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
2009
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, 2009, Allot Communications Ltd. issued a press release announcing the quarterly results for the third quarter of 2009.
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 11, 2009
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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 11, 2009. |
3
Exhibit 99.1
Allot
Communications Reports Third Quarter 2009 Revenues of $10.8
Million
–
Orders from recently announced Tier 1 mobile operator customer total $12.6
million to
date –
Key highlights:
– Third quarter revenues totaled $10.8 million, representing an 8% increase over the second quarter of 2009
– Non-GAAP loss continues to decline, with third quarter non-GAAP net loss totaling $0.2 million, or $0.01 per basic and diluted share, from $0.4 million, or $0.02 per basic and diluted share, in the second quarter of 2009, and from $1.6 million, or $0.07 per basic and diluted share, in the third quarter of 2008
– As of September 30, 2009, cash, cash equivalents, deposits and investments in marketable securities totaled $52.8 million
– To date, total orders of $12.6 million received from a global Tier 1 mobile operator under a frame agreement
Hod Hasharon, ISRAEL – November 11, 2009 – Allot Communications Ltd. (NASDAQ: ALLT), a leader in IP service optimization solutions based on deep packet inspection (DPI) technology, today reported continued improvement in its quarterly results with the announcement of its financial results for the third quarter ended September 30, 2009.
Total revenues for the third quarter of 2009 reached $10.8 million, a 10% increase from the $9.8 million of revenues reported in the third quarter of 2008 and an 8% increase from the $10.0 million of revenues reported in the second quarter of 2009. On a GAAP basis, net loss for the third quarter of 2009 was $2.3 million, or $0.10 per share (basic and diluted). This compares with a net loss of $9.0 million, or $0.41 per share (basic and diluted), in the third quarter of 2008, and a net loss of $1.0 million, or $0.05 per share (basic and diluted), in the second quarter of 2009.
On a non-GAAP basis, excluding the impact of share-based compensation, auction-rate securities (ARS) devaluation, certain legal expenses and amortization of acquired core technology, net loss for the third quarter of 2009 totaled $0.2 million, or $0.01 per share (basic and diluted), as compared with a non-GAAP net loss of $1.6 million, or $0.07 per share (basic and diluted), for the third quarter of 2008 and a non-GAAP net loss of $0.4 million, or $0.02 per share (basic and diluted), for the second quarter of 2009. 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.
“Allot’s growth continues to be driven primarily from its leadership position in the mobile market,” commented Allot President and CEO Rami Hadar. “Since we initially announced the frame agreement with a Tier 1 mobile operator customer earlier in the quarter, we received an additional $7.6 million in orders, bringing total orders from this customer to approximately $12.6 million to date. Our ability to provide a solution that enables mobile operators to meet the rapidly increasing demand for data services, coupled with our expertise in implementing complex, large scale projects have been key factors for Allot’s success in this market.
“During the quarter we began receiving orders for the two newest members of our wide range of product offerings. The new Sigma, our next generation service gateway platform, offers higher throughput and full flexibility in introducing revenue generating services to subscribers. The AC-5000 provides an optimal solution for bandwidth maximization and managed services for both large enterprise and small service providers,” concluded Hadar.
Recently, the Company achieved the following significant goals:
| — | Successfully implemented the first phase of the large Tier 1 mobile operator deployment; |
| — | Received approximately $7.6 million in follow-on orders to date for next phase of Tier 1 project; |
| — | Received initial orders for its new Sigma and AC-5000 products; and |
| — | During the quarter, concluded 11 large deals with service providers, of which 2 represented new customers and 9 represented expansion deals. |
As of September 30, 2009, cash, cash equivalents, deposits and investments in marketable securities totaled $52.8 million. Recent external valuations showed a major decrease in value of one ARS in the Company’s portfolio as of the end of the third quarter. Other ARS valuations, showed only a slight increase or decrease in value. As a result, the Company recorded a net impairment charge of $1.4 million in its statement of operations on a GAAP basis, in respect of ARS, the devaluation of which is considered “other than temporary”, and an unrealized net loss of $0.2 million to other comprehensive income in its shareholders’ equity, leaving the Company with a total book value of $13.8 million in ARS at the end of the quarter. To date, all ARS are current on their respective interest payments.
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Conference Call & Webcast
The Allot management team will host a conference call to discuss its third quarter 2009 earnings results today at 8:30 AM EST, 3:30 PM Israel time.
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, 2009 through December 12, 2009 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.
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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 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 dial
+972-54-221-1365
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, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 |
2008 |
2009 |
2008 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| Revenues | $ | 10,843 | $ | 9,819 | $ | 30,221 | $ | 27,539 | ||||||
| Cost of revenues | 2,977 | 2,618 | 8,287 | 7,248 | ||||||||||
| Gross profit | 7,866 | 7,201 | 21,934 | 20,291 | ||||||||||
| Operating expenses: | ||||||||||||||
| Research and development costs, net | 2,350 | 2,889 | 6,857 | 9,109 | ||||||||||
| Sales and marketing | 5,302 | 4,751 | 14,559 | 15,271 | ||||||||||
| General and administrative | 1,311 | 1,702 | 4,170 | 4,811 | ||||||||||
| In - process research and development | - | - | - | 244 | ||||||||||
| Total Operating expenses | 8,963 | 9,342 | 25,586 | 29,435 | ||||||||||
| Operating loss | (1,097 | ) | (2,141 | ) | (3,652 | ) | (9,144 | ) | ||||||
| Financial and other expenses, net | (1,151 | ) | (6,788 | ) | (2,363 | ) | (8,247 | ) | ||||||
| Loss before income tax expenses | (2,248 | ) | (8,929 | ) | (6,015 | ) | (17,391 | ) | ||||||
| Income tax expenses | 21 | 36 | 137 | 137 | ||||||||||
| Net loss | (2,269 | ) | (8,965 | ) | (6,152 | ) | (17,528 | ) | ||||||
| Basic and diluted net loss per share | $ | (0.10 | ) | $ | (0.41 | ) | $ | (0.28 | ) | $ | (0.79 | ) | ||
| Weighted average number of shares | ||||||||||||||
| used in computing basic and diluted net | ||||||||||||||
| loss per share | 22,214,563 | 22,063,367 | 22,118,241 | 22,049,750 | ||||||||||
5
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, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 |
2008 |
2009 |
2008 | |||||||||||
| (Unaudited) |
(Unaudited) |
|||||||||||||
| GAAP net loss as reported | $ | (2,269 | ) | $ | (8,965 | ) | $ | (6,152 | ) | $ | (17,528 | ) | ||
| Non-GAAP adjustments | ||||||||||||||
| Expenses recorded for stock-based compensation | ||||||||||||||
| Cost of revenues | 33 | 11 | 86 | 41 | ||||||||||
| Research and development costs, net | 87 | 84 | 265 | 240 | ||||||||||
| Sales and marketing | 254 | 112 | 560 | 402 | ||||||||||
| General and administrative | 231 | 216 | 810 | 637 | ||||||||||
| In-process research and development | - | - | - | 244 | ||||||||||
| Expenses related to a law suit | - | 151 | - | 197 | ||||||||||
| Core technology amortization- cost of revenues | 31 | 30 | 89 | 88 | ||||||||||
| Total adjustments to operating loss | 636 | 604 | 1,810 | 1,849 | ||||||||||
| Impairment of auction rate securities | ||||||||||||||
| Financial and other expenses, net | 1,448 | 6,771 | 3,023 | 10,206 | ||||||||||
| Total adjustments | 2,084 | 7,375 | 4,833 | 12,055 | ||||||||||
| Non-GAAP net loss | $ | (185 | ) | $ | (1,590 | ) | $ | (1,319 | ) | $ | (5,473 | ) | ||
| Non- GAAP basic and diluted net loss per share | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.25 | ) | ||
6
TABLE
– 3
ALLOT COMMUNICATIONS
LTD.
AND
ITS SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(U.S. dollars in thousands)
| September 30, 2009 |
December 31, 2008 | |||||||
|---|---|---|---|---|---|---|---|---|
| (Unudited) |
(Audited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 36,667 | $ | 40,029 | ||||
| Short term deposits and restricted deposits | 2,320 | 2,121 | ||||||
| Trade receivables | 7,992 | 6,163 | ||||||
| Other receivables and prepaid expenses | 2,619 | 1,959 | ||||||
| Inventories | 5,633 | 4,259 | ||||||
| Total current assets | 55,231 | 54,531 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Marketable securities | 13,764 | 15,319 | ||||||
| Severance pay fund | 3,407 | 3,402 | ||||||
| Other assets | 421 | 874 | ||||||
| Total long-term assets | 17,592 | 19,595 | ||||||
| PROPERTY AND EQUIPMENT, NET | 5,192 | 4,970 | ||||||
| GOODWILL AND INTANGIBLE ASSETS, NET | 3,667 | 3,755 | ||||||
| Total assets | $ | 81,682 | $ | 82,851 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 3,901 | $ | 2,902 | ||||
| Deferred revenues | 5,217 | 4,475 | ||||||
| Other payables and accrued expenses | 6,277 | 6,466 | ||||||
| Total current liabilities | 15,395 | 13,843 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred revenues | 2,046 | 2,293 | ||||||
| Accrued severance pay | 3,410 | 3,536 | ||||||
| Total long-term liabilities | 5,456 | 5,829 | ||||||
| SHAREHOLDERS' EQUITY | 60,831 | 63,179 | ||||||
| Total liabilities and shareholders' equity | $ | 81,682 | $ | 82,851 | ||||
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