Allot Advances on Open-Internet U.S. Court RulingElena Popina
Allot Communications Ltd., the Israeli maker of technology used to track wireless traffic, rose the most in three months in New York on prospects the company will benefit from a U.S. court ruling on Internet services.
Shares of Allot jumped 8.4 percent to $16.19 at 3:02 p.m., the biggest increase since Oct. 2. Trading volume was four times the daily average of the past three months. The shares tumbled 15 percent last year.
The U.S. Court of Appeals ruled in Washington today that the Federal Communications Commission’s so-called net neutrality rules, requiring companies that provide Internet service over wires to treat all traffic equally, had no basis in federal law. The U.S. was the source of 24 percent of revenue in 2012 for Allot, whose deep packet inspection technology is used to manage traffic on networks.
“What this means is that Allot will now will have an opportunity to do business with U.S. carriers like Verizon and AT&T,” Sanjit Singh, a New York-based analyst at Wedbush Securities Inc., said by phone today. “The net neutrality rule basically precluded them from having business.”