HOD HASHARON, Israel,
July 31, 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 Oversi Networks, a leading global
provider of rich-media caching and content delivery solutions for
Internet video and peer-to-peer (P2P) traffic.
This transaction is another milestone in Allot's vision of
further enhancing its industry-leading Allot Service Gateway by
offering a comprehensive video solution, which now includes both
video optimization and caching. The incorporation of Oversi's
technology with Allot's Service Gateway will allow fixed and mobile
service providers to effectively manage the ever-increasing volume
of video traffic on their networks. Allot's fixed line
customers report that video traffic currently uses over 50% of
bandwidth and is rapidly increasing. On the wireless side,
according to Allot's latest Global MobileTrends report, video now
represents 42% of mobile data traffic worldwide.
Oversi's innovative caching and acceleration solutions help both
fixed and mobile service providers to relieve the heavy network
congestion associated with Internet video traffic. Its
technology identifies popular content and caches it at the edge of
the network, therefore achieving significant bandwidth saving and
minimizing long delays in video delivery. The end result is
a dramatic improvement in the subscribers' quality of experience
(QoE) for video applications. By assuring quality of experience,
Oversi's solutions enable service providers to offer tiered
services at different price levels, increasing average revenues per
user (ARPU). Its solution has been widely deployed at several large
and medium service providers to date.
"The acquisition of Oversi is another step in realizing our
Service Gateway vision," commented Rami
Hadar, Allot's President and CEO. "By adding video
caching, Allot now offers its customers a comprehensive video
solution that includes the critical caching and optimization
services required to manage the ever-increasing volume of
over-the-top video on the Internet. Over the past year, we
have seen an increase in customer interest in video caching
solutions, which made clear to us the critical need for Allot to
own a leading solution in this growing market instead of reselling
a third-party offering. With our shared vision of enabling
service providers to monetize video traffic, we are excited about
incorporating another excellent team and product offering into
Allot."
"By joining Allot, we will now be able to further our joint
market vision more effectively," commented Oversi's CEO,
David Tolub. "While we have seen
growing traction for our leading edge caching solutions, we believe
that integrating our solution into the Allot Service Gateway will
accelerate our market penetration by offering a more robust video
solution. We are excited about joining the Allot team."
Under the terms of the acquisition, Allot will be paying
$16 million in cash, as well as up to
$5 million based on Oversi's
performance during 2012. The acquisition is subject to the
satisfaction of certain closing conditions, and is expected to
close during the third quarter of 2012. On a non-GAAP basis,
management currently anticipates the following:
- Oversi will contribute approximately $2.0 million in revenues per quarter.
- Gross margins for the Oversi offering should be within Allot's
current gross margin range.
- Operating expenses will increase by approximately $2.0 million per quarter, which will impact
earnings per share by approximately $0.02 per share in the 4th
quarter.
- The offering should reach break-even by the first quarter of
2013.
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. The company offers the broadest portfolio
of value-added services, including a comprehensive and unique video
optimization and caching suite. 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 Oversi Networks
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.