Allot Communications Ltd.
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By: |
/s/ Nachum Falek
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Nachum Falek
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Chief Financial Officer
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Exhibit
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Description
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99.1
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Allot Communications Reports Non-GAAP Revenues of $27.3 Million for the Fourth Quarter of 2013 and $97.1 Million for the full year
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Non-GAAP revenues were $27.3 million ($27.3 million on a GAAP basis).
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Non-GAAP gross margin was 76% (72% on a GAAP basis).
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Non-GAAP operating margin was 11% (4% on a GAAP basis).
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Book-to-bill above one.
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Generated $7 million of operating cash flow. Net cash as of December 31st 2013 totals $121.6 million.
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During the quarter, large orders were received from 18 service providers, one of which is a new customer.
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12 of the large orders came from mobile-service providers and 6 were from fixed-line service providers.
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Allot’s ClearSee analytics selected by Tier-1 mobile operator in EMEA.
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Allot Communications Video Optimization Solution chosen by EMEA mobile operator.
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Received $4 million expansion order from a Tier-1 European mobile operator for expanded analytics capabilities and Value-Added Service (VAS) functions.
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TABLE - 1
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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(Audited)
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Revenues
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$ | 27,271 | $ | 26,362 | $ | 96,545 | $ | 104,752 | ||||||||
Cost of revenues
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7,757 | 7,918 | 26,818 | 31,037 | ||||||||||||
Expense related to Settlement of OCS grant
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- | 15,886 | - | 15,886 | ||||||||||||
Gross profit
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19,514 | 2,558 | 69,727 | 57,829 | ||||||||||||
Operating expenses:
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Research and development costs, net
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6,623 | 6,648 | 27,022 | 22,060 | ||||||||||||
Sales and marketing
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10,113 | 9,707 | 39,817 | 34,127 | ||||||||||||
General and administrative
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1,707 | 2,560 | 9,952 | 10,664 | ||||||||||||
Total operating expenses
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18,443 | 18,915 | 76,791 | 66,851 | ||||||||||||
Operating profit (loss)
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1,071 | (16,357 | ) | (7,064 | ) | (9,022 | ) | |||||||||
Financial income and others, net
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144 | 327 | 727 | 1,358 | ||||||||||||
Profit (loss) before tax expenses (benefit)
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1,215 | (16,030 | ) | (6,337 | ) | (7,664 | ) | |||||||||
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Tax expenses (benefit)
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30 | (969 | ) | 120 | (926 | ) | ||||||||||
Net profit (loss)
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1,185 | (15,061 | ) | (6,457 | ) | (6,738 | ) | |||||||||
Basic net profit (loss) per share
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$ | 0.04 | $ | (0.46 | ) | $ | (0.20 | ) | $ | (0.21 | ) | |||||
Diluted net profit (loss) per share
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$ | 0.04 | $ | (0.46 | ) | $ | (0.20 | ) | $ | (0.21 | ) | |||||
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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32,816,792 | 32,471,655 | 32,680,766 | 31,959,921 | ||||||||||||
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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33,418,398 | 32,471,655 | 32,680,766 | 31,959,921 |
TABLE - 2
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except per share data)
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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(Audited)
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GAAP net profit (loss) as reported
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$ | 1,185 | $ | (15,061 | ) | $ | (6,457 | ) | $ | (6,738 | ) | ||||||
Non-GAAP adjustments
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Fair value adjustment for acquired deferred revenues write down
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70 | 2,109 | 530 | 2,367 | |||||||||||||
Expenses recorded for stock-based compensation
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Cost of revenues
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79 | 68 | 368 | 222 | |||||||||||||
Research and development costs, net
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414 | 429 | 1,666 | 1,185 | |||||||||||||
Sales and marketing
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691 | 709 | 3,106 | 2,060 | |||||||||||||
General and administrative
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651 | 553 | 2,591 | 1,349 | |||||||||||||
Expenses related to M&A activities and compliance with regulatory matters (*)
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General and administrative (G&A)
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4 | (73 | ) | 40 | 1,992 | ||||||||||||
Adjustment of contingent earnout (G&A)
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(1,089 | ) | (261 | ) | (1,089 | ) | (261 | ) | |||||||||
Research and development costs, net
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- | 92 | 28 | 435 | |||||||||||||
Sales and marketing
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- | 62 | 12 | 210 | |||||||||||||
Intangible assets amortization
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Cost of revenues
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1,090 | 969 | 2,683 | 1,903 | |||||||||||||
S&M
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58 | 26 | 231 | 43 | |||||||||||||
Tax benefit (**)
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- | (877 | ) | - | (877 | ) | |||||||||||
Expense related to settlement of OCS grants (Cost of revenues)
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- | 15,886 | 250 | 15,886 | |||||||||||||
Total adjustments
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1,968 | 19,692 | 10,416 | 26,514 | |||||||||||||
Non-GAAP net profit
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$ | 3,153 | $ | 4,631 | $ | 3,959 | $ | 19,776 | |||||||||
Non- GAAP basic net profit per share
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$ | 0.10 | $ | 0.14 | $ | 0.12 | $ | 0.62 | |||||||||
Non- GAAP diluted net profit per share
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$ | 0.09 | $ | 0.14 | $ | 0.12 | $ | 0.59 | |||||||||
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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32,816,792 | 32,471,655 | 32,680,766 | 31,959,921 | |||||||||||||
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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33,596,539 | 33,840,004 | 33,554,103 | 33,641,115 |
(*) Mostly legal, finance and compensation expenses related to the acquisition
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(**) Tax benefit in respect of net deferred tax asset recorded for the first time
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TABLE - 3
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED REVENUES
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(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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(Audited)
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GAAP Revenues
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$ | 27,271 | $ | 26,362 | $ | 96,545 | $ | 104,752 | ||||||||
Fair value adjustment for acquired deferred revenues write down
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$ | 70 | $ | 2,109 | $ | 530 | $ | 2,367 | ||||||||
Non-GAAP Revenues
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$ | 27,341 | $ | 28,471 | $ | 97,075 | $ | 107,119 |
TABLE - 4
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(U.S. dollars in thousands)
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December 31,
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December 31,
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2013
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2012
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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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$ | 42,813 | $ | 50,026 | ||||
Short term deposits
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38,000 | 78,042 | ||||||
Marketable securities and restricted cash
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40,798 | 14,987 | ||||||
Trade receivables, net
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17,389 | 20,236 | ||||||
Other receivables and prepaid expenses
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8,522 | 6,815 | ||||||
Inventories
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13,798 | 9,963 | ||||||
Total current assets
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161,320 | 180,069 | ||||||
LONG-TERM ASSETS:
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Severance pay fund
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254 | 213 | ||||||
Deferred Taxes
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1,363 | 1,525 | ||||||
Other assets
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224 | 239 | ||||||
Total long-term assets
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1,841 | 1,977 | ||||||
PROPERTY AND EQUIPMENT, NET
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5,874 | 6,609 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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30,221 | 33,136 | ||||||
Total assets
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$ | 199,256 | $ | 221,791 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Trade payables
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$ | 3,191 | $ | 4,809 | ||||
Deferred revenues
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12,504 | 13,829 | ||||||
Other payables and accrued expenses
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10,905 | 13,947 | ||||||
Liability related to settlement of OCS grants
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- | 15,886 | ||||||
Total current liabilities
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26,600 | 48,471 | ||||||
LONG-TERM LIABILITIES:
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Deferred revenues
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2,447 | 3,945 | ||||||
Accrued severance pay
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282 | 254 | ||||||
Total long-term liabilities
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2,729 | 4,199 | ||||||
SHAREHOLDERS' EQUITY
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169,927 | 169,121 | ||||||
Total liabilities and shareholders' equity
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$ | 199,256 | $ | 221,791 |
TABLE - 5
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(U.S. dollars in thousands)
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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(Audited)
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Cash flows from operating activities:
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Net income (Loss)
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$ | 1,185 | $ | (15,061 | ) | $ | (6,457 | ) | $ | (6,738 | ) | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation
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839 | 1,007 | 3,423 | 3,120 | ||||||||||||
Stock-based compensation related to options granted to employees
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1,835 | 1,759 | 7,731 | 4,817 | ||||||||||||
Amortization of intangible assets
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1,148 | 996 | 2,915 | 1,947 | ||||||||||||
Capital loss
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- | 6 | 18 | 20 | ||||||||||||
Increase in accrued severance pay, net
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(9 | ) | (6 | ) | (13 | ) | - | |||||||||
Decrease (Increase) in other assets
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1 | (50 | ) | 15 | 6 | |||||||||||
Decease in accrued interest and amortization of premium on marketable securities
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158 | 68 | 366 | 212 | ||||||||||||
Increase (Decrease) in trade receivables
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6,091 | 1,503 | 2,847 | (8,139 | ) | |||||||||||
Decrease (Increase) in other receivables and prepaid expenses
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(413 | ) | (393 | ) | (3,053 | ) | 1,159 | |||||||||
Decrease (Increase) in inventories
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(1,729 | ) | 1,096 | (3,835 | ) | 3,233 | ||||||||||
Decrease (Increase) in long-term deferred taxes, net
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162 | (906 | ) | 162 | (931 | ) | ||||||||||
Decrease in trade payables
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(1,326 | ) | (2,794 | ) | (1,618 | ) | (1,287 | ) | ||||||||
Increase (Decrease) in employees and payroll accruals
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(649 | ) | 225 | (2,053 | ) | 2,392 | ||||||||||
Increase (Decrease) in deferred revenues
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1,825 | (2,794 | ) | (2,823 | ) | (7,089 | ) | |||||||||
Increase (Decrease) in other payables and accrued expenses
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(2,102 | ) | (1,157 | ) | (989 | ) | 84 | |||||||||
Increase (Decrease) in Liability related to settlement of OCS grants
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- | 15,886 | (15,886 | ) | 15,886 | |||||||||||
Net cash provided by (used in) operating activities
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7,016 | (615 | ) | (19,250 | ) | 8,692 | ||||||||||
Cash flows from investing activities:
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Increase in restricted deposit
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- | 1,039 | 146 | 913 | ||||||||||||
Redemption of short-term deposits
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- | 15,958 | 40,042 | - | ||||||||||||
Investment in short-term deposit
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(14,400 | ) | - | - | (54,042 | ) | ||||||||||
Purchase of property and equipment
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(726 | ) | (823 | ) | (2,706 | ) | (3,820 | ) | ||||||||
Investment in marketable securities
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(2,914 | ) | (500 | ) | (32,805 | ) | (8,194 | ) | ||||||||
Proceeds from redemption or sale of marketable securities
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1,650 | 8,736 | 6,461 | 10,736 | ||||||||||||
Acquisitions
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- | - | - | (23,892 | ) | |||||||||||
Loan to purchased Subsidiary
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- | - | - | (1,000 | ) | |||||||||||
Net cash provided by (used in) investing activities
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(16,390 | ) | 24,410 | 11,138 | (79,299 | ) | ||||||||||
Cash flows from financing activities:
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Exercise of employee stock options
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326 | 563 | 899 | 5,903 | ||||||||||||
Redemption of bank loan
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- | - | - | (1,952 | ) | |||||||||||
Net cash provided by financing activities
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326 | 563 | 899 | 3,951 | ||||||||||||
Increase (decrease) in cash and cash equivalents
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(9,048 | ) | 24,358 | (7,213 | ) | (66,656 | ) | |||||||||
Cash and cash equivalents at the beginning of the period
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51,861 | 25,668 | 50,026 | 116,682 | ||||||||||||
Cash and cash equivalents at the end of the period
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$ | 42,813 | $ | 50,026 | $ | 42,813 | $ | 50,026 |