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 October 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 October 29, 2015, Allot Communications Ltd. issued a press release announcing the quarterly results for the third quarter of 2015.

A copy of the press release entitled “Allot Communications Announces Third 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: October 29, 2015

 
2
 
EXHIBIT INDEX

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

Exhibit
Description

99.1
Allot Communications Announces Third Quarter 2015 Financial Results
 
3


Exhibit 99.1
 
 
Allot Communications Announces Third Quarter 2015
Financial Results
 
Hod Hasharon, Israel - October 29, 2015 - 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 third quarter 2015 results.
 
Q3 2015 – Financial Highlights:
 
 
·
Non-GAAP revenues were $23.5 million, down 22% year over year
 
 
·
Non-GAAP gross margin reached 77%
 
 
·
Non-GAAP operating profit was 1%
 
 
·
Book-to-bill was above one
 
 
·
The Company recorded positive operating cash flow of $2.9 million
 
 
·
Net cash and cash equivalents as of September 30, 2015 totaled $122.8 million
 
Financial results:
 
On a GAAP basis, total revenues for the third quarter of 2015 were $23.5 million compared to $21.6 million of revenue reported for the second quarter of 2015 and $30.1 million of revenue reported for the third quarter of 2014.  Net loss for the third quarter of 2015 was $3.4 million, or $0.10 per basic and diluted share. This compares with a net loss of $6.0 million, or $0.18 per basic and diluted share, in the second quarter of 2015 and a net profit of $0.8 million, or $0.02 per basic and diluted share, in the third quarter of 2014.
 
On a non-GAAP basis, total revenues for the third quarter of 2015 were $23.5 million, compared with $21.6 million of revenue reported for the second quarter of 2015 and $30.1 million of revenue reported for the third quarter of 2014.  On a non-GAAP basis, net loss for the third quarter of 2015 was $0.7 million, or $0.02 per basic and diluted share. This compares with non-GAAP net loss of $3.0 million, or $0.09 per basic and diluted share, in the second quarter of 2015 and non-GAAP net income of $3.1 million, or $0.09 per basic and diluted share, in the third quarter of 2014.
 
Q3 2015 - Key Achievements:
 
 
·
During Q3 2015, 18 large orders were received, 4 of which were from new customers
 
 
·
7 of the large orders came from mobile-service providers and 7 were from fixed-line service providers
 
 
·
In addition, 4 large orders were received for private and public cloud deployments
 
 
·
During Q3, 2015, Allot received three, over $1 million deals, compared to 6 in the previous quarter and 4 during Q3, 2014.
 
 
 
 
 
 
·
Allot is collaborating with HP by offering its virtualized security services on the HP OpenNFV cloud platform.
 
 
·
Allot received an $8 million expansion order from a tier-1 fixed line operator in APAC.
 
 
·
Allot received, after the end of the third quarter a follow on order of over $10 million, from an existing Tier 1 service provider. This order is included in the fourth quarter's booking.
 
 
·
Published the latest MobileTrends report revealing that 6% of mobile subscribers visit risky websites every day.
 
“During the third quarter of 2015, our revenues and booking grew sequentially and we expect further sequential increase in the fourth quarter. We are also pleased with the strong momentum of our security segment." said Mr. Andrei Elefant, President & CEO of Allot Communications. "We continue to control our OPEX and align it with the revenue level without compromising our future growth." Added Mr. Elefant. “We are encouraged with the new win of over $10 million that we booked in the beginning of the fourth quarter from an existing customer and we expect to recognize the majority of this order during 2016. This win together with the current backlog and prospects make us believe that we will return to growth in 2016.” Concluded Mr. Elefant.
 
2015 Outlook
 
The Company reiterates its previously provided guidance and expects total non-GAAP revenues to be in the range of $100 million to $105 million for full year 2015.
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss third quarter 2015 earnings results today at 8:30 AM ET, 2:30 p.m. Israel time. To access the conference call, please dial one of the following numbers: US: +1212 444 0412, UK: +44(0)2031408286, Israel: +97237219510, participant code 4389708.
 
A replay of the conference call will be available from 12:00 AM ET on October 30 2015 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44(0) 2034270598, access code:  4389708. 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
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
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
Revenues
   $ 23,461     $ 30,101     $ 74,585     $ 86,551  
Cost of revenues
     6,042       8,059       20,242       24,311  
Gross profit
     17,419       22,042       54,343       62,240  
                                 
Operating expenses:
                                
Research and development costs, net
     6,446       7,240       19,946       21,649  
Sales and marketing
     10,532       11,411       33,176       32,544  
General and administrative
     2,867       2,798       9,492       8,616  
Total operating expenses
     19,845       21,449       62,614       62,809  
Operating profit (loss)
     (2,426 )     593       (8,271 )     (569 )
Financial and other income (loss), net
     (910 )     224       (816 )     460  
Profit (loss) before income tax benefit
     (3,336 )     817       (9,087 )     (109 )
 
                                
Tax expenses
     67       52       374       134  
Net profit (loss)
   $ (3,403 )   $ 765     $ (9,461 )   $ (243 )
                                 
 Basic net profit (loss) per share
   $ (0.10 )   $ 0.02     $ (0.28 )   $ (0.01 )
                                 
 Diluted net profit (loss) per share
   $ (0.10 )   $ 0.02     $ (0.28 )   $ (0.01 )
                                 
Weighted average number of shares
                                
used in computing basic  net
                                
earnings per share
     33,512,755       33,234,558       33,443,418       33,096,065  
                                 
Weighted average number of shares
                                
used in computing diluted net
                                
earnings per share
     33,512,755       33,631,356       33,443,418       33,096,065  

 
 
 
 
 
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
    
Three Months Ended
  
   
September 30, 2015
    
September 30, 2014
  
   
(Unaudited)
    
(Unaudited)
  
    $    
% of Revenues
     $    
% of Revenues
  
                             
 GAAP operating profit (loss)
   $ (2,426 )     (10 )%   $ 593       2 %
 Share-based compensation (1)
     1,754               1,894          
 Amortization of intangible assets (2)
     778               457          
 Expenses related to M&A activities (3)
     101               -          
 Fair value adjustment for acquired deferred revenues write down
     11               11          
 Non-GAAP Operating income
   $ 218       1 %   $ 2,955       10 %
                                 
 GAAP net profit (loss)
   $ (3,403 )     (15 )%   $ 765       3 %
 Share-based compensation (1)
     1,754               1,894          
 Amortization of intangible assets (2)
     778               457          
 Expenses related to M&A activities (3)
     119               -          
 Fair value adjustment for acquired deferred revenues write down
     11               11          
 Non-GAAP net income (Loss)
   $ (741 )     (3 )%   $ 3,127       10 %
                                 
 GAAP profit (loss) per share (diluted)
   $ (0.10 )           $ 0.02          
 Share-based compensation
     0.05               0.05          
 Amortization of intangible assets
     0.03               0.02          
 Expenses related to M&A activities
     0.00               -          
 Fair value adjustment for acquired deferred revenues write down
     0.00               0.00          
 Non-GAAP Net income (loss) per share (diluted)
   $ (0.02 )           $ 0.09          
                                 
(1) Share-based compensation:
                                
Cost of revenues
   $ 80             $ 90          
Research and development costs, net
     426               476          
Sales and marketing
     680               830          
General and administrative
     568               498          
    $ 1,754             $ 1,894          
                                 
 (2) Amortization of intangible assets
                                
Cost of revenues
   $ 620             $ 400          
Sales and marketing
     158               57          
    $ 778             $ 457          
                                 
 (3) Expenses related to M&A activities
                                
General and administrative
   $ 101             $ -          
Research and development costs, net
     -               -          
Sales and marketing
     -               -          
Finanacial expensees
     18               -          
    $ 119             $ -          
 
 
 

 
TABLE  - 2 cont.
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)
 
   
Nine Months Ended
    
Nine Months Ended
  
   
September 30, 2015
    
September 30, 2014
  
   
(Unaudited)
    
(Unaudited)
  
    $    
% of Revenues
     $    
% of Revenues
  
                             
 GAAP operating loss
   $ (8,271 )     (11 )%   $ (569 )     (1 )%
 Share-based compensation (1)
     5,547               5,872          
 Amortization of intangible assets (2)
     2,075               1,387          
 Expenses related to M&A activities (3)
     678               33          
 Fair value adjustment for acquired deferred revenues write down
     33               34          
 Non-GAAP Operating income
   $ 62       0 %   $ 6,757       8 %
                                 
 GAAP Net Loss
   $ (9,461 )     (13 )%   $ (243 )     0 %
 Share-based compensation (1)
     5,547               5,872          
 Amortization of intangible assets (2)
     2,075               1,387          
 Expenses related to M&A activities (3)
     960               33          
 Fair value adjustment for acquired deferred revenues write down
     33               34          
 Non-GAAP net income (loss)
   $ (846 )     (1 )%   $ 7,083       8 %
                                 
 GAAP loss per share (diluted)
   $ (0.28 )           $ (0.01 )        
 Share-based compensation
     0.16               0.17          
 Amortization of intangible assets
     0.06               0.04          
 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)
   $ (0.03 )           $ 0.21          
                                 
(1) Share-based compensation:
                                
Cost of revenues
   $ 245             $ 268          
Research and development costs, net
     1,271               1,432          
Sales and marketing
     2,172               2,462          
General and administrative
     1,859               1,710          
    $ 5,547             $ 5,872          
                                 
 (2) Amortization of intangible assets
                                
Cost of revenues
   $ 1,701             $ 1,199          
Sales and marketing
     374               188          
    $ 2,075             $ 1,387          
                                 
 (3) Expenses related to M&A activities
                                
General and administrative
   $ 452             $ 33          
Research and development costs, net
     45               -          
Sales and marketing
     181               -          
Finanacial expensees
     282               -          
    $ 960             $ 33          
 
 
 
 
 
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,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
GAAP Revenues
   $ 23,461     $ 30,101     $ 74,585     $ 86,551  
                                 
Fair value adjustment for acquired deferred revenues write down
     11       11     $ 33     $ 34  
                                 
Non-GAAP Revenues
   $ 23,472     $ 30,112     $ 74,618     $ 86,585  

 
 
 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
September 30,
    
December 31,
  
   
2015
    
2014
  
   
(Unaudited)
    
(Audited)
  
   
 
        
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 28,112     $ 19,180  
Short term deposits
     36,750       59,000  
Marketable securities and restricted cash
     57,975       54,271  
Trade receivables, net
     22,491       23,759  
Other receivables and prepaid expenses
     4,723       5,383  
Inventories
     9,159       10,109  
Total current assets
     159,210       171,702  
                 
LONG-TERM ASSETS:
                
Severance pay fund
     277       262  
Deferred taxes
     1,856       1,716  
Other assets
     3,208       4,948  
Total long-term assets
     5,341       6,926  
                 
PROPERTY AND EQUIPMENT, NET
     5,287       5,957  
GOODWILL AND INTANGIBLE ASSETS, NET
     44,431       28,363  
                 
Total assets
   $ 214,269     $ 212,948  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
   $ 5,112     $ 6,300  
Deferred revenues
     13,727       12,704  
Other payables and accrued expenses
     13,600       14,524  
Total current liabilities
     32,439       33,528  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
     4,938       4,158  
Accrued severance pay
     449       282  
Other long term liabilities
     4,091       0  
Total long-term liabilities
     9,478       4,440  
                 
SHAREHOLDERS' EQUITY
     172,352       174,980  
                 
Total liabilities and shareholders' equity
   $ 214,269     $ 212,948  
 
 
 
 
 
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,
  
   
2015
    
2014
    
2015
    
2014
  
   
(Unaudited)
    
(Unaudited)
  
                         
Cash flows from operating activities:
                        
                         
Net income (Loss)
   $ (3,403 )   $ 765     $ (9,461 )   $ (243 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
                                
Depreciation
     725       764       2,121       2,326  
Stock-based compensation related to options granted to employees
     1,770       1,894       5,542       5,873  
Amortization of intangible assets
     779       457       2,013       1,387  
Capital loss
     123       -       138       -  
Decrease (Increase) in accrued severance pay, net
     99       (4 )     152       (7 )
Decrease (Increase) in other assets
     334       131       (32 )     60  
Decrease  in accrued interest and  amortization of premium on marketable securities
     240       275       713       520  
Increase (Decrease) in trade receivables
     2,150       (1,539 )     25       (8,417 )
Decrease (Increase) in other receivables and prepaid expenses
     844       (1,468 )     (469 )     (1,269 )
Decrease (Increase) in inventories
     (1,705 )     835       60       756  
Increase (Decrease) in long-term deferred taxes, net
     -       -       (140 )     56  
Increase (Decrease) in trade payables
     (551 )     (2,121 )     686       2,181  
Increase (Decrease) in employees and payroll accruals
     (769 )     (598 )     (918 )     407  
Increase in deferred revenues
     1,265       1,313       1,648       1,677  
Increase in other payables and accrued expenses
     1,006       2,212       571       2,459  
                                 
Net cash provided by operating activities
     2,907       2,916       2,649       7,766  
                                 
Cash flows from investing activities:
                                
                                 
Redemption of short-term deposits
     -       -       38,000       29,500  
Investment in short-term deposit
     (15,750 )     (30,000 )     (15,750 )     (30,000 )
Purchase of property and equipment
     (522 )     (900 )     (1,606 )     (2,513 )
Investment in marketable securities
     (2,537 )     (885 )     (20,812 )     (19,866 )
Proceeds from redemption or sale of marketable securities
     4,792       500       16,399       4,764  
Acquisitions
     -       -       (10,052 )     -  
Loan provided to third party, net
     -       157       -       (2,235 )
                                 
Net cash provided by (used in) investing activities
     (14,017 )     (31,128 )     6,179       (20,350 )
                                 
Cash flows from financing activities:
                                
                                 
Exercise of employee stock options
     4       14       104       1,402  
                                 
Net cash provided by financing activities
     4       14       104       1,402  
                                 
Increase (Decrease) in cash and cash equivalents
     (11,106 )     (28,198 )     8,932       (11,182 )
Cash and cash equivalents at the beginning of the period
     39,218       59,829       19,180       42,813  
                                 
Cash and cash equivalents at the end of the period
   $ 28,112     $ 31,631     $ 28,112     $ 31,631  

 
 
 
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