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

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

PR Newswire

HOD HASHARON, Israel, May 7, 2013

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:

  oNon-GAAP revenues were $24.2 million ($24.1 million on a GAAP basis).
  oNon-GAAP gross margin was 75% (72% on a GAAP basis).
  oNon-GAAP operating margin was 2% (8% loss on a GAAP basis).
  oBook-to-bill above 1.
  oEarly 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:

  oDuring the quarter, large orders were received from 16 service providers,
    3 of which represented new customers
  o12 of the large orders came from mobile-service providers, one of which
    was a new customer
  oAnnounced a $6 million project to provide virtualized-parental control
    service to a tier-1 mobile operator
  oAllot was selected by Tata Communications to provide hosted-policy
    management services
  oReceived 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      37                -
deferred revenues write down (Revenues)
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      37          -
revenues write down
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           28,332                 14,987
restricted cash
Trade receivables, net              25,587                 20,236
Other receivables and prepaid       7,116                  6,815
expenses
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  15,886                 15,886
OCS grants
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' $     218,275     $    221,791
equity







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  1,829          716
granted to employees
Amortization of intangible assets            562            31
Capital loss                                -              4
Decrease (Increase) in accrued severance     24             (6)
pay, net
Increase in other assets                     (29)           (1)
Decease in accrued interest and
amortization of premium on marketable        11             37
securities
Increase in trade receivables                (5,351)        (4,387)
Decrease (Increase) in other receivables and (44)           224
prepaid expenses
Decrease (Increase) in inventories           320            (151)
Increase (Decrease) in trade payables        (1,381)        3,255
Increase (Decrease) in employees and payroll (722)          265
accruals
Increase (Decrease) in deferred revenues     (2,988)        1,211
Increase (Decrease) in other payables and    1,173          (677)
accrued expenses
Net cash provided by (used in) operating     (7,563)        4,402
activities
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          2,279          450
marketable securities
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   50,026         116,682
of the period
Cash and cash equivalents at the end of the  $        $     140,902
period                                       89,434



SOURCE Allot Communications Ltd.

Website: http://www.allot.com
 
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