
|
24,311
|
|
19,061
|
|
Gross
profit
|
22,042
|
|
17,381
|
|
|
62,240
|
|
50,213
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development costs, net
|
7,240
|
|
6,599
|
|
|
21,649
|
|
20,399
|
|
Sales and
marketing
|
11,411
|
|
9,982
|
|
|
32,544
|
|
29,704
|
|
General and
administrative
|
2,798
|
|
2,942
|
|
|
8,616
|
|
8,246
|
|
Total operating
expenses
|
21,449
|
|
19,523
|
|
|
62,809
|
|
58,349
|
|
Operating profit
(loss)
|
593
|
|
(2,142)
|
|
|
(569)
|
|
(8,136)
|
|
Financial and other
income, net
|
224
|
|
229
|
|
|
460
|
|
584
|
|
Profit (loss) before
income tax benefit
|
817
|
|
(1,913)
|
|
|
(109)
|
|
(7,552)
|
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
52
|
|
17
|
|
|
134
|
|
90
|
|
Net profit
(loss)
|
765
|
|
(1,930)
|
|
|
(243)
|
|
(7,642)
|
|
|
|
|
|
|
|
|
|
|
Basic net
profit (loss) per share
|
$
0.02
|
|
$ (0.06)
|
|
|
$ (0.01)
|
|
$ (0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
profit (loss) per share
|
$
0.02
|
|
$ (0.06)
|
|
|
$ (0.01)
|
|
$ (0.23)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,234,558
|
|
32,710,885
|
|
|
33,096,065
|
|
32,634,926
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,631,356
|
|
32,710,885
|
|
|
33,096,065
|
|
32,634,926
|
|
TABLE -
2
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(U.S. dollars in
thousands, except per share data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
GAAP net profit
(loss) as reported
|
$
765
|
|
$
(1,930)
|
|
$ (243)
|
|
$ (7,642)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
Expenses recorded for
stock-based compensation
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
90
|
|
88
|
|
268
|
|
289
|
|
Research and
development costs, net
|
476
|
|
428
|
|
1,432
|
|
1,251
|
|
Sales and
marketing
|
830
|
|
796
|
|
2,462
|
|
2,415
|
|
General and
administrative
|
498
|
|
705
|
|
1,710
|
|
1,940
|
|
Expenses related to
M&A activities and compliance with regulatory matters
(*)
|
|
|
|
|
|
|
|
|
General and
administrative
|
-
|
|
3
|
|
33
|
|
36
|
|
Research and
development costs, net
|
-
|
|
-
|
|
-
|
|
28
|
|
Sales and
marketing
|
-
|
|
-
|
|
-
|
|
12
|
|
Intangible assets
amortization
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
400
|
|
587
|
|
1,199
|
|
1,593
|
|
Sales and
marketing
|
57
|
|
58
|
|
188
|
|
173
|
|
Fair value adjustment
for acquired deferred revenues write down
|
11
|
|
147
|
|
34
|
|
460
|
|
Expense related to
settlement of OCS grants (Cost of revenues)
|
-
|
|
250
|
|
-
|
|
250
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
2,362
|
|
3,062
|
|
7,326
|
|
8,447
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
profit
|
$ 3,127
|
|
$
1,132
|
|
$ 7,083
|
|
$
805
|
|
|
|
|
|
|
|
|
|
|
Non- GAAP
basic net profit per share
|
$
0.09
|
|
$
0.03
|
|
$ 0.21
|
|
$ 0.02
|
|
|
|
|
|
|
|
|
|
|
Non- GAAP diluted
net profit per share
|
$
0.09
|
|
$
0.03
|
|
$ 0.21
|
|
$ 0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,234,558
|
|
32,710,885
|
|
33,096,065
|
|
32,634,926
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,943,166
|
|
33,579,948
|
|
33,949,132
|
|
33,453,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Mostly legal,
finance and compensation expenses related to the
acquisition
|
|
|
|
TABLE -
3
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO NON-GAAP CONSOLIDATED REVENUES
|
|
(U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP
Revenues
|
$ 30,101
|
|
$ 23,949
|
|
$ 86,551
|
|
$ 69,274
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
11
|
|
147
|
|
$ 34
|
|
$ 460
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Revenues
|
$ 30,112
|
|
$ 24,096
|
|
$ 86,585
|
|
$ 69,734
|
|
|
|
|
|
|
|
|
|
TABLE -
4
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
31,631
|
|
$
42,813
|
|
Short term
deposits
|
|
38,500
|
|
38,000
|
|
Marketable securities
and restricted cash
|
|
55,276
|
|
40,798
|
|
Trade receivables,
net
|
|
25,325
|
|
16,908
|
|
Other receivables and
prepaid expenses
|
|
9,962
|
|
8,218
|
|
Inventories
|
|
13,042
|
|
13,798
|
|
Total current
assets
|
|
173,736
|
|
160,535
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Severance pay
fund
|
|
268
|
|
254
|
|
Deferred
taxes
|
|
1,436
|
|
1,602
|
|
Other
assets
|
|
2,256
|
|
771
|
|
Total long-term
assets
|
|
3,960
|
|
2,627
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
6,061
|
|
5,874
|
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
28,834
|
|
30,221
|
|
|
|
|
|
|
Total
assets
|
|
$
212,591
|
|
$
199,257
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
5,372
|
|
$
3,191
|
|
Deferred
revenues
|
|
12,156
|
|
12,504
|
|
Other payables and
accrued expenses
|
|
14,954
|
|
10,906
|
|
Total current
liabilities
|
|
32,482
|
|
26,601
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred
revenues
|
|
4,472
|
|
2,447
|
|
Accrued severance
pay
|
|
289
|
|
282
|
|
Total long-term
liabilities
|
|
4,761
|
|
2,729
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
175,348
|
|
169,927
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
212,591
|
|
$
199,257
|
|
|
|
|
|
|
TABLE -
5
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(Loss)
|
$
765
|
$
(1,930)
|
|
$
(243)
|
$
(7,642)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
764
|
837
|
|
2,326
|
2,584
|
|
Stock-based
compensation related to options granted to employees
|
1,894
|
2,017
|
|
5,873
|
5,896
|
|
Amortization of
intangible assets
|
457
|
645
|
|
1,387
|
1,767
|
|
Capital
loss
|
-
|
4
|
|
-
|
18
|
|
Decrease (Increase)
in accrued severance pay, net
|
(4)
|
(2)
|
|
(7)
|
(4)
|
|
Decrease (Increase)
in other assets
|
131
|
27
|
|
60
|
14
|
|
Decrease (Increase)
in accrued interest and amortization of premium on marketable
securities
|
275
|
151
|
|
520
|
208
|
|
Increase (Decrease)
in trade receivables
|
(1,539)
|
(761)
|
|
(8,417)
|
(3,244)
|
|
Decrease (Increase)
in other receivables and prepaid expenses
|
(1,468)
|
(971)
|
|
(1,269)
|
(2,640)
|
|
Decrease (Increase)
in inventories
|
835
|
(1,325)
|
|
756
|
(2,106)
|
|
Increase in long-term
deferred taxes, net
|
-
|
-
|
|
56
|
-
|
|
Increase (Decrease)
in trade payables
|
(2,121)
|
(263)
|
|
2,181
|
(42)
|
|
Increase (Decrease)
in employees and payroll accruals
|
(598)
|
(144)
|
|
407
|
(1,404)
|
|
Increase (Decrease)
in deferred revenues
|
1,313
|
(590)
|
|
1,677
|
(4,648)
|
|
Increase (Decrease)
in other payables and accrued expenses
|
2,212
|
(1,135)
|
|
2,459
|
1,001
|
|
Increase in Liability
related to settlement of OCS grants
|
-
|
(16,024)
|
|
-
|
(16,024)
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
2,916
|
(19,464)
|
|
7,766
|
(26,266)
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in
restricted deposit
|
-
|
145
|
|
-
|
146
|
|
Redemption of
short-term deposits
|
-
|
-
|
|
29,500
|
76,042
|
|
Investment in
short-term deposit
|
(30,000)
|
(21,600)
|
|
(30,000)
|
(21,600)
|
|
Purchase of property
and equipment
|
(900)
|
(552)
|
|
(2,513)
|
(1,980)
|
|
Investment in
marketable securities
|
(885)
|
(525)
|
|
(19,866)
|
(29,891)
|
|
Proceeds from
redemption or sale of marketable securities
|
500
|
1,100
|
|
4,764
|
4,811
|
|
Loan provided to
third party
|
-
|
-
|
|
(2,735)
|
-
|
|
Proceeds from loan
provided to third party
|
157
|
-
|
|
500
|
-
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
(31,128)
|
(21,432)
|
|
(20,350)
|
27,528
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
14
|
304
|
|
1,402
|
573
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
14
|
304
|
|
1,402
|
573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
(28,198)
|
(40,592)
|
|
(11,182)
|
1,835
|
|
Cash and cash
equivalents at the beginning of the period
|
59,829
|
92,453
|
|
42,813
|
50,026
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
31,631
|
$
51,861
|
|
$
31,631
|
$
51,861
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Allot Communications Ltd.