HOD HASHARON, Israel,
May 3, 2016 /PRNewswire/ -- Allot
Communications Ltd. (NASDAQ, TASE: ALLT), a leading global provider
of security and monetization solutions that enable service
providers to protect and personalize the digital experience, today
announced its first quarter 2016 financial results.
Q1 2016 – Financial Highlights:
- GAAP revenues were $22.9,
Non-GAAP revenues were $23.0 million,
down 22% year over year
- GAAP gross margin was 69%, Non-GAAP gross margin was 70%
- GAAP operating margin was negative 18%, Non-GAAP operating
margin was negative 8%
- Book-to-bill was below one
- The Company recorded negative operating cash flow of
$1.4 million
- Net cash and cash equivalents as of March 31st 2016 totaled $120.7 million
- During the quarter we repurchased our shares in a total amount
of $1.0 million
Q1 2016 Financial results:
On a GAAP basis, total revenues for the first quarter of 2016
were $22.9 million compared to
$25.4 million of revenue reported for
the fourth quarter of 2015 and $29.5
million of revenue reported for the first quarter of 2015.
Net loss for the first quarter of 2016 was $4.3 million, or $0.13 per basic and diluted share. This compares
with a net loss of $10.4 million, or
$0.31 per basic and diluted share, in
the fourth quarter of 2015 and a net loss of $0.03 million, or $0.00 per basic and diluted share, in the first
quarter of 2015.
On a non-GAAP basis, total revenues for the first quarter of
2016 were $23.0 million, compared
with $25.7 million of revenue
reported for the fourth quarter of 2015 and $29.5 million of revenue reported for the first
quarter of 2015. On a non-GAAP basis, net loss for the first
quarter of 2016 was $1.8 million, or
$0.06 per basic and diluted share.
This compares with non-GAAP net income of $0.7 million, or $0.02 per basic and diluted share, in the fourth
quarter of 2015 and non-GAAP net income of $2.9 million, or $0.09 per basic and diluted share, in the first
quarter of 2015.
Q1 2016 - Key Achievements:
- During Q1 2016, 11 large orders were received.
- 6 of the large orders came from mobile-service providers.
- 4 of the large orders were from fixed-line service
providers
- 1 of the large orders was from cloud service provider.
- During Q1 2016, Allot received two, over $1 million deals, compared to five in the
previous quarter and zero during Q1, 2015.
- Leading LATAM Operator Safeguards Businesses from Internet
Security Threats with Allot Web Safe Business.
- Launched the Service Gateway 9500, a powerful Intel-based
appliance. The product received 6 orders during the first
quarter.
- Allot Smart Data Source was selected by five Tier 1 mobile
operators and integrates with Oracle communication analytics to
enable operators to monetize network data.
- Published its 20th Allot Mobile Trends report,
together with Kaspersky Lab, revealing that Mobile business users
incur the highest malware risk.
2016 Outlook
Based on current backlog and the Company's funnel of
opportunities, the Company reiterates 2016 guidance and expects
revenues to be in the range of $102-$108
million in 2016, on a non-GAAP basis. Revenues for the
second half of 2016 are expected to be higher than in the first
half.
"Q1 results came in below our expectations mainly due to slow
turning of backlog into revenues. However, we have several
significant projects in deployment which we expect to materialize
throughout the year. During the quarter, we launched the SG-9500,
an Intel-based service gateway and shipped 6 orders. This new
offering extends our addressable market by providing a mid-range
solution with low cost of ownership, rich functionality and great
scalability." Said Andrei Elefant,
President & CEO of Allot Communications. "We are also
encouraged by the progress made this quarter in the security
segment as existing customers are continuously adding licenses and
our funnel includes opportunities with new customers. Our strong
backlog supports our original revenue guidance and we believe that
revenues will grow during 2016, year over year."
Conference Call & Webcast:
The Allot management team will host a conference call to discuss
first quarter 2016 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:
+1-212-444-0895, UK: +44(0)2034271916, Israel: +97237630147, participant code
9640625.
A replay of the conference call will be available from
12:00 AM ET on May 10 2016 until June
1st 2016. To access the replay, please dial: US: National
free number 18669325017, or +13473669565; UK: National free number
08003587735, or +44(0)2034270598, access code: 96406254#. 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 (NASDAQ, TASE: ALLT) is a leading provider
of security and monetization solutions that enable service
providers to protect and personalize the digital experience.
Allot's flexible and highly scalable service delivery framework
leverages the intelligence in data networks, enabling service
providers to get closer to their customers, safeguard network
assets and users, and accelerate time-to-revenue for value-added
services. We employ innovative technology, proven know-how and a
collaborative approach to provide the right solution for every
network environment. Allot solutions are currently deployed at 5 of
the top 10 global mobile operators and in thousands of CSP and
enterprise networks worldwide. For more information, please
visit www.allot.com.
GAAP to Non-GAAP Reconciliation:
The difference between GAAP and non-GAAP revenues is related to
the acquisitions made by the Company and represents revenues
adjusted for the impact of the fair value adjustment to acquired
deferred revenue related to purchase accounting. Non-GAAP net
income is defined as GAAP net income 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,
deferred tax asset update and acquisition-related
expenses.
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 contains 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 set forth in 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;
the timing of completion of key project milestones which impact the
timing of our revenue recognition; 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; court approval of the Company's proposed share
buy-back program; 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
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,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
|
|
Revenues
|
$ 22,938
|
|
$ 29,532
|
Cost of
revenues
|
7,143
|
|
7,769
|
Gross
profit
|
15,795
|
|
21,763
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development costs, net
|
6,862
|
|
6,809
|
Sales and
marketing
|
10,271
|
|
11,808
|
General and
administrative
|
2,697
|
|
3,250
|
Total operating
expenses
|
19,830
|
|
21,867
|
Operating
loss
|
(4,035)
|
|
(104)
|
Financial and other
income, net
|
115
|
|
205
|
Profit (Loss) before
income tax benefit
|
(3,920)
|
|
101
|
|
|
|
|
Tax
expenses
|
370
|
|
135
|
Net loss
|
(4,290)
|
|
(34)
|
|
|
|
|
Basic net
loss per share
|
$
(0.13)
|
|
$ (0.00)
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.13)
|
|
$ (0.00)
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
used in computing
basic net
|
|
|
|
earnings per
share
|
33,481,650
|
|
33,357,909
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
used in computing
diluted net
|
|
|
|
earnings per
share
|
33,481,650
|
|
33,357,909
|
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
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
March 31,
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
loss
|
$ (4,035)
|
-18%
|
|
$ (104)
|
0%
|
Share-based
compensation (1)
|
1,655
|
|
|
1,867
|
|
Amortization of
intangible assets (2)
|
386
|
|
|
511
|
|
Expenses
related to M&A activities (3)
|
-
|
|
|
577
|
|
Fair value
adjustment for acquired deferred revenues write down
|
65
|
|
|
11
|
|
Non-GAAP
Operating income (loss)
|
$ (1,929)
|
-8%
|
|
$ 2,862
|
10%
|
|
|
|
|
|
|
|
GAAP Net
loss
|
$ (4,290)
|
-19%
|
|
$
(34)
|
0%
|
Share-based
compensation (1)
|
1,655
|
|
|
1,867
|
|
Amortization of
intangible assets (2)
|
386
|
|
|
511
|
|
Expenses
related to M&A activities (3)
|
-
|
|
|
577
|
|
Fair value
adjustment for acquired deferred revenues write down
|
65
|
|
|
11
|
|
Financial
expenses
|
278
|
|
|
-
|
|
Tax benefit (in
respect of net deferred tax asset recorded)
|
62
|
|
|
-
|
|
Non-GAAP Net
income (loss)
|
$ (1,844)
|
-8%
|
|
$ 2,932
|
10%
|
|
|
|
|
|
|
|
GAAP loss per
share (diluted)
|
$ (0.13)
|
|
|
$ (0.00)
|
|
Share-based
compensation
|
0.05
|
|
|
0.05
|
|
Amortization of
intangible assets
|
0.01
|
|
|
0.02
|
|
Expenses
related to M&A activities
|
-
|
|
|
0.02
|
|
Fair value
adjustment for acquired deferred revenues write down
|
0.00
|
|
|
0.00
|
|
Financial
expenses
|
0.01
|
|
|
-
|
|
Tax benefit (in
respect of net deferred tax asset recorded)
|
0.00
|
|
|
-
|
|
Non-GAAP Net
income (loss) per share (diluted)
|
$ (0.06)
|
|
|
$ 0.09
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation:
|
|
|
|
|
|
|
Cost of
revenues
|
$ 69
|
|
|
$
82
|
|
|
Research and
development costs, net
|
426
|
|
|
420
|
|
|
Sales and
marketing
|
622
|
|
|
752
|
|
|
General and
administrative
|
538
|
|
|
613
|
|
|
|
$ 1,655
|
|
|
$ 1,867
|
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets
|
|
|
|
|
|
|
Cost of
revenues
|
$ 248
|
|
|
$
454
|
|
|
Sales and
marketing
|
138
|
|
|
57
|
|
|
|
$ 386
|
|
|
$
511
|
|
|
|
|
|
|
|
|
(3) Expenses
related to M&A activities
|
|
|
|
|
|
|
General and
administrative
|
$ -
|
|
|
$
351
|
|
|
Research and
development costs, net
|
-
|
|
|
$
45
|
|
|
Sales and
marketing
|
-
|
|
|
$
181
|
|
|
|
$ -
|
|
|
$
577
|
|
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,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
|
|
GAAP
Revenues
|
$ 22,938
|
|
$ 29,532
|
|
|
|
|
Fair value adjustment
for acquired deferred revenues write down
|
65
|
|
11
|
|
|
|
|
Non-GAAP
Revenues
|
$ 23,003
|
|
$ 29,543
|
TABLE -
4
ALLOT
COMMUNICATIONS LTD.
AND ITS
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(U.S.
dollars in thousands)
|
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
24,818
|
|
$
21,930
|
Short term
deposits
|
|
32,700
|
|
46,500
|
Restricted
cash
|
|
203
|
|
|
Marketable securities
and restricted cash
|
|
62,994
|
|
55,344
|
Trade receivables,
net
|
|
22,934
|
|
23,584
|
Other receivables and
prepaid expenses
|
|
4,489
|
|
6,634
|
Inventories
|
|
9,795
|
|
8,321
|
Total current
assets
|
|
157,933
|
|
162,313
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
252
|
|
260
|
Deferred
taxes
|
|
439
|
|
1,620
|
Other
assets
|
|
2,738
|
|
3,626
|
Total long-term
assets
|
|
3,429
|
|
5,506
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
4,916
|
|
6,011
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
37,295
|
|
45,903
|
|
|
|
|
|
Total
assets
|
|
$
203,573
|
|
$
219,733
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
6,164
|
|
$
5,876
|
Deferred
revenues
|
|
13,097
|
|
12,340
|
Other payables and
accrued expenses
|
|
13,865
|
|
15,232
|
Total current
liabilities
|
|
33,126
|
|
33,448
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred
revenues
|
|
4,654
|
|
4,777
|
Accrued severance
pay
|
|
639
|
|
292
|
Other long term
liabilities
|
|
4,314
|
|
3,915
|
Total long-term
liabilities
|
|
9,607
|
|
8,984
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
160,840
|
|
177,301
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
203,573
|
|
$
219,733
|
TABLE -
5
ALLOT
COMMUNICATIONS LTD.
AND ITS
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(U.S. dollars in
thousands)
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
2015
|
|
(Unaudited)
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net Loss
|
$
(4,290)
|
$
(34)
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation
|
600
|
762
|
Stock-based
compensation related to options granted to employees
|
1,665
|
1,849
|
Amortization of
intangible assets
|
386
|
449
|
Capital loss
(gain)
|
(1)
|
4
|
Decrease in accrued
severance pay, net
|
18
|
12
|
Increase in other
assets
|
(109)
|
(178)
|
Decrease in
accrued interest and amortization of premium on marketable
securities
|
338
|
300
|
Increase in trade
receivables
|
281
|
175
|
Decrease (Increase)
in other receivables and prepaid expenses
|
334
|
(2,691)
|
Decrease in
inventories
|
374
|
1,788
|
Increase in long-term
deferred taxes, net
|
62
|
96
|
Increase (Decrease)
in trade payables
|
155
|
(424)
|
Decrease in employees
and payroll accruals
|
(595)
|
(409)
|
Increase (Decrease)
in deferred revenues
|
(1,227)
|
100
|
Increase in other
payables and accrued expenses
|
600
|
99
|
|
|
|
Net cash provided by
(used in) operating activities
|
(1,409)
|
1,898
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Redemption of
short-term deposits
|
-
|
12,500
|
Investment in
short-term deposit
|
10,000
|
-
|
Purchase of property
and equipment
|
(327)
|
(666)
|
Investment in
marketable securities
|
(8,780)
|
(6,727)
|
Proceeds from
redemption and sale of marketable securities
|
10,900
|
5,528
|
Acquisitions of
certain assets and liabilities
|
-
|
(9,859)
|
|
|
.
|
Net cash provided by
investing activities
|
11,793
|
776
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Exercise of employee
stock options
|
11
|
76
|
Purchase of treasury
stocks, net
|
(1,047)
|
-
|
|
|
|
Net cash provided by
(used in) financing activities
|
(1,036)
|
76
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
9,348
|
2,750
|
Cash and cash
equivalents at the beginning of the period
|
15,470
|
19,180
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
24,818
|
$
21,930
|
Investor Relations
Contact:
|
Public Relations
Contact:
|
Rami
Rozen
|
Sigalit
Orr
|
AVP Corporate
Development
|
Director Corporate
Communications
|
International dialing
+972-52-569-4441
|
International dialing
+972-54-268-1500
|
rrozen@allot.com
|
sorr@allot.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/allot-communications-announces-first-quarter-2016-financial-results-300261601.html
SOURCE Allot Communications Ltd.