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 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 November 11, 2008, Allot Communications Ltd. issued a press release announcing the quarterly results for the third 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.
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 13, 2008
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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 13, 2008. |
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Exhibit 99.1
Allot Communications Revenues Reach a Record $9.8m in the Third
Quarter 2008
Key highlights:
– Third quarter revenues increased to a record $9.8 million, representing a 3% increase over second quarter 2008
– Third quarter non-GAAP operating loss narrowed to $1.5 million, a decrease of 44% from $2.7 million operating loss for the second quarter 2008
– Third quarter non-GAAP net loss declined to $1.6 million, or ($0.07) per share, from $1.9 million, or ($0.09) per share, in the second quarter 2008
– ARS devaluation added $6.8 million to GAAP loss, partially offset by a $5.3 million gain from securities monetized at par value during the fourth quarter
– Addition of new Tier 1 mobile operator, the third added during 2008
Hod Hasharon, ISRAEL – November 11, 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 third quarter ended September 30, 2008.
Revenues for the third quarter of 2008 reached a record $9.8 million, representing a 40% increase over the $7.0 million in revenues reported for the third quarter of 2007, and a 3% increase over the second quarter of 2008. On a GAAP basis, net loss for the third quarter of 2008 was $9.0 million, or $0.41 per share (basic and diluted), as compared with a net loss of $3.7 million, or $0.17 per share (basic and diluted), for the second quarter of 2008 and a net loss of $2.2 million, or $0.10 per share (basic and diluted), for the third quarter of 2007. The Company’s net loss on a GAAP basis was primarily affected by a further impairment charge for auction rate securities (ARS) in its portfolio, as described below.
On a non-GAAP basis, excluding the impact of share-based compensation, ARS devaluation, related litigation expenses and amortization of acquired core technology, non-GAAP net loss for the third quarter of 2008 totaled $1.6 million, or $0.07 per share (basic and diluted), as compared with $1.9 million, or $0.09 per share (basic and diluted), for the second quarter of 2008 and compared with a non-GAAP net loss of $1.7 million, or $0.08 per share (basic and diluted), 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 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.
“Our improved execution during the third quarter resulted in record revenues for Allot,” commented Rami Hadar, Allot Communications’ President and Chief Executive Officer. “We continued to succeed in penetrating major wireless operators, which we see as a significant growth driver going forward. As mobile data traffic continues to increase, our customers are seeking ways to optimize and monetize their costly infrastructure, and Allot’s solutions are ideally designed to enable them to meet these goals.”
Recently, the Company achieved the following significant goals:
| — | Addition of new Tier 1 mobile operator, the third added during 2008; |
| — | Concluded 11 large deals with service providers, of which 5 represented new customers and 6 represented expansion deals; and |
| — | Made first commercial deployments which included video caching as a value-added service. |
As of September 30, 2008, cash, cash equivalents, deposits and investments in marketable securities totaled $54.4 million. During the third quarter, the Company increased its cash and cash equivalents by $5.0 million as a result of a monetization of certain ARS at par value. In addition, due to a buy back settlement with one of its brokers, the Company monetized an additional $6.6 million of its ARS portfolio at par value during the fourth quarter. Recent external valuations showed a further devaluation of ARS in the Company’s portfolio as of the end of the third quarter. As a result, the Company recorded an additional impairment charge of $6.8 million in its statement of operations on a GAAP basis, in respect of ARS, the devaluation of which is considered “other than temporary”, leaving the Company with a total of $19.4 million in ARS at the end of the quarter. Impairment charges will be partially offset by a $5.3 million gain to be recognized during the fourth quarter as a result of the further ARS monetization in the fourth quarter.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its third quarter 2008 results on Tuesday, November 11, 2008, at 8:30 AM EST, 3:30 PM Israel time. The quarterly results will be published prior to the conference call.
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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 November 12, 2008 through December 11, 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. 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 Company’s plans, objectives and expectations for future
operations. These forward-looking statements are based upon management’s current
estimates and projections of future results or trends. Actual results may differ
materially from those projected as a result of certain risks and uncertainties. These
factors include, but are not limited to: changes in general economic and business
conditions and, specifically, a decline in demand for the Company’s products; the
Company’s inability to develop and introduce new technologies, products and
applications; loss of market; 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. 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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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, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| Revenues | $ | 9,819 | $ | 6,952 | $ | 27,539 | $ | 23,829 | ||||||
| Cost of revenues | 2,618 | 1,813 | 7,248 | 5,823 | ||||||||||
| Gross profit | 7,201 | 5,139 | 20,291 | 18,006 | ||||||||||
| Operating expenses: | ||||||||||||||
| Research and development, net | 2,889 | 2,275 | 9,109 | 6,893 | ||||||||||
| Sales and marketing | 4,751 | 4,311 | 15,271 | 13,071 | ||||||||||
| General and administrative | 1,702 | 1,496 | 4,811 | 3,977 | ||||||||||
| In - process research and development | - | - | 244 | - | ||||||||||
| Total operating expenses | 9,342 | 8,082 | 29,435 | 23,941 | ||||||||||
| Operating loss | (2,141 | ) | (2,943 | ) | (9,144 | ) | (5,935 | ) | ||||||
| Financial and other income (expenses), net | (6,788 | ) | 1,158 | (8,247 | ) | 2,940 | ||||||||
| Loss before income tax expenses | (8,929 | ) | (1,785 | ) | (17,391 | ) | (2,995 | ) | ||||||
| Income tax expenses | 36 | 389 | 137 | 205 | ||||||||||
| Net Loss | $ | (8,965 | ) | $ | (2,174 | ) | $ | (17,528 | ) | $ | (3,200 | ) | ||
| Basic and diluted net loss per share | $ | (0.41 | ) | $ | (0.10 | ) | $ | (0.79 | ) | $ | (0.15 | ) | ||
| Weighted average number of shares | ||||||||||||||
| used in computing basic and diluted net | ||||||||||||||
| loss per share | 22,063,367 | 21,879,844 | 22,049,750 | 21,384,358 | ||||||||||
TABLE – 2
ALLOT
COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILATION
OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS ONS
(U.S. dollars in thousands, except per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| GAAP net loss as reported | $ | (8,965 | ) | $ | (2,174 | ) | $ | (17,528 | ) | $ | (3,200 | ) | ||
| Non-GAAP adjustments: | ||||||||||||||
| Cost of revenues | ||||||||||||||
| Expenses recorded for stock-based compensation | 11 | 12 | 41 | 35 | ||||||||||
| Core technology amortization | 30 | - | 88 | - | ||||||||||
| 41 | 12 | 129 | 35 | |||||||||||
| Research and development costs, net | ||||||||||||||
| Expenses recorded for stock-based compensation | 84 | 65 | 240 | 161 | ||||||||||
| Sales and marketing | ||||||||||||||
| Expenses recorded for stock-based compensation | 112 | 91 | 402 | 200 | ||||||||||
| General and administrative | ||||||||||||||
| Expenses recorded for stock-based compensation | 216 | 205 | 637 | 524 | ||||||||||
| ARS and law suit litigation expenses | 151 | 66 | 197 | 134 | ||||||||||
| 367 | 271 | 834 | 658 | |||||||||||
| In-process research and development | - | - | 244 | - | ||||||||||
| Total adjustments to operating loss | 604 | 439 | 1,849 | 1,054 | ||||||||||
| Financial and other income (expenses), net | ||||||||||||||
| Impairment of auction rate securities | 6,771 | - | 10,206 | - | ||||||||||
| Total adjustments | 7,375 | 439 | 12,055 | 1,054 | ||||||||||
| Non-GAAP net loss | $ | (1,590 | ) | $ | (1,735 | ) | $ | (5,473 | ) | $ | (2,146 | ) | ||
| Non- GAAP basic and diluted net loss per share | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.25 | ) | $ | (0.10 | ) | ||
TABLE – 3
ALLOT
COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(U.S.
dollars in thousands)
| September 30, 2008 |
December 31, 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| (Unaudited) |
||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 31,947 | $ | 28,101 | ||||
| Marketable securities and short term deposits | 4,267 | 7,305 | ||||||
| Trade receivables | 6,427 | 6,122 | ||||||
| Other receivables and prepaid expenses | 1,708 | 3,799 | ||||||
| Inventories | 3,991 | 4,789 | ||||||
| Total current assets | 48,340 | 50,116 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Marketable securities | 18,159 | 35,371 | ||||||
| Severance pay fund | 3,891 | 3,302 | ||||||
| Other assets | 911 | 1,008 | ||||||
| Total long-term assets | 22,961 | 39,681 | ||||||
| PROPERTY AND EQUIPMENT, NET | 4,851 | 4,619 | ||||||
| GOODWILL AND INTANGIBLE ASSETS, NET | 3,788 | 239 | ||||||
| Total assets | 79,940 | 94,655 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 2,964 | $ | 3,409 | ||||
| Deferred revenues | 4,185 | 3,968 | ||||||
| Other payables and accrued expenses | 6,244 | 5,514 | ||||||
| Total current liabilities | 13,393 | 12,891 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred revenues | 1,617 | 1,404 | ||||||
| Accrued severance pay | 3,861 | 3,175 | ||||||
| Total long-term liabilities | 5,478 | 4,579 | ||||||
| SHAREHOLDERS' EQUITY | 61,069 | 77,185 | ||||||
| Total liabilities and shareholders' equity | 79,940 | 94,655 | ||||||