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 November
2007
Commission File Number:
001-33129
Allot Communications
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 x Form 40-F o
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 o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
EXPLANATORY NOTE
On November 7, 2007, Allot Communications Ltd. issued a press release announcing the quarterly results for the third quarter 2007.
A copy of the press release is attached to this Form 6-K as Exhibit 99.1 and incorporated herein by reference.
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 Communications Ltd. By: /s/ Doron Arazi —————————————— Doron Arazi Chief Financial Officer |
Date: November 7, 2007
EXHIBIT INDEX
The following exhibit has been filed as part of this Form 6-K:
| Exhibit | Description |
| 99.1. | Press Release Announcing Financial Results Dated November 7, 2007. |
Exhibit 99.1
Allot Communications Announces Third Quarter 2007 Results
Hod Hasharon, ISRAEL – November 7, 2007 – Allot Communications Ltd. (NASDAQ: ALLT), a leader in IP service optimization solutions based on deep packet inspection (DPI) technology, today announced financial results for the third quarter ended September 30, 2007.
Revenues for the third quarter of 2007 totaled $7.0 million, representing a 19% decrease from the $8.6 million in revenues reported for the second quarter of 2007 and a 21% decrease from the $8.9 million of revenues reported in the third quarter of 2006. On a GAAP basis, net loss for the third quarter of 2007 was $2.2 million, or $0.10 per share, as compared with a net loss of $592 thousand, or $0.03 per share, for the second quarter of 2007 and net income of $505 thousand, or $0.03 per diluted share, in the third quarter of 2006. For the first nine months of 2007, revenues reached $23.8 million, representing a 3% decrease from the $24.6 million in revenues for the first nine months of 2006. On a GAAP basis, net loss for the first nine months of 2007 totaled $3.2 million, or $0.15 per share, as compared with net income of $563 thousand, or $0.04 per diluted share, for the first nine months of 2006. On a non-GAAP basis, excluding the impact of share-based compensation expense and the impact of expenses related to a law suit, non-GAAP net loss for the third quarter of 2007 totaled $1.7 million, or $0.08 per share, as compared with a non-GAAP net loss of $299 thousand, or $0.01 per share, for the second quarter of 2007 and non-GAAP net income of $845 thousand, or $0.05 per diluted share, for the third quarter of 2006. For the first nine months of 2007, non-GAAP net loss, excluding the impact of the share-based compensation and the impact of the legal expenses, totaled $2.1 million or $0.10 per share, as compared with net income of $1.2 million or $0.08 per diluted share for the first nine months of 2006.
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. Reconciliation between GAAP and non-GAAP measures is provided in the accompanying Table 2 of this press release. Allot provides these non-GAAP financial measures because 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 that they are useful to investors in enhancing an understanding of Allot’s operating performance.
“While our revenues were lower than expected this quarter, Allot did achieve two major milestones,” commented Rami Hadar, Allot Communications’ President and Chief Executive Officer. “The first milestone was the $2 million purchase order we received from a Tier 1 operator in Latin America. Revenues from this order may be recognized over an extended period of time, most likely commencing during 2008. The second milestone was the commencement of trials and the first commercial installation of our new Service Gateway -Omega 20G product line with large service providers and Tier 1 Carriers.
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“We believe that Allot’s new platform opens up near term opportunities for Allot, as we
expect that our current customer base will begin to migrate from 1G products to 10G
products, and longer term opportunities from Tier 1 operators seeking carrier class DPI
solutions for their networks,” concluded Hadar.
As of September 30, 2007,
Allot’s cash and cash equivalents, including short and long-term deposits and
investments in marketable securities, totaled $77.8 million.
Financial Guidance
The Company maintains its previous guidance for the year 2007, and anticipates that net revenues will total approximately $32-35 million.
Conference Call & Webcast
The Company’s management team plans to host its quarterly conference call and webcast on November 7, 2007 at 8:30 AM EDT to discuss the quarterly results.
To access the conference call, please dial one of the following numbers: US: 1-866-966-9446, International: +44-1452-567-098, conference ID 20246146.
A replay of the conference call will be available from 1:00 pm EDT on November 8, 2007 through December 7, 2007 at 11:59 pm EDT.
To access the replay, please dial in the US: 1-866-247-4222, International: +44-1452-550000. Access code for both is 20246146#.
A live webcast of the conference call can be accessed on the Allot Communications website at www.allot.com. The webcast will also be archived on Allot’s website following the conference call.
About Allot
Communications
Allot Communications Ltd. (NASDAQ:
ALLT) is a leading provider of intelligent IP service optimization solutions. Designed for
carriers, service providers and enterprises, Allot solutions apply deep packet inspection
(DPI) technology to transform broadband pipes into smart networks. This creates the
visibility and control vital to manage applications, services and subscribers, guarantee
quality of service (QoS), contain operating costs and maximize revenue. Allot believes in
listening to customers and provides them access to its global network of visionaries,
innovators and support engineers. For more information, please visit
www.allot.com.
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Safe Harbor Statement
Information provided in this press
release may contain statements relating to current expectations, estimates, forecasts and
projections about future events that are “forward-looking statements” as defined
in the Private Securities Litigation Reform Act of 1995. These forward-looking statements
generally relate to the Allot’s plans, objectives and expectations for future
operations, including revenue guidance for the fiscal year; recognition of revenue for the
Latin America order referred to above; and the performance characteristics of our
Service Gateway, as well as the level of revenues to be generated therefrom. These
forward-looking statements are based upon management’s current estimates and
projections of future results or trends. Actual future results may differ materially from
those projected as a result of certain risks and uncertainties. These factors include, but
are not limited to: the impact of the introduction of 10GB products by us and by our
competitors on the sale of our existing products; whether the commercial availability of
our Service Gateway remains on schedule; the market’s acceptance of our Service
Gateway; the length of sales cycles for the Service Gateway; the audit of our annual
results; changes in general economic and business conditions and, specifically, a decline
in demand for our products; our inability to timely develop and introduce new
technologies, products and applications; loss of market; and those factors discussed under
the heading “Risk Factors” in Allot’s annual report on Form 20-F filed with
the Securities and Exchange Commission. These forward-looking statements are made only as
of the date hereof, and we undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-9-761-9365
jkalish@allot.com
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TABLE - 1
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 |
2006 |
2007 |
2006 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| Revenues | $ | 6,952 | $ | 8,854 | $ | 23,829 | $ | 24,577 | ||||||
| Cost of revenues | 1,813 | 1,961 | 5,823 | 5,407 | ||||||||||
| Gross profit | 5,139 | 6,893 | 18,006 | 19,170 | ||||||||||
| Operating expenses: | ||||||||||||||
| Research and development, net | 2,275 | 1,807 | 6,893 | 5,642 | ||||||||||
| Sales and marketing | 4,311 | 3,617 | 13,071 | 10,859 | ||||||||||
| General and administrative | 1,496 | 941 | 3,977 | 2,260 | ||||||||||
| Total operating expenses | 8,082 | 6,365 | 23,941 | 18,761 | ||||||||||
| Operating income (loss) | (2,943 | ) | 528 | (5,935 | ) | 409 | ||||||||
| Financial and other income, net | 1,158 | 46 | 2,940 | 229 | ||||||||||
| Income (loss) before income tax expenses | (1,785 | ) | 574 | (2,995 | ) | 638 | ||||||||
| Income tax expenses | 389 | 69 | 205 | 75 | ||||||||||
| Net income (loss) | (2,174 | ) | 505 | (3,200 | ) | 563 | ||||||||
| Basic net earnings (loss) per share | $ | (0.10 | ) | $ | 0.04 | $ | (0.15 | ) | $ | 0.04 | ||||
| Diluted net earnings (loss) per share | $ | (0.10 | ) | $ | 0.03 | $ | (0.15 | ) | $ | 0.04 | ||||
| Weighted average number of shares | ||||||||||||||
| used in computing basic net | ||||||||||||||
| earnings (loss) per share | 21,879,844 | 13,849,547 | 21,384,358 | 13,310,355 | ||||||||||
| Weighted average number of shares | ||||||||||||||
| used in computing diluted net | ||||||||||||||
| earnings (loss) per share | 21,879,844 | 15,832,971 | 21,384,358 | 15,501,698 | ||||||||||
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TABLE - 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 |
2006 |
2007 |
2006 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| GAAP net income (loss) as reported | $ | (2,174 | ) | $ | 505 | $ | (3,200 | ) | $ | 563 | ||||
| Non-GAAP adjustments | ||||||||||||||
| Expenses recorded for stock-based compensation | ||||||||||||||
| Cost of revenues | 12 | 5 | 35 | 8 | ||||||||||
| Research and development costs, net | 65 | 58 | 161 | 97 | ||||||||||
| Sales and marketing | 91 | 138 | 200 | 330 | ||||||||||
| General and administrative | 205 | 139 | 524 | 247 | ||||||||||
| Expenses related to a law suit | ||||||||||||||
| General and administrative | 66 | - | 134 | - | ||||||||||
| Total adjustments | 439 | 340 | 1,054 | 682 | ||||||||||
| Non-GAAP net income (loss) | $ | (1,735 | ) | $ | 845 | $ | (2,146 | ) | $ | 1,245 | ||||
| Non- GAAP basic net earnings (loss) per share | $ | (0.08 | ) | $ | 0.0 | 6 | $ | (0.10 | ) | $ | 0.09 | |||
| Non-GAAP diluted net earnings (loss) per share | $ | (0.08 | ) | $ | 0.0 | 5 | $ | (0.10 | ) | $ | 0.08 | |||
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TABLE - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
| September 30, 2007 |
December 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| (Unaudited) |
||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 21,442 | $ | 7,117 | ||||
| Marketable securities and short term deposit | 47,924 | 70,423 | ||||||
| Trade receivables | 7,912 | 5,856 | ||||||
| Other receivables and prepaid expenses | 3,694 | 1,961 | ||||||
| Inventories | 4,455 | 3,337 | ||||||
| Total current assets | 85,427 | 88,694 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Marketable securities | 8,350 | 5,750 | ||||||
| Severence pay fund | 3,039 | 2,648 | ||||||
| Other assets | 1,228 | 1,054 | ||||||
| Total long-term assets | 12,617 | 9,452 | ||||||
| PROPERTY AND EQUIPMENT, NET | 4,846 | 2,939 | ||||||
| GOODWILL | 246 | 99 | ||||||
| Total assets | $ | 103,136 | $ | 101,184 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank credit and current maturities, net | $ | - | $ | 6 | ||||
| Trade payables | 3,359 | 4,415 | ||||||
| Deferred revenues | 4,721 | 3,788 | ||||||
| Other payables and accrued expenses | 5,869 | 4,833 | ||||||
| Total current liabilities | 13,949 | 13,042 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred revenues | 2,822 | 1,578 | ||||||
| Accrued severence pay | 2,932 | 2,377 | ||||||
| Total long-term liabilities | 5,754 | 3,955 | ||||||
| SHAREHOLDERS' EQUITY | 83,433 | 84,187 | ||||||
| Total liabilities and shareholders' equity | $ | 103,136 | $ | 101,184 | ||||
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