HOD HASHARON, Israel,
Aug. 6, 2013 /PRNewswire/ -- Allot Communications Ltd.
(NASDAQ: ALLT), a leading supplier of service optimization and
revenue generation solutions for fixed and mobile broadband service
providers worldwide, today announced its second quarter 2013
results, with non-GAAP revenues reaching $21.5 million ($21.2
million on a GAAP basis).
Second quarter highlights:
- Non-GAAP revenues were $21.5
million ($21.2 million on a
GAAP basis).
- Non-GAAP gross margin was 76% (73% on a GAAP basis).
- All-time high, record booking, leading to book-to-bill
significantly above 1. Booking's level was more than 20% higher
than the second quarter of 2012.
- Won a multi-million USD contract with an APAC Tier 1 fixed-line
operator in a competitive deal against other pure play DPI
vendors.
- A $5 million deal with an EMEA
Tier 1 fixed-line operator, has been delivered however, revenue
recognition has been delayed to the second half of 2013.
Financial results:
On a non-GAAP basis, total revenues for the second quarter of
2013 reached $21.5 million, compared
with $26.4 million of revenue
reported for the second quarter of 2012 and $24.2 million of revenue reported for the first
quarter of 2013. On a non-GAAP basis, net loss for the second
quarter of 2013 was $0.9 million, or
($0.03) per basic and diluted share.
This compares with non-GAAP net profit of $5.0 million, or $0.16 per basic share, and $0.15 per diluted share, in the second quarter of
2012 and non-GAAP net profit of $0.6
million, or $0.02 per basic
and diluted share, in the first quarter of 2013.
Total GAAP revenues for the second quarter of 2013 reached
$21.2 million compared to
$26.4 million of revenue reported for
the second quarter of 2012 and $24.1
million of revenue reported for the first quarter of 2013.
On a GAAP basis, the net loss for the second quarter of 2013 was
$3.9 million, or a net loss of
($0.12) per basic and diluted share.
This compares with net profit of $2.7
million, or $0.08 per basic
and diluted share, in the second quarter of 2012, and a net loss of
$1.8 million, or a net loss of
$0.06 per basic and diluted share, in
the first quarter of 2013.
Key quarterly achievements:
- During the quarter, large orders were received from 13 service
providers, 3 of which were new customers
- 6 of the large orders came from mobile-service providers, two
of which were new customers
- Secured orders from three of the world's top ten
telecommunication operators to assist in their LTE network
rollouts
- Won a $2 million new account with
a Tier 1 EMEA mobile operator, for the delivery of service gateway
and video caching combination
- VAS accounted for 26% of total bookings.
- A multi million dollars, follow-on order with a Tier 1, U.S.
mobile operator, announced early second quarter exceeded
$10 million.
As of June 30, 2013, cash, cash
equivalents, short-term deposits and marketable securities totaled
$134.7 million with no debt.
"Our second quarter revenue came in 11% below first quarter's
level," commented Rami Hadar, Allot
Communications' President and Chief Executive Officer. "The
sequential revenues' decline was mostly the result of unfulfilled
revenue recognition terms of a $5
million deal with an EMEA Tier 1 operator. We expect this
deal to materialize during the second half of the year. We are
encouraged by the surge in demand for our DPI solution, as well as
for our VAS, as demonstrated by the all-time, record booking level
achieved during the quarter. In the second quarter we made good
progress with our Tier 1 mobile U.S. operator, increasing the
announced follow-on order to more than $10
million. We expect that the booking results of the last two
quarters will set a good foundation to resumed growth in the
following quarters."
Conference Call & Webcast
The Allot management team will host a conference call to discuss
second quarter 2013 earnings results today at 8:30 a.m. ET, 3:30
p.m. Israel time.
To access the conference call, please dial one of the following
numbers: US: +1 212 444 0896, UK: +44(0)20 3427 1911, Israel: +972-3-721 9510, participant code
2638006.
A replay of the conference call will be available from
12:01 a.m. ET on August 6th, 2013 for 30 days. To
access the replay, please dial: US: + 1 347 366 9565, UK: + 44
(0)20 3427 0598, access code: 2638006.
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: ALLT) is a leading provider
of intelligent data traffic optimization and monetization solutions
for fixed and mobile broadband operators and large enterprises.
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.
GAAP to Non-GAAP Reconciliation
The discrepancy between GAAP and non-GAAP revenues is related to
the acquisitions made by the Company during the year and represents
revenues adjusted for the impact of the fair value adjustment to
acquired deferred revenue related to purchase accounting. Non-GAAP
net profit is defined as GAAP net profit 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,
regulatory matters, acquisition related expenses 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
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. These forward-looking statements are based upon
management's current estimates and projections of future results or
trends. Actual results may differ materially from those projected
as a result of certain risks and uncertainties. These factors
include, but are not limited to: our ability to increase the
breadth and functionality of the Service Gateway platform through
additional partnerships, changes in general economic and business
conditions; the Company's inability to develop and introduce new
technologies, products and applications; loss of market; 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. 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
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,
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
21,212
|
|
$
26,405
|
|
|
$
45,326
|
|
$
50,622
|
Cost of
revenues
|
5,753
|
|
7,755
|
|
|
12,493
|
|
14,656
|
Gross
profit
|
$
15,459
|
|
$
18,650
|
|
|
$
32,833
|
|
$
35,966
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development costs, net
|
6,898
|
|
5,332
|
|
|
13,800
|
|
9,342
|
Sales and
marketing
|
9,896
|
|
8,126
|
|
|
19,723
|
|
15,881
|
General and
administrative
|
2,666
|
|
2,659
|
|
|
5,304
|
|
5,433
|
Total operating
expenses
|
19,460
|
|
16,117
|
|
|
38,827
|
|
30,656
|
Operating profit
(loss)
|
$
(4,001)
|
|
$
2,533
|
|
|
$
(5,994)
|
|
$
5,310
|
Financial and other
income, net
|
168
|
|
187
|
|
|
355
|
|
649
|
Profit (loss) before
income tax expenses
|
$
(3,833)
|
|
$
2,720
|
|
|
$
(5,639)
|
|
$
5,959
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
32
|
|
21
|
|
|
73
|
|
24
|
Net profit
(loss)
|
$
(3,865)
|
|
$
2,699
|
|
|
$
(5,712)
|
|
$
5,935
|
|
|
|
|
|
|
|
|
|
Basic net
profit (loss) per share
|
$
(0.12)
|
|
$
0.08
|
|
|
$
(0.18)
|
|
$
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
profit (loss) per share
|
$
(0.12)
|
|
$
0.08
|
|
|
$
(0.18)
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
|
earnings per
share
|
32,630,280
|
|
31,873,752
|
|
|
32,596,317
|
|
31,548,294
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
|
earnings per
share
|
32,630,280
|
|
33,356,308
|
|
|
32,596,317
|
|
33,169,640
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP net profit
(loss) as reported
|
$
(3,865)
|
|
$
2,699
|
|
$
(5,712)
|
|
$
5,935
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down (Revenues)
|
276
|
|
-
|
|
313
|
|
-
|
Expenses recorded for
stock-based compensation
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
115
|
|
52
|
|
201
|
|
97
|
|
Research and
development costs, net
|
412
|
|
240
|
|
823
|
|
428
|
|
Sales and
marketing
|
874
|
|
446
|
|
1,620
|
|
763
|
|
General and
administrative
|
649
|
|
288
|
|
1,235
|
|
454
|
Expenses related to
M&A activities and compliance with regulatory matters
(*)
|
|
|
|
|
|
|
|
|
General and
administrative
|
21
|
|
666
|
|
33
|
|
1,711
|
|
Research and
development costs, net
|
22
|
|
250
|
|
28
|
|
250
|
|
Sales and
marketing
|
12
|
|
93
|
|
12
|
|
93
|
Intangible assets
amortization
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
503
|
|
262
|
|
1,006
|
|
293
|
|
S&M
|
57
|
|
-
|
|
115
|
|
-
|
Total
adjustments
|
$
2,941
|
|
$
2,297
|
|
$
5,386
|
|
$
4,089
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
profit (loss)
|
$
(924)
|
|
$
4,996
|
|
$
(326)
|
|
$
10,024
|
|
|
|
|
|
|
|
|
|
Non- GAAP basic
net profit (loss) per share
|
$
(0.03)
|
|
$
0.16
|
|
$
(0.01)
|
|
$
0.32
|
|
|
|
|
|
|
|
|
|
Non- GAAP diluted
net profit (loss) per share
|
$
(0.03)
|
|
$
0.15
|
|
$
(0.01)
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
|
|
earnings per
share
|
32,630,280
|
|
31,873,752
|
|
32,596,317
|
|
31,548,294
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
|
|
earnings per
share
|
32,630,280
|
|
33,662,390
|
|
32,596,317
|
|
33,401,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Mostly legal,
finance and compensation expenses related to the
acquisition
|
|
|
|
|
|
|
|
|
|
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
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP
Revenues
|
$
21,212
|
|
$ 26,405
|
|
$ 45,326
|
|
$ 50,622
|
|
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
276
|
|
-
|
|
313
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP
Revenues
|
$
21,488
|
|
$ 26,405
|
|
$ 45,639
|
|
$ 50,622
|
|
|
|
|
|
|
|
|
TABLE -
4
|
ALLOT
COMMUNICATIONS LTD.
|
AND ITS
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
92,453
|
|
$
50,026
|
Short term
deposits
|
|
2,000
|
|
78,042
|
Marketable securities
and restricted cash
|
|
40,296
|
|
14,988
|
Trade receivables,
net
|
|
22,719
|
|
20,236
|
Other receivables and
prepaid expenses
|
|
8,461
|
|
6,815
|
Inventories
|
|
10,744
|
|
9,963
|
Total current
assets
|
|
$
176,673
|
|
$
180,070
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
232
|
|
213
|
Deferred
Taxes
|
|
1,525
|
|
1,525
|
Other
assets
|
|
252
|
|
239
|
Total long-term
assets
|
|
$
2,009
|
|
$
1,977
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
6,276
|
|
6,609
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
32,014
|
|
33,136
|
|
|
|
|
|
Total
assets
|
|
$
216,972
|
|
$
221,792
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
5,030
|
|
4,809
|
Deferred
revenues
|
|
10,490
|
|
13,829
|
Other payables and
accrued expenses
|
|
14,823
|
|
13,947
|
Liability related to
settlement of OCS grants
|
|
15,886
|
|
15,886
|
Total current
liabilities
|
|
$
46,229
|
|
$
48,471
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred
revenues
|
|
3,226
|
|
3,945
|
Accrued severance
pay
|
|
271
|
|
254
|
Total long-term
liabilities
|
|
$
3,497
|
|
$
4,199
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
167,246
|
|
169,122
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
216,972
|
|
$
221,792
|
|
|
|
|
|
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,
|
|
2013
|
2012
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(Loss)
|
$
(3,865)
|
$
2,699
|
|
$
(5,712)
|
$
5,935
|
Adjustments to
reconcile net income (loss) to net cash provided (used) by
operating activities:
|
|
|
|
|
|
Depreciation
|
867
|
718
|
|
1,747
|
1,363
|
Stock-based
compensation related to options granted to employees
|
2,050
|
1,026
|
|
3,879
|
1,742
|
Amortization of
intangible assets
|
560
|
262
|
|
1,122
|
293
|
Capital
loss
|
14
|
-
|
|
14
|
4
|
Decrease (Increase)
in accrued severance pay, net
|
(26)
|
13
|
|
(2)
|
7
|
Decrease (Increase)
in other assets
|
16
|
2
|
|
(13)
|
1
|
Decrease in accrued
interest and amortization of premium on marketable
securities
|
46
|
11
|
|
57
|
48
|
Increase (Decrease)
in trade receivables
|
2,868
|
(1,112)
|
|
(2,483)
|
(5,499)
|
Decrease (Increase)
in other receivables and prepaid expenses
|
(1,625)
|
1,402
|
|
(1,669)
|
1,626
|
Decrease (Increase)
in inventories
|
(1,101)
|
472
|
|
(781)
|
321
|
Increase (Decrease)
in trade payables
|
1,602
|
(763)
|
|
221
|
2,492
|
Increase (Decrease)
in employees and payroll accruals
|
(538)
|
113
|
|
(1,260)
|
378
|
Decrease in deferred
revenues
|
(1,070)
|
(2,847)
|
|
(4,058)
|
(1,636)
|
Increase in other
payables and accrued expenses
|
963
|
2,794
|
|
2,136
|
2,117
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
761
|
$
4,790
|
|
$
(6,802)
|
$
9,192
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (Increase)
in restricted deposit
|
(3)
|
65
|
|
1
|
21
|
Redemption of
short-term deposits
|
15,000
|
-
|
|
76,042
|
-
|
Investment in
short-term deposit
|
-
|
(65,000)
|
|
-
|
(47,000)
|
Purchase of property
and equipment
|
(572)
|
(766)
|
|
(1,428)
|
(1,469)
|
Investment in
marketable securities
|
(13,704)
|
(1,000)
|
|
(29,366)
|
(1,251)
|
Proceeds from
redemption or sale of marketable securities
|
1,432
|
750
|
|
3,711
|
1,200
|
Acquisitions
|
-
|
(10,399)
|
|
-
|
(10,399)
|
Loan to purchased
Subsidiary
|
-
|
(1,000)
|
|
-
|
(1,000)
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
$
2,153
|
$
(77,350)
|
|
$
48,960
|
$
(59,898)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
105
|
1,741
|
|
269
|
4,107
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
$
105
|
$
1,741
|
|
$
269
|
$
4,107
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
3,019
|
(70,819)
|
|
42,427
|
(46,599)
|
Cash and cash
equivalents at the beginning of the period
|
89,434
|
140,902
|
|
50,026
|
116,682
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
92,453
|
$
70,083
|
|
$
92,453
|
$
70,083
|
|
|
|
|
|
|
SOURCE Allot Communications Ltd.