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 February 2008
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
February 12, 2008, Allot Communications Ltd. issued a press release announcing
the quarterly results for the fourth quarter and full year 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:
February 12, 2008
EXHIBIT
INDEX
The
following exhibit has been filed as part of this Form 6-K:
|
Description
|
||
|
99.1.
|
Press
Release Announcing Financial Results Dated February 12,
2008.
|
Allot
Communications Announces Fourth Quarter
and
Full Year 2007 Results
Hod
Hasharon, ISRAEL - February 12, 2008
- 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 fourth quarter
and
full year ended December 31, 2007.
Total
revenues for the fourth quarter of 2007 reached $8.7 million, a 9% decrease
from
the $9.6 million of revenues reported in the fourth quarter of 2006, and a
25%
increase over the $7.0 million revenues reported for the third quarter of 2007.
On a GAAP basis, the net loss for the fourth quarter of 2007 was $5.5 million,
or $0.25 per diluted share, which includes a $3.7 million impairment charge
on
account of certain securities held by the Company as described below, as
compared with net profit of $53 thousand, or $0.00 per diluted share, in the
fourth quarter of 2006, and a net loss of $2.2 million, or $0.10 per diluted
share, for the third quarter of 2007. For the full year 2007, revenues reached
$32.5 million, representing a 5% decline from $34.1 million in revenues in
2006.
On a GAAP basis, net loss in 2007 totaled $8.7 million, or $0.41 per diluted
share, as compared with net income of $616 thousand, or $0.04 per diluted share,
in 2006.
On
a
non-GAAP basis, excluding the impact of share-based compensation expense, the
impact of expenses related to a law suit and the impact of the impairment charge
related to certain securities, non-GAAP net loss for the fourth quarter of
2007
totaled $1.4 million, or $0.06 per diluted share, as compared with net income
of
$732 thousand, or $0.04 per diluted share, for the fourth quarter of 2006.
For
the year 2007, non-GAAP net loss, excluding the impact of the share-based
compensation, the impact of expenses related to a law suit and the impact of
the
impairment charge related to certain securities, totaled $3.5 million, or $0.16
per diluted share, as compared with net income of $2.0 million, or $0.12 per
diluted share, in 2006.
These
non-GAAP measures should be considered in addition to, and not as a substitute
for, comparable GAAP measures. A full reconciliation between non-GAAP and GAAP
net income is provided in the accompanying Table 2. The Company provides these
non-GAAP financial measures because management believes that 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 the Company’s operating performance.
“During
2007, the DPI market continued to evolve,” commented Rami Hadar, Allot’s
President and Chief Executive Officer. “Although this has been a challenging
year for us, we have made significant progress in building our product portfolio
and in organizing our sales force to meet the demands in the telecom space.
“With
the
successful commercial introduction of the new 10G Service Gateway-Omega, we
are
well-positioned to meet the needs of telecom operators and are already seeing
a
healthy pipeline for this new and exciting platform. Allot’s acquisition of
Esphion, with its security products, adds an important component to this
platform.
“During
2007, we continued to expand our worldwide, diverse customer base, with balanced
sales between the Americas, Europe and the Far East. These customers include
several major new telecom operators, with DSL, mobile, cable and WiFi
deployments, along with our traditional service provider and enterprise
customers. We believe that this provides us with a solid basis to resume revenue
growth during 2008,” concluded Hadar.
Balance
Sheet Items
As
of
December 31, 2007, net of allowance for devaluation of $4.9 million, Allot’s
cash and cash equivalents, including short and long-term deposits and
investments in marketable securities, totaled $70.8 million.
As
of
December 31, 2007, the Company had $40.3 million of principal invested in
Auction Rate Securities (ARS) ranked AAA and AA at the time of purchase, and
there had been no change in their rating, except for one security with a par
value of $0.9 million. All securities continue to pay interest in accordance
with their stated terms. However, since these ARS have experienced multiple
failed auctions due to a lack
of
liquidity in the market for these securities,
based
on initial third party indications, the Company has revalued its ARS portfolio.
As a result, it has recorded an impairment charge of $3.7 million on the profit
and loss statement with respect to ARS of $6.6 million in par value, the
devaluation of which is considered “other than temporary.” For the balance of
ARS holdings of $33.7 million in par value, the Company has recorded an
unrealized loss of $1.2 million in other comprehensive income as a reduction
of
shareholders’ equity. Based on initial third party indications, the Company
currently believes that this impairment is temporary. All of these ARS were
classified as long term assets.
The
accounting treatment and final results for 2007 may change based upon final
third party valuations regarding these securities. If uncertainties in the
credit and capital markets continue, these markets deteriorate further or the
Company experiences any ratings downgrades on any ongoing investments in its
portfolio (including on ARS), the Company may incur additional impairments
to
its investment portfolio, which could negatively affect the Company's financial
condition, cash flow and results of operations. The Company believes that based
on its current cash, cash equivalents and marketable securities balances at
December 31, 2007 and expected operating cash flows, the current lack of
liquidity of these securities will not have a material impact on the Company's
liquidity, cash flow or its ability to fund its operations.
Details
reconciling these non-GAAP amounts with GAAP amounts including specified items
are provided in Table 2 attached.
Conference
Call & Webcast
The
Company's management team plans to host a live conference call and webcast
today
8:30 AM EST to discuss the financial results as well as management's outlook
for
the business.
To
access
the conference call, please dial one of the following numbers: US:
1-866-966-5335, International: +44-20-3003-2666, Israel:
1-809-216-213.
A
replay
of the conference call will be available from 12:01 am EST on February 13,
2008
through March 12, 2008 at 11:59 pm EST. To access the replay, please dial:
+44-20-8196-1998, access code: 650204#
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 the website following the conference
call.
About
Allot Communications
Allot
Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent IP
service optimization solutions for DSL, wireless and mobile broadband carriers,
service providers, and enterprises. Allot’s rich portfolio of hardware platforms
and software applications utilizes deep packet inspection (DPI) technology
to
transform broadband pipes into smart networks that can rapidly and efficiently
deploy value added Internet services. Allot’s scalable, carrier-grade solutions
provide the visibility, security, application control and subscriber management
that are vital to managing Internet service delivery, guaranteeing quality
of
experience (QoE), containing operating costs, and maximizing revenue in
broadband networks. For more information, visit www.allot.com.
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, the Company’s belief as to whether any
impairment to the ARS is temporary, and the Company’s belief that based on its
current cash, cash equivalents and marketable securities balances and expected
operating cash flows, the current lack of liquidity of the ARS will not have
a
material impact on its liquidity, cash flow or its ability to fund its
operations. 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 continued
uncertainty in the credit and capital markets that may result in these markets
deteriorating further or the Company experiencing additional ratings downgrades
on any ongoing investments in its portfolio (including on ARS) and the Company
incurring additional impairments to its investment portfolio; changes in the
accounting treatment and final results for 2007 resulting from final third
party
valuations of the ARS; the current lack of liquidity of the ARS having a
material impact on the Company’s liquidity, cash flow or its ability to fund its
operations; the audit of the Company’s annual financial statements; other
changes in general economic and business conditions and, specifically, a decline
in demand for the Company’s products; the Company’s inability to timely develop
and introduce new technologies, products and applications; loss of market;
and
other 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 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:
Jay
Kalish
Executive
Director Investor Relations
International
access code+972-9-761-9365
jkalish@allot.com
ALLOT
COMMUNICATIONS LTD.
AND
ITS SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(U.S.
dollars in thousands, except share and per share data)
|
|
Three
Months Ended
|
Year
Ended
|
|||||||||||
|
|
December
31,
|
December
31,
|
|||||||||||
|
|
2007
|
2006
|
2007
|
2006
|
|||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||
|
|
|
|
|
||||||||||
|
Revenues
|
$
|
8,673
|
$
|
9,567
|
$
|
32,502
|
$
|
34,144
|
|||||
|
Cost
of revenues
|
2,196
|
2,190
|
8,019
|
7,597
|
|||||||||
|
Gross
profit
|
6,477
|
7,377
|
24,483
|
26,547
|
|||||||||
|
|
|||||||||||||
|
Operating
expenses:
|
|||||||||||||
|
Research
and development costs, net
|
2,491
|
1,887
|
9,384
|
7,529
|
|||||||||
|
Sales
and marketing
|
5,010
|
4,598
|
18,081
|
15,457
|
|||||||||
|
General
and administrative
|
1,606
|
1,204
|
5,583
|
3,464
|
|||||||||
|
Total
Operating expenses
|
9,107
|
7,689
|
33,048
|
26,450
|
|||||||||
|
Operating
income (loss)
|
(2,630
|
)
|
(312
|
)
|
(8,565
|
)
|
97
|
||||||
|
Financial
and other income (loss), net
|
(2,584
|
)
|
401
|
356
|
630
|
||||||||
|
Income
(loss) before income tax expenses (benefit)
|
(5,214
|
)
|
89
|
(8,209
|
)
|
727
|
|||||||
|
|
|||||||||||||
|
Income
tax expenses
|
325
|
36
|
530
|
111
|
|||||||||
|
Net
income (loss)
|
(5,539
|
)
|
53
|
(8,739
|
)
|
616
|
|||||||
|
|
|||||||||||||
|
Basic
net earnings (loss) per share
|
$
|
(0.25
|
)
|
$
|
0.00
|
$
|
(0.41
|
)
|
$
|
0.04
|
|||
|
Diluted
net earnings (loss) per share
|
$
|
(0.25
|
)
|
$
|
0.00
|
$
|
(0.41
|
)
|
$
|
0.04
|
|||
|
|
|||||||||||||
|
Weighted
average number of shares used in computing basic net earnings (loss)
per
share
|
21,945,602
|
17,077,444
|
21,525,822
|
14,402,338
|
|||||||||
|
|
|||||||||||||
|
Weighted
average number of shares used in computing diluted net earnings (loss)
per
share
|
21,945,602
|
19,864,395
|
21,525,822
|
16,423,227
|
|||||||||
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
|
Twelve
Months Ended
|
|||||||||||
|
|
December
31,
|
December
31,
|
|||||||||||
|
|
2007
|
2006
|
2007
|
2006
|
|||||||||
|
|
(Unaudited)
|
(Unaudited)
|
|||||||||||
|
|
|
|
|
|
|||||||||
|
GAAP
net income (loss) as reported
|
$
|
(5,539
|
)
|
$
|
53
|
$
|
(8,739
|
)
|
$
|
616
|
|||
|
|
|||||||||||||
|
Non-GAAP
adjustments
|
|||||||||||||
|
Expenses
recorded for stock-based compensation
|
|||||||||||||
|
Cost
of revenues
|
13
|
7
|
48
|
15
|
|||||||||
|
Research
and development costs, net
|
70
|
60
|
231
|
157
|
|||||||||
|
Sales
and marketing
|
140
|
320
|
340
|
649
|
|||||||||
|
General
and administrative
|
218
|
292
|
742
|
540
|
|||||||||
|
Expenses
related to a law suit
|
|||||||||||||
|
General
and administrative
|
20
|
-
|
154
|
-
|
|||||||||
|
Impairment
of auction rate securities
|
|||||||||||||
|
Financial
and other income (loss), net
|
3,680
|
-
|
3,680
|
-
|
|||||||||
|
|
|||||||||||||
|
Total
adjustments
|
4,141
|
679
|
5,195
|
1,361
|
|||||||||
|
|
|||||||||||||
|
Non-GAAP
net income (loss)
|
$
|
(1,398
|
)
|
$
|
732
|
$
|
(3,544
|
)
|
$
|
1,977
|
|||
|
|
|||||||||||||
|
Non-
GAAP basic net earnings (loss) per share
|
$
|
(0.06
|
)
|
$
|
0.04
|
$
|
(0.16
|
)
|
$
|
0.14
|
|||
|
Non-GAAP
diluted net earnings (loss) per share
|
$
|
(0.06
|
)
|
$
|
0.04
|
$
|
(0.16
|
)
|
$
|
0.12
|
|||
TABLE
- 3
ALLOT
COMMUNICATIONS LTD.
AND
ITS SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(U.S.
dollars in thousands)
|
|
December
31,
|
||||||
|
|
2007
|
2006
|
|||||
|
|
(Unaudited)
|
(Audited)
|
|||||
|
ASSETS
|
|||||||
|
CURRENT
ASSETS:
|
|||||||
|
Cash
and cash equivalents
|
$
|
28,101
|
$
|
7,117
|
|||
|
Marketable
securities and short term deposits
|
7,305
|
70,423
|
|||||
|
Trade
receivables
|
6,645
|
4,178
|
* | ||||
|
Other
receivables and prepaid expenses
|
3,915
|
1,961
|
|||||
|
Inventories
|
4,789
|
3,337
|
|||||
|
Total
current assets
|
50,755
|
87,016
|
|||||
|
|
|||||||
|
LONG-TERM
ASSETS:
|
|||||||
|
Marketable
securities
|
35,371
|
5,750
|
|||||
|
Severence
pay fund
|
3,302
|
2,648
|
|||||
|
Other
assets
|
1,169
|
1,054
|
|||||
|
Total
long-term assets
|
39,842
|
9,452
|
|||||
|
|
|||||||
|
PROPERTY
AND EQUIPMENT, NET
|
4,619
|
2,939
|
|||||
|
GOODWILL
AND INTANGIBLE ASSETS, NET
|
239
|
99
|
|||||
|
|
|||||||
|
Total
assets
|
$
|
95,455
|
$
|
99,506
|
|||
|
|
|||||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
|
CURRENT
LIABILITIES:
|
|||||||
|
Short-term
bank credit and current maturities, net
|
$
|
-
|
$
|
6
|
|||
|
Trade
payables
|
3,409
|
4,415
|
|||||
|
Deferred
revenues
|
3,760
|
2,580
|
* | ||||
|
Other
payables and accrued expenses
|
5,791
|
4,833
|
|||||
|
Total
current liabilities
|
12,960
|
11,834
|
|||||
|
|
|||||||
|
LONG-TERM
LIABILITIES:
|
|||||||
|
Deferred
revenues
|
2,135
|
1,108
|
* | ||||
|
Accrued
severence pay
|
3,175
|
2,377
|
|||||
|
Total
long-term liabilities
|
5,310
|
3,485
|
|||||
|
|
|||||||
|
SHAREHOLDERS'
EQUITY
|
77,185
|
84,187
|
|||||
|
|
|||||||
|
Total
liabilities and shareholders' equity
|
$
|
95,455
|
$
|
99,506
|
|||
*
reclassified