Allot Ltd. - 1365767 - 2023
0001365767false--12-31Q22023-06-30

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 2023
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 31, 2023, Allot Ltd. issued a press release announcing the Second Quarter 2023 Financial Results and Cost Reduction Plan.
 
A copy of the press release entitled “Allot Announces Second Quarter 2023 Financial Results and Cost Reduction Plan” 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 31, 2023
 

 
EXHIBIT INDEX
 
The following exhibit has been filed as part of this Form 6-K:
 
Exhibit Number
 
Description
     
 
 

Allot Ltd. - 1365767 - 2023
0001365767 2023-01-01 2023-06-30 0001365767 2023-06-30 0001365767 2022-12-31 0001365767 2023-04-01 2023-06-30 0001365767 2022-04-01 2022-06-30 0001365767 2022-01-01 2022-06-30 0001365767 2023-03-31 0001365767 2022-03-31 0001365767 2021-12-31 0001365767 2022-06-30 xbrli:shares iso4217:USD iso4217:USDxbrli:shares

Exhibit 99.1
 
https://cdn.kscope.io/3221ac1a572192a28deb57f15e9a3ecd-image0.jpg
 
Allot Announces Q2 2023 Financial Results and Cost Reduction Plan
 
Hod Hasharon, Israel – August 31, 2023 - 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 financial results for the second quarter ended June 30, 2023.
 
Q2 Financial Highlights
 
 
Second quarter revenues were $25.0 million;
 
 
SECaaS revenues were $2.4 million; June 2023 SECaaS ARR* was $9.7 million;
 
 
Second quarter GAAP operating loss was $21.5 million, and non-GAAP operating loss was $18.9 million, including a provision of $14.1 million for credit losses from two customers in Africa;
 
 
Q2 GAAP net loss was $20.7 million, and non-GAAP net loss was $18.3 million;
 
As we pre-announced on July 17, 2023, during the quarter, the company booked an allowance for credit losses related to past due receivables previously disclosed by the company arising from sales in two African countries and certain additional sales that occurred in the fourth quarter of 2022 in another African country. Allot has been assessing the collectability of its accounts receivable on a quarterly basis. In connection with its most recent assessment, the company determined that certain accounts previously disclosed as outstanding will not, with reasonable certainty, be collected, based on recent communications from the contractual counterparties and other factors including the passage of time.
 
Financial Outlook
 
Looking ahead, management updates its financial expectations as follows:
 
 
Full-year 2023 revenues of $95 million to $110 million (of which SECaaS revenues are expected to be approximately $11 million);
 
 
Full year 2023 operating loss of between $38 million and $44 million (includes a $14.1 million provision for credit losses from two customers in Africa);
 
 
Full year 2023 negative cash flow of between $24 million and $44 million;
 
 
December 2023 total ARR*, including SECaaS ARR* and Support & Maintenance ARR*, is expected to be between $51 million and $55 million;
 
 
Reiterates expectations to be profitable in 2024;
 

 
Management Comment
 
Erez Antebi, President & CEO of Allot, commented, “We believe that our strategy of transforming our business towards a recurring SECaaS revenue model will drive sustainable profitable growth and long-term shareholder value. However, the conversion of won SECaaS deals to paying subscribers continues to take longer than expected, and SMART is experiencing lower revenues in light of continued challenging economic conditions. We are committed to our target of reaching profitability in 2024 through the growth of the SECaaS business, combined with tight expense control. As we strive toward our goal of driving profitable growth, we are implementing a cost reduction plan which we expect will reduce our yearly expenses by approximately $15 million. "
 
Q2 2023 Financial Results Summary
 
Total revenues for the second quarter of 2023 were $25.0 million, a decrease of 24% compared to $32.8 million in the second quarter of 2022.
 
Gross profit on a GAAP basis for the second quarter of 2023 was $17.3 million (gross margin of 69.2%), a 23% decline compared with $22.5 million (gross margin of 68.7%) in the second quarter of 2022.
 
Gross profit on a non-GAAP basis for the second quarter of 2023 was $17.9 million (gross margin of 71.4%), a 22% decline compared with $23 million (gross margin of 70.2%) in the second quarter of 2022. The gross margin level in the current quarter was impacted by a one-time favorable product mix.
 
Net loss on a GAAP basis for the second quarter of 2023 was $20.7 million, or $0.55 per basic share, compared with a net loss of $6.2 million, or $0.17 per basic share, in the second quarter of 2022. The increase in net loss this quarter is due to the credit loss expense described above.
 
Net loss on a non-GAAP for the second quarter of 2023 was $18.3 million, or $0.49 per basic share compared with a non-GAAP net loss of $4.2 million, or $0.11 per basic share, in the second quarter of 2022. The increase in net loss this quarter is due to the credit loss expense described above.
 
Cash, short-term bank deposits and investments as of June 30, 2023, totaled $65.9 million, compared to $86.4 million as of December 31, 2022.
 

 
ARR - U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
Dec. 2021
 
Dec. 2022
 
Dec. 2023 target
 
2022 vs. 2021
 
2023 (target) vs. 2022
 
Support & maintenance ARR *
42.0
 
42.5
 
39-41
 
1%
 
(8%)-(4%)
 
 
 
 
 
 
 
 
 
 
 
 
SECaaS ARR **
5.2
 
9.2
 
12-14
 
77%
 
30%-52%
 
 
 
 
 
 
 
 
 
 
 
 
Total ARR
47.2
 
51.7
 
51-55
 
10%
 
(1%)-6%
 
           

* Support & Maintenance ARR measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4.
** SECaaS ARR measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected revenues in the month of December and multiplied by 12.

 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss its second quarter 2023 earnings results today, August 31, 2023 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:
 
US: 1-888-642-5032, 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 1,000 enterprises. Our industry leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.
 
For more information, visit www.allot.com
 

Performance Metrics
 
* Total ARR - Support & Maintenance ARR (measures the current annual run rate of support & maintenance revenues, which is calculated based on the revenues for the second quarter of 2023 and multiplied by 4) and SECaaS ARR (measures the current annual run rate of the SECaaS revenues), which is calculated based on the revenues in the month of June 2023 and multiplied by 12.
 
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, other acquisition-related expenses and changes in taxes related items.
 
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 accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; 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; 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:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
 sgreenberg@allot.com
 
 

 
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
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2023
   
2022
   
2023
   
2022
 
 
 
(Unaudited)
   
(Unaudited)
 
 
                       
Revenues
 
$
25,047
   
$
32,772
   
$
46,173
   
$
64,668
 
Cost of revenues
   
7,707
     
10,242
     
15,358
     
20,034
 
Gross profit
   
17,340
     
22,530
     
30,815
     
44,634
 
 
                               
Operating expenses:
                               
Research and development costs, net
   
10,752
     
12,480
     
21,246
     
24,510
 
Sales and marketing
   
10,522
     
12,220
     
21,409
     
23,909
 
General and administrative
   
17,558
     
4,303
     
21,518
     
8,340
 
Total operating expenses
   
38,832
     
29,003
     
64,173
     
56,759
 
Operating loss
   
(21,492
)
   
(6,473
)
   
(33,358
)
   
(12,125
)
Financial and other income, net
   
985
     
620
     
1,779
     
867
 
Loss before income tax expenses
   
(20,507
)
   
(5,853
)
   
(31,579
)
   
(11,258
)
                                 
Tax expenses
   
225
     
380
     
515
     
1,102
 
Net Loss
   
(20,732
)
   
(6,233
)
   
(32,094
)
   
(12,360
)
 
                               
 Basic net loss per share
 
$
(0.55
)
 
$
(0.17
)
 
$
(0.85
)
 
$
(0.34
)
 
         

 

 
                 
 Diluted net loss per share
 
$
(0.55
)
 
$
(0.17
)
 
$
(0.85
)
 
$
(0.34
)
 
                               
Weighted average number of shares used in
                               
computing basic net loss per share
   
37,743,328
     
36,827,197
     
37,583,412
     
36,684,017
 
 
                               
Weighted average number of shares used in
                               
computing diluted net loss per share
   
37,743,328
     
36,827,197
     
37,583,412
     
36,684,017
 
 

 
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
  
Six Months Ended
 
 
 
June 30,
  
June 30,
 
 
 
2023
  
2022
  
2023
  
2022
 
 
 
(Unaudited)
  
(Unaudited)
 
GAAP cost of revenues
 
$
7,707
  
$
10,242
  
$
15,358
  
$
20,034
 
 Share-based compensation (1)
  
(348
)
  
(338
)
  
(879
)
  
(519
)
 Amortization of intangible assets (2)
  
(194
)
  
(152
)
  
(387
)
  
(304
)
Non-GAAP cost of revenues
 
$
7,165
  
$
9,752
  
$
14,092
  
$
19,211
 
 
                
 GAAP gross profit
 
$
17,340
  
$
22,530
  
$
30,815
  
$
44,634
 
 Gross profit adjustments
  
542
   
490
   
1,266
   
823
 
 Non-GAAP gross profit
 
$
17,882
  
$
23,020
  
$
32,081
  
$
45,457
 
 
                
 GAAP operating expenses
 
$
38,832
  
$
29,003
  
$
64,173
  
$
56,759
 
 Share-based compensation (1)
  
(2,077
)
  
(1,831
)
  
(5,014
)
  
(4,187
)
 Non-GAAP operating expenses
 
$
36,755
  
$
27,172
  
$
59,159
  
$
52,572
 
 
                
 GAAP financial and other income
 
$
985
  
$
620
  
$
1,779
  
$
867
 
 Exchange rate differences*
  
(238
)
  
(316
)  
(281
)
  
(389
)
 Expenses related to M&A activities (3)
  
14
   
-
 
  
28
   
-
 
 Non-GAAP Financial and other income
 
$
761
  
$
304
  
$
1,526
  
$
478
 
 
                
 GAAP taxes on income
 
$
225
  
$
380
  
$
515
  
$
1,102
 
 Changes in tax related items
  
(25
)
  
(50
)
  
(50
)
  
(50
)
 Non-GAAP taxes on income
 
$
200
  
$
330
  
$
465
  
$
1,052
 
 
                
 GAAP Net Loss
 
$
(20,732
)
 
$
(6,233
)
 
$
(32,094
)
 
$
(12,360
)
 Share-based compensation (1)
  
2,425
   
2,169
   
5,893
   
4,706
 
 Amortization of intangible assets (2)
  
194
   
152
   
387
   
304
 
 Expenses related to M&A activities (3)
  
14
   
-
   
28
   
-
 
 Exchange rate differences*
  
(238
)
  
(316
)
  
(281
)
  
(389
)
 Changes in tax related items
  
25
   
50
   
50
   
50
 
 Non-GAAP Net income (loss)
 
$
(18,312
)
 
$
(4,178
)
 
$
(26,017
)
 
$
(7,689
)
 
                
 GAAP Loss per share (diluted)
 
$
(0.55
)
 
$
(0.17
)
 
$
(0.85
)
 
$
(0.34
)
 Share-based compensation
  
0.06
   
0.06
   
0.16
   
0.13
 
 Amortization of intangible assets
  
0.01
   
0.00
   
0.01
   
0.00
 
 Expenses related to M&A activities
  
0.00
   
-
   
0.00
   
-
 
 Changes in taxes and headcount related items
  
-
   
-
   
-
   
0.00
 
 Exchange rate differences*
  
(0.01
)
  
(0.00
)
  
(0.01
)
  
(0.00
)
 Non-GAAP Net income (loss) per share (diluted)
 
$
(0.49
)
 
$
(0.11
)
 
$
(0.69
)
 
$
(0.21
)
 
                
Weighted average number of shares used in
                
computing GAAP diluted net loss per share
  
37,743,328
   
36,827,197
   
37,583,412
   
36,684,017
 
 
                
Weighted average number of shares used in
                
computing non-GAAP diluted net loss per share
  
37,743,328
   
36,827,197
   
37,583,412
   
36,684,017
 
 
* 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 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
  
Six Months Ended
 
 
 
June 30,
  
June 30,
 
 
 
2023
  
2022
  
2023
  
2022
 
 
 
(Unaudited)
  
(Unaudited)
 
 
            
(1) Share-based compensation:
            
Cost of revenues
 
$
348
  
$
338
  
$
879
  
$
519
 
Research and development costs, net
  
754
   
844
   
1,956
   
1,689
 
Sales and marketing
  
733
   
619
   
1,770
   
1,532
 
General and administrative
  
590
   
368
   
1,288
   
966
 
 
 
$
2,425
  
$
2,169
  
$
5,893
  
$
4,706
 
 
                
(2) Amortization of intangible assets
                
Cost of revenues
 
$
194
  
$
152
  
$
387
  
$
304
 
 
 
$
194
  
$
152
  
$
387
  
$
304
 
 
                
(3) Expenses related to M&A activities
                
Financial income
 
$
14
  
$
-
  
$
28
  
$
-
 
 
 
$
14
  
$
-
  
$
28
  
$
-
 
 

 
TABLE - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
 
 
 
June 30,
   
December 31,
 
 
 
2023
   
2022
 
 
 
(Unaudited)
   
(Audited)
 
 
     
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
15,473
   
$
12,295
 
Short-term bank deposits
   
30,065
     
68,765
 
Restricted deposits
   
1,274
     
1,050
 
Available-for-sale marketable securities
   
19,061
     
4,293
 
Trade receivables, net (net of allowance for credit losses of $17,365 and $2,908 on June 30, 2023 and December 31, 2022, respectively)
   
29,445
     
44,167
 
Other receivables and prepaid expenses
   
7,023
     
7,985
 
Inventories
   
18,360
     
13,262
 
Total current assets
   
120,701
     
151,817
 
 
               
LONG-TERM ASSETS:
               
Severance pay fund
   
361
     
371
 
Operating lease right-of-use assets
   
3,937
     
5,387
 
Trade receivables, net
   
4,767
     
4,934
 
Other assets
   
1,058
     
864
 
Total long-term assets
   
10,123
     
11,556
 
 
               
PROPERTY AND EQUIPMENT, NET
   
12,149
     
14,236
 
GOODWILL AND INTANGIBLE ASSETS, NET
   
34,791
     
35,344
 
 
               
Total assets
 
$
177,764
   
$
212,953
 
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
 
$
9,460
   
$
11,661
 
Deferred revenues
   
20,427
     
20,825
 
Short-term operating lease liabilities
   
2,103
     
2,542
 
Other payables and accrued expenses
   
21,173
     
25,573
 
Total current liabilities
   
53,163
     
60,601
 
 
               
LONG-TERM LIABILITIES:
               
Deferred revenues
   
6,384
     
7,285
 
Long-term operating lease liabilities
   
1,475
     
2,579
 
Accrued severance pay
   
1,003
     
940
 
Convertible debt
   
39,673
     
39,575
 
Total long-term liabilities
   
48,535
     
50,379
 
 
               
SHAREHOLDERS' EQUITY
   
76,066
     
101,973
 
 
               
Total liabilities and shareholders' equity
 
$
177,764
   
$
212,953
 
 

 
TABLE - 4
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2023
   
2022
   
2023
   
2022
 
 
 
(Unaudited)
   
(Unaudited)
 
 
                       
Cash flows from operating activities:
                       
Net Loss
 
$
(20,732
)
 
$
(6,233
)
 
$
(32,094
)
 
$
(12,360
)
Adjustments to reconcile net income to net cash used in operating activities:
                               
Depreciation
   
1,327
     
1,332
     
2,647
     
2,746
 
Stock-based compensation
   
2,425
     
2,169
     
5,893
     
4,706
 
Amortization of intangible assets
   
277
     
235
     
553
     
470
 
Increase in accrued severance pay, net
   
13
     
26
     
73
     
20
 
Decrease (Increase) in other assets
   
168
     
19
     
(194
)
   
436
 
Decrease (Increase) in accrued interest and amortization of premium on marketable securities
   
(166
)
   
16
     
(147
)
   
48
 
Changes in operating leases, net
   
290
     
(191
)
   
(93
)
   
(563
)
Decrease (Increase) in trade receivables
   
10,403
     
(4,082
)
   
14,889
     
(4,807
)
Decrease (Increase) in other receivables and prepaid expenses
   
300
     
141
     
1,161
     
(893
)
Decrease (Increase) in inventories
   
(1,645
)
   
591
     
(5,098
)
   
(1,164
)
Decrease in trade payables
   
(2,941
)
   
(1,433
)
   
(2,202
)
   
(937
)
Increase (Decrease) in employees and payroll accruals
   
(1,042
)
   
523
     
(2,494
)
   
(1,963
)
Increase (Decrease) in deferred revenues
   
870
     
287
     
(1,299
)
   
1,129
 
Decrease in other payables, accrued expenses and other long term liabilities
   
(923
)
   
(1,252
)
   
(1,824
)
   
(1,523
)
Amortization of issuance costs of Convertible debt
   
49
     
49
     
98
     
71
 
Net cash used in operating activities
   
(11,327
)
   
(7,803
)
   
(20,131
)
   
(14,584
)
 
                               
Cash flows from investing activities:
                               
Decrease (Increase) in restricted deposit
   
(224
)
   
260
     
(224
)
   
380
 
Redemption of (Investment in) short-term deposits
   
21,700
     
520
     
38,700
     
(25,180
)
Purchase of property and equipment
   
(290
)
   
(1,281
)
   
(560
)
   
(2,556
)
Investment in available-for sale marketable securities
   
(9,584
)
   
-
     
(18,567
)
   
-
 
Proceeds from redemption or sale of available-for sale marketable securities
   
590
     
2,872
     
3,960
     
6,030
 
Net cash provided by (used in) investing activities
   
12,192
     
2,371
     
23,309
     
(21,326
)
 
                               
Cash flows from financing activities:
                               
Proceeds from exercise of stock options
   
-
     
15
     
-
     
250
 
Issuance of convertible debt
   
-
     
-
     
-
     
39,404
 
Net cash provided by financing activities
   
-
     
15
     
-
     
39,654
 
 
                               
Increase (Decrease) in cash and cash equivalents
   
865
     
(5,417
)
   
3,178
     
3,744
 
Cash and cash equivalents at the beginning of the period
   
14,608
     
20,878
     
12,295
     
11,717
 
Cash and cash equivalents at the end of the period
 
$
15,473
   
$
15,461
   
$
15,473
   
$
15,461
 
 

 
Other financial metrics (Unaudited)
                  

U.S. dollars in millions, except number of full time employees, % of top-10 end-customers out of revenues and number of

shares

 
 
 
Q2-2023
  
YTD 2023
  
FY 2022
 
Revenues geographic breakdown
                  
Americas
  
8.0
   
32
%
  
10.4
   
22
%
  
21.8
   
18
%
EMEA
  
12.7
   
51
%
  
26.1
   
57
%
  
71.2
   
58
%
Asia Pacific
  
4.3
   
17
%
  
9.7
   
21
%
  
29.7
   
24
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
Revenue breakdown by type
                        
Products
  
11.0
   
44
%
  
17.8
   
39
%
  
61.1
   
50
%
Professional Services
  
1.7
   
7
%
  
3.6
   
8
%
  
11.6
   
9
%
SECaaS (Security as a Service)
  
2.4
   
10
%
  
4.7
   
10
%
  
7.2
   
6
%
Support & Maintenance
  
9.9
   
39
%
  
20.1
   
43
%
  
42.8
   
35
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
Revenues per customer type
                        
CSP
  
20.4
   
82
%
  
37.5
   
81
%
  
98.3
   
80
%
Enterprise
  
4.6
   
18
%
  
8.7
   
19
%
  
24.4
   
20
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
% of top-10 end-customers out of revenues
  
54
%
      
49
%
      
44
%
    
 
                        
Total number of full time employees (end of period)
  
684
       
684
       
749
     
 
                        
Non-GAAP Weighted average number of basic shares (in millions)
  
37.7
       
37.7
       
37.0
     
 
                        
Non-GAAP weighted average number of fully diluted shares (in millions)
  
40.1
       
40.1
       
39.5
     
 
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2-2023:
2.4
 
 
 
 
 
 
 
 
Q1-2023:
2.3
 
 
 
 
 
 
 
 
Q4-2022:
2.2
 
 
 
 
 
 
 
 
Q3-2022:
1.7
 
 
 
 
 
 
 
 
Q2-2022:
1.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 2023:
9.7
 
 
 
 
 
 
 
 
Dec. 2022:
9.2
 
 
 
 
 
 
 
 
Dec. 2021:
5.2
 
 
 
 
 
 
 
 
Dec. 2020:
2.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*ARR: annualized recurring SECaaS revenues, calculated based on the monthly revenues multiplied by 12