UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2015
Commission File Number: 001-33129
 
Allot Communications Ltd.
(Translation of registrant's name into English)

22 Hanagar Street
Neve Ne’eman Industrial Zone B
Hod-Hasharon 4501317
Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x                    Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                     No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
 
 
 
 
 
EXPLANATORY NOTE

On August 4, 2015, Allot Communications Ltd. issued a press release announcing the quarterly results for the second quarter of 2015.

A copy of the press release entitled “Allot Communications Announces Second Quarter 2015 Financial Results” is attached to this Form 6-K as Exhibit 99.1.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Allot Communications Ltd.

By: /s/ Shmuel Arvatz                                                      
Shmuel Arvatz
Chief Financial Officer
 
Date: August 4, 2015
 
 
2 
 

EXHIBIT INDEX

The following exhibits have been filed as part of this Form 6-K:

Exhibit
 
99.1
Description
 
Allot Communications Announces Second Quarter 2015 Financial Results
 
3


Exhibit 99.1

 
Allot Communications Announces Second Quarter 2015 Financial Results
 
HOD HASHARON, Israel, Aug. 4, 2015 /PRNewswire/ -- Allot Communications Ltd. (NASDAQ, TASE: ALLT), a leading global provider of intelligent broadband solutions that empowers communication service providers to optimize and monetize their networks, enterprises to enhance productivity and consumers to improve their digital lifestyle, today announced its second quarter 2015 results. 
 
Q2 2015 – Financial Highlights:
 
 
·
Non-GAAP Revenues were $21.6 million, down 23% year over year
 
·
Non-GAAP Gross Margin reached 74%
 
·
Non-GAAP Operating loss was 14%
 
·
Book-to-bill was above one
 
·
The Company recorded negative Operating Cash Flow of $2.3 million
 
·
Net Cash and cash equivalents as of June 30, 2015 totaled $120.6 million
 
Financial results:
 
On a GAAP basis, total revenues for the second quarter of 2015 were $21.6 million compared to $29.5 million of revenue reported for the first quarter of 2015 and $28.2 million of revenue reported for the second quarter of 2014.  Net loss for the second quarter of 2015 was $6.0 million, or $0.18 per basic and diluted share. This compares with a net loss of zero, or $0.00 per basic and diluted share, in the first quarter of 2015 and a net loss of $0.6 million, or $0.02 per basic and diluted share, in the second quarter of 2014.
 
On a non-GAAP basis, total revenues for the second quarter of 2015 were $21.6 million, compared with $29.5 million of revenue reported for the first quarter of 2015 and $28.2 million of revenue reported for the second quarter of 2014.  On a non-GAAP basis, net loss for the second quarter of 2015 was $3.0 million, or $0.09 per basic and diluted share. This compares with non-GAAP net income of $2.9 million, or $0.09 per basic and diluted share, in the first quarter of 2015 and non-GAAP net income of $1.9 million, or $0.06 per basic and diluted share, in the second quarter of 2014.
 
Q2 2015 - Key Achievements:
 
 
·
During Q2 2015, 21 large orders were received, 9 of which were from new customers
 
·
15 of the large orders came from mobile-service providers and 5 were from fixed-line service providers
 
·
In addition, 1 large order was received for private and public cloud deployments
 
·
During the second quarter Allot received 6 $1 million + deals, compared to 0 in the previous quarter and 5 in the second quarter 2014
 
·
Allot WebSafe Personal is powering Vodafone Germany's newly launched secure net offering
 
·
Achieving 3 strategic wins totaling $8 million from new tier-1 mobile operators
 
"During the second quarter, despite a slower business environment, we achieved 3 wins of new tier 1 mobile service providers which we expect to turn into revenues during the second half of 2015 and the first half of 2016. We continue to make additional progress with our security offering including wins in North America with tier 1 accounts," said Andrei Elefant, President & CEO of Allot Communications. "During the second quarter of 2015 our booking has recovered significantly compared to the level of the first quarter and we undertook a number of efficiency measures to realign our OPEX without compromising our future growth."  
 
 
 
 
 
 
2015 Outlook
 
The Company reiterates its previously provided guidance and expects non-GAAP total revenues to be in the range of $100 million to $105 million for full year 2015.
 
Share Repurchase Program
 
Allot further announced separately that the Company's board of directors has authorized a share repurchase program of up to $15 million. The program is subject to certain court approvals in Israel, which Allot expects to obtain during the third or fourth quarter of 2015.
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss second 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: +1212 444 0896, UK: +44(0)2033645721, Israel: +97237630147, participant code 1553650.
 
A replay of the conference call will be available from 12:00 AM ET on August 5 2015 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44(0)2034270598, access code:  1553650. 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, inventory write-off expenses, regulatory matter expenses, acquisition-related expenses, restructuring costs 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 contains 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 set forth in 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; the timing of completion of key project milestones which impact the timing of our revenue recognition; 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; court approval of the Company's proposed share buy-back program; 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:
 
Sigalit Orr
Director Corporate Communications 
International access code +972-54-268-1500 
sorr@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
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
Revenues
   $    21,592     $    28,166     $   51,124     $   56,450  
      6,432       8,056       14,200       16,252  
Gross profit  
     15,160       20,110       36,924       40,198  
                                 
Operating expenses:
                                
Research and development costs, net
     6,691       7,188       13,500       14,409  
Sales and marketing
     10,836       10,637       22,644       21,133  
General and administrative
     3,375       2,931       6,626       5,818  
Total operating expenses
     20,902       20,756       42,770       41,360  
Operating Loss
     (5,742 )     (646 )     (5,846 )     (1,162 )
Financial and other income (loss), net
     (111 )     87       94       236  
Loss before income tax benefit
     (5,853 )     (559 )     (5,752 )     (926 )
Tax expenses
     171       61       307       82  
Net Loss
     (6,024 )     (620 )     (6,059 )     (1,008 )
                                 
 Basic net loss per share
   $       (0.18 )   $      (0.02 )   $      (0.18 )   $      (0.03 )
                                 
 Diluted net loss per share
   $       (0.18 )   $      (0.02 )   $      (0.18 )   $      (0.03 )
                                 
Weighted average number of shares
                                
used in computing basic  net
                                
earnings per share
     33,457,887       33,111,197       33,408,174       33,025,671  
                                 
Weighted average number of shares
                                
used in computing diluted net
                                
earnings per share
     33,457,887       33,111,197       33,408,174       33,025,671  
 
 
 
 
 
 
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
  
   
June 30, 2015
    
June 30, 2014
  
   
(Unaudited)
    
(Unaudited)
  
    $    
% of Revenues
     $    
% of Revenues
  
                             
                             
 GAAP Operating Loss 
   $ (5,742 )     (27 )%   $       (646 )     (2 )%
 Share-based compensation (1) 
     1,925               1,987          
 Amortization of intangible assets (2) 
     786               465          
 Expenses related to M&A activities (3) 
     -               25          
 Fair value adjustment for acquired deferred revenues write down 
     11               11          
 Non-GAAP Operating income (Loss)
   $ (3,020 )     (14 )%   $      1,842       7 %
                                 
 GAAP Net Loss 
   $ (6,024 )     (28 )%   $       (620 )     (2 )%
 Share-based compensation (1) 
     1,925               1,987          
 Amortization of intangible assets (2) 
     786               465          
 Expenses related to M&A activities (3) 
     264               25          
 Fair value adjustment for acquired deferred revenues write down 
     11               11          
 Non-GAAP Net income (Loss)
   $ (3,038 )     (14 )%   $      1,868       7 %
                                 
 GAAP Loss per share (diluted) 
   $   (0.18 )           $      (0.02 )        
 Share-based compensation 
     0.06               0.06          
 Amortization of intangible assets 
     0.02               0.02          
 Expenses related to M&A activities 
     0.01               0.00          
 Fair value adjustment for acquired deferred revenues write down 
     0.00               0.00          
 Non-GAAP Net income (Loss) per share (diluted) 
   $   (0.09 )           $       0.06          
                                 
(1) Share-based compensation:
                                
Cost of revenues
   $       83             $          90          
Research and development costs, net
     425               487          
Sales and marketing
     739               811          
General and administrative
     678               599          
    $   1,925             $      1,987          
                                 
 (2) Amortization of intangible assets 
                                
Cost of revenues
   $     627             $        400          
Sales and marketing
     159               65          
    $     786             $        465          
                                 
 (3) Expenses related to M&A activities 
                                
General and administrative 
   $       -             $          25          
Research and development costs, net
     -               -          
Sales and marketing
     -               -          
Financial expenses
     264               -          
    $     264             $          25          
 
 
 
 
 
 
   
TABLE  - 2 cont.
  
   
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)
  
 
   
Six Months Ended
    
Six Months Ended
  
   
June 30, 2015
    
June 30, 2014
  
   
(Unaudited)
    
(Unaudited)
  
    $    
% of Revenues
     $    
% of Revenues
  
                             
                             
 GAAP Operating Loss 
   $ (5,846 )     (11 )%   $    (1,162 )     (2 )%
 Share-based compensation (1) 
     3,792               3,979          
 Amortization of intangible assets (2) 
     1,297               930          
 Expenses related to M&A activities (3) 
     577               33          
 Fair value adjustment for acquired deferred revenues write down 
     22               23          
 Non-GAAP Operating income (Loss)
   $    (158 )     0 %   $      3,803       7 %
                                 
 GAAP Net Loss 
   $ (6,059 )     (12 )%   $    (1,008 )     (2 )%
 Share-based compensation (1) 
     3,792               3,979          
 Amortization of intangible assets (2) 
     1,297               930          
 Expenses related to M&A activities (3) 
     841               33          
 Fair value adjustment for acquired deferred revenues write down 
     22               23          
 Non-GAAP Net income (Loss)
   $    (107 )     0 %   $      3,957       7 %
                                 
 GAAP Loss per share (diluted) 
   $   (0.18 )           $      (0.03 )        
 Share-based compensation 
     0.11               0.12          
 Amortization of intangible assets 
     0.04               0.03          
 Expenses related to M&A activities 
     0.03               0.00          
 Fair value adjustment for acquired deferred revenues write down 
     0.00               0.00          
 Non-GAAP Net income (Loss) per share (diluted) 
   $   (0.00 )           $       0.12          
                                 
(1) Share-based compensation:
                                
Cost of revenues
   $     165             $        178          
Research and development costs, net
     845               956          
Sales and marketing
     1,491               1,632          
General and administrative
     1,291               1,213          
    $   3,792             $      3,979          
                                 
 (2) Amortization of intangible assets 
                                
Cost of revenues
   $   1,081             $        799          
Sales and marketing
     216               131          
    $   1,297             $        930          
                                 
 (3) Expenses related to M&A activities 
                                
General and administrative 
   $     351             $          33          
Research and development costs, net
     45               -          
Sales and marketing
     181               -          
Financial expenses
     264               -          
    $     841             $          33          
 
 
 
 
 
 
 

 
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
    
Six Months Ended
  
   
March 31,
    
June 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
GAAP Revenues
   $ 21,592     $ 28,166     $ 51,124     $ 56,450  
                                 
Fair value adjustment for acquired deferred revenues write down
     11       11     $         22     $         23  
Non-GAAP Revenues
   $ 21,603     $ 28,177     $ 51,146     $ 56,473  
 
 
 
 
 

 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
June 30,
    
December 31,
  
   
2015
    
2014
  
   
(Unaudited)
    
(Audited)
  
       
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
   $          39,218     $         19,180  
Short term deposits
     21,000       59,000  
Marketable securities and restricted cash
     60,423       54,271  
Trade receivables, net
     24,929       23,759  
Other receivables and prepaid expenses
     5,640       5,383  
Inventories
     7,454       10,109  
Total current assets
     158,664       171,702  
                 
LONG-TERM ASSETS:
                
Severance pay fund
     282       262  
Deferred taxes
     1,856       1,716  
Other assets 
     3,542       4,948  
Total long-term assets
     5,680       6,926  
                 
PROPERTY AND EQUIPMENT, NET
     5,610       5,957  
GOODWILL AND INTANGIBLE ASSETS, NET
     45,210       28,363  
                 
Total assets
   $        215,164     $      212,948  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
   $             5,594     $           6,300  
Deferred revenues
     12,144       12,704  
Other payables and accrued expenses
     13,361       14,524  
Total current liabilities
     31,099       33,528  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
     5,256       4,158  
Accrued severance pay
     355       282  
Other long term liabilities
     4,080       0  
Total long-term liabilities
     9,691       4,440  
                 
SHAREHOLDERS' EQUITY
     174,374       174,980  
                 
Total liabilities and shareholders' equity
   $        215,164     $      212,948  
                 
 
 
 
 
 
 
 
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,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
Cash flows from operating activities:
                        
                         
Net Loss
   $              (6,024 )   $              (620 )   $          (6,059 )   $          (1,008 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
                                
Depreciation
     634       762       1,397       1,562  
Stock-based compensation related to options granted to employees
     1,923       1,987       3,772       3,979  
Amortization of intangible assets
     785       465       1,234       930  
Capital loss 
     11       -       15       -  
Decrease (Increase) in accrued severance pay, net
     41       (7 )     53       (3 )
Decrease (Increase) in other assets
     (188 )     12       (366 )     (70 )
Decrease  in accrued interest and  amortization of premium on marketable securities 
     173       37       473       245  
Decrease in trade receivables
     (2,300 )     (2,372 )     (2,125 )     (6,878 )
Decrease (Increase) in other receivables and prepaid expenses
     1,378       301       (1,313 )     199  
Decrease (Increase) in inventories
     (23 )     (403 )     1,765       (79 )
Increase (Decrease) in long-term deferred taxes, net
     (236 )     56       (140 )     56  
Increase in trade payables
     1,661       2,606       1,237       4,302  
Increase (Decrease) in employees and payroll accruals
     260       (57 )     (149 )     1,005  
Increase (Decrease) in deferred revenues
     283       (732 )     383       364  
Increase (Decrease) in other payables and accrued expenses
     (727 )     (629 )     (435 )     247  
                                 
Net cash provided (used) by operating activities
     (2,349 )     1,406       (258 )     4,851  
                                 
Cash flows from investing activities:
                                
                                 
Redemption of short-term deposits 
     25,500       22,000       38,000       29,500  
Purchase of property and equipment
     (418 )     (697 )     (1,084 )     (1,613 )
Investment in marketable securities
     (11,548 )     (18,081 )     (18,275 )     (18,981 )
Proceeds from redemption or sale of marketable securities
     6,079       3,363       11,607       4,264  
Acquisitions
     -       -       (10,052 )     -  
Loan provided to third party, net
     -       170       -       (2,393 )
                                 
Net cash provided by investing activities
     19,613       6,755       20,196       10,777  
                                 
Cash flows from financing activities:
                                
                                 
Exercise of employee stock options 
     24       632       100       1,388  
                                 
Net cash provided by financing activities
     24       632       100       1,388  
                                 
Increase in cash and cash equivalents
     17,288       8,793       20,038       17,016  
Cash and cash equivalents at the beginning of the period
     21,930       51,036       19,180       42,813  
                                 
Cash and cash equivalents at the end of the period
   $              39,218     $           59,829     $          39,218     $          59,829  
 
 
 
 

 
 
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