Allot Surges Most in Three Months on Cloud Provider Order
Allot Communications Ltd. (ALLT), the Israeli maker of technology used to track wireless traffic, rallied the most in three months in New York after the company received a “multimillion dollar” order.
Shares of Allot jumped 11 percent to $14.00 at 11:04 a.m., the biggest increase since June 25. Trading volume was double the average of the past 90 days. Allot got a contract during the third quarter from a “major U.S.-based cloud provider,” the Hod Hasharon, Israel-based company said in a statement today.
“A multimillion dollar deal that Allot recognized in the third quarter would be material because we only expected revenue of $22 million, making this deal potentially 10 percent of revenue,” Brent Bracelin, analyst at Pacific Crest Securities LLC, said by phone from Portland, Oregon. “The stock is rising on the news but also because the company is continuing to diversify its revenue away from Europe, a slower growth market.” He rates the stock the equivalent of a hold.
Europe comprised 38 percent of Allot’s revenue in 2012 while the U.S. was the source of 24 percent of sales. Allot will report revenue of $25.8 million for the third quarter, a decline of 7.2 percent from a year ago, according to the mean of 10 analyst estimates compiled by Bloomberg.
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