HOD HASHARON, Israel,
May 1, 2012 /PRNewswire/ --
Allot Communications Ltd. (NASDAQ: ALLT), a leading provider of
service optimization and revenue generation solutions for fixed and
mobile data networks worldwide, today announced that it has signed
a definitive agreement to acquire Ortiva Wireless, which offers the
industry's most innovative solution for proactive management of
mobile video.
This transaction will enable Allot to further enhance its
industry-leading Allot Service Gateway by integrating a
leading-edge mobile video optimization solution into a single
network intelligence platform or offering it as a standalone
solution. The incorporation of Ortiva's technology within Allot
Service Gateway will allow mobile service providers to effectively
manage the ever-increasing volume of video traffic on their
networks, which according to Allot's latest Global MobileTrends
report, now represents 42% of mobile data traffic worldwide.
Ortiva's solution allows service providers to dramatically
improve the quality and efficiency of rich media content delivery
by optimizing for real-time network conditions and for each
mobile connection. This unique dual optimization capability enables
the highest quality of experience for video consumers especially in
fluctuating and constrained network conditions. Ortiva's solution
has been deployed at two Tier 1 mobile service providers to
date.
"This acquisition is an important building block in our Service
Gateway vision," commented Rami
Hadar, Allot's President and CEO. "Since the
introduction of Allot Service Gateway in 2007, our goal has been to
leverage our unique technology to enable the broadest range of
cost-saving and revenue-generating services on a single intelligent
network services platform. By purchasing Ortiva, we will own an
innovative video optimization solution, one of the major value-adds
that our customers are seeking today. As video becomes an
ever-increasing challenge for mobile networks, this acquisition
will allow Allot to offer a robust and tightly integrated video
optimization service within Allot Service Gateway. We look forward
to welcoming Ortiva's talented team into our company."
"We are excited to join the Allot team," commented Ortiva's CEO,
Marc Zionts. "Combining our unique
technology with Allot's industry-leading solutions will allow us to
continue and expand our mission of enabling service providers to
manage the ever-increasing flood of data traffic while
significantly improving the quality of experience for each
individual subscriber. We look forward to growing together as one
company."
The terms of the acquisition were not disclosed. The acquisition
is subject to the satisfaction of certain closing conditions, and
is expected to close during the second quarter of 2012. On a
non-GAAP basis, management currently anticipates the following:
- The acquisition will be accretive on a quarterly basis by the
end of 2012;
- Ortiva will contribute between $3-5
million in revenues for the second half of 2012, with a
gross margin profile similar to Allot's current level;
- Operating expenses are currently estimated at approximately
$2.5 million per quarter for the
second half of 2012.
Non-GAAP financial measures exclude stock-based compensation
expenses and amortization of acquired intangible assets, and add
back the fair value of acquired deferred revenue written-off for
GAAP purposes as part of purchase accounting.
About Allot
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
worldwide. 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.
Safe Harbor
Statement
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts
and projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally relate to
the company's plans, objectives and expectations for future
operations, including without limitation the company's integration
vision and expected revenues and operating expenses in connection
with the acquisition described in this press release. These
forward-looking statements are based upon management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties. These factors include,
but are not limited to: the integration of Ortiva Wireless
technology, business, and operations with those of the company,
increased demand for video optimization solutions in mobile
networks, changes in general economic and business conditions and,
specifically, a decline in demand for the company's products; the
company's inability to develop and introduce new technologies,
products and applications; loss of market; and other factors are
discussed under the heading "Risk Factors" in the company's annual
report on Form 20-F filed with the Securities and Exchange
Commission. 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:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
jkalish@allot.com
Marketing Communications
Jonathon Gordon
Director of Marketing
International access code + 972-9-762-8423
International access code + 972-54-223-3589
jgordon@allot.com
SOURCE Allot Communications Ltd.