HOD HASHARON, Israel,
April 30, 2014 /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 2014 results, with non-GAAP revenues reaching $28.3 million.
Other First Quarter Highlights:
- Non-GAAP revenues grew 17.2% year on year and 3.5%
sequentially.
- Non-GAAP gross margin was 73% (71% on a GAAP basis).
- Non-GAAP operating margin was 7% (2% operating loss on a GAAP
basis).
- Book-to-bill above one.
- Generated $3.4 million of
operating cash flow. Net cash as of March
31st 2014 totals $122.2
million.
Financial Results:
On a non-GAAP basis, total revenues for the first quarter of
2014 reached $28.3 million, compared
with $24.1 million of revenue
reported for the first quarter of 2013 and $27.3 million of revenue reported for the fourth
quarter of 2013. On a non-GAAP basis, net profit for the
first quarter of 2014 was $2.1
million, or $0.06 per basic
and diluted share. This compares with non-GAAP net profit of
$3.2 million, or $0.10 per basic and $0.09 per diluted share, in the fourth quarter of
2013 and a 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 first quarter of 2014 reached
$28.3 million compared to
$24.1 million of revenue reported for
the first quarter of 2013 and $27.3
million of revenue reported for the fourth quarter of 2013.
On a GAAP basis, the net loss for the first quarter of 2014 was
$0.4 million, or of $0.01 per basic and diluted share. This compares
with a net profit of $1.2 million, or
$0.04 per basic and diluted share, in
the fourth quarter of 2013 and a net loss of $1.8 million, or $0.06 per basic and diluted share, in the first
quarter of 2013.
Key Quarterly Achievements:
- During the quarter, large orders were received from 25 service
providers, five of which are new customers.
- 14 of the large orders came from mobile-service providers and
11 were from fixed-line service providers.
- Introduced the new Allot Service Gateway Tera platform which
has already received $9 million
orders from four different mobile and fixed line operators
worldwide.
- Won a new video optimization contract from an Asian Tier-1
mobile operator.
- Received its first $1 million,
ClearSee Big-Data Analytics Solution, purchase order from a Tier-1
mobile and fixed operator.
"During the first quarter 2014 we continued to execute well on
all fronts and produced a strong inflow of large orders, as well as
expanded our customer base, an achievement, which we believe,
should be beneficial for Allot in the mid as well as the long-term
horizon. We reached a record revenues level for a first quarter and
book to bill was above one for a fifth time in a row," said
Rami Hadar, Allot Communications'
President and CEO. "Our well-diversified, differentiated VAS
offering is one of the key catalysts for the demand that we
experience from service providers and we look forward to continuing
to address the needs of our Tier-1 customers with our innovative
service generating VAS suite."
Conference Call & Webcast
The Allot management team will host a conference call to discuss
first quarter 2014 earnings results today at 8:30 AM ET, 3:30
p.m. Israel time.
To access the conference call, please dial one of the following
numbers: US: +1646 254 3368, UK: +44(0)203 4271933,
Israel: +97237217906,
participant code 9702862.
A replay of the conference call will be available from
12:00 AM ET on April 30, 2014 for 30 days. To access the replay,
please dial: US: +1 347 366 9565; UK: +44 (0)20 3427 0598,
access code: 9702862. 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, TASE: ALLT) is a leading
global provider of intelligent broadband solutions that put mobile,
fixed and enterprise networks at the center of the digital
lifestyle and work style. Allot's DPI-based solutions identify and
leverage the business intelligence in data networks, empowering
operators to analyze, protect, improve and enrich the digital
lifestyle services they deliver. Allot's unique blend of innovative
technology, proven know-how, collaborative approach to industry
standards and partnerships enables service providers worldwide to
elevate their role in the digital lifestyle ecosystem and to open
the door to a wealth of new business opportunities. For more
information, please visit 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
This release may contain 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 expressed or implied by 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;
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; 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.
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
|
|
|
|
March
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$
28,284
|
|
$
24,114
|
|
|
Cost of
revenues
|
8,195
|
|
6,740
|
|
|
Gross
profit
|
20,089
|
|
17,374
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development costs, net
|
7,221
|
|
6,902
|
|
|
Sales and
marketing
|
10,497
|
|
9,827
|
|
|
General and
administrative
|
2,887
|
|
2,638
|
|
|
Total operating
expenses
|
20,605
|
|
19,367
|
|
|
Operating
loss
|
(516)
|
|
(1,993)
|
|
|
Financial and other
income, net
|
149
|
|
187
|
|
|
Loss before income
tax expenses
|
(367)
|
|
(1,806)
|
|
|
|
|
|
|
|
|
Tax
expenses
|
21
|
|
41
|
|
|
Net loss
|
(388)
|
|
(1,847)
|
|
|
|
|
|
|
|
|
Basic net
loss per share
|
$
(0.01)
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.01)
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
|
earnings per
share
|
32,939,195
|
|
32,561,977
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
|
earnings per
share
|
32,939,195
|
|
32,561,977
|
|
|
|
|
|
|
|
|
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
|
|
|
|
March
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
GAAP net loss
as reported
|
$
(388)
|
|
$
(1,847)
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
12
|
|
37
|
|
Expenses recorded for
stock-based compensation
|
|
|
|
|
|
Cost of
revenues
|
88
|
|
86
|
|
|
Research and
development costs, net
|
469
|
|
411
|
|
|
Sales and
marketing
|
821
|
|
746
|
|
|
General and
administrative
|
614
|
|
586
|
|
Expenses related to
M&A activities and compliance with regulatory matters
(*)
|
|
|
|
|
|
General and
administrative
|
8
|
|
12
|
|
|
Research and
development costs, net
|
-
|
|
6
|
|
Intangible assets
amortization
|
|
|
|
|
|
Cost of
revenues
|
399
|
|
504
|
|
|
Sales and
marketing
|
66
|
|
58
|
|
|
|
|
|
|
Total
adjustments
|
2,477
|
|
2,446
|
|
|
|
|
|
|
Non-GAAP net
profit
|
$
2,089
|
|
$
599
|
|
|
|
|
|
|
|
Non- GAAP
basic net profit per share
|
$
0.06
|
|
$
0.02
|
|
|
|
|
|
|
|
Non- GAAP diluted
net profit per share
|
$
0.06
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
used in computing
basic net
|
|
|
|
|
earnings per
share
|
32,939,195
|
|
32,561,977
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
used in computing
diluted net
|
|
|
|
|
earnings per
share
|
33,895,273
|
|
33,506,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Mostly legal,
finance and compensation expenses related to the
acquisition
|
|
TABLE -
3
|
ALLOT
COMMUNICATIONS LTD.
|
AND ITS
SUBSIDIARIES
|
RECONCILATION OF
GAAP TO NON-GAAP CONSOLIDATED REVENUES
|
(U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
|
|
|
|
|
GAAP
Revenues
|
$
28,284
|
|
$ 24,114
|
|
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
12
|
|
37
|
|
|
|
|
|
|
Non-GAAP
Revenues
|
$
28,296
|
|
$ 24,151
|
|
|
|
|
|
|
TABLE -
4
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
51,036
|
|
$
42,813
|
|
Short term
deposits
|
|
30,500
|
|
38,000
|
|
Marketable securities
and restricted cash
|
|
40,639
|
|
40,798
|
|
Trade receivables,
net
|
|
21,414
|
|
16,908
|
|
Other receivables and
prepaid expenses
|
|
8,906
|
|
8,218
|
|
Inventories
|
|
13,474
|
|
13,798
|
|
Total current
assets
|
|
165,969
|
|
160,535
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Severance pay
fund
|
|
260
|
|
254
|
|
Deferred
taxes
|
|
1,602
|
|
1,602
|
|
Other
assets
|
|
2,726
|
|
771
|
|
Total long-term
assets
|
|
4,588
|
|
2,627
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
5,990
|
|
5,874
|
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
29,756
|
|
30,221
|
|
|
|
|
|
|
|
Total
assets
|
|
$
206,303
|
|
$
199,257
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
4,887
|
|
$
3,191
|
|
Deferred
revenues
|
|
13,527
|
|
12,504
|
|
Other payables and
accrued expenses
|
|
12,851
|
|
10,906
|
|
Total current
liabilities
|
|
31,265
|
|
26,601
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred
revenues
|
|
2,520
|
|
2,447
|
|
Accrued severance
pay
|
|
292
|
|
282
|
|
Total long-term
liabilities
|
|
2,812
|
|
2,729
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
172,226
|
|
169,927
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
206,303
|
|
$
199,257
|
|
|
|
|
|
|
|
TABLE -
5
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
2013
|
|
|
(Unaudited)
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net Loss
|
$
(388)
|
$
(1,847)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
800
|
880
|
|
Stock-based
compensation related to options granted to employees
|
1,992
|
1,829
|
|
Amortization of
intangible assets
|
465
|
562
|
|
Decrease in accrued
severance pay, net
|
4
|
24
|
|
Increase in other
assets
|
(82)
|
(29)
|
|
Decease in accrued
interest and amortization of premium on marketable
securities
|
208
|
11
|
|
Increase in trade
receivables
|
(4,506)
|
(5,351)
|
|
Increase in other
receivables and prepaid expenses
|
(102)
|
(44)
|
|
Decrease in
inventories
|
324
|
320
|
|
Increase (decrease)
in trade payables
|
1,696
|
(1,381)
|
|
Increase (decrease)
in employees and payroll accruals
|
1,062
|
(722)
|
|
Increase (decrease)
in deferred revenues
|
1,096
|
(2,988)
|
|
Increase in other
payables and accrued expenses
|
876
|
1,173
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
3,445
|
(7,563)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Decrease in
restricted deposit
|
-
|
4
|
|
Redemption of
short-term deposits
|
7,500
|
61,042
|
|
Purchase of property
and equipment
|
(916)
|
(856)
|
|
Investment in
marketable securities
|
(900)
|
(15,662)
|
|
Proceeds from
redemption or sale of marketable securities
|
901
|
2,279
|
|
Loan provided to
third party, net
|
(2,563)
|
-
|
|
|
|
|
|
Net cash provided by
investing activities
|
4,022
|
46,807
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
756
|
164
|
|
|
|
|
|
Net cash provided by
financing activities
|
756
|
164
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
8,223
|
39,408
|
|
Cash and cash
equivalents at the beginning of the period
|
42,813
|
50,026
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
51,036
|
$
89,434
|
|
|
|
|
|
|
|
|
|
SOURCE Allot Communications Ltd.