zk1210978.htm


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 February 2012
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 February 7, 2012, Allot Communications Ltd. issued a press release announcing the quarterly results for the fourth 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.
 
 
Allot Communications Ltd.
 
       
  By:
/s/ Doron Faibish
 
   
Doron Faibish
 
   
General Counsel
 
 
Date: February 7, 2012

 
2

 
 
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 February 7, 2012.

3


exhibit_99-1.htm


Exhibit 99.1
 
 
Allot Communications Reports 10% Revenue Rise and Continued
Net Profit Growth for Fourth Quarter of 2011

--Revenues reach $22 million; EPS was $0.14 on a non-GAAP basis ($0.12 on a
GAAP basis)--
 
Key highlights:
 
- Fourth quarter revenues reached $22 million, a 36% increase over the fourth quarter of 2010
 
- Fourth quarter non-GAAP net income of $4.2 million; non-GAAP EPS grows to $0.14 from $0.13 in the third quarter of 2011, despite dilution effect due to public offering
 
- Cash, cash equivalents and marketable securities totaled $159.4 million; generated approximately $7.7 million in cash from operations during the quarter; $15 million for the year 2011
 
- Revenues for 2011 increase by 36% to $77.8 million; non-GAAP EPS reaches $0.46
 
Hod Hasharon, Israel – February 7, 2012 – 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 increase during the fourth quarter of 2011, and that the Company’s net profit tripled for the year 2011 on a non-GAAP basis.
 
Total revenues for the fourth quarter of 2011 reached $22 million, a 36% increase from the $16.2 million of revenues reported for the fourth quarter of 2010, and a 10% increase from the $20.1 million of revenues reported for the third quarter of 2011.  On a GAAP basis, net profit for the fourth quarter of 2011 was $3.5 million, or $0.13 per basic share and $0.12 per diluted share. This compares with net profit of $1.3 million, or $0.06 per basic share and $0.05 per diluted share, in the fourth quarter of 2010, and net profit of $2.1 million, or $0.09 per basic share and $0.08 per diluted share, in the third quarter of 2011.  For the full year 2011, revenues reached $77.8 million, representing a 36% increase over the $57 million of revenues in 2010.  On a GAAP basis, net profit for the year 2011 was $8.8 million, or $0.35 per basic share and $0.33 per diluted share, as compared with a net loss of $5.8 million, or $0.25 per share (basic and diluted), in 2010.
 
The weighted average number of diluted shares increased in the fourth quarter of 2011 reflecting the issuance of new shares as part of the Company’s public offering which closed on November 15, 2011.
 
 
 

 
 
 
On a non-GAAP basis, excluding the impact of share-based compensation and amortization of certain intangibles, non-GAAP net profit for the fourth quarter of 2011 totaled $4.2 million, or $0.15 per basic share and $0.14 per diluted share, compared with non-GAAP net profit of $1.8 million, or $0.08 per basic share and $0.07 per diluted share, for the fourth  quarter of 2010, and non-GAAP net profit $3.4 million or $0.14 per basic share and $0.13 per diluted share, for the third quarter of 2011.  For the full year 2011, excluding the impact of share-based compensation and amortization of certain intangibles and one-time expenses related to M&A activities, non-GAAP net profit for the year 2011 reached $12.5 million, or $0.50 per basic share and $0.46 per diluted share, compared with a non-GAAP net profit of $4.1 million, or $0.18 per basic share and $0.17 per diluted share, for the full year 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 continued strong growth in 2011, primarily attributable to its leading position in the mobile market," commented Rami Hadar, Allot Communications' President and Chief Executive Officer.  “With video-based applications becoming an ever-increasing challenge for wireline and mobile data networks, we are seeing an increasing number of opportunities throughout Europe, APAC and the Americas.  Our Service Gateway provides the broadest and most robust feature set and services for Tier 1 operators.  It is a major reason for our being chosen for the largest mobile DPI deployment in the world, which covers both 3G and 4G/LTE topologies.”
 
Recently, the Company achieved the following significant goals:
 
 
·
During the quarter, received orders from 10 large service providers, 5 of which represented new customers;  of these, three new large customers were mobile operators;
 
 
·
Deepened penetration into a second Tier 1 account in Europe;
 
 
·
Announced a $9.5 million order from a Tier 1 wireline account in APAC;
 
 
·
Completed LTE deployments in Europe: and
 
 
·
Raised $85 million in a secondary offering.
 
As of December 31, 2011, cash, cash equivalents, short term deposits and marketable securities totaled $159.4 million, with no debt.
 
 
2

 
 
 
Conference Call & Webcast
 
The Allot management team will host a conference call to discuss its fourth quarter and year end 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: +1 646 254 3364, UK: +44 (0)20 7136 2054, Israel: +972 3 721 9510, participant code 4434985.
 
A replay of the conference call will be available from 12:01 am ET on February 8, 2012 through March 8, 2012 at 11:59 pm ET.  To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 7111 1244, access code: 4434985#.
 
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 data traffic optimization and monetization solutions for fixed and mobile broadband operators and large enterprises. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing fixed and mobile data, enhancing user experience, containing operating costs, and enabling service providers to generate revenues from their 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: our ability to increase the breadth and functionality of the Service Gateway platform through additional partnerships, 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
   
Year Ended
 
   
December 31,
   
December 31,
 
   
2011
   
2010
   
2011
   
2010
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                         
Revenues
  $ 22,028     $ 16,207     $ 77,753     $ 56,972  
Cost of revenues
    6,290       4,590       22,175       15,985  
Gross profit
    15,738       11,617       55,578       40,987  
                                 
Operating expenses:
                               
Research and development costs, net
    3,692       3,003       13,222       11,264  
Sales and marketing
    7,268       5,747       26,543       22,021  
General and administrative
    1,689       1,454       7,474       5,473  
Total operating expenses
    12,649       10,204       47,239       38,758  
Operating profit
    3,089       1,413       8,339       2,229  
Financial and other income (expenses), net
    238       (176 )     415       (7,907 )
Profit (loss) before income tax expenses
    3,327       1,237       8,754       (5,678 )
 
                               
Tax expenses (income)
    (170 )     (112 )     (55 )     84  
Net profit (loss)
    3,497       1,349       8,809       (5,762 )
                                 
Basic net profit (loss) per share
  $ 0.13     $ 0.06     $ 0.35     $ (0.25 )
                                 
Diluted net profit (loss) per share
  $ 0.12     $ 0.05     $ 0.33     $ (0.25 )
                                 
Weighted average number of shares
                               
used in computing basic  net
                               
earnings per share
    27,709,271       23,219,144       25,047,771       22,831,014  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    29,556,655       24,627,967       27,071,872       22,831,014  
 
 
4

 
 
TABLE  - 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)
 
   
Three Months Ended
   
Year Ended
 
   
December 31,
   
December 31,
 
   
2011
   
2010
   
2011
   
2010
 
   
(Unaudited)
   
(Unaudited)
 
                         
 GAAP net profit (loss) as reported
  $ 3,497     $ 1,349     $ 8,809     $ (5,762 )
                                 
Non-GAAP adjustments
                               
Expenses recorded for stock-based compensation
                               
Cost of revenues
    35       23       103       95  
Research and development costs, net
    155       79       442       352  
Sales and marketing
    317       196       1,001       851  
General and administrative
    179       163       710       692  
Expenses related to M&A activities
                               
General and administrative
    -               1,336          
Core technology amortization- cost of revenues
    30       30       121       120  
Total adjustments to operating profit
    716       491       3,713       2,110  
                                 
Financial and other expenses, net
                            7,712  
                                 
Total adjustments
    716       491       3,713       9,822  
                                 
Non-GAAP net profit
  $ 4,213     $ 1,840     $ 12,522     $ 4,060  
                                 
Non- GAAP basic  net profit  per share
  $ 0.15     $ 0.08     $ 0.50     $ 0.18  
                                 
Non- GAAP diluted net profit per share
  $ 0.14     $ 0.07     $ 0.46     $ 0.17  
                                 
Weighted average number of shares
                               
used in computing basic net
                               
earnings per share
    27,709,271       23,219,144       25,047,771       22,831,014  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    29,668,381       25,050,767       27,183,472       24,113,668  
 
 
5

 
 
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)
 
   
Three Months Ended
   
Year Ended
 
   
December 31,
   
Decenber 31,
 
   
2011
   
2010
   
2011
   
2010
 
   
(Unaudited)
   
(Unaudited)
 
                         
Revenues
  $ 22,028     $ 16,207     $ 77,753     $ 56,972  
Cost of revenues
    6,225       4,537       21,951       15,770  
Gross profit
    15,803       11,670       55,802       41,202  
                                 
Operating expenses:
                               
Research and development costs, net
    3,537       2,924       12,780       10,912  
Sales and marketing
    6,951       5,551       25,542       21,170  
General and administrative
    1,510       1,291       5,428       4,781  
Total operating expenses
    11,998       9,766       43,750       36,863  
Operating profit
    3,805       1,904       12,052       4,339  
Financial and other income (expenses), net
    238       (176 )     415       (195 )
Profit before income tax expenses
    4,043       1,728       12,467       4,144  
 
                               
Tax expenses (income)
    (170 )     (112 )     (55 )     84  
Net profit
    4,213       1,840       12,522       4,060  
                                 
Basic net profit per share
  $ 0.15       0.08     $ 0.50     $ 0.18  
                                 
Diluted net profit per share
  $ 0.14     $ 0.07     $ 0.46     $ 0.17  
                                 
Weighted average number of shares
                               
used in computing basic  net
                               
earnings per share
    27,709,271       23,219,144       25,047,771       22,831,014  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    29,668,381       25,050,767       27,183,472       24,113,668  
 
 
6

 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
December 31,
   
December 31,
 
   
2011
   
2010
 
   
(Unaudited)
   
(Audited)
 
   
 
       
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 116,682     $ 42,858  
Short term deposits
    24,000       -  
Marketable securities and restricted cash
    18,718       16,591  
Trade receivables, net
    11,926       10,739  
Other receivables and prepaid expenses
    5,950       4,958  
Inventories
    10,501       10,830  
Total current assets
    187,777       85,976  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    178       162  
Other assets
    356       340  
Total long-term assets
    534       502  
                 
PROPERTY AND EQUIPMENT, NET
    5,352       5,193  
GOODWILL AND INTANGIBLE ASSETS, NET
    3,395       3,516  
                 
Total assets
  $ 197,058     $ 95,187  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 2,684     $ 5,140  
Deferred revenues
    16,694       10,828  
Other payables and accrued expenses
    9,462       10,167  
Total current liabilities
    28,840       26,135  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    5,430       3,873  
Accrued severance pay
    219       191  
Total long-term liabilities
    5,649       4,064  
                 
SHAREHOLDERS' EQUITY
    162,569       64,988  
                 
Total liabilities and shareholders' equity
  $ 197,058     $ 95,187  
 
 
7

 
 
TABLE  - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
   
Year Ended
 
   
December 31,
   
December 31,
 
   
2011
   
2010
   
2011
   
2010
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                         
Cash flows from operating activities:
                       
                         
Net income (Loss)
  $ 3,497     $ 1,349     $ 8,809     $ (5,762 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
                               
Depreciation
    706       616       2,754       2,577  
Write-off of property and of equipment, net
    -       (158 )     -       -  
Stock-based compensation related to options granted to employees and non-employees
    686       462       2,256       1,990  
Amortization of intangible assets
    30       30       121       123  
Capital loss
    1       15       10       70  
Increase in accrued severance pay, net
    7       148       12       75  
Decrease (Increase) in other assets
    4       (48 )     98       41  
Decease (Increase) in accrued interest and  amortization of premium on marketable securities
    85       (189 )     151       (189 )
Decrease (Increase) in trade receivables
    873       (3,201 )     (1,187 )     (2,897 )
Increase in other receivables and prepaid expenses
    (1,876 )     (2,126 )     (1,083 )     (1,495 )
Decrease (Increase) in inventories
    (1,453 )     (1,151 )     329       (5,784 )
Decrease in long-term deferred taxes
    (114 )     -       (114 )     49  
Increase (Decrease) in trade payables
    (1,398 )     541       (2,708 )     1,998  
Increase (Decrease) in employees and payroll accruals
    (233 )     1,793       (748 )     1,868  
Increase in deferred revenues
    7,742       4,118       7,423       7,188  
Decrease in other payables and accrued expenses
    (851 )     (779 )     (1,178 )     (213 )
Realized loss related to sale of available-for-sale marketable securities
                            7,712  
                                 
Net cash provided by operating activities
    7,706       1,420       14,945       7,351  
                                 
Cash flows from investing activities:
                               
                                 
Decrease (Increase) in restricted deposit
    409       -       (78 )     -  
Investment in short-term deposits
    (6,000 )             (24,000 )     -  
Redemption of short-term deposits
            -               1,264  
Purchase of property and equipment
    (915 )     (348 )     (2,953 )     (2,334 )
Proceeds from sale of property and equipment
    -       130       30       168  
Investment in marketable securities
    (504 )     (11,522 )     (4,735 )     (16,765 )
Proceeds from redemption or sale of marketable securities
    200       1,400       2,603       13,652  
                                 
Net cash used in investing activities
    (6,810 )     (10,340 )     (29,133 )     (4,015 )
                                 
Cash flows from financing activities:
                               
                                 
Issuance of share capital related to secondary offering
    85,174       -       85,174       -  
Exercise of warrants and employee stock options
    818       1,850       2,838       3,052  
                                 
Net cash provided by financing activities
    85,992       1,850       88,012       3,052  
                                 
Increase in cash and cash equivalents
    86,888       (7,070 )     73,824       6,388  
Cash and cash equivalents at the beginning of the year
    29,794       49,928       42,858       36,470  
                                 
Cash and cash equivalents at the end of the year
  $ 116,682     $ 42,858     $ 116,682     $ 42,858  
 
8