Allot Communications Ltd. tumbled the most in New York since 2007 as Oppenheimer & Co. said the Israeli developer of products to track wireless traffic will report fourth-quarter sales and profit below average estimates.
Shares of Allot, based in Hod Hasharon, Israel, plunged 22 percent to $14.18 by 10:57 a.m. in New York, the biggest intraday slide since April 2, 2007. Trading volume was more than seven times the stock’s daily average over the past three months, according to data compiled by Bloomberg. Allot lost 10 percent in Tel Aviv to 61.01 shekels, or $16.26.
Allot’s business has “decelerated and we expect a 4Q of 2012 miss,” Ittai Kidron, a New York-based analyst at Oppenheimer, wrote in a note to clients. Allot may report that a measurement of future revenue known as book-to-bill was below one in the last three months of the year, indicating that “order patterns have softened,” said Kidron, who lowered his rating on the shares to perform from outperform.
Kidron said Allot’s sales in the fourth quarter will be $28.6 million while net income will total $5 million. That compares with sales of $31.09 million and net income of $5.5 million, according to the average of 11 analysts’ estimates compiled by Bloomberg.