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 August 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 August 10, 2010, Allot Communications Ltd. issued a press release announcing the quarterly results for the second 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.
| Allot Communications Ltd. | |||
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By:
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/s/ Nachum Falek | |
| Nachum Falek | |||
| Chief Financial Officer | |||
Date: August 11, 2010
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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 August 10, 2010.
3
Exhibit 99.1
Allot Communications Reports 36% Increase in Revenues to $13.6
Million for the Second Quarter of 2010
--EPS increases to $0.03 on non-GAAP basis--
Key highlights:
- Second quarter revenues reached $13.6 million, a 36% increase over the second quarter of 2009
- Second quarter non-GAAP net income of $786,000; non-GAAP EPS grows to $0.03 from $0.01 in the first quarter 2010
- Cash and cash equivalents totaled $55.4 million; entire ARS portfolio sold during the quarter for $12.25 million
- Allot receives $4.5 million order from a global Tier 1 fixed line operator during the quarter
Hod Hasharon, ISRAEL – August 10, 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 sales, as well as profitability on a non-GAAP basis, continued to increase for the second quarter of 2010.
Total revenues for the second quarter of 2010 reached $13.6 million, a 36% increase from the $10 million of revenues reported for the second quarter of 2009, and a 9% increase from the $12.5 million of revenues reported for the first quarter of 2010. On a GAAP basis, net loss for the second quarter of 2010 was $7.4 million, or $0.33 per share (basic and diluted), primarily as a result of the sale of the Company’s ARS portfolio as described below. This compares with a net loss of $1.0 million, or $0.05 per share (basic and diluted), in the second quarter of 2009, and a net loss of $446 thousand, or $0.02 per share (basic and diluted), in the first quarter of 2010.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and the loss derived from sale of its ARS portfolio during the quarter, non-GAAP net income for the second quarter of 2010 totaled $786,000 or $0.03 per share (basic and diluted), compared with a non-GAAP net loss of $359,000, or $0.02 loss per share (basic and diluted), for the second quarter of 2009 and non-GAAP income of $177,000, or $0.01 per share (basic and diluted), for the first quarter of 2010. 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 Tables 2 and 3. 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 continues its strong revenue growth while increasing non-GAAP profitability," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “We are seeing continued demand for our Service Gateway platform, which offers service providers the ability to save on operating expenses while enabling them to offer advanced, revenue-generating services to subscribers. We believe that our growing funnel of opportunities, coupled with our increasing success with Tier 1 service providers, primarily in the mobile market, positions Allot for continued growth going forward.”
Recently, the Company achieved the following significant goals:
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Announced a $4.5 million order from a Tier 1 fixed line operator;
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During the quarter, concluded 9 large deals with service providers, of which 4 represented new customers and 5 represented expansion deals; and
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●
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Of these deals, 4 were with mobile operators.
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As of June 30, 2010, cash and cash equivalents totaled $55.4 million. During the quarter, the Company sold off its entire ARS portfolio for total price of $12.25 million, which payment was received and recorded during the quarter. As a result, the Company recorded a net loss of $7.7 million, of which $1.9 million represented the difference between valuation of the portfolio on March 31, 2010 and the actual sale price, and a net amount of $5.8 million that was recorded in the shareholders’ equity section as an unrealized loss and was reclassified to the statement of operations. The $5.8 million represents substantial component of other cumulative loss of previously recognized impairments that were reclassified in 2009 to the shareholders’ equity following the adoption in April 2009 of the new FASB’s updated guidance
for investment in marketable securities.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its second quarter 2010 earnings results on Tuesday, August 10, 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, UK: +44 (0)20 7806 1951, Israel: +972 3721 9509, participant code 1845729.
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A replay of the conference call will be available from 12:01 am EDT on August 11, 2010 through September 12, 2010 at 11:59 pm EDT. To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 7111 1244, access code: 1845729.
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 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: Allot’s ability to sustain growth going forward based on the Company’s anticipated funnel of opportunities, coupled with
its increasing success with Tier 1 service providers, primarily in the mobile market, and changes in general economic and business conditions; 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 +972-54-221-1365
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
June 30,
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Six Months Ended
June 30,
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|||||||||||||||
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2010
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2009
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2010
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2009
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|||||||||||||
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 13,626 | $ | 10,009 | $ | 26,097 | $ | 19,378 | ||||||||
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Cost of revenues
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3,915 | 2,784 | 7,270 | 5,310 | ||||||||||||
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Gross profit
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9,711 | 7,225 | 18,827 | 14,068 | ||||||||||||
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Operating expenses:
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Research and development costs, net
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2,728 | 2,100 | 5,316 | 4,507 | ||||||||||||
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Sales and marketing
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5,413 | 4,853 | 10,664 | 9,257 | ||||||||||||
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General and administrative
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1,305 | 1,466 | 2,637 | 2,859 | ||||||||||||
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Total Operating expenses
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9,446 | 8,419 | 18,617 | 16,623 | ||||||||||||
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Operating Income (Loss)
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265 | (1,194 | ) | 210 | (2,555 | ) | ||||||||||
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Financial and other income (expenses), net
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(7,555 | ) | 312 | (7,977 | ) | (1,212 | ) | |||||||||
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Loss before income tax expenses
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(7,290 | ) | (882 | ) | (7,767 | ) | (3,767 | ) | ||||||||
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Income tax expenses
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127 | 112 | 96 | 116 | ||||||||||||
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Net Loss
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(7,417 | ) | (994 | ) | (7,863 | ) | (3,883 | ) | ||||||||
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Basic and diluted net loss per share
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$ | (0.33 | ) | $ | (0.05 | ) | $ | (0.35 | ) | $ | (0.18 | ) | ||||
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Weighted average number of shares
used in computing basic and diluted net
loss per share |
22,711,470 | 22,070,416 | 22,572,070 | 22,069,909 | ||||||||||||
4
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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
June 30,
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Six Months Ended
June 30,
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2010
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2009
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2010
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2009
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(Unaudited)
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(Unaudited)
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GAAP net loss as reported
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$ | (7,417 | ) | $ | (994 | ) | $ | (7,863 | ) | $ | (3,883 | ) | ||||
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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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22 | 28 | 51 | 53 | ||||||||||||
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Research and development costs, net
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93 | 89 | 186 | 178 | ||||||||||||
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Sales and marketing
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212 | 197 | 442 | 306 | ||||||||||||
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General and administrative
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143 | 292 | 376 | 579 | ||||||||||||
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Core technology amortization- cost of revenues
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30 | 30 | 60 | 58 | ||||||||||||
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Total adjustments to operating income (loss)
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500 | 635 | 1,115 | 1,174 | ||||||||||||
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Impairment of auction rate securities
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Financial and other expenses, net
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7,703 | - | 7,711 | 1,575 | ||||||||||||
| Total adjustments | 8,203 | 635 | 8,826 | 2,749 | ||||||||||||
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Non-GAAP net earnings (Loss)
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$ | 786 | $ | (359 | ) | $ | 963 | $ | (1,134 | ) | ||||||
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Non- GAAP basic net (Loss) per share
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$ | 0.03 | $ | (0.02 | ) | $ | 0.04 | $ | (0.05 | ) | ||||||
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Non- GAAP diluted net (Loss) per share
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$ | 0.03 | $ | (0.02 | ) | $ | 0.04 | $ | (0.05 | ) | ||||||
| Weighted average number of shares
used in computing basic net
earnings per share |
22,711,470 | 22,070,416 | 22,572,070 | 22,069,909 | ||||||||||||
| Weighted average number of shares
used in computing diluted net
earnings per share |
24,266,272 | 22,070,416 | 23,960,442 | 22,069,909 | ||||||||||||
5
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TABLE - 3
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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NON-GAAP 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
June 30,
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Six Months Ended
June 30,
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| 2010 | 2009 | 2010 | 2009 | |||||||||||||
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 13,626 | $ | 10,009 | $ | 26,097 | $ | 19,378 | ||||||||
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Cost of revenues
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3,863 | 2,726 | 7,159 | 5,199 | ||||||||||||
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Gross profit
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9,763 | 7,283 | 18,938 | 14,179 | ||||||||||||
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Operating expenses:
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Research and development costs, net
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2,635 | 2,011 | 5,130 | 4,329 | ||||||||||||
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Sales and marketing
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5,201 | 4,657 | 10,222 | 8,951 | ||||||||||||
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General and administrative
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1,162 | 1,174 | 2,261 | 2,280 | ||||||||||||
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Total Operating expenses
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8,998 | 7,842 | 17,613 | 15,560 | ||||||||||||
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Operating Income (Loss)
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765 | (559 | ) | 1,325 | (1,381 | ) | ||||||||||
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Financial and other income (expenses), net
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148 | 312 | (266 | ) | 363 | |||||||||||
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Loss (income) before income tax expenses
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913 | (247 | ) | 1,059 | (1,018 | ) | ||||||||||
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Income tax expenses
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127 | 112 | 96 | 116 | ||||||||||||
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Net Income (Loss)
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786 | (359 | ) | 963 | (1,134 | ) | ||||||||||
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Basic and diluted net loss per share
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$ | 0.03 | $ | (0.02 | ) | $ | 0.04 | $ | (0.05 | ) | ||||||
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Weighted average number of shares
used in computing basic net |
22,711,470 | 22,070,416 | 22,572,070 | 22,069,909 | ||||||||||||
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Weighted average number of shares
used in computing diluted net |
24,266,272 | 22,070,416 | 23,960,442 | 22,069,909 | ||||||||||||
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TABLE - 4
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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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June 30,
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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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$ | 49,391 | $ | 36,470 | ||||
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Short term deposits and restricted cash
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5,968 | 2,324 | ||||||
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Trade receivables, net
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7,096 | 7,842 | ||||||
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Other receivables and prepaid expenses
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2,428 | 3,618 | ||||||
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Inventories
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7,531 | 5,046 | ||||||
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Total current assets
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72,414 | 55,300 | ||||||
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LONG-TERM ASSETS:
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Marketable securities
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- | 14,490 | ||||||
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Severance pay fund
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264 | 3,410 | ||||||
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Other assets
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424 | 430 | ||||||
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Total long-term assets
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688 | 18,330 | ||||||
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PROPERTY AND EQUIPMENT, NET
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5,793 | 5,674 | ||||||
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GOODWILL AND INTANGIBLE ASSETS, NET
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3,577 | 3,639 | ||||||
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Total assets
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$ | 82,472 | $ | 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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$ | 4,654 | $ | 3,142 | ||||
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Deferred revenues
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7,136 | 5,467 | ||||||
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Other payables and accrued expenses
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8,024 | 8,512 | ||||||
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Total current liabilities
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19,814 | 17,121 | ||||||
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LONG-TERM LIABILITIES:
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Deferred revenues
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3,465 | 2,046 | ||||||
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Accrued severance pay
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153 | 3,364 | ||||||
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Total long-term liabilities
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3,618 | 5,410 | ||||||
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SHAREHOLDERS' EQUITY
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59,040 | 60,412 | ||||||
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Total liabilities and shareholders' equity
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$ | 82,472 | $ | 82,943 | ||||
7