HOD HASHARON, Israel,
Oct. 29, 2013 /PRNewswire/
-- Allot Communications Ltd. (NASDAQ: ALLT), a leading
supplier of service optimization and revenue generation solutions
for fixed and mobile broadband service providers worldwide, today
announced its third quarter 2013 results, with non-GAAP revenues
reaching $24.1 million ($24.0 million on a GAAP basis).
Third Quarter Highlights:
- Non-GAAP revenues were $24.1
million ($24.0 million on a
GAAP basis).
- Non-GAAP gross margin was 77% (73% on a GAAP basis).
- Non-GAAP operating margin was 4% (9% loss on a GAAP
basis).
- Book-to-bill above one.
- Retired $16 million of OCS
liability.
Financial Results:
On a non-GAAP basis, total revenues for the third quarter of
2013 reached $24.1 million, compared
with $28.0 million of revenue
reported for the third quarter of 2012 and $21.5 million of revenue reported for the second
quarter of 2013. On a non-GAAP basis, net profit for the
third quarter of 2013 was $1.1
million, or $0.03 per basic
and diluted share. This compares with non-GAAP net profit of
$5.1 million, or $0.16 per basic share, and $0.15 per diluted share, in the third quarter of
2012 and non-GAAP net loss of $0.9
million, or $0.03 per basic
and diluted share, in the second quarter of 2013.
Total GAAP revenues for the third quarter of 2013 reached
$24.0 million compared to
$27.8 million of revenue reported for
the third quarter of 2012 and $21.2
million of revenue reported for the second quarter of 2013.
On a GAAP basis, the net loss for the third quarter of 2013 was
$1.9 million, or a net loss of
$0.06 per basic and diluted share.
This compares with net profit of $2.4
million, or $0.07 per basic
and diluted share, in the third quarter of 2012, and a net loss of
$3.9 million, or a net loss of
$0.12 per basic and diluted share, in
the second quarter of 2013.
Key Quarterly Achievements:
- During the quarter, large orders were received from 14 service
providers, two of which are new customers.
- Four of the large orders came from mobile-service providers,
eight were from fixed-line service providers and two from
enterprises.
- Received a $12 million expansion
order from a tier-1 fixed line operator in APAC.
- Received a multimillion dollar order from major U.S.-based
cloud provider to monitor and guarantee SLAs for Cloud-based
services.
As of September 30, 2013, cash,
cash equivalents, short-term deposits and marketable securities
totaled $115 million with no
debt.
"The booking environment remained strong during the third
quarter and book-to-bill was once again above one, despite the
weakness often associated with third quarter seasonality. The
business momentum strength is equally felt both in our PCC as well
as our VAS activities," said Rami
Hadar, Allot Communications' President and Chief Executive
Officer. "Today we announced that we have won a $12 million project with a tier 1, fixed line
operator from APAC. This deal includes a bundle of our Allot Sigma
Service Gateway, our Allot ServiceProtector, VAS security offering
and intelligent steering. We view this deal as another successful
testament to our service gateway and VAS vision."
Conference Call & Webcast
The Allot management team will host a conference call to discuss
third quarter 2013 earnings results today at 8:30 a.m. ET, 2:30
p.m. Israel time.
To access the conference call, please dial one of the following
numbers: US: +1646 254 3360, UK: +44(0)20 3427 1902, Israel: +9723763 0147, participant code
7266032.
A replay of the conference call will be available from
12:00 AM ET on October 29, 2013 through November 27, 2013 at 6:59
PM ET time. To access the replay, please dial: US:
+1 347 366 9565; UK: +44 (0) 20 3427 0598, access code:
7266032.
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: ALLT) is a leading provider
of intelligent data traffic optimization and monetization solutions
for fixed and mobile broadband operators and large enterprises.
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.
GAAP to Non-GAAP Reconciliation
The discrepancy between GAAP and non-GAAP revenues is related to
the acquisitions made by the Company during the year 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 2 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.
Forward Looking 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
|
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,
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
23,949
|
|
$
27,768
|
|
|
$
69,274
|
|
$
78,390
|
Cost of
revenues
|
6,568
|
|
8,464
|
|
|
19,061
|
|
23,119
|
Gross
profit
|
17,381
|
|
19,304
|
|
|
50,213
|
|
55,271
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development costs, net
|
6,599
|
|
6,069
|
|
|
20,399
|
|
15,411
|
Sales and
marketing
|
9,982
|
|
8,539
|
|
|
29,704
|
|
24,420
|
General and
administrative
|
2,942
|
|
2,671
|
|
|
8,246
|
|
8,104
|
Total operating
expenses
|
19,523
|
|
17,279
|
|
|
58,349
|
|
47,935
|
Operating profit
(loss)
|
(2,142)
|
|
2,025
|
|
|
(8,136)
|
|
7,336
|
Financial and other
income, net
|
229
|
|
382
|
|
|
584
|
|
1,030
|
Profit (loss) before
income tax benefit
|
(1,913)
|
|
2,407
|
|
|
(7,552)
|
|
8,366
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
17
|
|
19
|
|
|
90
|
|
43
|
Net profit
(loss)
|
(1,930)
|
|
2,388
|
|
|
(7,642)
|
|
8,323
|
|
|
|
|
|
|
|
|
|
Basic net
profit (loss) per share
|
$
(0.06)
|
|
$
0.07
|
|
|
$
(0.23)
|
|
$
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net profit
(loss) per share
|
$
(0.06)
|
|
$
0.07
|
|
|
$
(0.23)
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
|
earnings per
share
|
32,710,885
|
|
32,260,061
|
|
|
32,634,926
|
|
31,787,646
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
|
earnings per
share
|
32,710,885
|
|
33,471,098
|
|
|
32,634,926
|
|
33,086,932
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP net profit
(loss) as reported
|
$
(1,930)
|
|
$
2,388
|
|
$
(7,642)
|
|
$
8,323
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
147
|
|
258
|
|
460
|
|
258
|
Expenses recorded for
stock-based compensation
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
88
|
|
57
|
|
289
|
|
154
|
|
Research and
development costs, net
|
428
|
|
329
|
|
1,251
|
|
757
|
|
Sales and
marketing
|
796
|
|
588
|
|
2,415
|
|
1,351
|
|
General and
administrative
|
705
|
|
342
|
|
1,940
|
|
796
|
Expenses related to
M&A activities and compliance with regulatory matters
(*)
|
|
|
|
|
|
|
|
|
General and
administrative (G&A)
|
3
|
|
354
|
|
36
|
|
2,065
|
|
Research and
development costs, net
|
-
|
|
93
|
|
28
|
|
343
|
|
Sales and
marketing
|
-
|
|
55
|
|
12
|
|
148
|
Intangible assets
amortization
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
587
|
|
641
|
|
1,593
|
|
934
|
|
S&M
|
58
|
|
17
|
|
173
|
|
17
|
Expense related to
settlement of OCS grants (Cost of revenues)
|
250
|
|
-
|
|
250
|
|
-
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
3,062
|
|
2,734
|
|
8,447
|
|
6,823
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
profit
|
$
1,132
|
|
$
5,122
|
|
$
805
|
|
$
15,146
|
|
|
|
|
|
|
|
|
|
Non- GAAP
basic net profit per share
|
$
0.03
|
|
$
0.16
|
|
$
0.02
|
|
$
0.48
|
|
|
|
|
|
|
|
|
|
Non- GAAP diluted
net profit per share
|
$
0.03
|
|
$
0.15
|
|
$
0.02
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
earnings per
share
|
32,710,885
|
|
32,260,061
|
|
32,634,926
|
|
31,787,646
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
earnings per
share
|
33,579,948
|
|
33,848,560
|
|
33,453,921
|
|
33,347,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Mostly legal,
finance and compensation expenses related to the
acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE -
3
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
RECONCILATION 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,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenues
|
|
$
23,949
|
|
$
27,768
|
|
$
69,274
|
|
$
78,390
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
|
$
147
|
|
$
258
|
|
$
460
|
|
$
258
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Revenues
|
|
$
24,096
|
|
$
28,026
|
|
$
69,734
|
|
$
78,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE -
4
|
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
|
AND ITS
SUBSIDIARIES
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
51,861
|
|
$
50,026
|
|
Short term
deposits
|
|
23,600
|
|
78,042
|
|
Marketable securities
and restricted cash
|
|
39,617
|
|
14,987
|
|
Trade receivables,
net
|
|
23,480
|
|
20,236
|
|
Other receivables and
prepaid expenses
|
|
8,913
|
|
6,815
|
|
Inventories
|
|
12,069
|
|
9,963
|
|
Total current
assets
|
|
159,540
|
|
180,069
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Severance pay
fund
|
|
248
|
|
213
|
|
Deferred
Taxes
|
|
1,525
|
|
1,525
|
|
Other
assets
|
|
225
|
|
239
|
|
Total long-term
assets
|
|
1,998
|
|
1,977
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
5,989
|
|
6,609
|
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
31,369
|
|
33,136
|
|
|
|
|
|
|
|
Total
assets
|
|
$
198,896
|
|
$
221,791
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
4,517
|
|
$
4,809
|
|
Deferred
revenues
|
|
10,448
|
|
13,829
|
|
Other payables and
accrued expenses
|
|
13,656
|
|
13,947
|
|
Liability related to
settlement of OCS grants
|
|
-
|
|
15,886
|
|
Total current
liabilities
|
|
28,621
|
|
48,471
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred
revenues
|
|
2,678
|
|
3,945
|
|
Accrued severance
pay
|
|
285
|
|
254
|
|
Total long-term
liabilities
|
|
2,963
|
|
4,199
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
167,312
|
|
169,121
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
198,896
|
|
$
221,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2013
|
2012
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(Loss)
|
$
(1,930)
|
$
2,388
|
|
$
(7,642)
|
$
8,323
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
837
|
890
|
|
2,584
|
2,253
|
Stock-based
compensation related to options granted to employees
|
2,017
|
1,316
|
|
5,896
|
3,058
|
Amortization of
intangible assets
|
645
|
658
|
|
1,767
|
951
|
Capital
loss
|
4
|
10
|
|
18
|
14
|
Decrease (Increase)
in accrued severance pay, net
|
(2)
|
(1)
|
|
(4)
|
6
|
Decrease in other
assets
|
27
|
55
|
|
14
|
56
|
Decease in accrued
interest and amortization of premium on marketable
securities
|
151
|
96
|
|
208
|
144
|
Increase in trade
receivables
|
(761)
|
(4,143)
|
|
(3,244)
|
(9,642)
|
Decrease (Increase)
in other receivables and prepaid expenses
|
(971)
|
(65)
|
|
(2,640)
|
1,561
|
Decrease (Increase)
in inventories
|
(1,325)
|
1,816
|
|
(2,106)
|
2,137
|
Decrease in trade
payables
|
(263)
|
(1,125)
|
|
(42)
|
1,367
|
Increase (Decrease)
in employees and payroll accruals
|
(144)
|
1,789
|
|
(1,404)
|
2,167
|
Decrease in deferred
revenues
|
(590)
|
(2,659)
|
|
(4,648)
|
(4,295)
|
Increase (Decrease)
in other payables and accrued expenses
|
(1,135)
|
(875)
|
|
1,001
|
1,242
|
Payment of a
Liability related to the settlement of OCS grants
|
(16,024)
|
-
|
|
(16,024)
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
(19,464)
|
150
|
|
(26,266)
|
9,342
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (Increase)
in restricted deposit
|
145
|
(147)
|
|
146
|
(126)
|
Redemption of
short-term deposits
|
-
|
-
|
|
76,042
|
-
|
Investment in
short-term deposit
|
(21,600)
|
(23,000)
|
|
(21,600)
|
(70,000)
|
Purchase of property
and equipment
|
(552)
|
(1,528)
|
|
(1,980)
|
(2,997)
|
Investment in
marketable securities
|
(525)
|
(6,443)
|
|
(29,891)
|
(7,694)
|
Proceeds from
redemption or sale of marketable securities
|
1,100
|
800
|
|
4,811
|
2,000
|
Acquisitions
|
-
|
(13,493)
|
|
-
|
(23,892)
|
Loan to purchased
Subsidiary
|
-
|
-
|
|
-
|
(1,000)
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
(21,432)
|
(43,811)
|
|
27,528
|
(103,709)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
304
|
1,198
|
|
573
|
5,305
|
Redemption of bank
loan
|
-
|
(1,952)
|
|
-
|
(1,952)
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
304
|
(754)
|
|
573
|
3,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in cash and cash equivalents
|
(40,592)
|
(44,415)
|
|
1,835
|
(91,014)
|
Cash and cash
equivalents at the beginning of the period
|
92,453
|
70,083
|
|
50,026
|
116,682
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
51,861
|
$
25,668
|
|
$
51,861
|
$
25,668
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Allot Communications Ltd.