PR Newswire: news distribution, targeting and monitoring
2014

Allot Communications Reports non-GAAP Revenues of $24.2 Million for First Quarter of 2013

Share with Twitter Share with LinkedIn

HOD HASHARON, Israel, May 7, 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 first quarter 2013 results, with non-GAAP revenues reaching $24.2 million ($24.1 million on a GAAP basis).

First Quarter Highlights:

  • Non-GAAP revenues were $24.2 million ($24.1 million on a GAAP basis).
  • Non-GAAP gross margin was 75% (72% on a GAAP basis).
  • Non-GAAP operating margin was 2% (8% loss on a GAAP basis).
  • Book-to-bill above 1.
  • Early in second quarter, a $9 million follow-on order was received from a tier 1 US mobile operator.

Financial Results:

On a non-GAAP basis, total revenues for the first quarter of 2013 reached $24.2 million, compared with $24.2 million of revenue reported for the first quarter of 2012 and $28.5 million of revenue reported for the fourth quarter of 2012.  On a non-GAAP basis, net profit for the first quarter of 2013 was $0.6 million, or $0.02 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 first quarter of 2012 and non-GAAP net profit of $4.6 million, or $0.14 per basic and diluted share, in the fourth quarter of 2012.

Total GAAP revenues for the first quarter of 2013 reached $24.1 million compared to $24.2 million of revenue reported for the first quarter of 2012 and $26.4 million of revenue reported for the fourth quarter of 2012. On a GAAP basis, the net loss for the first quarter of 2013 was $1.8 million, or a net loss of $0.06 per basic and diluted share. This compares with net profit of $3.2 million, or $0.10 per basic and diluted share, in the first quarter of 2012, and a net loss of $15.1 million, or a net loss of $0.46 per basic and diluted share, in the fourth quarter of 2012.

Key Quarterly Achievements:

  • During the quarter, large orders were received from 16 service providers, 3 of which represented new customers
  • 12 of the large orders came from mobile-service providers, one of which was a new customer
  • Announced a $6 million project to provide virtualized-parental control service to a tier-1 mobile operator
  • Allot was selected by Tata Communications to provide hosted-policy management services
  • Received a $6.5 Million Steering and VAS order from a tier-1 EMEA mobile operator

As of March 31, 2013, cash, cash equivalents, short-term deposits and marketable securities totaled $134.8 million with no debt.

"The sequential decrease in revenues was mainly attributable to the weakness in EMEA markets as expressed in a book-to-bill below 1 during the second half of 2012, as well as to normal first-quarter seasonality. Despite that, we started the year with a much stronger booking environment reflected by a number of multi-million dollars deals won during the first quarter. Also we started the second quarter with positive booking momentum by securing a follow-on, $9m order from a Tier 1 Mobile operator in the US. We continue to see a strong funnel of large orders ahead," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. "As can be seen by the two large deals announced in the first quarter, Value-Added Services was a major contributor to revenue and booking. We are pleased to see our Service Gateway strategy gain acceptance among tier 1 service providers while we grow our VAS portfolio and redefine the DPI space."

Conference Call & Webcast

The Allot management team will host a conference call to discuss first 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: +1646 254 3360, UK: +44(0)20 3364 5381, Israel: +972-3-763 0145, participant code 2641301.

A replay of the conference call will be available from 12:01 a.m. ET on May 7, 2013 through May 14, 2013 at 11:59 p.m. UK time. To access the replay, please dial: US: + 1 347 366 9565, UK: + 44 (0)20 3427 0598, access code: 2641301.

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 2 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

Public Relations Contact:
Maya Lustig
Director of Corporate Communications
International access code +972-54-677-8100
mlustig@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




March 31,




2013


2012




(Unaudited)









Revenues

$      24,114


$      24,217



Cost of revenues

6,740


6,901



Gross profit  

17,374


17,316









Operating expenses:






Research and development costs, net

6,902


4,010



Sales and marketing

9,827


7,755



General and administrative

2,638


2,774



Total operating expenses

19,367


14,539



Operating profit (loss)

(1,993)


2,777



Financial and other income, net

187


462



Profit (loss) before tax expenses

(1,806)


3,239









Tax expenses

41


3



Net profit (loss)

(1,847)


3,236









 Basic net profit (loss) per share

$         (0.06)


$          0.10















 Diluted net profit (loss) per share

$         (0.06)


$          0.10









Weighted average number of shares






used in computing basic  net






earnings per share

32,561,977


31,218,667









Weighted average number of shares






used in computing diluted net






earnings per share

32,561,977


32,923,903





















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




March 31,




2013


2012




(Unaudited)








 GAAP net profit (loss) as reported 

$      (1,847)


$           3,236








Non-GAAP adjustments





Fair value adjustment for acquired deferred revenues write down (Revenues)

37


-


Expenses recorded for stock-based compensation





Cost of revenues

86


44


Research and development costs, net

411


188


Sales and marketing

746


318


General and administrative

586


166


Expenses related to M&A activities and compliance with regulatory matters (*)





General and administrative (G&A)

12


1,045


Research and development costs, net

6


-


Intangible assets amortization 





Cost of revenues

504


31


S&M

58


-


Total adjustments

2,446


1,792








 Non-GAAP net profit  

$            599


$           5,028








Non- GAAP basic  net profit  per share

$           0.02


$              0.16








Non- GAAP diluted net profit per share

$           0.02


$              0.15














Weighted average number of shares






used in computing basic net






earnings per share


32,561,977


31,218,667








Weighted average number of shares






used in computing diluted net






earnings per share


33,506,441


33,078,735








(*) Mostly legal, finance and compensation expenses related to the acquisitions


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



March 31,



2013


2012



(Unaudited)







GAAP Revenues

$   24,114


$         24,217







Fair value adjustment for acquired deferred revenues write down

37


-







Non-GAAP Revenues

$   24,151


$         24,217

















 

 

 

 

TABLE  - 4

ALLOT COMMUNICATIONS LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)










March 31,


December 31,


2013


2012


(Unaudited)


(Audited)



ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$            89,434


$           50,026

Short term deposits

17,000


78,042

Marketable securities and restricted cash

28,332


14,987

Trade receivables, net

25,587


20,236

Other receivables and prepaid expenses

7,116


6,815

Inventories

9,643


9,963

Total current assets

177,112


180,069





LONG-TERM ASSETS:




Severance pay fund

211


213

Deferred Taxes

1,525


1,525

Other assets 

268


239

Total long-term assets

2,004


1,977





PROPERTY AND EQUIPMENT, NET

6,585


6,609

GOODWILL AND INTANGIBLE ASSETS, NET

32,574


33,136





Total assets

$          218,275


$        221,791





LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES:




Trade payables

$               3,428


$             4,809

Deferred revenues

12,500


13,829

Other payables and accrued expenses

14,398


13,947

Liability related to settlement of OCS grants

15,886


15,886

Total current liabilities

46,212


48,471





LONG-TERM LIABILITIES:




Deferred revenues

2,286


3,945

Accrued severance pay

276


254

Total long-term liabilities

2,562


4,199





SHAREHOLDERS' EQUITY

169,501


169,121





Total liabilities and shareholders' equity

$          218,275


$        221,791









 

 

 

TABLE  - 5


ALLOT COMMUNICATIONS LTD.


AND ITS SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS 


(U.S. dollars in thousands)








Three Months Ended



March 31,



2013


2012



(Unaudited)







Cash flows from operating activities:










Net income (Loss)

$              (1,847)


$              3,236


Adjustments to reconcile net income  to net cash provided by  operating activities:





Depreciation

880


645


Stock-based compensation related to options granted to employees

1,829


716


Amortization of intangible assets

562


31


Capital loss 

-


4


Decrease (Increase) in accrued severance pay, net

24


(6)


Increase in other assets

(29)


(1)


Decease in accrued interest and  amortization of premium on marketable securities 

11


37


Increase in trade receivables

(5,351)


(4,387)


Decrease (Increase) in other receivables and prepaid expenses

(44)


224


Decrease (Increase) in inventories

320


(151)


Increase (Decrease) in trade payables

(1,381)


3,255


Increase (Decrease) in employees and payroll accruals

(722)


265


Increase (Decrease) in deferred revenues

(2,988)


1,211


Increase (Decrease) in other payables and accrued expenses

1,173


(677)







Net cash provided by (used in) operating activities

(7,563)


4,402







Cash flows from investing activities:










Decrease (Increase) in restricted deposit

4


(44)


Redemption of short-term deposits 

61,042


18,000


Purchase of property and equipment

(856)


(703)


Investment in marketable securities

(15,662)


(251)


Proceeds from redemption or sale of marketable securities

2,279


450







Net cash provided by investing activities

46,807


17,452







Cash flows from financing activities:










Exercise of employee stock options 

164


2,366







Net cash provided by financing activities

164


2,366












Increase in cash and cash equivalents

39,408


24,220


Cash and cash equivalents at the beginning of the period

50,026


116,682







Cash and cash equivalents at the end of the period

$             89,434


$         140,902












 

SOURCE Allot Communications Ltd.



RELATED LINKS
http://www.allot.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release