Skip to Content

Stock Quote


30-day Stock Price
1 month stock price graph
Price
Change

Oct 28, 2019 2:41 AM EDT
Copyright Nasdaq.
Minimum 15 minutes delayed

Allot Announces Third Quarter 2019 Financial Results

Allot Announces Third Quarter 2019 Financial Results

November 5, 2019 at 5:00 AM EST
Revenue Growth Continues: Q3 Revenue Increase 14% Year-over-Year

HOD HASHARON, Israel, Nov. 5, 2019 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its third quarter 2019 financial results.

Allot Logo (PRNewsfoto/Allot Communications Ltd.)

Third Quarter 2019 – Financial Highlights

  • Revenue growth to $27.6 million, up 14% year-over-year
  • Cash and investments increased by $13.3 million to $114.8 million
  • GAAP gross profit up 14% year-over-year to $19.2 million; non-GAAP gross profit up 13% to $19.4 million
  • GAAP operating loss of $2.2 million; non-GAAP operating loss of $2.2 million

Financial Outlook

  • Management continues to maintain its expectations of full year 2019 revenues between $106-$110 million, representing continued double-digit year-over-year growth
  • Management maintains its expectation that full year 2019 book to bill ratio will be above 1

Management Comment

Erez Antebi, President & CEO of Allot, commented, "We are pleased with our continued ongoing year-over-year revenue growth and we remain on target with our strategy and longer-term goals. We have been successful in signing new significant deals in recent months.  Our pipeline remains strong and we expect to enter next year with significant backlog that will enable Allot to accelerate revenue growth in 2020."

Third Quarter 2019 Financial Results Summary

Total revenue for the quarter was $27.6 million, an increase of 14% compared with $24.2 million in the third quarter of 2018.

Gross profit on a GAAP basis for the quarter was $19.2 million (gross margin of 69.4%), a 14% improvement compared with $16.8 million (gross margin of 69.4%) in the third quarter of 2018.

Gross profit on a non-GAAP basis for the quarter of was $19.4 million (gross margin of 70.2%), a 13% improvement compared with $17.1 million (gross margin of 70.7%) in the third quarter of 2018.

Operating loss on a GAAP basis for the quarter was $2.2 million, compared with an operating loss of $2.5 million, in the third quarter of 2018.

Non-GAAP operating loss for the quarter was $2.2 million, compared with a non-GAAP operating loss of $1.1 million in the third quarter of 2018.

Net loss on a GAAP basis for the quarter was $2.1 million, or $0.06 per basic and diluted share, compared with a net loss of $2.5 million, or $0.07 per basic and diluted share, in the third quarter of 2018.

Non-GAAP net loss for the quarter was $1.9 million, or $0.05 per basic share, compared with a non-GAAP net loss of $1.1 million, or $0.03 per basic share, in the third quarter of 2018.

Cash and investments as of September 30, 2019 totaled $114.8 million, compared with $101.6 million as of June 30, 2019.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss third quarter 2019 earnings results today, November 5, 2019 at 8:30 am ET, 3:30 pmIsrael time.

To access the conference call, please dial one of the following numbers:

US:  1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0610

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm  

About Allot

Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 21 million subscribers in Europe. Allot. See. Control. Secure.

For more information, visit www.allot.com

GAAP to Non-GAAP Reconciliation:

Non-GAAP net income is defined as GAAP net income after excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, exchange rate differences related to revaluation of assets and liabilities denominated in non-dollar currencies 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 is 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 fourth 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.

 

TABLE  - 1

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)











Three Months Ended



Nine Months Ended


September 30,



September 30,


2019


2018



2019


2018


(Unaudited)


(Unaudited)



(Unaudited)


(Unaudited)










Revenues

$       27,637


$       24,217



$       79,533


$       68,952

Cost of revenues

8,456


7,417



24,050


21,053










Gross profit  

19,181


16,800



55,483


47,899










Operating expenses:









Research and development costs, net

8,091


6,695



22,898


18,786

Sales and marketing

12,233


9,880



34,919


30,095

General and administrative

1,096


2,755



4,724


7,800

Total operating expenses

21,420


19,330



62,541


56,681

Operating loss

(2,239)


(2,530)



(7,058)


(8,782)

Financial and other income, net

257


571



1,360


1,607

Loss before income tax expenses

(1,982)


(1,959)



(5,698)


(7,175)










Tax expenses

129


536



1,279


1,424

Net Loss

(2,111)


(2,495)



(6,977)


(8,599)










 Basic net loss per share

$          (0.06)


$          (0.07)



$          (0.20)


$          (0.26)



















 Diluted net loss per share

$          (0.06)


$          (0.07)



$          (0.20)


$          (0.26)










Weighted average number of shares used in 









computing basic net loss per share

34,348,200


33,761,279



34,183,272


33,658,485










Weighted average number of shares used in 









computing diluted net loss per share

34,348,200


33,761,279



34,183,272


33,658,485

   

 

 

TABLE  - 2

ALLOT 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


Nine Months Ended



September 30,


September 30,



2019


2018


2019


2018



(Unaudited)


(Unaudited)

GAAP cost of revenues

$          8,456


$         7,417


$      24,050


$      21,053

 Share-based compensation (1) 

(67)


(86)


(188)


(256)

 Amortization of intangible assets (2) 

(237)


(232)


(701)


(697)

 Changes in taxes and headcount related items (4)

75


-


75


-

Non-GAAP cost of revenues

$         8,227


$         7,099


$     23,236


$      20,100










 GAAP gross profit 

$       19,181


$       16,800


$     55,483


$      47,899

 Gross profit adjustments 

229


318


814


953

 Non-GAAP gross profit 

$       19,410


$       17,118


$     56,297


$     48,852










 GAAP operating expenses 

$        21,420


$       19,330


$      62,541


$     56,681

 Share-based compensation (1) 

(747)


(658)


(2,214)


(1,912)

 Amortization of intangible assets (2) 

(188)


(175)


(565)


(525)

 Income (Expenses) related to M&A activities (3) 

1,198


(112)


2,735


(301)

 Changes in taxes and headcount related items (4)

(31)


(210)


(31)


(380)

 Non-GAAP operating expenses 

$        21,652


$       18,175


$      62,466


$      53,563










 GAAP financial and other income 

$             257


$            571


$        1,360


$        1,607

 Expenses related to M&A activities (3) 

-


(7)


-


(149)

 Exchange rate differences* 

235


-


202


-

 Non-GAAP Financial and other income 

$             492


$             564


$        1,562


$        1,458










 GAAP taxes on income 

$             129


$             536


$        1,279


$        1,424

 Tax expenses in respect of net deferred tax asset recorded 

(16)


44


(49)


7

 Non-GAAP taxes on income 

$             113


$             580


$        1,230


$        1,431










 GAAP Net Loss 

$        (2,111)


$        (2,495)


$      (6,977)


$      (8,599)

 Share-based compensation (1) 

814


744


2,402


2,168

 Amortization of intangible assets (2) 

425


407


1,266


1,222

 Expenses related to M&A activities (3) 

(1,198)


105


(2,735)


152

 Changes in taxes and headcount related items (4)

(44)


210


(44)


380

 Exchange rate differences 

235


-


202


-

 Tax expenses in respect of net deferred tax asset recorded 

16


(44)


49


(7)

 Non-GAAP Net Loss 

$        (1,863)


$        (1,073)


$      (5,837)


$      (4,684)










 GAAP Loss per share (diluted) 

$          (0.06)


$          (0.07)


$        (0.20)


$        (0.26)

 Share-based compensation 

0.02


0.02


0.07


0.07

 Amortization of intangible assets 

0.01


0.01


0.03


0.04

 Expenses related to M&A activities 

(0.03)


-


(0.08)


0.00

 Changes in taxes and headcount related items 

(0.00)


0.01


(0.00)


0.01

 Exchange rate differences 

0.01


-


0.01


-

 Tax expense in respect of net deferred tax asset recorded 

0.00


(0.00)


0.00


-

 Non-GAAP Net loss per share (diluted) 

$        (0.05)


$        (0.03)


$        (0.17)


$        (0.14)



















Weighted average number of shares used in 








computing GAAP diluted net loss per share

34,348,200


33,761,279


34,183,272


33,658,485



















Weighted average number of shares used in 








computing non-GAAP diluted net loss per share

34,348,200


33,761,279


34,183,272


33,658,485










* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.

 

 

 










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


Nine Months Ended



September 30,


September 30,



2019


2018


2019


2018



(Unaudited)


(Unaudited)










(1) Share-based compensation:









Cost of revenues

$             67


$             86


$           188


$           256


Research and development costs, net                                

234


178


617


504


Sales and marketing

297


264


907


701


General and administrative

216


216


690


707



$           814


$           744


$        2,402


$        2,168










 (2) Amortization of intangible assets 









Cost of revenues

$           237


$           232


$           701


$           697


Sales and marketing

188


175


565


525



$           425


$           407


$        1,266


$        1,222










 (3) Expenses related to M&A activities 









General and administrative 

$      (1,561)


$             31


$      (3,508)


$             69


Research and development costs, net

363


81


773


232


Financial income

-


(7)


-


(149)



$      (1,198)


$           105


$      (2,735)


$           152

 (4) Changes in taxes and headcount related items  









Sales and marketing

$             16


$           122


$             16


$           222


Cost of revenues

(75)


-


(75)


-


General and administrative

15


88


15


158



$           (44)


$           210


$           (44)


$           380


(*) Excluding share-based compensation related to the restructuring plan, which was already included under restructuring expenses.

 

 

 

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)













September 30,


December 31,



2019


2018



(Unaudited)


(Audited)

ASSETS





CURRENT ASSETS:





Cash and cash equivalents


$            20,809


$            16,336

Restricted cash


10,656


-

Short term deposits


8,557


22,543

Restricted deposit


10,508


465

Marketable securities 


64,049


64,290

Trade receivables, net


20,974


26,093

Other receivables and prepaid expenses


5,040


3,647

Inventories


9,243


11,345

Total current assets


149,836


144,719






LONG-TERM ASSETS:





Restricted deposit


257


257

Severance pay fund


369


345

Operating lease right-of-use assets


6,422


-

Deferred taxes


550


281

Other assets 


766


600

Total long-term assets


8,364


1,483






PROPERTY AND EQUIPMENT, NET


7,976


6,249

GOODWILL AND INTANGIBLE ASSETS, NET


35,378


37,393






Total assets


$          201,554


$          189,844






LIABILITIES AND SHAREHOLDERS' EQUITY





CURRENT LIABILITIES:





Trade payables


$               7,287


$               7,813

Deferred revenues


31,615


13,855

Short-term operating lease liabilities


2,748


-

Other payables and accrued expenses


16,848


21,052

Total current liabilities


58,498


42,720






LONG-TERM LIABILITIES:





Deferred revenues


4,247


-

Long-term operating lease liabilities


3,821


4,247

Accrued severance pay


797


-

Other long term liabilities


773


806

Total long-term liabilities


9,638


6,168






SHAREHOLDERS' EQUITY


133,418


135,903






Total liabilities and shareholders' equity


$           201,554


$           189,844






 

 

 

TABLE  - 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)









Cash flows from operating activities:
















Net Loss

$        (2,111)


$     (2,495)


$      (6,977)


$     (8,599)

Adjustments to reconcile net income  to net cash used in operating activities:








Depreciation

682


550


1,915


1,603

Stock-based compensation related to options granted to employees

814


744


2,402


2,168

Amortization of intangible assets

425


407


1,266


1,222

Capital loss 

-


-


-


39

Decrease (Increase) in accrued severance pay, net

17


8


(33)


34

Decrease (Increase) in other assets

111


59


(166)


452

Decrease in accrued interest and  amortization of premium on marketable securities 

95


197


336


612

Changes in operating leases, net

(235)


-


147


-

Decrease (Increase) in trade receivables

889


(1,826)


5,119


(3,715)

Increase in other receivables and prepaid expenses

(315)


(1,003)


(689)


(1,285)

Decrease (Increase) in inventories

1,483


(3,942)


1,249


(4,055)

Increase in long-term deferred taxes, net

(87)


(45)


(269)


(7)

Increase (Decrease) in trade payables

686


5,826


(526)


6,315

Increase (Decrease) in employees and payroll accruals

(953)


105


587


(180)

Increase in deferred revenues

16,437


471


17,760


2,145

Increase (Decrease) in other payables, accrued expenses and other long term liabilities

(3,474)


119


(9,504)


3,524

Net cash provided by (used in) operating activities

14,464


(825)


12,617


273









Cash flows from investing activities:








Increase in restricted deposit

(10,002)


(110)


(10,043)


(262)

Redemption of (investment in) short-term deposits 

9,067


(3,500)


13,986


6,600

Purchase of property and equipment

(1,313)


(491)


(2,790)


(2,058)

Investment in marketable securities

(7,192)


(7,236)


(31,796)


(25,193)

Proceeds from redemption or sale of marketable securities

8,813


7,314


32,382


23,727

Acquisitions

-


-


-


(3,048)

Net cash provided by (used in) investing activities

(627)


(4,023)


1,739


(234)









Cash flows from financing activities:
















Exercise of employee stock options 

111


201


773


343

Net cash provided by financing activities

111


201


773


343

















Increase (Decrease) in cash and cash equivalents and restricted cash

13,948


(4,647)


15,129


382

Cash, cash equivalents and restricted cash at the beginning of the period

17,517


20,371


16,336


15,342









Cash, cash equivalents and restricted cash at the end of the period

$        31,465


$     15,724


$     31,465


$     15,724









 

 

 

Investor Relations Contact:

Public Relations Contact:

GK Investor Relations

Seth Greenberg

Ehuf Helft/Gavriel Frohwein

Director of Corporate Communications

+1 646 688 3559

sgreenberg@allot.com

allot@gkir.com


 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/allot-announces-third-quarter-2019-financial-results-300951491.html

SOURCE Allot Ltd.