For the month of August 2008
Commission File Number: 001-33129
Allot Communications
Ltd.
(Translation
of registrants 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- ________
On August 12, 2008, Allot Communications Ltd. issued a press release announcing the quarterly results for the second quarter of 2008.
A copy of the press release is attached to this Form 6-K as Exhibit 99.1 and incorporated herein by reference.
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: August 12, 2008
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The following exhibit has been filed as part of this Form 6-K:
Exhibit | Description |
99.1. | Press Release Announcing Financial Results Dated August 12, 2008. |
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Exhibit 99.1
- Revenues increase 14.5% over first quarter 2008 -
Hod Hasharon, ISRAEL August 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 second quarter ended June 30, 2008.
Revenues for the second quarter of 2008 totaled $9.5 million, representing a 14.5% increase over the $8.3 million in revenues reported for the first quarter of 2008 and a 10.5% increase from the $8.6 million of revenues reported for the second quarter of 2007. On a GAAP basis, the net loss for the second quarter of 2008 was $3.7 million, or $0.17 per share (basic and diluted), as compared with a net loss of $4.8 million, or $0.22 per share (basic and diluted), for the first quarter of 2008 and a net loss of $0.6 million, or $0.03 per share (basic and diluted), for the second quarter of 2007.
On a non-GAAP basis, excluding the impact of share-based compensation, ARS devaluation, amortization of acquired core technology and litigation expenses, non-GAAP net loss for the second quarter of 2008 totaled $1.9 million, or $0.09 per share, the same as the net loss for the first quarter of 2008 and compared to a non-GAAP net loss of $0.3 million, or $0.01 per share, for the second quarter of 2007. These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. A full reconciliation between GAAP and non-GAAP net loss is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Companys core business and management uses the non-GAAP measures internally to evaluate the Companys ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Companys operating performance.
Our growth during the quarter
was driven by several factors, commented Rami Hadar, Allot Communications
President and Chief Executive Officer. Larger orders, which included both wireline
and mobile operators, accounted for more than 40% of orders received during the second
quarter. While we succeeded in adding new large operators as customers during the quarter,
the results also demonstrate that we are deepening penetration within our existing
customer base.
As we anticipated, orders for the Service Gateway increased in the
second quarter. This platform, which was recently recognized by Isocore as the DPI
industrys first full-fledged revenue generating platform, continues to be trialed
among a growing number of Tier 1 and Tier 2 operators worldwide. We believe that our
customers are increasingly recognizing that this true 10G, open platform will enable them
to both optimize and monetize their IP networks, concluded Mr. Hadar.
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During the second quarter, key highlights included the following achievements:
| Addition of one new Tier 1 customer; |
| Continued penetration of Service Gateway-Omega with Tier 1 and Tier 2 operators; |
| Continued leadership in the growing mobile market ; and |
| Addition of partners for the Service Gateway, thereby enlarging the ecosystem of services that may be supported on the platform. |
As of June 30, 2008, the Companys cash and cash equivalents, including short and long-term deposits and investments in marketable securities, totaled $62 million, of which $32 million were auction rate securities (ARS). Recent external valuations showed a further devaluation of certain ARS in the Companys portfolio. As a result, the Company recorded an additional impairment charge of $1.3 million in its profit and loss statement, in respect of ARS the devaluation of which is considered other than temporary.
Subsequent to the end of the quarter,
the Company monetized $5.8 million of its ARS portfolio at full par value.
The ARS held by
the Company are subject to the risks and uncertainties regarding market conditions,
liquidity, impairment and ratings as previously reported by the Company. The Company
believes that based on its current cash, cash equivalents, deposits and marketable
securities balances at June 30, 2008 and expected operating cash flows, the current lack
of liquidity of these securities will not have a material impact on the Companys
liquidity, cash flow or its ability to fund its operations.
The Allot management team will host a
conference call to discuss its second quarter 2008 results on Tuesday, August 12, 2008, at
8:30 AM EDT, 3:30 PM Israel time. The quarterly results will be published prior to the
conference call.
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 EDT on August 13, 2008 through September 12, 2008 at 11:59 pm EDT. 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.
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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.
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 Companys plans, objectives and expectations for future
operations, including the Companys belief that based on its current cash, cash
equivalents, deposits 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 managements 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 possibility of further deterioration in the credit and capital markets or additional
ratings downgrades of investments in the Companys portfolio (including on ARS)
resulting in the Company incurring additional impairments to its investment portfolio;
changes in general economic and business conditions and, specifically, a decline in demand
for the Companys products; the Companys inability to develop and introduce new
technologies, products and applications; loss of market; and other factors discussed under
the heading Risk Factors in the Companys 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
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ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2008 |
2007 |
2008 |
2007 | |||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||
Revenues | $ | 9,461 | $ | 8,601 | $ | 17,720 | $ | 16,877 | ||||||
Cost of revenues | 2,488 | 2,036 | 4,630 | 4,010 | ||||||||||
Gross profit | 6,973 | 6,565 | 13,090 | 12,867 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development, net | 3,123 | 2,165 | 6,220 | 4,618 | ||||||||||
Sales and marketing | 5,476 | 4,566 | 10,520 | 8,760 | ||||||||||
General and administrative | 1,610 | 1,438 | 3,109 | 2,481 | ||||||||||
In - process research and development | - | - | 244 | - | ||||||||||
Total operating expenses | 10,209 | 8,169 | 20,093 | 15,859 | ||||||||||
Operating loss | (3,236 | ) | (1,604 | ) | (7,003 | ) | (2,992 | ) | ||||||
Financial and other income (expenses), net | (444 | ) | 825 | (1,459 | ) | 1,782 | ||||||||
Loss before income tax expenses (benefit) | (3,680 | ) | (779 | ) | (8,462 | ) | (1,210 | ) | ||||||
Income tax expenses (benefit) | 70 | (187 | ) | 101 | (184 | ) | ||||||||
Net Loss | $ | (3,750 | ) | $ | (592 | ) | $ | (8,563 | ) | $ | (1,026 | ) | ||
Basic and diluted net loss per share | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.39 | ) | $ | (0.05 | ) | ||
Weighted average number of shares | ||||||||||||||
used in computing basic and diluted net | ||||||||||||||
loss per share | 22,058,963 | 21,253,700 | 22,042,867 | 21,131,702 | ||||||||||
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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 June 30, |
Six Months Ended June 30, |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2008 |
2007 |
2008 |
2007 | |||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||
GAAP net loss as reported | $ | (3,750 | ) | $ | (592 | ) | $ | (8,563 | ) | $ | (1,026 | ) | ||
Non-GAAP adjustments: | ||||||||||||||
Cost of revenues | ||||||||||||||
Expenses recorded for stock-based compensation | 16 | 12 | 30 | 23 | ||||||||||
Core technology amortization | 30 | - | 58 | - | ||||||||||
46 | 12 | 88 | 23 | |||||||||||
Research and development costs, net | ||||||||||||||
Expenses recorded for stock-based compensation | 81 | 46 | 156 | 96 | ||||||||||
Sales and marketing | ||||||||||||||
Expenses recorded for stock-based compensation | 162 | (10 | ) | 290 | 109 | |||||||||
General and administrative | ||||||||||||||
Expenses recorded for stock-based compensation | 213 | 177 | 421 | 319 | ||||||||||
Expenses related to a law suit | 25 | 68 | 46 | 68 | ||||||||||
238 | 245 | 467 | 387 | |||||||||||
In-process research and development | - | - | 244 | - | ||||||||||
Total adjustments to operating loss | 527 | 293 | 1,245 | 615 | ||||||||||
Financial and other income (expenses), net | ||||||||||||||
Impairment of auction rate securities | 1,285 | - | 3,435 | - | ||||||||||
Total adjustments | 1,812 | 293 | 4,680 | 615 | ||||||||||
Non-GAAP net loss | $ | (1,938 | ) | $ | (299 | ) | $ | (3,883 | ) | $ | (411 | ) | ||
Non- GAAP basic and diluted net loss per share | $ | (0.09 | ) | $ | (0.01 | ) | $ | (0.18 | ) | $ | (0.02 | ) | ||
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ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30, 2008 |
December 31, 2007 | |||||||
---|---|---|---|---|---|---|---|---|
(Unaudited) |
||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 26,946 | $ | 28,101 | ||||
Marketable securities and short term deposits | 3,062 | 7,305 | ||||||
Trade receivables | 6,382 | 6,122 | ||||||
Other receivables and prepaid expenses | 1,820 | 3,799 | ||||||
Inventories | 3,924 | 4,789 | ||||||
Total current assets | 42,134 | 50,116 | ||||||
LONG-TERM ASSETS: | ||||||||
Marketable securities | 32,016 | 35,371 | ||||||
Severance pay fund | 3,794 | 3,302 | ||||||
Other assets | 996 | 1,008 | ||||||
Total long-term assets | 36,806 | 39,681 | ||||||
PROPERTY AND EQUIPMENT, NET | 5,034 | 4,619 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET | 3,761 | 239 | ||||||
Total assets | 87,735 | 94,655 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 2,412 | $ | 3,409 | ||||
Deferred revenues | 4,511 | 3,968 | ||||||
Other payables and accrued expenses | 5,865 | 5,514 | ||||||
Total current liabilities | 12,788 | 12,891 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues | 1,437 | 1,404 | ||||||
Accrued severance pay | 3,793 | 3,175 | ||||||
Total long-term liabilities | 5,230 | 4,579 | ||||||
SHAREHOLDERS' EQUITY | 69,717 | 77,185 | ||||||
Total liabilities and shareholders' equity | 87,735 | 94,655 | ||||||
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