HOD HASHARON, Israel,
Aug. 1, 2017 /PRNewswire/
-- Allot Communications Ltd. (NASDAQ: ALLT; TASE: ALLT),
a leading global provider of security and monetization solutions
that enable service providers and enterprises to protect and
personalize the digital experience, today announced its second
quarter 2017 financial results.
Q2 2017 Highlights
- GAAP revenues were $19.5M, up
from $18.4M in Q1 2017;
- GAAP operating loss was $3.8M,
down from $4.9M in Q1 2017;
- Book-to-bill above one for the second consecutive quarter.
Management Comment
Erez Antebi, President &
CEO of Allot Communications, commented, "The past quarter was
the second consecutive quarter with book-to-bill ratio above one.
We are also seeing a steady, consistent increase in the number of
consumers who are enjoying the benefits of our network security
solutions. Internally, we are aligning the organization to fit the
new strategy and generate growth. I strongly believe we are on the
right path to materialize on the market opportunities we identified
as growth engines, and we continue to demonstrate the value of our
solutions and commitment to customer success."
Q2 2017 Financial results
On a GAAP basis, total revenues for the second quarter of 2017
were $19.5 million, compared to
$18.4 million reported for the first
quarter of 2017. Net loss for the second quarter of 2017 was
$4.0 million, or $0.12 per basic and diluted share. This compares
with a net loss of $5.1 million, or
$0.15 per basic and diluted share, in
the first quarter of 2017.
On a non-GAAP basis, total revenues for the second quarter of
2017 were $19.5 million compared to
$18.5 million reported for the first
quarter of 2017. Net loss for the second quarter of 2017 was
$2.3 million, or $0.07 per basic and diluted share. This compares
with a net loss of $3.6 million, or
$0.11 per basic and diluted share, in
the first quarter of 2017.
Cash and investments as of June 30,
2017 totaled $111.3 million.
The Company recorded a positive operating cash flow of $0.9 million during the quarter.
2017 Outlook
Management reiterates its previously issued guidance and expects
2017 revenues in the range of $80 - $84
million. Revenues for the second half of 2017 are
expected to be better than for the first half and the book to bill
ratio for the year is expected to be above 1.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss
second quarter 2017 earnings results today, August 1, 2017 at 8:30 AM
ET, 3:30 p.m. Israel time. To access the conference call,
please dial one of the following numbers:
US: +1-888-668-9141, UK: +44(0) 800-917-5108, Israel: +972-3-918-0609.
A recording of the conference call will be available from
12:00PM ET on August 1, 2017 for 30 days. To access the
recording, please dial: +1-866-276-1485; UK: +44(0) 800-917-1246;
Intl: +972-3-925-5928
A live webcast of the conference call can be accessed on the
Allot Communications website at: http://www.allot.com.
The webcast will also be archived on the website following the
conference call.
About Allot Communications
Allot Communications (NASDAQ: ALLT, TASE: ALLT) is a leading
provider of security and monetization solutions that enables
service providers and enterprises to protect and personalize the
digital experience. Allot's flexible and highly scalable service
delivery framework leverages the intelligence in data networks,
enabling service providers to get closer to their customers,
safeguard network assets and users, and accelerate time-to-revenue
for value-added services. We employ innovative technology, proven
know-how and a collaborative approach to provide the right solution
for every network environment. Allot solutions are currently
deployed at 5 of the top 10 global mobile operators and in
thousands of CSP and enterprise networks worldwide. 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,
deferred tax asset adjustment, restructuring expenses and other
acquisition-related expenses.
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.
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,
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
19,502
|
|
$
22,958
|
|
|
$
37,937
|
|
$
45,896
|
Cost of
revenues
|
6,662
|
|
6,524
|
|
|
12,980
|
|
13,667
|
Gross
profit
|
12,840
|
|
16,434
|
|
|
24,957
|
|
32,229
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development costs, net
|
5,364
|
|
5,957
|
|
|
10,897
|
|
12,818
|
Sales and
marketing
|
8,747
|
|
8,846
|
|
|
17,727
|
|
19,117
|
General and
administrative
|
2,519
|
|
2,570
|
|
|
5,060
|
|
5,267
|
Total operating
expenses
|
16,630
|
|
17,373
|
|
|
33,684
|
|
37,202
|
Operating
loss
|
(3,790)
|
|
(939)
|
|
|
(8,727)
|
|
(4,973)
|
Financial and other
income , net
|
112
|
|
211
|
|
|
474
|
|
327
|
Loss before income
tax benefit
|
(3,678)
|
|
(728)
|
|
|
(8,253)
|
|
(4,646)
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
352
|
|
499
|
|
|
854
|
|
870
|
Net loss
|
(4,030)
|
|
(1,227)
|
|
|
(9,107)
|
|
(5,516)
|
|
|
|
|
|
|
|
|
|
Basic net
loss per share
|
$
(0.12)
|
|
$
(0.04)
|
|
|
$
(0.27)
|
|
$
(0.17)
|
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.12)
|
|
$
(0.04)
|
|
|
$
(0.27)
|
|
$
(0.17)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,200,982
|
|
33,234,040
|
|
|
33,146,715
|
|
33,357,014
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
|
earnings per
share
|
33,200,982
|
|
33,234,040
|
|
|
33,146,715
|
|
33,357,014
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP
Revenues
|
$
19,502
|
|
$
22,958
|
|
$
37,937
|
|
$
45,896
|
Fair value
adjustment for acquired deferred revenues write down
|
13
|
|
36
|
|
37
|
|
101
|
Non-GAAP
Revenues
|
$
19,515
|
|
$
22,994
|
|
$
37,974
|
|
$
45,997
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenues
|
$
6,662
|
|
$
6,524
|
|
$
12,980
|
|
$
13,667
|
Share-based
compensation (1)
|
(96)
|
|
(104)
|
|
(192)
|
|
(173)
|
Amortization of
intangible assets (2)
|
(242)
|
|
(233)
|
|
(474)
|
|
(481)
|
Non-GAAP cost of
revenues
|
$
6,324
|
|
$
6,187
|
|
$
12,314
|
|
$
13,013
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
12,840
|
|
$
16,434
|
|
$
24,957
|
|
$
32,229
|
Gross profit
adjustments
|
351
|
|
373
|
|
703
|
|
755
|
Non-GAAP gross
profit
|
$
13,191
|
|
$
16,807
|
|
$
25,660
|
|
$
32,984
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
16,630
|
|
$
17,373
|
|
$
33,684
|
|
$
37,202
|
Share-based
compensation (1)
|
(870)
|
|
(1,220)
|
|
(1,618)
|
|
(2,806)
|
Amortization of
intangible assets (2)
|
(135)
|
|
(132)
|
|
(269)
|
|
(270)
|
Expenses
related to M&A activities (3)
|
-
|
|
-
|
|
(89)
|
|
-
|
Non-GAAP
operating expenses
|
$
15,625
|
|
$
16,021
|
|
$
31,708
|
|
$
34,126
|
|
|
|
|
|
|
|
|
|
GAAP financial
and other income
|
$
112
|
|
$
211
|
|
$
474
|
|
$
327
|
Expenses
related to M&A activities (3)
|
306
|
|
(135)
|
|
379
|
|
143
|
Non-GAAP
Financial and other income
|
$
418
|
|
$
76
|
|
$
853
|
|
$
470
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income
|
$
352
|
|
$
499
|
|
$
854
|
|
$
870
|
Tax benefit (in
respect of net deferred tax asset recorded)
|
(64)
|
|
(69)
|
|
(130)
|
|
(131)
|
Non-GAAP taxes
on income
|
$
288
|
|
$
430
|
|
$
724
|
|
$
739
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$
(4,030)
|
|
$
(1,227)
|
|
$
(9,107)
|
|
$
(5,516)
|
Share-based
compensation (1)
|
966
|
|
1,324
|
|
1,810
|
|
2,979
|
Amortization of
intangible assets (2)
|
377
|
|
365
|
|
743
|
|
751
|
Expenses
related to M&A activities (3)
|
306
|
|
(135)
|
|
468
|
|
143
|
Fair value
adjustment for acquired deferred revenues write down
|
13
|
|
36
|
|
37
|
|
101
|
Tax benefit (in
respect of net deferred tax asset recorded)
|
64
|
|
69
|
|
130
|
|
131
|
Non-GAAP Net
income (Loss)
|
$
(2,304)
|
|
$
432
|
|
$
(5,919)
|
|
$
(1,411)
|
|
|
|
|
|
|
|
|
|
GAAP Loss per
share (diluted)
|
$
(0.12)
|
|
$
(0.04)
|
|
$
(0.27)
|
|
$
(0.17)
|
Share-based
compensation
|
0.03
|
|
0.04
|
|
0.05
|
|
0.09
|
Amortization of
intangible assets
|
0.01
|
|
0.01
|
|
0.02
|
|
0.02
|
Expenses
related to M&A activities
|
0.01
|
|
(0.00)
|
|
0.01
|
|
0.01
|
Fair value
adjustment for acquired deferred revenues write down
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
Tax benefit (in
respect of net deferred tax asset recorded)
|
0.00
|
|
0.00
|
|
0.01
|
|
0.01
|
Non-GAAP Net
income (Loss) per share (diluted)
|
$
(0.07)
|
|
$
0.01
|
|
$
(0.18)
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
computing GAAP
diluted net earnings per share
|
33,200,982
|
|
33,234,040
|
|
33,146,715
|
|
33,357,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
computing non-GAAP
diluted net earnings per share
|
33,200,982
|
|
33,736,414
|
|
33,146,715
|
|
33,357,014
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
96
|
|
$
104
|
|
$
192
|
|
$
173
|
|
Research and
development costs, net
|
217
|
|
280
|
|
446
|
|
706
|
|
Sales and
marketing
|
246
|
|
467
|
|
487
|
|
1,089
|
|
General and
administrative
|
407
|
|
473
|
|
685
|
|
1,011
|
|
|
$
966
|
|
$
1,324
|
|
$
1,810
|
|
$
2,979
|
|
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
242
|
|
$
233
|
|
$
474
|
|
$
481
|
|
Sales and
marketing
|
135
|
|
132
|
|
269
|
|
270
|
|
|
$
377
|
|
$
365
|
|
$
743
|
|
$
751
|
|
|
|
|
|
|
|
|
|
(3) Expenses
related to M&A activities
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$
89
|
|
$
-
|
|
Finanacial
expenses
|
306
|
|
(135)
|
|
379
|
|
143
|
|
|
$
306
|
|
$
(135)
|
|
$
468
|
|
$
143
|
TABLE -
3
|
ALLOT
COMMUNICATIONS LTD.
|
AND ITS
SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
23,460
|
|
$
23,326
|
Short term
deposits
|
|
24,543
|
|
29,821
|
Marketable
securities
|
|
63,252
|
|
60,507
|
Trade receivables,
net
|
|
24,367
|
|
24,158
|
Other receivables and
prepaid expenses
|
|
3,926
|
|
3,879
|
Inventories
|
|
10,084
|
|
7,235
|
Total current
assets
|
|
149,632
|
|
148,926
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
287
|
|
252
|
Deferred
taxes
|
|
133
|
|
267
|
Other
assets
|
|
570
|
|
1,136
|
Total long-term
assets
|
|
990
|
|
1,655
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
5,076
|
|
4,387
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
35,229
|
|
35,972
|
|
|
|
|
|
Total
assets
|
|
$
190,927
|
|
$
190,940
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
9,411
|
|
$
3,275
|
Deferred
revenues
|
|
10,679
|
|
11,133
|
Other payables and
accrued expenses
|
|
11,482
|
|
10,538
|
Total current
liabilities
|
|
31,572
|
|
24,946
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred
revenues
|
|
3,090
|
|
3,597
|
Accrued severance
pay
|
|
711
|
|
592
|
Other long term
liabilities
|
|
4,857
|
|
4,502
|
Total long-term
liabilities
|
|
8,658
|
|
8,691
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
150,697
|
|
157,303
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
190,927
|
|
$
190,940
|
TABLE -
4
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
$
(4,030)
|
|
$
(1,227)
|
|
$
(9,107)
|
|
$
(5,516)
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
535
|
|
596
|
|
1,065
|
|
1,195
|
Stock-based
compensation related to options granted to employees
|
966
|
|
1,324
|
|
1,809
|
|
2,979
|
Amortization of
intangible assets
|
376
|
|
365
|
|
743
|
|
751
|
Capital
loss
|
3
|
|
21
|
|
7
|
|
20
|
Decrease in accrued
severance pay, net
|
56
|
|
9
|
|
84
|
|
27
|
Decrease in other
assets
|
258
|
|
483
|
|
566
|
|
374
|
Decease in accrued
interest and amortization of premium on marketable
securities
|
376
|
|
402
|
|
502
|
|
740
|
Decrease (Increase)
in trade receivables
|
(1,469)
|
|
261
|
|
(209)
|
|
542
|
Decrease (Increase)
in other receivables and prepaid expenses
|
1,028
|
|
(92)
|
|
406
|
|
242
|
Increase in
inventories
|
(2,087)
|
|
(513)
|
|
(2,849)
|
|
(139)
|
Decrease in long-term
deferred taxes, net
|
67
|
|
61
|
|
134
|
|
123
|
Increase (Decrease)
in trade payables
|
4,287
|
|
(3,060)
|
|
6,136
|
|
(2,905)
|
Increase (Decrease)
in employees and payroll accruals
|
340
|
|
(12)
|
|
616
|
|
(597)
|
Increase (Decrease)
in deferred revenues
|
(108)
|
|
1,163
|
|
(961)
|
|
(64)
|
Increase (Decrease)
in other payables and accrued expenses
|
269
|
|
(1,004)
|
|
760
|
|
(404)
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
867
|
|
(1,223)
|
|
(298)
|
|
(2,632)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption of
(Investment in) short-term deposits
|
4,805
|
|
(267)
|
|
5,278
|
|
9,733
|
Purchase of property
and equipment
|
(949)
|
|
(409)
|
|
(1,760)
|
|
(736)
|
Investment in
marketable securities
|
(8,950)
|
|
(8,200)
|
|
(15,538)
|
|
(16,980)
|
Proceeds from
redemption or sale of marketable securities
|
7,662
|
|
7,690
|
|
12,411
|
|
18,590
|
Net cash provided by
(used in) investing activities
|
2,568
|
|
(1,186)
|
|
391
|
|
10,607
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
17
|
|
15
|
|
41
|
|
26
|
Purchase of treasury
stocks
|
-
|
|
(2,279)
|
|
-
|
|
(3,326)
|
Net cash provided by
(used in) financing activities
|
17
|
|
(2,264)
|
|
41
|
|
(3,300)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in cash and cash equivalents
|
3,452
|
|
(4,673)
|
|
134
|
|
4,675
|
Cash and cash
equivalents at the beginning of the period
|
20,008
|
|
24,818
|
|
23,326
|
|
15,470
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
23,460
|
|
$
20,145
|
|
$
23,460
|
|
$
20,145
|
Investor Relations
Contact:
GK Investor
Relations Ehud
Helft/Gavriel Frohwein +1 646
688 3559 allot@gkir.com
Public Relations
Contact:
Sigalit
Orr Director Corporate Communications
International dialing +972-54-268-1500
sorr@allot.com
|
|
View original
content:http://www.prnewswire.com/news-releases/allot-communications-announces-second-quarter-2017-financial-results-300497182.html
SOURCE Allot Communications Ltd.