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 2021

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 11^th, 2021, Allot Ltd. issued a press release announcing the First Quarter 2021 Financial Results.

A copy of the press release entitled “Allot Announces First Quarter 2021 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.

Date: May 11^th, 2021

EXHIBIT INDEX

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

Allot Announces First Quarter 2021 Financial Results

Allot achieves its first major win in US market with DISH Network

Hod Hasharon, Israel – May 11, 2021 - 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 unaudited first quarter 2021 financial results.

Erez Antebi, President & CEO of Allot, commented: “We are pleased with our start to 2021 with continued year-over-year revenue growth. From the strategic perspective, we are very happy with our first major penetration into the US market and are thrilled that DISH chose to partner with us to help secure their innovative 5G network, which will be one of the most advanced in the US market.  This deal, together with Dish’s stated intent to sign an additional deal with Allot to launch network based security services to their customers, is a major indication on the importance of security to 5G networks and customers worldwide.”

Continued Mr. Antebi, “We see 2021 as a transformation year for Allot. We expect that as our SECaaS partners begin to launch their services over the coming months, we will see the initial ramp of these recurring revenues.  We are very encouraged by the traction we have been gaining and look forward to continue signing additional recurring security revenue deals, ensuring further long-term sustainable growth.”

Total revenues for the first quarter of 2021 were $31.2 million, an increase of 6% compared to $29.3 million in the first quarter of 2020.

Gross profit on a GAAP basis for the first quarter of 2021 was $21.6 million (gross margin of 69.2%), with no material change when compared with $21.7 million (gross margin of 74%) in the first quarter of 2020.

Gross profit on a non-GAAP basis for the first quarter of 2021 was $21.9 million (gross margin of 70.1%), similar when compared with $21.9 million (gross margin of 74.8%) in the first quarter of 2020.

Net loss on a GAAP basis for the first quarter of 2021 was $4 million, or $0.11 loss per basic share, compared with a net loss of $1.7 million, or $0.05 loss per basic share, in the first quarter of 2020.

Net loss on a non-GAAP basis for the first quarter of 2021 was $2.2 million, or $0.06 loss per basic share compared with a non-GAAP net loss of $0.4 million, or $0.01 loss per basic share, in the first quarter of 2020.

Cash and investments as of March 31, 2021 totaled $103.2 million, compared with $99.4 million, as of December 31, 2020.

# # #

Allot will host a virtual Analyst & Investor event later today, May 11, 2021 at 9am ET. The event will provide more color on the growth potential of the Company and on the Revolution of Consumer Cybersecurity. It will feature presentations delivered by various members of the Allot management team as well as talks by some of the Company’s cybersecurity customers.

The Analyst & Investor event will be hosted via a Zoom Webinar. To register for the event, please use the following link: https://www.allot.com/210511-investor-day-lp/

A recording of the event, including the presentations, will be archived and available for viewing on the Allot website a few days following the event.

For further details about the agenda and participating in the virtual Investor Day event and the earnings results call, please refer to the Allot investor relations website at https://investors.allot.com.

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 1,000 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 20 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, tax related items, 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: 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
		March 31,
		2021				2020
		(Unaudited)				(Unaudited)
Revenues		$	31,183			$	29,289
Cost of revenues			9,591				7,610
Gross profit			21,592				21,679
Operating expenses:
Research and development costs, net			10,567				8,699
Sales and marketing			11,593				11,522
General and administrative			3,200				3,041
Total operating expenses			25,360				23,262
Operating loss			(3,768	)			(1,583	)
Financial and other income, net			115				151
Loss before income tax expenses			(3,653	)			(1,432	)
Tax expenses			305				228
Net Loss			(3,958	)			(1,660	)
Basic net loss per share		$	(0.11	)		$	(0.05	)
							-
Diluted net loss per share		$	(0.11	)		$	(0.05	)
Weighted average number of shares used in computing basic net loss per share			35,535,493				34,625,632
Weighted average number of shares used in computing diluted net loss per share			35,535,493				34,625,632

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)

TABLE  - 2 cont.

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

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

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)

		March 31,				December 31,
		2021				2020
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	7,148			$	23,599
Short-term bank deposits			71,525				47,225
Restricted deposits			1,634				1,200
Available-for-sale marketable securities			22,643				27,178
Trade receivables, net			27,828				20,685
Other receivables and prepaid expenses			11,455				14,205
Inventories			13,543				12,586
Total current assets			155,776				146,678
LONG-TERM ASSETS:
Long-term bank deposits			215				215
Severance pay fund			438				434
Operating lease right-of-use assets			3,679				4,458
Deferred taxes			349				420
Other assets			1,475				2,975
Total long-term assets			6,156				8,502
PROPERTY AND EQUIPMENT, NET			12,600				11,993
GOODWILL AND INTANGIBLE ASSETS, NET			35,842				34,427
Total assets		$	210,374			$	201,600
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	1,222			$	2,092
Deferred revenues			30,194				26,658
Short-term operating lease liabilities			2,602				2,813
Other payables and accrued expenses			25,199				27,299
Total current liabilities			59,217				58,862
LONG-TERM LIABILITIES:
Deferred revenues			21,218				9,782
Long-term operating lease liabilities			1,035				1,835
Accrued severance pay			901				969
Total long-term liabilities			23,154				12,586
SHAREHOLDERS' EQUITY			128,003				130,152
Total liabilities and shareholders' equity		$	210,374			$	201,600

TABLE  - 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

		Three Months Ended
		March 31,
		2021				2020
		(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net Loss		$	(3,958	)		$	(1,660	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			1,088				788
Stock-based compensation			1,444				924
Amortization of intangible assets			237				152
Increase (Decrease) in accrued severance pay, net			(72	)			1
Decrease in other assets			1,499				160
Decrease in accrued interest and  amortization of premium on marketable securities			75				171
Changes in operating leases, net			(232	)			(711	)
Decrease (Increase) in trade receivables			(7,143	)			5,868
Decrease (Increase) in other receivables and prepaid expenses			2,080				(401	)
Increase in inventories			(957	)			(4,485	)
Decrease in long-term deferred taxes, net			72				84
Increase (Decrease) in trade payables			(870	)			2,268
Decrease in employees and payroll accruals			(1,909	)			(1,325	)
Increase (Decrease) in deferred revenues			14,972				(5,626	)
Decrease in other payables, accrued expenses and other long term liabilities			(603	)			(1,718	)
Net cash provided by (used in) operating activities			5,723				(5,510	)
Cash flows from investing activities:
Decrease (Increase) in restricted deposit			(434	)			1,500
Redemption of (Investment in) short-term deposits			(24,300	)			4,757
Purchase of property and equipment			(1,695	)			(1,351	)
Purchase of intangible assets			(1,652	)			-
Investment in available-for sale marketable securities			-				(375	)
Proceeds from sales and maturity of available-for sale marketable securities			4,348				12,923
Net cash provided by (used in) investing activities			(23,733	)			17,454
Cash flows from financing activities:
Proceeds from exercise of stock options			1,559				620
Net cash provided by financing activities			1,559				620
Increase (Decrease) in cash and cash equivalents			(16,451	)			12,564
Cash and cash equivalents at the beginning of the period			23,599				16,930
Cash and cash equivalents at the end of the period		$	7,148			$	29,494