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 May 2010
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 May 11, 2010, Allot Communications Ltd. issued a press release announcing the quarterly results for the first quarter of 2010.
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.
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Allot Communications Ltd.
By: /s/ Nachum Falek
Nachum Falek
Chief Financial Officer
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Date: May 11, 2010
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EXHIBIT INDEX
The following exhibit has been filed as part of this Form 6-K:
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Exhibit
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Description
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99.1.
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Press Release Announcing Financial Results Dated May 11, 2010.
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Exhibit 99.1
Allot Communications Reports 33% Increase in Revenues to $12.5
Million for the First Quarter of 2010
--Company Achieves $0.01 EPS on a non-GAAP Basis--
Key highlights:
- First quarter revenues reached $12.5 million, a 33% increase over the first quarter of 2009
- First quarter non-GAAP net income of $177,000, as Company achieved profitability
- Cash, cash equivalents, deposits and investments in marketable securities increased to $55.9 million
- Allot receives additional $8 million in orders from a global Tier 1 mobile operator during the quarter
Hod Hasharon, ISRAEL – May 11, 2010 – Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband service providers worldwide, today announced that it has moved to profitability on a non-GAAP basis for the first quarter of 2010, as it reported its financial results for the first quarter ended March 31, 2010.
Total revenues for the first quarter of 2010 reached $12.5 million, a 33% increase from the $9.4 million of revenues reported in the first quarter of 2009, and an 8% increase from the $11.5 million revenues reported for the fourth quarter of 2009. On a GAAP basis, net loss for the first quarter of 2010 was $446,000, or $0.02 per share (basic and diluted). This compares with net loss of $2.9 million, or $0.13 per share (basic and diluted), in the first quarter of 2009, and a net loss of $1.5 million, or $0.07 per share (basic and diluted), in the fourth quarter of 2009.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization and ARS devaluation and recoveries, non-GAAP net income for the first quarter of 2010 totaled $177,000 or $0.01 per share (basic and diluted), compared with a non-GAAP net loss of $776,000, or $0.04 per share (basic and diluted), for the first quarter of 2009 and non-GAAP income of $19,000, or $0.00 per share (basic and diluted), for the fourth 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 results 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 ma
nagement 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.
“As we anticipated, revenues continued to grow in the quarter, and we are pleased to report reaching profitability, while also improving our cash position," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “During the quarter we received an additional $8 million in orders from the global Tier 1 mobile operator we have been reporting on for the past year, bringing total orders from this customer to $25 million, representing Allot’s largest deployment to date. With our strong solution offering, we continue to maintain our leadership in the growing mobile market.”
Recently, the Company achieved the following significant goals:
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·
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During the quarter, concluded 14 large deals with service providers, of which 8 represented new customers and 6 represented expansion deals;
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Of these deals, 8 were with mobile operators;
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·
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Concluded its first deployment of its new Cellwise solution, which provides a centralized policy and traffic control solution to solve cell congestion in mobile data networks.
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As of March 31, 2010, cash, cash equivalents, deposits and investments in marketable securities totaled $55.9 million. Recent external valuations showed a decrease in value of certain ARS in the Company's portfolio as of the end of the first quarter. As a result, the Company recorded an unrealized net loss of $0.4 million to other comprehensive income in its shareholders' equity, leaving the Company with a total of $14.1 million in ARS at the end of the quarter.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its first quarter 2010 earnings results on Tuesday, May 11, 2010, 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: +1 212 444 0412, International: +44 (0)20 7806 1953, Israel: +972 3721 9509.
A replay of the conference call will be available from 12:01 am EDT on May 12, 2010 through June 12, 2010 at 11:59 pm EDT. To access the replay, please dial: +44 (0)20 7111 1244, access code: 4042379#.
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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About Allot Communications
Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent IP service optimization solutions for fixed and mobile broadband operators and large enterprises. Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) 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, topology awareness, security, application control and subscriber management that are vital to managing Internet service delivery, enhancing user experience, containing operating costs, and maximizing revenue in broadband networks. For more information, please visit http://www.allot.com.<
/div>
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 Com
pany’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 +972-54-221-1365
jkalish@allot.com
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TABLE - 1
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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||||||||
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March 31,
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||||||||
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2010
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2009
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(Unaudited)
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||||||||
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Revenues
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$ | 12,471 | $ | 9,369 | ||||
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Cost of revenues
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3,355 | 2,526 | ||||||
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Gross profit
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9,116 | 6,843 | ||||||
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Operating expenses:
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||||||||
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Research and development costs, net
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2,588 | 2,407 | ||||||
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Sales and marketing
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5,251 | 4,404 | ||||||
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General and administrative
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1,332 | 1,393 | ||||||
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Total Operating expenses
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9,171 | 8,204 | ||||||
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Operating Loss
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(55 | ) | (1,361 | ) | ||||
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Financial and other expenses, net
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(422 | ) | (1,524 | ) | ||||
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Loss before income tax expenses
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(477 | ) | (2,885 | ) | ||||
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Income tax expenses (benefit)
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(31 | ) | 4 | |||||
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Net Loss
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(446 | ) | (2,889 | ) | ||||
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Basic and diluted net (loss) per share
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$ | (0.02 | ) | $ | (0.13 | ) | ||
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Weighted average number of shares
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||||||||
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used in computing basic and diluted net
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earnings per share
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22,434,843 | 22,067,951 | ||||||
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TABLE - 2
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except per share data)
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Three Months Ended
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March 31,
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2010
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2009
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(Unaudited)
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GAAP net loss as reported
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$ | (446 | ) | $ | (2,889 | ) | |||
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Non-GAAP adjustments
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Expenses recorded for stock-based compensation
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Cost of revenues
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29 | 25 | ||||||
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Research and development costs, net
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93 | 89 | ||||||
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Sales and marketing
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230 | 109 | ||||||
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General and administrative
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233 | 287 | ||||||
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Core technology amortization- cost of revenues
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30 | 28 | |||||||
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Total adjustments to operating loss
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615 | 538 | |||||||
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Impairment of auction rate securities
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Financial and other expenses, net
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8 | 1,575 | ||||||
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Total adjustments
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623 | 2,113 | |||||||
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Non-GAAP net earnings (Loss)
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$ | 177 | $ | (776 | ) | ||||
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Non- GAAP basic net (Loss) per share
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$ | 0.01 | $ | (0.04 | ) | ||||
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Non- GAAP diluted net (Loss) per share
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$ | 0.01 | $ | (0.04 | ) | ||||
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Weighted average number of shares
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used in computing basic net
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earnings per share
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22,434,843 | 22,067,951 | |||||||
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Weighted average number of shares
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used in computing diluted net
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earnings per share
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22,968,415 | 22,067,951 | |||||||
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TABLE - 3
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(U.S. dollars in thousands)
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March 31,
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December 31,
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|||||||
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2010
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2009
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(Unudited)
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(Audited)
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 36,349 | $ | 36,470 | ||||
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Short term deposits and restricted deposit and cash
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5,386 | 2,324 | ||||||
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Trade receivables, net
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5,372 | 7,842 | ||||||
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Other receivables and prepaid expenses
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4,282 | 3,618 | ||||||
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Inventories
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6,111 | 5,046 | ||||||
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Total current assets
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57,500 | 55,300 | ||||||
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LONG-TERM ASSETS:
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Marketable securities
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14,116 | 14,490 | ||||||
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Severance pay fund
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316 | 3,410 | ||||||
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Other assets
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430 | 430 | ||||||
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Total long-term assets
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14,862 | 18,330 | ||||||
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PROPERTY AND EQUIPMENT, NET
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5,834 | 5,674 | ||||||
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GOODWILL AND INTANGIBLE ASSETS, NET
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3,607 | 3,639 | ||||||
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Total assets
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$ | 81,803 | $ | 82,943 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Trade payables
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$ | 2,000 | $ | 3,142 | ||||
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Deferred revenues
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8,875 | 5,467 | ||||||
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Other payables and accrued expenses
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6,756 | 8,512 | ||||||
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Total current liabilities
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17,631 | 17,121 | ||||||
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LONG-TERM LIABILITIES:
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Deferred revenues
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3,667 | 2,046 | ||||||
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Accrued severance pay
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162 | 3,364 | ||||||
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Total long-term liabilities
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3,829 | 5,410 | ||||||
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SHAREHOLDERS' EQUITY
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60,343 | 60,412 | ||||||
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Total liabilities and shareholders' equity
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$ | 81,803 | $ | 82,943 | ||||
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