Allot Tumbles Most in Month as Pricing Talks Delay Transactions
Allot Communications Ltd. (ALLT), the Israeli developer of a technology used to manage traffic on networks, sank the most in a month in New York after the company said some transactions are being delayed.
Shares of the Hod Hasharon, Israel-based company dropped 6.7 percent to $23.02 as of 11:47 a.m. in New York, headed for the biggest slump since June 21. Its Tel Aviv shares rose 2.7 percent to 103 shekels, or the equivalent of $25.84.
The process to close deals “is taking longer, more related to pricing development and actual needs,” Allot’s Chief Executive Officer Rami Hadar, said in the earnings call with analysts today. “Maybe service providers are a little bit more cautious and anxious to optimize capex spending.”
The Israeli company reported that second-quarter sales jumped 43 percent to $26 million, beating the $25 million mean estimate of 11 analysts. The company also announced the acquisition of Oversi Networks Ltd. for $16 million in cash.
Allot had gained 62 percent this year before reporting earnings, the second-best performing stock on the Bloomberg Israel-U.S. equity index. The company trades at 38.1 times estimated earnings, compared with the average multiple of 16 for peers on the Nasdaq Composite Index. (CCMP)
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