ALLT Allot Ltd

HOD HASHARON, Israel, Aug. 5, 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 second quarter 2014 results, with non-GAAP revenues reaching $28.2 million.

Q2 2014 - Key Highlights:

• Non-GAAP Revenues grew 31.1% year on year and remained flat with Q1 2014
• Non-GAAP Gross Margin was 73.1% (71.4% on a GAAP basis)
• Non-GAAP Operating Margin was 6.5% (2.3% operating loss on a GAAP basis)
• Book-to-bill above one
• Generated $1.4 million of Operating Cash Flow
• Net Cash as of June 30, 2014 totaled $123.6 million

Financial results:

On a non-GAAP basis, total revenues for Q2 2014 reached $28.2 million, compared with $21.5 million of non-GAAP revenue reported for Q2 2013 and $28.3 million of non-GAAP revenue reported for Q1 2014.  On a non-GAAP basis, net profit for Q2 2014 was $1.9 million, or $0.06 per basic and diluted share. This compares with non-GAAP net loss of $0.9 million, or $0.03 per basic and diluted share, in Q2 2013 and a non-GAAP net profit of $2.1 million, or $0.06 per basic and diluted share, in Q1 2014.

Total GAAP revenues for Q2 2014 reached $28.2 million compared to $21.2 million of revenue reported for Q2 2013 and $28.3 million of GAAP revenue reported for Q1 2014. On a GAAP basis, the net loss for Q2 2014 was $0.6 million, or of $0.02 per basic and diluted share. This compares with a net loss of $3.9 million, or $0.12 per basic and diluted share, in Q2 2013 and a net loss of $0.4 million, or $0.01 per basic and diluted share, in Q1 2014.

Q2 2014 - Key Achievements:

• During Q2 2014, 18 large orders were received, 3 of which are new customers
• 12 of the large orders came from mobile-service providers and 3 were from fixed-line service providers
• In addition, 3 large orders were received for private and public cloud deployments
• Won a $3 million contract with a tier-1 cable provider to deliver an intelligent traffic management solution to relieve cable access network congestion and provide big data analytics
• More than $10 million of the booking was based on the new Allot Service Gateway Tera during Q2 2014.

"We are highly encouraged by the rapid adoption of the Allot Service Gateway Tera platform by Tier-1 mobile service providers and expect this to set a strong foundation for future follow-on installations of analytics, security and additional value added services. The business environment continues to show strength and book to bill ratio was, for the 6^th quarter in a row, higher than 1. Entering the second half of the year, our funnel is robust and we continue to identify interesting opportunities with service providers that choose more comprehensive solution than in the past." said Andrei Elefant, President & CEO of Allot Communications. "We see an increasing demand for advanced services and sense a shift towards application-centric data plans offering."

Conference Call & Webcast:

The Allot management team will host a conference call to discuss second 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 3362, UK: +44(0)203 4271914, Israel: +97237630145, participant code 8306866.

A replay of the conference call will be available from 12:00 AM ET on August 6, 2014 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44 (0)20 3427 0598, access code: 8306866. 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) is a leading global provider of intelligent broadband solutions that put mobile, fixed and enterprise networks at the center of the digital lifestyle and workstyle. Allot's DPI-based solutions identify and leverage the business intelligence in data networks, empowering operators to analyze, protect, improve and enrich the digital lifestyle services they deliver. 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

SOURCE Allot