zk1313775.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 October 2013
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 4501317
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 October 29, 2013, Allot Communications Ltd. issued a press release announcing the quarterly results for the third quarter of 2013.

A copy of the press release entitled “Allot Communications Reports Non-GAAP Revenues of $24.1 Million for the Third Quarter of 2013” is attached to this Form 6-K as Exhibit 99.1.

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/ Nachum Falek   
   
Nachum Falek
 
   
Chief Financial Officer
 
       
Date: October 29, 2013
 
 
2

 

EXHIBIT INDEX

The following exhibits have been filed as part of this Form 6-K:

Exhibit                    Description

99.1
Allot Communications Reports Non-GAAP Revenues of $24.1 Million for the Third Quarter of 2013
 
3


exhibit_99-1.htm


Exhibit 99.1
 

 
Allot Communications Reports Non-GAAP Revenues of $24.1 Million
for the Third Quarter of 2013
 
Hod Hasharon, Israel – October 29, 2013 – 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 its third quarter 2013 results, with non-GAAP revenues reaching $24.1 million ($24.0 million on a GAAP basis).
 
Third Quarter Highlights:
 
 
·
Non-GAAP revenues were $24.1 million ($24.0 million on a GAAP basis).
 
 
·
Non-GAAP gross margin was 77% (73% on a GAAP basis).
 
 
·
Non-GAAP operating margin was 4% (9% loss on a GAAP basis).
 
 
·
Book-to-bill above one.
 
 
·
Retired $16 million of OCS liability.
 
Financial Results:
 
On a non-GAAP basis, total revenues for the third quarter of 2013 reached $24.1 million, compared with $28.0 million of revenue reported for the third quarter of 2012 and $21.5 million of revenue reported for the second quarter of 2013.  On a non-GAAP basis, net profit for the third quarter of 2013 was $1.1 million, or $0.03 per basic and diluted share. This compares with non-GAAP net profit of $5.1 million, or $0.16 per basic share, and $0.15 per diluted share, in the third quarter of 2012 and non-GAAP net loss of $0.9 million, or $0.03 per basic and diluted share, in the second quarter of 2013.
 
Total GAAP revenues for the third quarter of 2013 reached $24.0 million compared to $27.8 million of revenue reported for the third quarter of 2012 and $21.2 million of revenue reported for the second quarter of 2013. On a GAAP basis, the net loss for the third quarter of 2013 was $1.9 million, or a net loss of $0.06 per basic and diluted share. This compares with net profit of $2.4 million, or $0.07 per basic and diluted share, in the third quarter of 2012, and a net loss of $3.9 million, or a net loss of $0.12 per basic and diluted share, in the second quarter of 2013.
 
 
 

 
 
Key Quarterly Achievements:
 
 
·
During the quarter, large orders were received from 14 service providers, two of which are new customers.
 
 
·
Four of the large orders came from mobile-service providers, eight were from fixed-line service providers and two from enterprises.
 
 
·
Received a $12 million expansion order from a tier-1 fixed line operator in APAC.
 
 
·
Received a multimillion dollar order from major U.S.-based cloud provider to monitor and guarantee SLAs for Cloud-based services.
 
As of September 30, 2013, cash, cash equivalents, short-term deposits and marketable securities totaled $115 million with no debt.
 
"The booking environment remained strong during the third quarter and book-to-bill was once again above one, despite the weakness often associated with third quarter seasonality. The business momentum strength is equally felt both in our PCC as well as our VAS activities,” said Rami Hadar, Allot Communications' President and Chief Executive Officer. "Today we announced that we have won a $12 million project with a tier 1, fixed line operator from APAC. This deal includes a bundle of our Allot Sigma Service Gateway, our Allot ServiceProtector, VAS security offering and intelligent steering. We view this deal as another successful testament to our service gateway and VAS vision."
 
# # #
 
Conference Call & Webcast
 
The Allot management team will host a conference call to discuss third quarter 2013 earnings results today at 8:30 a.m. ET, 2:30 p.m. Israel time.
 
To access the conference call, please dial one of the following numbers: US: +1646 254 3360, UK: +44(0)20 3427 1902, Israel: +9723763 0147, participant code 7266032.
 
A replay of the conference call will be available from 12:00 AM ET on October 29, 2013 through November 27, 2013 at 6:59 PM ET time. To access the replay, please dial: US:  +1 347 366 9565; UK: +44 (0) 20 3427 0598, access code: 7266032.
 
A live webcast of the conference call can be accessed on the Allot Communications website at www.allot.com. The webcast also will 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.
 
 
 

 
 
GAAP to Non-GAAP Reconciliation
 
The discrepancy between GAAP and non-GAAP revenues is related to the acquisitions made by the Company during the year and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net profit is defined as GAAP net profit after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock based compensation expenses, amortization of acquisition related intangible assets, regulatory 2 matters, acquisition related expenses and compensation expenses related to the acquisitions.
 
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 Table 2. The Company provides these non-GAAP financial measures because it believes 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 they are useful to investors in enhancing an understanding of the Company’s operating performance.
 
Forward Looking Statement

This release may contain forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third party channel partners for a material portion of our revenues; 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. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. 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:
 
Rami Rozen
 
AVP Corporate Development
International access code +972-52-569-4441
rrozen@allot.com
 
 
 

 
 
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,
 
   
2013
   
2012
   
2013
   
2012
 
   
(Unaudited)
   
(Unaudited)
 
                         
Revenues
  $ 23,949     $ 27,768     $ 69,274     $ 78,390  
Cost of revenues
    6,568       8,464       19,061       23,119  
                                 
Gross profit
    17,381       19,304       50,213       55,271  
                                 
Operating expenses:
                               
Research and development costs, net
    6,599       6,069       20,399       15,411  
Sales and marketing
    9,982       8,539       29,704       24,420  
General and administrative
    2,942       2,671       8,246       8,104  
Total operating expenses
    19,523       17,279       58,349       47,935  
Operating profit (loss)
    (2,142 )     2,025       (8,136 )     7,336  
Financial and other income, net
    229       382       584       1,030  
Profit (loss) before income tax benefit
    (1,913 )     2,407       (7,552 )     8,366  
 
                               
Tax expenses
    17       19       90       43  
Net profit (loss)
    (1,930 )     2,388       (7,642 )     8,323  
                                 
Basic net profit (loss) per share
  $ (0.06 )   $ 0.07     $ (0.23 )   $ 0.26  
                                 
Diluted net profit (loss) per share
  $ (0.06 )   $ 0.07     $ (0.23 )   $ 0.25  
                                 
Weighted average number of shares
                               
used in computing basic net
                               
earnings per share
    32,710,885       32,260,061       32,634,926       31,787,646  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    32,710,885       33,471,098       32,634,926       33,086,932  
 
 
 

 
 
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
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
   
(Unaudited)
   
(Unaudited)
 
                         
 GAAP net profit (loss) as reported
  $ (1,930 )   $ 2,388     $ (7,642 )   $ 8,323  
                                 
Non-GAAP adjustments
                               
                                 
Fair value adjustment for acquired deferred revenues write down
    147       258       460       258  
Expenses recorded for stock-based compensation
                               
Cost of revenues
    88       57       289       154  
Research and development costs, net
    428       329       1,251       757  
Sales and marketing
    796       588       2,415       1,351  
General and administrative
    705       342       1,940       796  
Expenses related to M&A activities and compliance with regulatory matters (*)
                               
General and administrative (G&A)
    3       354       36       2,065  
Research and development costs, net
    -       93       28       343  
Sales and marketing
    -       55       12       148  
Intangible assets amortization
                               
Cost of revenues
    587       641       1,593       934  
S&M
    58       17       173       17  
Expense related to settlement of OCS grants (Cost of revenues)
    250       -       250       -  
                                 
Total adjustments
    3,062       2,734       8,447       6,823  
                                 
Non-GAAP net profit
  $ 1,132     $ 5,122     $ 805     $ 15,146  
                                 
Non- GAAP basic  net profit  per share
  $ 0.03     $ 0.16     $ 0.02     $ 0.48  
                                 
Non- GAAP diluted net profit per share
  $ 0.03     $ 0.15     $ 0.02     $ 0.45  
                                 
Weighted average number of shares
                               
used in computing basic net
                               
earnings per share
    32,710,885       32,260,061       32,634,926       31,787,646  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    33,579,948       33,848,560       33,453,921       33,347,232  
 
(*) Mostly legal, finance and compensation expenses related to the acquisition
 
 
 

 
 
TABLE  - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILATION OF GAAP TO NON-GAAP  CONSOLIDATED  REVENUES
(U.S. dollars in thousands, except share and per share data)
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
   
(Unaudited)
   
(Unaudited)
 
                         
GAAP Revenues
  $ 23,949     $ 27,768     $ 69,274     $ 78,390  
                                 
Fair value adjustment for acquired deferred revenues write down
  $ 147     $ 258     $ 460     $ 258  
                                 
Non-GAAP Revenues
  $ 24,096     $ 28,026     $ 69,734     $ 78,648  
 
 
 

 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
September 30,
   
December 31,
 
   
2013
   
2012
 
   
(Unaudited)
   
(Audited)
 
   
 
       
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 51,861     $ 50,026  
Short term deposits
    23,600       78,042  
Marketable securities and restricted cash
    39,617       14,987  
Trade receivables, net
    23,480       20,236  
Other receivables and prepaid expenses
    8,913       6,815  
Inventories
    12,069       9,963  
Total current assets
    159,540       180,069  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    248       213  
Deferred Taxes
    1,525       1,525  
Other assets
    225       239  
Total long-term assets
    1,998       1,977  
                 
PROPERTY AND EQUIPMENT, NET
    5,989       6,609  
GOODWILL AND INTANGIBLE ASSETS, NET
    31,369       33,136  
                 
Total assets
  $ 198,896     $ 221,791  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 4,517     $ 4,809  
Deferred revenues
    10,448       13,829  
Other payables and accrued expenses
    13,656       13,947  
Liability related to settlement of OCS grants
    -       15,886  
Total current liabilities
    28,621       48,471  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    2,678       3,945  
Accrued severance pay
    285       254  
Total long-term liabilities
    2,963       4,199  
                 
SHAREHOLDERS' EQUITY
    167,312       169,121  
                 
Total liabilities and shareholders' equity
  $ 198,896     $ 221,791  
 
 
 

 
 
TABLE  - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
   
(Unaudited)
   
(Unaudited)
 
                         
Cash flows from operating activities:
                       
                         
Net income (Loss)
  $ (1,930 )   $ 2,388     $ (7,642 )   $ 8,323  
Adjustments to reconcile net income  to net cash provided by  operating activities:
                               
Depreciation
    837       890       2,584       2,253  
Stock-based compensation related to options granted to employees
    2,017       1,316       5,896       3,058  
Amortization of intangible assets
    645       658       1,767       951  
Capital loss
    4       10       18       14  
Decrease (Increase) in accrued severance pay, net
    (2 )     (1 )     (4 )     6  
Decrease in other assets
    27       55       14       56  
Decease in accrued interest and  amortization of premium on marketable securities
    151       96       208       144  
Increase in trade receivables
    (761 )     (4,143 )     (3,244 )     (9,642 )
Decrease (Increase) in other receivables and prepaid expenses
    (971 )     (65 )     (2,640 )     1,561  
Decrease (Increase) in inventories
    (1,325 )     1,816       (2,106 )     2,137  
Decrease in trade payables
    (263 )     (1,125 )     (42 )     1,367  
Increase (Decrease) in employees and payroll accruals
    (144 )     1,789       (1,404 )     2,167  
Decrease in deferred revenues
    (590 )     (2,659 )     (4,648 )     (4,295 )
Increase (Decrease) in other payables and accrued expenses
    (1,135 )     (875 )     1,001       1,242  
Payment of a Liability related to the settlement of OCS grants
    (16,024 )     -       (16,024 )     -  
                                 
Net cash provided by (used in) operating activities
    (19,464 )     150       (26,266 )     9,342  
                                 
Cash flows from investing activities:
                               
                                 
Decrease (Increase) in restricted deposit
    145       (147 )     146       (126 )
Redemption of short-term deposits
    -       -       76,042       -  
Investment in short-term deposit
    (21,600 )     (23,000 )     (21,600 )     (70,000 )
Purchase of property and equipment
    (552 )     (1,528 )     (1,980 )     (2,997 )
Investment in marketable securities
    (525 )     (6,443 )     (29,891 )     (7,694 )
Proceeds from redemption or sale of marketable securities
    1,100       800       4,811       2,000  
Acquisitions
    -       (13,493 )     -       (23,892 )
Loan to purchased Subsidiary
    -       -       -       (1,000 )
                                 
Net cash provided by (used in) investing activities
    (21,432 )     (43,811 )     27,528       (103,709 )
                                 
Cash flows from financing activities:
                               
                                 
Exercise of employee stock options
    304       1,198       573       5,305  
Redemption of bank loan
    -       (1,952 )     -       (1,952 )
                                 
Net cash provided by (used in) financing activities
    304       (754 )     573       3,353  
                                 
Increase (Decrease) in cash and cash equivalents
    (40,592 )     (44,415 )     1,835       (91,014 )
Cash and cash equivalents at the beginning of the period
    92,453       70,083       50,026       116,682  
                                 
Cash and cash equivalents at the end of the period
  $ 51,861     $ 25,668     $ 51,861     $ 25,668