Allot Advances in U.S. as Tata Order Stokes Sales Prospects

Allot Communications Ltd. rose to a seven-week high in New York on speculation an order from India’s Tata Communications Ltd. will spur further emerging-market sales for the Israeli technology company.

Shares of Allot, the Israeli maker of products that track wireless traffic, climbed 4.2 percent to $15.23, the highest close since Jan. 2. In Tel Aviv, the stock gained 2 percent to 54.39 shekels, the highest since Feb. 5.

“This is the first service provider announced in India and demonstrates the opportunity Allot has with major carriers in emerging markets,” Daniel Meron, an analyst at RBC Capital Markets, who rates Allot the equivalent of buy, said by phone in Tel Aviv. “Allot has been successful in gaining traction in emerging markets and we expect this momentum to continue.”

Tata selected Allot’s service gateway solution to provide cloud-hosted policy servers to mobile network operators, the company said today. In November, Allot completed a deployment project for affiliates of Millicom International Cellular SA, a group with operations in Latin America and Africa.

Allot’s 2012 sales to the Americas doubled to 31 percent of total revenue, according to an RBC Capital report dated Feb 5. Sales to the Asia Pacific region rose 88 percent to almost 25 percent of the company’s total revenue, while customers in Europe, the Middle East and Africa provided 44 percent of revenue, according to the report.

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