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 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 November 9, 2010, Allot Communications Ltd. issued a press release announcing the quarterly results for the third 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: November 10, 2010
2
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 November 9, 2010.
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3
Exhibit 99.1
Allot Communications Reports Continued Increase in Revenues and
Net Profit for Third Quarter of 2010
--Revenues rise to $14.7 million; EPS increases to $0.05 on a non-GAAP basis--
Key highlights:
- Third quarter revenues reached $14.7 million, a 36% increase over the third quarter of 2009
- Third quarter non-GAAP net income of $1.3 million; non-GAAP EPS grows to $0.05 from $0.03 in the second quarter of 2010
- Cash and cash equivalents totaled $56.2 million
Boston, MA – November 9, 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, continued to rise during the third quarter of 2010.
Total revenues for the third quarter of 2010 reached $14.7 million, a 36% increase from the $10.8 million of revenues reported for the third quarter of 2009, and an 8% increase from the $13.6 million of revenues reported for the second quarter of 2010. On a GAAP basis, net profit for the third quarter of 2010 was $0.8 million, or $0.03 per share (basic and diluted). This compares with a net loss of $2.3 million, or $0.10 per share (basic and diluted), in the third quarter of 2009, and a net loss of $7.4 million, or $0.33 per share (basic and diluted), in the second quarter of 2010, the latter due primarily to the sale of the Company’s entire remaining ARS portfolio during the second quarter of 2010.
On a non-GAAP basis, excluding the impact of share-based compensation and amortization of certain intangibles, non-GAAP net income for the third quarter of 2010 totaled $1.3 million or $0.06 per basic share and $0.05 per diluted share, compared with a non-GAAP net loss of $0.2 million, or $0.01 per share (basic and diluted), for the third quarter of 2009, and non-GAAP income of $0.8 million, or $0.03 per share (basic and diluted), for the second quarter of 2010.
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are provided in the accompanying Tables 3 and 4. 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.
“We are pleased to report continued, steady growth in revenues and profitability during the third quarter," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “The continued dramatic rise in data traffic, particularly in the mobile market, is opening new opportunities for Allot. In addition to classic traffic management functionality, the need for service providers to offer value added services to drive additional revenues has opened up new prospects for Allot’s solutions.”
Recently, the Company achieved the following significant goals:
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·
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Began deployment with a global Tier 1 mobile operator in Latin America, which includes 6 different territories to date;
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·
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Received a new large order from a Tier 1 fixed line operator in APAC;
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·
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Received its first major order from a Tier 1, incumbent fixed line operator in Eastern Europe;
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·
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During the quarter, received orders from 19 large service providers, of which 8 represented new customers and 11 represented expansion deals; and
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·
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Of these deals, 12 were with mobile operators, 10 of which are local operating companies of some of the Company’s global Tier 1 mobile customers.
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As of September 30, 2010, cash, cash equivalents, short term deposits and marketable securities totaled $56.2 million.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its third quarter 2010 earnings results today at 8:30 AM ET, 3:30 PM Israel time.
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 8572404.
A replay of the conference call will be available from 12:01 am ET on November 10, 2010 through December 8, 2010 at 11:59 pm ET. To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 7111 1244, access code: 8572404#.
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.
2
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.
Investor Relations Contact:
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; 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
3
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
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Revenues
|
$ | 14,668 | $ | 10,843 | $ | 40,765 | $ | 30,221 | ||||||||
|
Cost of revenues
|
4,125 | 2,977 | 11,395 | 8,287 | ||||||||||||
|
Gross profit
|
10,543 | 7,866 | 29,370 | 21,934 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development costs, net
|
2,945 | 2,350 | 8,261 | 6,857 | ||||||||||||
|
Sales and marketing
|
5,611 | 5,302 | 16,275 | 14,559 | ||||||||||||
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General and administrative
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1,382 | 1,311 | 4,019 | 4,170 | ||||||||||||
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Total operating expenses
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9,938 | 8,963 | 28,555 | 25,586 | ||||||||||||
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Operating profit (loss)
|
605 | (1,097 | ) | 815 | (3,652 | ) | ||||||||||
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Financial and other income (expenses), net
|
247 | (1,151 | ) | (7,730 | ) | (2,363 | ) | |||||||||
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Profit (loss) before income tax expenses
|
852 | (2,248 | ) | (6,915 | ) | (6,015 | ) | |||||||||
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||||||||||||||||
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Income tax expenses
|
100 | 21 | 196 | 137 | ||||||||||||
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Net profit (loss)
|
752 | (2,269 | ) | (7,111 | ) | (6,152 | ) | |||||||||
|
Basic net profit (loss) per share
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$ | 0.03 | $ | (0.10 | ) | $ | (0.31 | ) | $ | (0.28 | ) | |||||
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Diluted net profit (loss) per share
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$ | 0.03 | $ | (0.10 | ) | $ | (0.31 | ) | $ | (0.28 | ) | |||||
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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
|
22,813,134 | 22,214,563 | 22,656,343 | 22,118,241 | ||||||||||||
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Weighted average number of shares
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||||||||||||||||
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used in computing diluted net
|
||||||||||||||||
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earnings per share
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23,642,725 | 22,214,563 | 22,656,343 | 22,118,241 | ||||||||||||
4
TABLE 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
September 30,
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December 31,
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|||||||
|
2010
|
2009
|
|||||||
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(Unudited)
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(Audited)
|
|||||||
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||||||||
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ASSETS
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||||||||
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 49,928 | $ | 36,470 | ||||
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Marketable securities and restricted cash
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6,303 | 2,324 | ||||||
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Trade receivables, net
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7,538 | 7,842 | ||||||
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Other receivables and prepaid expenses
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2,920 | 3,618 | ||||||
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Inventories
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9,679 | 5,046 | ||||||
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Total current assets
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76,368 | 55,300 | ||||||
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LONG-TERM ASSETS:
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||||||||
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Marketable securities
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- | 14,490 | ||||||
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Severance pay fund
|
295 | 3,410 | ||||||
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Other assets
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292 | 430 | ||||||
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Total long-term assets
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587 | 18,330 | ||||||
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PROPERTY AND EQUIPMENT, NET
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5,448 | 5,674 | ||||||
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GOODWILL AND INTANGIBLE ASSETS, NET
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3,546 | 3,639 | ||||||
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Total assets
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$ | 85,949 | $ | 82,943 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
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CURRENT LIABILITIES:
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||||||||
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Trade payables
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$ | 5,206 | $ | 3,142 | ||||
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Deferred revenues
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7,008 | 5,467 | ||||||
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Other payables and accrued expenses
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9,148 | 8,512 | ||||||
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Total current liabilities
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21,362 | 17,121 | ||||||
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LONG-TERM LIABILITIES:
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||||||||
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Deferred revenues
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3,575 | 2,046 | ||||||
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Accrued severance pay
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176 | 3,364 | ||||||
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Total long-term liabilities
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3,751 | 5,410 | ||||||
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SHAREHOLDERS' EQUITY
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60,836 | 60,412 | ||||||
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Total liabilities and shareholders' equity
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$ | 85,949 | $ | 82,943 | ||||
5
TABLE 3
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
|
Nine Months Ended
|
|||||||||||||||
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September 30,
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September 30,
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|||||||||||||||
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2010
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2009
|
2010
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2009
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|||||||||||||
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(Unaudited)
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(Unaudited)
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|||||||||||||||
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GAAP net profit (loss) as reported
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$ | 752 | $ | (2,269 | ) | $ | (7,111 | ) | $ | (6,152 | ) | |||||
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Non-GAAP adjustments
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||||||||||||||||
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Expenses recorded for stock-based compensation
|
||||||||||||||||
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Cost of revenues
|
21 | 33 | 72 | 86 | ||||||||||||
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Research and development costs, net
|
87 | 87 | 273 | 265 | ||||||||||||
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Sales and marketing
|
213 | 254 | 655 | 560 | ||||||||||||
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General and administrative
|
152 | 231 | 528 | 810 | ||||||||||||
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Core technology amortization- cost of revenues
|
30 | 31 | 90 | 89 | ||||||||||||
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Total adjustments to operating loss
|
503 | 636 | 1,618 | 1,810 | ||||||||||||
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Impairment of auction rate securities
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||||||||||||||||
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Financial and other expenses, net
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- | 1,448 | 7,711 | 3,023 | ||||||||||||
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Total adjustments
|
503 | 2,084 | 9,329 | 4,833 | ||||||||||||
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Non-GAAP net profit (loss)
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$ | 1,255 | $ | (185 | ) | $ | 2,218 | $ | (1,319 | ) | ||||||
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Non- GAAP basic net profit (loss) per share
|
$ | 0.06 | $ | (0.01 | ) | $ | 0.10 | $ | (0.06 | ) | ||||||
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Non- GAAP diluted net profit (loss) per share
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.09 | $ | (0.06 | ) | ||||||
|
Weighted average number of shares
|
||||||||||||||||
|
used in computing basic net
|
||||||||||||||||
|
earnings per share
|
22,813,134 | 22,214,563 | 22,656,343 | 22,118,241 | ||||||||||||
|
Weighted average number of shares
|
||||||||||||||||
|
used in computing diluted net
|
||||||||||||||||
|
earnings per share
|
24,244,210 | 22,214,563 | 23,997,119 | 22,118,241 | ||||||||||||
6
TABLE 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Revenues
|
$ | 14,668 | $ | 10,843 | $ | 40,765 | $ | 30,221 | ||||||||
|
Cost of revenues
|
4,074 | 2,913 | 11,233 | 8,112 | ||||||||||||
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Gross profit
|
10,594 | 7,930 | 29,532 | 22,109 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development costs, net
|
2,858 | 2,263 | 7,988 | 6,592 | ||||||||||||
|
Sales and marketing
|
5,398 | 5,048 | 15,620 | 13,999 | ||||||||||||
|
General and administrative
|
1,230 | 1,080 | 3,491 | 3,360 | ||||||||||||
|
Total operating expenses
|
9,486 | 8,391 | 27,099 | 23,951 | ||||||||||||
|
Operating profit (loss)
|
1,108 | (461 | ) | 2,433 | (1,842 | ) | ||||||||||
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Financial and other income (expenses), net
|
247 | 297 | (19 | ) | 660 | |||||||||||
|
Profit (loss) before income tax expenses
|
1,355 | (164 | ) | 2,414 | (1,182 | ) | ||||||||||
|
|
||||||||||||||||
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Income tax expenses
|
100 | 21 | 196 | 137 | ||||||||||||
|
Net profit (loss)
|
1,255 | (185 | ) | 2,218 | (1,319 | ) | ||||||||||
|
Basic net profit (loss) per share
|
$ | 0.06 | $ | (0.01 | ) | $ | 0.10 | $ | (0.06 | ) | ||||||
|
Diluted net profit (loss) per share
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.09 | $ | (0.06 | ) | ||||||
|
Weighted average number of shares
|
||||||||||||||||
|
used in computing basic net
|
||||||||||||||||
|
earnings per share
|
22,813,134 | 22,214,563 | 22,656,343 | 22,118,241 | ||||||||||||
|
Weighted average number of shares
|
||||||||||||||||
|
used in computing diluted net
|
||||||||||||||||
|
earnings per share
|
24,244,210 | 22,214,563 | 23,997,119 | 22,118,241 | ||||||||||||
7