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 August 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 August 4^th, 2020, Allot Ltd. issued a press release announcing the Second Quarter 2020 Financial Results.

A copy of the press release entitled “Allot Announces Second 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: August 4^th, 2020

EXHIBIT INDEX

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

---

Allot Announces Second Quarter 2020 Financial Results

 

Q2 2020 revenue grew by 23% year-over-year

 

Reconfirms 2020 revenue guidance between $135-140 million

Hod Hasharon, Israel – August 4, 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 second quarter 2020 financial results.

 

 

 

 

 

 

 

 

 

 

 

 

Erez Antebi, President & CEO of Allot, commented: “We are very pleased with our performance in the second quarter.  We grew revenues 23% year-over-year, while improving gross margins and continuing our advance to profitability.”

 

Continued Mr. Antebi, “COVID-19 continues to present Allot with both challenges and opportunities.  While it is taking longer to close deals and the absence of travel is challenging business development activities, we are continuing to work towards meeting our goals and are on track to achieving our original 2020 plan.  I believe that in the long-term, the growing need for successful connectivity and the increased amount of threats consumers face on the internet, will further increase demand for Allot’s solutions.”

 

 

Total revenues for the second quarter of 2020 were $32.8 million, an increase of 23% compared to $26.6 million in the second quarter of 2019.

 

Gross profit on a GAAP basis for the second quarter of 2020 was $23.0 million (gross margin of 70.0%), compared with $18.3 million (gross margin of 68.7%) in the second quarter of 2019, representing a 26% improvement.

 

Gross profit on a non-GAAP basis for the second quarter of 2020 was $23.2 million (gross margin of 70.7%), a 25% improvement compared with $18.5 million (gross margin of 69.8%) in the second quarter of 2019.

 

Net loss on a GAAP basis for the second quarter of 2020 was $3.6 million, or $0.10 per basic share, compared with a net loss of $1.5 million, or $0.04 per basic share, in the second quarter of 2019.

 

Non-GAAP net loss for the second quarter of 2020 was $2.4 million, or $0.07 per basic share, compared with a non-GAAP net loss of $2.1 million, or $0.06 per basic share, in the second quarter of 2019.

 

It is noted that the operating expenses for the second quarter of 2020 include a doubtful debt expense of $1.5 million.

 

Cash and investments as of June 30, 2020 totaled $109.2 million, compared with $110.7 million, as of March 31, 2020.

 

# # #

 

 

The Allot management team will host a conference call to discuss second quarter 2020 earnings results today, August 4, 2020 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

 

US:  1-888-407-2553, UK: 0-800-917-5108, Israel: +972-3-918-0610

 

 

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

Follow us on Twitter: @allot_ltd

Follow us on LinkedIn: https://www.linkedin.com/company/allot-communications

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.

 

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2020				2019				2020				2019
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenues		$	32,790			$	26,554			$	62,079			$	51,896
Cost of revenues			9,838				8,301				17,448				15,594
Gross profit			22,952				18,253				44,631				36,302
Operating expenses:
Research and development costs, net			10,396				7,633				19,095				14,807
Sales and marketing			11,780				11,209				23,302				22,686
General and administrative			4,554				923				7,595				3,628
Total operating expenses			26,730				19,765				49,992				41,121
Operating loss			(3,778	)			(1,512	)			(5,361	)			(4,819	)
Financial and other income, net			717				571				868				1,103
Loss before income tax expenses			(3,061	)			(941	)			(4,493	)			(3,716	)
Tax expenses			553				592				781				1,150
Net Loss			(3,614	)			(1,533	)			(5,274	)			(4,866	)
Basic net loss per share		$	(0.10	)		$	(0.04	)		$	(0.15	)		$	(0.14	)
Diluted net loss per share		$	(0.10	)		$	(0.04	)		$	(0.15	)		$	(0.14	)
Weighted average number of shares used in computing basic net loss per share			34,917,617				34,213,724				34,771,624				34,099,428
Weighted average number of shares used in computing diluted net loss per share			34,917,617				34,213,724				34,771,624				34,099,428

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2020				2019				2020				2019
		(Unaudited)								(Unaudited)
GAAP cost of revenues		$	9,838			$	8,301			$	17,448			$	15,594
Share-based compensation (1)			(86	)			(61	)			(153	)			(121	)
Amortization of intangible assets (2)			(152	)			(232	)			(304	)			(464	)
Non-GAAP cost of revenues		$	9,600			$	8,008			$	16,991			$	15,009
GAAP gross profit		$	22,952			$	18,253			$	44,631			$	36,302
Gross profit adjustments			238				293				457				585
Non-GAAP gross profit		$	23,190			$	18,546			$	45,088			$	36,887
GAAP operating expenses		$	26,730			$	19,765			$	49,992			$	41,121
Share-based compensation (1)			(1,146	)			(782	)			(2,003	)			(1,467	)
Amortization of intangible assets (2)			-				(189	)			-				(377	)
Income (Expenses) related to M&A activities (3)			(137	)			1,832				(34	)			1,537
Non-GAAP operating expenses		$	25,447			$	20,626			$	47,955			$	40,814
GAAP financial and other income		$	717			$	571			$	868			$	1,103
Exchange rate differences*			(316	)			(31	)			(98	)			(33	)
Non-GAAP Financial and other income		$	401			$	540			$	770			$	1,070
GAAP taxes on income		$	553			$	592			$	781			$	1,150
Tax expenses in respect of net deferred tax asset recorded			(15	)			(17	)			(75	)			(33	)
Non-GAAP taxes on income		$	538			$	575			$	706			$	1,117
GAAP Net Loss		$	(3,614	)		$	(1,533	)		$	(5,274	)		$	(4,866	)
Share-based compensation (1)			1,232				843				2,156				1,588
Amortization of intangible assets (2)			152				421				304				841
Income (Expenses) related to M&A activities (3)			137				(1,832	)			34				(1,537	)
Exchange rate differences			(316	)			(31	)			(98	)			(33	)
Tax expenses in respect of net deferred tax asset recorded			15				17				75				33
Non-GAAP Net Loss		$	(2,394	)		$	(2,115	)		$	(2,803	)		$	(3,974	)
GAAP Loss per share (diluted)		$	(0.10	)		$	(0.04	)		$	(0.15	)		$	(0.14	)
Share-based compensation			0.04				0.02				0.06				0.05
Amortization of intangible assets			0.00				0.02				0.01				0.02
Expenses (Income) related to M&A activities			0.00				(0.06	)			0.00				(0.05	)
Exchange rate differences			(0.01	)			(0.00	)			(0.00	)			(0.00	)
Non-GAAP Net loss per share (diluted)		$	(0.07	)		$	(0.06	)		$	(0.08	)		$	(0.12	)
Weighted average number of shares used in computing GAAP diluted net loss per share			34,917,617				34,213,724				34,771,624				34,099,428
Weighted average number of shares used in computing non-GAAP diluted net loss per share			34,917,617				34,213,724				34,771,624				34,099,428

 

		June 30,				December 31,
		2020				2019
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	30,542			$	16,930
Short-term bank deposits			15,000				5,557
Restricted deposit			23,154				23,183
Available-for-sale marketable securities			40,038				61,012
Trade receivables, net			21,524				29,008
Other receivables and prepaid expenses			8,128				6,528
Inventories			17,266				10,668
Total current assets			155,652				152,886
LONG-TERM ASSETS:
Restricted deposit			440				10,913
Severance pay fund			390				387
Operating lease right-of-use assets			5,740				6,368
Deferred taxes			413				517
Other assets			767				926
Total long-term assets			7,750				19,111
PROPERTY AND EQUIPMENT, NET			10,146				8,135
GOODWILL AND INTANGIBLE ASSETS, NET			34,732				35,037
Total assets		$	208,280			$	215,169
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	7,476			$	11,676
Deferred revenues			31,387				36,360
Short-term operating lease liabilities			3,111				3,151
Other payables and accrued expenses			22,605				22,255
Total current liabilities			64,579				73,442
LONG-TERM LIABILITIES:
Deferred revenues			8,778				5,262
Long-term operating lease liabilities			3,065				3,820
Accrued severance pay			797				794
Total long-term liabilities			12,640				9,876
SHAREHOLDERS' EQUITY			131,061				131,851
Total liabilities and shareholders' equity		$	208,280			$	215,169