Allot Communications Ltd.
Allot Communications Ltd. (Form: 6-K, Received: 05/09/2017 06:10:20)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2017
Commission File Number: 001-33129

ALLOT COMMUNICATIONS LTD.
 (Translation of registrant’s name into English)

22 Hanagar Street
Neve Ne'eman Industrial Zone B
Hod-Hasharon 45240
Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐           No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
 

 
EXPLANATORY NOTE

On May 9, 2017, Allot Communications Ltd. issued a press release announcing the First Quarter 2017 Financial Results.

A copy of the press release entitled “Allot Communications Announces First Quarter 2017 Financial Results” is attached to this Form 6-K as Exhibit 99.1.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
Allot Communications Ltd. 
 
       
 
By:
/s/ Alberto Sessa
 
   
Alberto Sessa
 
   
Chief Financial Officer
 
 
Date: May 9, 2017


 
EXHIBIT INDEX

The following exhibit has been filed as part of this Form 6-K:

Exhibit Number
Description
   
99.1
Allot Communications Announces First Quarter 2017 Financial Results



Exhibit 99.1
 

  Allot Communications Announces
First Quarter 2017 Financial Results

Hod Hasharon, Israel – May 9, 2017 - Allot Communications Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of security and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience, today announced its first quarter 2017 financial results.
 
  Q1 2017 – Financial Highlights
 
·
GAAP revenues were $18.4M, Non-GAAP revenues were $18.5M;
 
·
GAAP gross margin was 66%, Non-GAAP gross margin was 68%;
 
·
GAAP operating loss of $4.9M, Non-GAAP operating loss of $3.6M;
 
·
Book-to-bill improved to slightly above one for first time since the fourth quarter of 2015;
 
Management Comment
 
Erez Antebi, President & CEO of Allot Communications , commented, “During the quarter we announced that Allot was selected by another major global telecom provider, Telefonica, to provide their subscriber base with network security services in five major markets in LATAM and Europe. This comes on top of an expanding subscriber base protected by the well-established Vodafone Secure Net service powered by Allot and provides further evidence that our network security products are gaining traction and the right growth engine for our company."
 
Mr. Antebi continued:  " I firmly believe Allot has strong unleashed potential and our goal is to realize and maximize this in the coming years.”
 
Q1 2017 Financial results
 
On a GAAP basis, total revenues for the first quarter of 2017 were $18.4 million compared to $22.9 million reported for the first quarter of 2016. Net loss for the first quarter of 2017 was $5.1 million, or $0.15 per basic and diluted share. This compares with a net loss of $4.3 million, or $0.13 per basic and diluted share, in the first quarter of 2016.
 
On a non-GAAP basis, total revenues for the first quarter of 2017 were $18.5 million compared to $23.0 million reported for the first quarter of 2016. On a non-GAAP basis, net loss for the first quarter of 2017 was $3.6 million, or $0.11 per basic and diluted share. This compares with non-GAAP net loss of $1.8 million, or $0.06 per basic and diluted share, in the first quarter of 2016.
 
Net cash and cash equivalents as of March 31, 2017 totaled $111.7 million. The Company recorded a negative operating cash flow of $1.2 million during the quarter.
 

 
2017 Outlook
 
Management reiterates its previously issued guidance and expects 2017 revenues in the range of $80 - $84 million.  The second half of 2017 is expected to be better than the first half and the book to bill ratio for the year is expected to be above 1.
 
# # #
 
Conference Call & Webcast :
 
The Allot management team will host a conference call to discuss first quarter 2017 earnings results today, May 9, 2017 at 8:30 AM ET, 3:30 p.m. Israel time. To access the conference call, please dial one of the following numbers:
 
US: +1-888-668-9141, UK: +44 800 917 5108, Israel: +972-3-918-0609.
 
A recording of the conference call will be available from 12:00PM ET on February 7, 2017 for 30 days. To access the recording, please dial: +1-888-269-0005; UK: +44(0) 800-917-1246; Intl: +972 3 925 5927
 
A live webcast of the conference call can be accessed on the Allot Communications website at: http://www.allot.com.
 
The webcast will also be archived on the website following the conference call.
 
About Allot Communications

Allot Communications (NASDAQ: ALLT, TASE: ALLT) is a leading provider of security and monetization solutions that enables service providers and enterprises to protect and personalize the digital experience. Allot’s flexible and highly scalable service delivery framework leverages the intelligence in data networks, enabling service providers to get closer to their customers, safeguard network assets and users, and accelerate time-to-revenue for value-added services. We employ innovative technology, proven know-how and a collaborative approach to provide the right solution for every network environment. Allot solutions are currently deployed at 5 of the top 10 global mobile operators and in thousands of CSP and enterprise networks worldwide. For more information, please visit www.allot.com.
 

 
GAAP to Non-GAAP Reconciliation :
 
The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, restructuring expenses and other acquisition-related expenses.
 
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.
 
Safe Harbor Statement
 
This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third party channel partners for a material portion of our revenues; court approval of the Company’s proposed share buy-back program; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
 
Investor Relations Contact:
GK Investor Relations
Ehud Helft/Gavriel Frohwein
+1 646 688 3559
allot@gkir.com
Public Relations Contact:
Sigalit Orr
Director Corporate Communications
International dialing +972-54-268-1500
sorr@allot.com


TABLE  - 1
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
 
   
Three Months Ended
 
   
March 31,
 
   
2017
   
2016
 
   
(Unaudited)
 
             
Revenues
 
$
18,435
   
$
22,938
 
Cost of revenues
   
6,318
     
7,143
 
                 
Gross profit
   
12,117
     
15,795
 
                 
Operating expenses:
               
Research and development costs, net
   
5,533
     
6,862
 
Sales and marketing
   
8,980
     
10,271
 
General and administrative
   
2,541
     
2,697
 
Total operating expenses
   
17,054
     
19,830
 
Operating loss
   
(4,937
)
   
(4,035
)
Financial and other income, net
   
362
     
115
 
Loss before income tax expenses
   
(4,575
)
   
(3,920
)
                 
Tax expenses
   
502
     
370
 
Net loss
   
(5,077
)
   
(4,290
)
                 
 Basic net loss per share
 
$
(0.15
)
 
$
(0.13
)
                 
 Diluted net loss per share
 
$
(0.15
)
 
$
(0.13
)
                 
Weighted average number of shares used in computing basic net earnings per share
   
33,091,845
     
33,481,650
 
                 
Weighted average number of shares used in computing diluted net earnings per share
   
33,091,845
     
33,481,650
 


 
TABLE  - 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
 
   
Three Months Ended
 
   
March 31,
 
   
2017
   
2016
 
   
(Unaudited)
 
             
 GAAP Revenues
 
$
18,435
   
$
22,938
 
 Fair value adjustment for acquired deferred revenues write down
   
24
     
65
 
 Non-GAAP Revenues
 
$
18,459
   
$
23,003
 
                 
GAAP cost of revenues
 
$
6,318
   
$
7,143
 
 Share-based compensation (1)
   
(95
)
   
(69
)
 Amortization of intangible assets (2)
   
(232
)
   
(248
)
Non-GAAP cost of revenues
 
$
5,991
   
$
6,826
 
                 
 GAAP gross profit
 
$
12,117
   
$
15,795
 
 Gross profit adjustments
   
351
     
382
 
 Non-GAAP gross profit
 
$
12,468
   
$
16,177
 
                 
 GAAP operating expenses
 
$
17,054
   
$
19,830
 
 Share-based compensation (1)
   
(749
)
   
(1,586
)
 Amortization of intangible assets (2)
   
(135
)
   
(138
)
 Expenses related to M&A activities (3)
   
(89
)
   
-
 
 Non-GAAP operating expenses
 
$
16,081
   
$
18,106
 
                 
 GAAP financial and other income
 
$
362
   
$
115
 
 Expenses related to M&A activities (3)
   
74
     
278
 
 Non-GAAP Financial and other income
 
$
436
   
$
393
 
                 
 GAAP taxes on income
 
$
502
   
$
370
 
 Tax expenses (in respect of net deferred tax asset recorded)
   
(67
)
   
(62
)
 Non-GAAP taxes on income
 
$
435
   
$
308
 
                 
 GAAP Net Loss
 
$
(5,077
)
 
$
(4,290
)
 Share-based compensation (1)
   
844
     
1,655
 
 Amortization of intangible assets (2)
   
367
     
386
 
 Expenses related to M&A activities (3)
   
163
     
278
 
 Fair value adjustment for acquired deferred revenues write down
   
24
     
65
 
 Tax expenses (in respect of net deferred tax asset recorded)
   
67
     
62
 
 Non-GAAP Net loss
 
$
(3,612
)
 
$
(1,844
)
                 
 GAAP Loss per share (diluted)
 
$
(0.15
)
 
$
(0.13
)
 Share-based compensation
   
0.03
     
0.05
 
 Amortization of intangible assets
   
0.01
     
0.01
 
 Expenses related to M&A activities
   
0.00
     
0.01
 
 Fair value adjustment for acquired deferred revenues write down
   
0.00
     
0.00
 
 Tax expenses (in respect of net deferred tax asset recorded)
   
0.00
     
0.00
 
 Non-GAAP Net loss per share (diluted)
 
$
(0.11
)
 
$
(0.06
)
                 
Weighted average number of shares used in
               
computing GAAP diluted net earnings per share
   
33,091,845
     
33,481,650
 
                 
Weighted average number of shares used in
               
computing non-GAAP diluted net earnings per share
   
33,091,845
     
33,481,650
 

 
TABLE  - 2 cont.
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
 
   
Three Months Ended
 
   
March 31,
 
   
2017
   
2016
 
   
(Unaudited)
 
             
(1) Share-based compensation:
           
Cost of revenues
 
$
95
   
$
69
 
Research and development costs, net
   
229
     
426
 
Sales and marketing
   
241
     
622
 
General and administrative
   
279
     
538
 
   
$
844
   
$
1,655
 
                 
 (2) Amortization of intangible assets
               
Cost of revenues
 
$
232
   
$
248
 
Sales and marketing
   
135
     
138
 
   
$
367
   
$
386
 
                 
 (3) Expenses related to M&A activities
               
General and administrative
 
$
89
   
$
-
 
Financial expenses
   
74
     
278
 
   
$
163
   
$
278
 


 
TABLE  - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
 
 
March 31,
   
December 31,
 
 
 
2017
   
2016
 
 
 
(Unaudited)
   
(Audited)
 
 
     
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
20,008
   
$
23,326
 
Short term deposits
   
29,348
     
29,821
 
Marketable securities
   
62,329
     
60,507
 
Trade receivables, net
   
22,898
     
24,158
 
Other receivables and prepaid expenses
   
4,891
     
3,879
 
Inventories
   
7,997
     
7,235
 
Total current assets
   
147,471
     
148,926
 
 
               
LONG-TERM ASSETS:
               
Severance pay fund
   
271
     
252
 
Deferred taxes
   
200
     
267
 
Other assets
   
828
     
1,136
 
Total long-term assets
   
1,299
     
1,655
 
 
               
PROPERTY AND EQUIPMENT, NET
   
4,665
     
4,387
 
GOODWILL AND INTANGIBLE ASSETS, NET
   
35,605
     
35,972
 
 
               
Total assets
 
$
189,040
   
$
190,940
 
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
 
$
5,124
   
$
3,275
 
Deferred revenues
   
10,831
     
11,133
 
Other payables and accrued expenses
   
11,138
     
10,538
 
Total current liabilities
   
27,093
     
24,946
 
 
               
LONG-TERM LIABILITIES:
               
Deferred revenues
   
3,046
     
3,597
 
Accrued severance pay
   
639
     
592
 
Other long term liabilities
   
4,600
     
4,502
 
Total long-term liabilities
   
8,285
     
8,691
 
 
               
SHAREHOLDERS' EQUITY
   
153,662
     
157,303
 
 
               
Total liabilities and shareholders' equity
 
$
189,040
   
$
190,940
 


 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2017
   
2016
 
 
 
(Unaudited)
 
 
           
Cash flows from operating activities:
           
Net loss
 
$
(5,077
)
 
$
(4,290
)
Adjustments to reconcile net income to net cash used in operating activities:
               
Depreciation
   
529
     
600
 
Stock-based compensation related to options granted to employees
   
844
     
1,665
 
Amortization of intangible assets
   
367
     
386
 
Capital loss (gain)
   
4
     
(1
)
Decrease in accrued severance pay, net
   
28
     
18
 
Decrease (Increase) in other assets
   
308
     
(109
)
Decrease in accrued interest and  amortization of premium on marketable securities
   
126
     
338
 
Decrease in trade receivables
   
1,260
     
281
 
Decrease (Increase) in other receivables and prepaid expenses
   
(622
)
   
334
 
Decrease (Increase) in inventories
   
(762
)
   
374
 
Decrease in long-term deferred taxes, net
   
67
     
62
 
Increase in trade payables
   
1,849
     
155
 
Increase (Decrease) in employees and payroll accruals
   
276
     
(595
)
Decrease in deferred revenues
   
(853
)
   
(1,227
)
Increase in other payables and accrued expenses
   
491
     
600
 
Net cash used in operating activities
   
(1,165
)
   
(1,409
)
 
               
Cash flows from investing activities:
               
Redemption of short-term deposits
   
473
     
10,000
 
Purchase of property and equipment
   
(811
)
   
(327
)
Investment in marketable securities
   
(6,588
)
   
(8,780
)
Proceeds from redemption or sale of marketable securities
   
4,749
     
10,900
 
Net cash provided by (used in) investing activities
   
(2,177
)
   
11,793
 
 
               
Cash flows from financing activities:
               
Exercise of employee stock options
   
24
     
11
 
Purchase of treasury stocks
   
-
     
(1,047
)
Net cash provided by (used in) financing activities
   
24
     
(1,036
)
                 
Increase (Decrease) in cash and cash equivalents
   
(3,318
)
   
9,348
 
Cash and cash equivalents at the beginning of the period
   
23,326
     
15,470
 
Cash and cash equivalents at the end of the period
 
$
20,008
   
$
24,818