HOD HASHARON, Israel,
May 5, 2015 /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 first quarter 2015 results, with non-GAAP revenues reaching
$29.5 million.
Q1 2015 – Financial Highlights:
- Non-GAAP Revenues were $29.5
million, up 4.4% year over year
- Non-GAAP Gross Margin reached 76%
- Non-GAAP Operating Margin was 10%
- Book-to-bill was below one
- The Company generated $2.1
million of Operating Cash Flow
- Net Cash as of March 31, 2015
totaled $123.8 million
Financial results:
On a GAAP basis, total revenues for the first quarter of 2015
were $29.5 million compared to
$30.6 million of revenue reported for
the fourth quarter of 2014 and $28.3
million of revenue reported for the first quarter of
2014. Net loss for the first quarter of 2015 was zero, or
$0.00 per basic and diluted share.
This compares with a net loss of $2.3
million, or $0.07 per basic
and diluted share, in the fourth quarter of 2014 and a net loss of
$0.4 million, or $0.01 per basic and diluted share, in the first
quarter of 2014.
On a non-GAAP basis, total revenues for the first quarter of
2015 reached $29.5 million, compared
with $30.6 million of revenue
reported for the fourth quarter of 2014 and $28.3 million of revenue reported for the first
quarter of 2014. On a non-GAAP basis, net income for the
first quarter of 2015 was $2.9
million, or $0.09 per basic
share and diluted share. This compares with non-GAAP net income of
$3.4 million, or $0.10 per basic and diluted share, in the fourth
quarter of 2014 and non-GAAP net income of $2.1 million, or $0.06 per basic and diluted share, in the first
quarter of 2014.
Q1 2015 - Key Achievements:
- During Q1 2015, 18 large orders were received, 3 of which were
from new customers
- 8 of the large orders came from mobile-service providers and 8
were from fixed-line service providers
- In addition, 2 large orders were received for private and
public cloud deployments
- Allot completed the acquisition of Optenet during the first
quarter. The impact over the first quarter results was
immaterial.
- Allot launched SmartEngage which enables mobile operators to
increase subscriber service uptake.
- Received four orders from Tier-1 operators to enable delivery
of Security-as-a-Service and Comply with Regulation.
"During the first quarter we completed the acquisition of
Optenet, a global leader in the field of Security-as-a-Service. We
believe that the acquisition will significantly enhance our
security offering and support future growth opportunities," said
Andrei Elefant, President & CEO
of Allot Communications. "We continued to improve our margins in
the first quarter, expend our customer base and increase our market
share. Security and monetization remained top performers within our
VAS offering and we continue to view these two segments as key
growth engines to our future growth."
Conference Call & Webcast:
The Allot management team will host a conference call to discuss
first quarter 2015 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)2034271906, Israel: +97237219510, participant code
6727250.
A replay of the conference call will be available from
12:00 AM ET on May 6 2015 for 30 days. To access the replay,
please dial: US: +1 347 366 9565; UK: +44(0)2034270598, access
code: 6727250. 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 difference 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
income is defined as GAAP net income 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 matter expenses, acquisition-related expenses and restructuring costs.
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
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$ 29,532
|
|
$ 28,284
|
|
|
Cost of
revenues
|
7,769
|
|
8,195
|
|
|
Gross
profit
|
21,763
|
|
20,089
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development costs, net
|
6,809
|
|
7,221
|
|
|
Sales and
marketing
|
11,808
|
|
10,497
|
|
|
General and
administrative
|
3,250
|
|
2,887
|
|
|
Total operating
expenses
|
21,867
|
|
20,605
|
|
|
Operating
loss
|
(104)
|
|
(516)
|
|
|
Financial and other
income, net
|
205
|
|
149
|
|
|
Profit (loss) before
income tax benefit
|
101
|
|
(367)
|
|
|
|
|
|
|
|
|
Tax
expenses
|
135
|
|
21
|
|
|
Net loss
|
(34)
|
|
(388)
|
|
|
|
|
|
|
|
|
Basic net
loss per share
|
$
(0.00)
|
|
$ (0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.00)
|
|
$ (0.01)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
earnings per
share
|
33,357,909
|
|
32,939,195
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
earnings per
share
|
33,357,909
|
|
32,939,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Three Months
Ended
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
loss
|
$ (104)
|
0%
|
|
$ (516)
|
-2%
|
Share-based
compensation (1)
|
1,867
|
|
|
1,992
|
|
Amortization of
intangible assets (2)
|
511
|
|
|
465
|
|
Expenses
related to M&A activities (3)
|
577
|
|
|
8
|
|
Fair value
adjustment for acquired deferred revenues write
down
|
11
|
|
|
12
|
|
Non-GAAP
Operating income
|
$ 2,862
|
10%
|
|
$ 1,961
|
7%
|
|
|
|
|
|
|
|
GAAP Net
loss
|
$ (34)
|
0%
|
|
$ (388)
|
-1%
|
Share-based
compensation (1)
|
1,867
|
|
|
1,992
|
|
Amortization of
intangible assets (2)
|
511
|
|
|
465
|
|
Expenses
related to M&A activities (3)
|
577
|
|
|
8
|
|
Fair value
adjustment for acquired deferred revenues write
down
|
11
|
|
|
12
|
|
Non-GAAP Net
income
|
$ 2,932
|
10%
|
|
$ 2,089
|
7%
|
|
|
|
|
|
|
|
GAAP loss per
share (diluted)
|
$ (0.00)
|
|
|
$ (0.01)
|
|
Share-based
compensation
|
0.05
|
|
|
0.06
|
|
Amortization of
intangible assets
|
0.02
|
|
|
0.01
|
|
Expenses
related to M&A activities
|
0.02
|
|
|
0.00
|
|
Fair value
adjustment for acquired deferred revenues write
down
|
0.00
|
|
|
0.00
|
|
Non-GAAP Net
income per share (diluted)
|
$ 0.09
|
|
|
$ 0.06
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation:
|
|
|
|
|
|
|
Cost of
revenues
|
$ 82
|
|
|
$
88
|
|
|
Research and
development costs, net
|
420
|
|
|
469
|
|
|
Sales and
marketing
|
752
|
|
|
821
|
|
|
General and
administrative
|
613
|
|
|
614
|
|
|
|
$ 1,867
|
|
|
$ 1,992
|
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets
|
|
|
|
|
|
|
Cost of
revenues
|
$ 454
|
|
|
$
399
|
|
|
Sales and
marketing
|
57
|
|
|
66
|
|
|
|
$ 511
|
|
|
$
465
|
|
|
|
|
|
|
|
|
(3) Expenses
related to M&A activities
|
|
|
|
|
|
|
General and
administrative
|
$ 351
|
|
|
$
8
|
|
|
Research and
development costs, net
|
45
|
|
|
-
|
|
|
Sales and
marketing
|
181
|
|
|
-
|
|
|
|
$ 577
|
|
|
$
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
|
|
|
GAAP
Revenues
|
$ 29,532
|
|
$ 28,284
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
11
|
|
12
|
|
|
|
|
|
|
Non-GAAP
Revenues
|
$ 29,543
|
|
$ 28,296
|
|
|
|
|
|
|
TABLE -
4
|
ALLOT
COMMUNICATIONS LTD.
|
AND ITS
SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
21,930
|
|
$
51,036
|
Short term
deposits
|
|
46,500
|
|
30,500
|
Marketable securities
and restricted cash
|
|
55,344
|
|
40,639
|
Trade receivables,
net
|
|
23,584
|
|
21,414
|
Other receivables and
prepaid expenses
|
|
6,634
|
|
8,906
|
Inventories
|
|
8,321
|
|
13,474
|
Total current
assets
|
|
162,313
|
|
165,969
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
260
|
|
260
|
Deferred
taxes
|
|
1,620
|
|
1,602
|
Other
assets
|
|
3,626
|
|
2,726
|
Total long-term
assets
|
|
5,506
|
|
4,588
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
6,011
|
|
5,990
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
45,995
|
|
29,756
|
|
|
|
|
|
Total
assets
|
|
$
219,825
|
|
$
206,303
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
5,876
|
|
$
4,887
|
Deferred
revenues
|
|
12,340
|
|
13,527
|
Other payables and
accrued expenses
|
|
15,324
|
|
12,851
|
Total current
liabilities
|
|
33,540
|
|
31,265
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred
revenues
|
|
4,777
|
|
2,520
|
Accrued severance
pay
|
|
292
|
|
292
|
Other long term
liabilities
|
|
3,915
|
|
0
|
Total long-term
liabilities
|
|
8,984
|
|
2,812
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
177,301
|
|
172,226
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
219,825
|
|
$
206,303
|
|
|
|
|
|
TABLE -
5
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
2014
|
|
|
(Unaudited)
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net Loss
|
$
(34)
|
$
(388)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
762
|
800
|
|
Stock-based
compensation related to options granted to employees
|
1,849
|
1,992
|
|
Amortization of
intangible assets
|
449
|
465
|
|
Capital
loss
|
4
|
-
|
|
Decrease in accrued
severance pay, net
|
12
|
4
|
|
Increase in other
assets
|
(178)
|
(82)
|
|
Decrease in accrued
interest and amortization of premium on marketable
securities
|
300
|
208
|
|
Increase (Decrease)
in trade receivables
|
175
|
(4,506)
|
|
Increase in other
receivables and prepaid expenses
|
(2,691)
|
(102)
|
|
Decrease in
inventories
|
1,788
|
324
|
|
Increase in long-term
deferred taxes, net
|
96
|
-
|
|
Increase (Decrease)
in trade payables
|
(424)
|
1,696
|
|
Increase (Decrease)
in employees and payroll accruals
|
(409)
|
1,062
|
|
Increase in deferred
revenues
|
100
|
1,096
|
|
Increase in other
payables and accrued expenses
|
292
|
876
|
|
|
|
|
|
Net cash provided by
operating activities
|
2,091
|
3,445
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Redemption of
short-term deposits
|
12,500
|
7,500
|
|
Purchase of property
and equipment
|
(666)
|
(916)
|
|
Investment in
marketable securities
|
(6,727)
|
(900)
|
|
Proceeds from
redemption or sale of marketable securities
|
5,528
|
901
|
|
Acquisitions of
certain assets and liabilities
|
(10,052)
|
-
|
|
Loan provided to
third party, net
|
-
|
(2,563)
|
|
|
|
|
|
Net cash provided by
investing activities
|
583
|
4,022
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
76
|
756
|
|
|
|
|
|
Net cash provided by
financing activities
|
76
|
756
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
2,750
|
8,223
|
|
Cash and cash
equivalents at the beginning of the period
|
19,180
|
42,813
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
21,930
|
$
51,036
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/allot-communications-reports-non-gaap-44-revenue-growth-for-q1-2015-300077502.html
SOURCE Allot Communications Ltd.