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 2011
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 3, 2011, Allot Communications Ltd. issued a press release announcing the quarterly results for the first quarter of 2011.
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.
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By:
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/s/ Nachum Falek | |
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Nachum Falek
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Chief Financial Officer
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Date: May 4, 2011
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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 3, 2011.
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3
Exhibit 99.1
Allot Communications Reports Continued Rise in Revenues and Net
Profit for First Quarter of 2011
--Revenues reach $17.2 million; EPS hits $0.08 on a non-GAAP basis ($0.06 on
a GAAP basis)--
Key highlights:
- First quarter revenues reached $17.2 million, a 38% increase over the first quarter of 2010
- First quarter non-GAAP net income of $2.2 million; non-GAAP EPS grows to $0.08 from $0.07 in the fourth quarter of 2010
- Cash, cash equivalents, marketable securities and restricted cash totaled approximately $61.0 million; generated approximately $1.0 million in cash from operations during the quarter
- Added four new Tier 1 wireless service providers during the first quarter
Boston, MA – May 3, 2011 – 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 and profitability continued to rise during the first quarter of 2011.
Total revenues for the first quarter of 2011 reached $17.2 million, a 38% increase from the $12.5 million of revenues reported for the first quarter of 2010, and a 6% increase from the $16.2 million of revenues reported for the fourth quarter of 2010. On a GAAP basis, net profit for the first quarter of 2011 was $1.6 million, or $0.07 per basic share and $0.06 per diluted share. This compares with a net loss of $0.4 million, or $0.02 per share (basic and diluted), in the first quarter of 2010, and net income of $1.3 million, or $0.06 per basic share and $0.05 per diluted share, in the fourth 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 first quarter of 2011 totaled $2.2 million, or $0.09 per basic share and $0.08 per diluted share, compared with non-GAAP net income of $0.2 million, or $0.01 per share (basic and diluted), for the first quarter of 2010, and non-GAAP net income of $1.8 million, or $0.08 per basic share and $0.07 per diluted share, for the fourth 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 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 to secure its leadership position in the fast-growing mobile sector which continues to be a major driver of our continued top and bottom line growth," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “Our industry-leading Service Gateway platform now delivers up to 160 Gbps performance, and is designed to meet the continued growth of fixed and mobile data. In addition, customers are incorporating an increasing number of services, particularly in security and video, onto the Service Gateway in order to drive revenues over their networks as well as to optimize their networks’ performance.”
Recently, the Company achieved the following significant goals:
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Added four new mobile operators, located in EMEA and APAC, to its growing customer list;
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During the quarter, received orders from 16 large service providers, of which 8 represented new customers and 8 represented expansion deals;
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As of March 31, 2011, cash, cash equivalents, marketable securities and restricted cash totaled approximately $61.0 million.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its first quarter 2011 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: +1 718 354 1152, UK: +44 (0)20 7784 1036, Israel: +972 3 721 9510, participant code 4645113.
A replay of the conference call will be available from 12:01 am ET on May 4, 2011 through June 1, 2011 at 11:59 pm ET. To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 7111 1244, access code: 4645113#.
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 and revenue generation solutions for fixed and mobile service providers. 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. 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. For more information, please visit http://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; 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
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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March 31,
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2011
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2010
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(Unaudited)
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Revenues
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$ | 17,183 | $ | 12,471 | ||||
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Cost of revenues
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4,852 | 3,355 | ||||||
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Gross profit
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12,331 | 9,116 | ||||||
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Operating expenses:
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Research and development costs, net
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2,971 | 2,588 | ||||||
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Sales and marketing
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6,314 | 5,251 | ||||||
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General and administrative
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1,427 | 1,332 | ||||||
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Total operating expenses
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10,712 | 9,171 | ||||||
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Operating profit (loss)
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1,619 | (55 | ) | |||||
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Financial and other income (expenses), net
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92 | (422 | ) | |||||
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Profit (loss) before income tax expenses
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1,711 | (477 | ) | |||||
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Tax expenses (income)
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85 | (31 | ) | |||||
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Net profit (loss)
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$ | 1,626 | $ | (446 | ) | |||
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Basic net profit (loss) per share
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$ | 0.07 | $ | (0.02 | ) | |||
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Diluted net profit (loss) per share
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$ | 0.06 | $ | (0.02 | ) | |||
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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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23,980,623 | 22,434,843 | ||||||
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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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25,898,321 | 22,434,843 | ||||||
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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)
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Three Months Ended
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March 31,
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2011
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2010
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(Unaudited)
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GAAP net profit (loss) as reported
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$ | 1,626 | $ | (446 | ) | |||
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Non-GAAP adjustments
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Expenses recorded for stock-based compensation
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| Cost of revenues | 23 | 29 | ||||||
| Research and development costs, net | 92 | 93 | ||||||
| Sales and marketing | 221 | 230 | ||||||
| General and administrative | 181 | 233 | ||||||
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Core technology amortization- cost of revenues
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30 | 30 | ||||||
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Total adjustments to operating profit (loss)
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547 | 615 | ||||||
| Financial and other expenses, net | - | 8 | ||||||
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Total adjustments
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547 | 623 | ||||||
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Non-GAAP net profit
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$ | 2,173 | $ | 177 | ||||
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Non- GAAP basic net profit per share
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$ | 0.09 | $ | 0.01 | ||||
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Non- GAAP diluted net profit per share
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$ | 0.08 | $ | 0.01 | ||||
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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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23,980,623 | 22,434,843 | ||||||
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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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26,035,245 | 22,968,415 | ||||||
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TABLE - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS on a NON-GAAP BASIS
(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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March 31,
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2011
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2010
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(Unaudited)
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Revenues
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$ | 17,183 | $ | 12,471 | ||||
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Cost of revenues
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4,799 | 3,296 | ||||||
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Gross profit
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12,384 | 9,175 | ||||||
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Operating expenses:
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Research and development costs, net
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2,879 | 2,495 | ||||||
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Sales and marketing
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6,093 | 5,021 | ||||||
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General and administrative
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1,246 | 1,099 | ||||||
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Total operating expenses
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10,218 | 8,615 | ||||||
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Operating profit
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2,166 | 560 | ||||||
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Financial and other income (expenses), net
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92 | (414 | ) | |||||
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Profit before income tax expenses
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2,258 | 146 | ||||||
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Tax expenses (income)
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85 | (31 | ) | |||||
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Net profit
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$ | 2,173 | $ | 177 | ||||
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Basic net profit per share
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$ | 0.09 | $ | 0.01 | ||||
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Diluted net profit per share
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$ | 0.08 | $ | 0.01 | ||||
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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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23,980,623 | 22,434,843 | ||||||
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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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26,035,245 | 22,968,415 | ||||||
6
TABLE - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
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March 31,
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December 31,
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2011
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2010
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(Unaudited)
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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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$ | 43,857 | $ | 42,858 | ||||
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Marketable securities and restricted cash
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17,096 | 16,591 | ||||||
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Trade receivables, net
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13,506 | 10,739 | ||||||
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Other receivables and prepaid expenses
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5,691 | 4,958 | ||||||
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Inventories
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11,644 | 10,830 | ||||||
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Total current assets
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91,794 | 85,976 | ||||||
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LONG-TERM ASSETS:
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Severance pay fund
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178 | 162 | ||||||
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Other assets
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343 | 340 | ||||||
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Total long-term assets
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521 | 502 | ||||||
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PROPERTY AND EQUIPMENT, NET
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5,218 | 5,193 | ||||||
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GOODWILL AND INTANGIBLE ASSETS, NET
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3,486 | 3,516 | ||||||
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Total assets
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$ | 101,019 | $ | 95,187 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Trade payables
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$ | 5,169 | $ | 5,140 | ||||
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Deferred revenues
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11,765 | 10,828 | ||||||
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Other payables and accrued expenses
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10,872 | 10,167 | ||||||
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Total current liabilities
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27,806 | 26,135 | ||||||
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LONG-TERM LIABILITIES:
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Deferred revenues
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4,396 | 3,873 | ||||||
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Accrued severance pay
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210 | 191 | ||||||
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Total long-term liabilities
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4,606 | 4,064 | ||||||
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SHAREHOLDERS' EQUITY
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68,607 | 64,988 | ||||||
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Total liabilities and shareholders' equity
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$ | 101,019 | $ | 95,187 | ||||
7
TABLE - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
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Three Months Ended
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March 31,
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2011
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(Unaudited)
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Cash flows from operating activities:
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Net profit
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$ | 1,626 | ||
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Adjustments to reconcile net profit to net cash provided by operating activities:
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Depreciation
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661 | |||
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Stock-based compensation related to options granted to employees and non-employees
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517 | |||
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Amortization of intangible assets
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30 | |||
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Capital gain
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(4 | ) | ||
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Increase in accrued severance pay, net
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3 | |||
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Increase in other assets
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(3 | ) | ||
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Decrease in accrued interest and amortization of premium on marketable securities
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(1 | ) | ||
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Increase in trade receivables
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(2,768 | ) | ||
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Increase in other receivables and prepaid expenses
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(94 | ) | ||
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Increase in inventories
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(814 | ) | ||
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Increase in trade payables
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27 | |||
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Decrease in employees and payroll accruals
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(592 | ) | ||
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Increase in deferred revenues
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1,459 | |||
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Increase in other payables and accrued expenses
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918 | |||
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Net cash provided by operating activities
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965 | |||
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Cash flows from investing activities:
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Increase in restricted deposit
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(486 | ) | ||
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Purchase of property and equipment
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(710 | ) | ||
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Proceeds from sale of property and equipment
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30 | |||
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Investment in marketable securities
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(853 | ) | ||
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Proceeds from redemption or sale of marketable securities
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800 | |||
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Net cash used in investing activities
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(1,219 | ) | ||
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Cash flows from financing activities:
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Proceeds from exercise of options
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1,253 | |||
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Net cash provided by financing activities
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1,253 | |||
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Increase in cash and cash equivalents
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999 | |||
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Cash and cash equivalents at the beginning of the year
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42,858 | |||
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Cash and cash equivalents at the end of the year
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$ | 43,857 | ||
8