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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 2020

Commission File Number: 001-33129

ALLOT 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 12^th, 2020, Allot Ltd. issued a press release announcing the First Quarter 2020 Financial Results.

A copy of the press release entitled “Allot Announces First Quarter 2020 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 Ltd. By: /s/ Ziv Leitman           Ziv Leitman Chief Financial Officer

Date: May 12^th, 2020

EXHIBIT INDEX

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

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Allot Announces First Quarter 2020 Financial Results

 

Q1 2020 revenue grew by 16% year-over-year

 

Reconfirms 2020 revenue guidance between $135-140 million

Hod Hasharon, Israel – May 12, 2020 - Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for communication service providers and enterprises worldwide, today announced its unaudited first quarter 2020 financial results.

 

 

•	First quarter revenues were $29.3 million, up 16% year-over-year;

•	Non-GAAP gross margin increased to 74.8% compared to 72.4% in the first quarter of 2019 and GAAP gross margin increased to 74.0% compared to 71.2% in the first quarter of 2019;

•	Non-GAAP net loss of $0.4 million and GAAP net loss $1.7 million, both significantly improved from non-GAAP net loss of $1.9 million and GAAP net loss of $3.3 million in the first quarter of 2019;

 

•	Management reiterates its prior issued guidance, with expectations for full year 2020 revenues to grow to between $135-140 million, representing accelerated double-digit growth. In addition, expectations are that second quarter revenue will exceed those reported for the first quarter of 2020;

•	Management continues to expect to return to profitability on a quarterly basis before year-end;

•	Management continues to expect to close additional Recurring Security Revenue deals in 2020 and reiterates that the MAR* (maximum annual revenue potential of concluded transactions) of new deals expected to be signed in 2020 should exceed $140 million

 

Erez Antebi, President & CEO of Allot, commented: “We are pleased with our first quarter results. We grew revenues by 16% year-over-year, while improving margins and continuing our advance toward profitability.”

 

Continued Mr. Antebi, “COVID-19 is presenting Allot with both challenges and opportunities. Operators worldwide are seeing growth in demand for bandwidth of up to 40%, as well as an increase in cyber attacks on consumers and SMBs. While some operators are delaying tasks they consider less critical, we see overall demand for Allot products and services at similar levels to what we saw before COVID-19, and in some areas, we even see somewhat increased demand.”

 

 

Total revenues for the first quarter of 2020 were $29.3 million, an increase of 16% compared to $25.3 million in the first quarter of 2019.

 

Gross profit on a GAAP basis for the first quarter of 2020 was $21.7 million (gross margin of 74.0%), a 20% improvement compared with $18.0 million (gross margin of 71.2%) in the first quarter of 2019.

 

Gross profit on a non-GAAP basis for the first quarter of 2020 was $21.9 million (gross margin of 74.8%), a 19% improvement compared with $18.3 million (gross margin of 72.4%) in the first quarter of 2019.

 

Net loss on a GAAP basis for the first quarter of 2020 improved to $1.7 million, or $0.05 per basic share, compared with a net loss of $3.3 million, or $0.10 per basic share, in the first quarter of 2019.

 

Non-GAAP net loss for the first quarter of 2020 improved to $0.4 million, or $0.01 per basic share, compared with a non-GAAP net loss of $1.9 million, or $0.05 per basic share, in the first quarter of 2019.

 

Cash and investments as of March 31, 2020 totaled $110.7 million, compared with $117.6 million, as of December 31, 2019.

 

# # #

 

 

The Allot management team will host a conference call to discuss first quarter 2020 earnings results today, May 12, 2020 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

 

US:  1-888-281-1167, UK: 0-800-917-5108, Israel: +972-3-918-0664

 

 

Allot Blog: https://www.allot.com/blog

Follow us on Twitter: @allot_ltd

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 23 million subscribers in Europe.

 

Allot. See. Control. Secure.

 

For more information, visit www.allot.com

 

*MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer’s subscribers, as estimated by Allot, signed up for the service.

 

 

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.

 

 

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: those related to the COVID-19 pandemic, 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.

 

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