zk1415364.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 August 2014
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 August 5, 2014, Allot Communications Ltd. issued a press release announcing the quarterly results for the second quarter of 2014.

A copy of the press release entitled “Allot Communications Reports Non-GAAP 31.1% Revenue Growth for Second Quarter of 2014” 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: August 5, 2014

 
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 31.1% Revenue Growth for
Second Quarter of 2014
 
Non-GAAP Revenues reached $28.2 million, compared with $21.5 million in second
quarter of 2013
 
Hod Hasharon, Israel – August 5, 2014 – 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 second quarter 2014 results, with non-GAAP revenues reaching $28.2 million.
 
Other second quarter highlights:
 
 
·
Non-GAAP revenues grew 31.1% year on year and remained flat with first quarter 2014.
 
 
·
Non-GAAP gross margin was 73.1% (71.4% on a GAAP basis).
 
 
·
Non-GAAP operating margin was 6.5% (2.3% operating loss on a GAAP basis).
 
 
·
Book-to-bill above one.
 
 
·
Generated $1.4 million of operating cash flow.
 
 
·
Net cash as of June 30, 2014 totaled $123.6 million.
 
Financial results:
 
On a non-GAAP basis, total revenues for the second quarter of 2014 reached $28.2 million, compared with $21.5 million of non-GAAP revenue reported for the second quarter of 2013 and $28.3 million of non-GAAP revenue reported for the first quarter of 2014.  On a non-GAAP basis, net profit for the second quarter of 2014 was $1.9 million, or $0.06 per basic and diluted share. This compares with non-GAAP net loss of $0.9 million, or $0.03 per basic and diluted share, in the second quarter of 2013 and a non-GAAP net profit of $2.1 million, or $0.06 per basic and diluted share, in the first quarter of 2014.
 
Total GAAP revenues for the second quarter of 2014 reached $28.2 million compared to $21.2 million of revenue reported for the second quarter of 2013 and $28.3 million of GAAP revenue reported for the first quarter of 2014. On a GAAP basis, the net loss for the second quarter of 2014 was $0.6 million, or of $0.02 per basic and diluted share. This compares with a net loss of $3.9 million, or $0.12 per basic and diluted share, in the second quarter of 2013 and a net loss of $0.4 million, or $0.01 per basic and diluted share, in the first quarter of 2014.
 
Key quarterly achievements:
 
 
·
During the quarter, 18 large orders were received, three of which are new customers.
 
 
 

 
 
 
·
12 of the large orders came from mobile-service providers and 3 were from fixed-line service providers.
 
 
·
In addition, 3 large orders were received for private and public cloud deployments.
 
 
·
Won a $3 million contract with a tier-1 cable provider to deliver an intelligent traffic management solution to relieve cable access network congestion and provide big data analytics.
 
 
·
More than $10 million of the booking were based on the new Tera service gateway during the second quarter.
 
"We are highly encouraged by the rapid adoption of the Tera platform by Tier-1 mobile service providers and expect this to set a strong foundation for future follow-on installations of analytics, security and additional value added services. The business environment continues to show strength and book to bill ratio was, for the 6th quarter in a row, higher than 1. Entering the second half of the year, our funnel is robust and we continue to identify interesting opportunities with service providers that choose more comprehensive solution than in the past.” said Andrei Elefant, Allot Communications' President and CEO. "We are seeing an increasing demand for advanced services and sense a shift towards application-centric data plans offering".
 
# # #
 
Conference Call & Webcast
 
The Allot management team will host a conference call to discuss second quarter 2014 earnings results today at 8:30 AM ET, 3:30 p.m. Israel time.
 
To access the conference call, please dial one of the following numbers: US: +1646 254 3362, UK: +44(0)203 4271914, Israel: +97237630145, participant code 8306866.
 
A replay of the conference call will be available from 12:00 AM ET on August 6, 2014 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44 (0)20 3427 0598, access code: 8306866. 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, TASE: ALLT) is a leading global provider of intelligent broadband solutions that put mobile, fixed and enterprise networks at the center of the digital lifestyle and work style. Allot’s DPI-based solutions identify and leverage the business intelligence in data networks, empowering operators to analyze, protect, improve and enrich the digital lifestyle services they deliver. Allot’s unique blend of innovative technology, proven know-how, collaborative approach to industry standards and partnerships enables service providers worldwide to elevate their role in the digital lifestyle ecosystem and to open the door to a wealth of new business opportunities. For more information, please visit 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 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 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.
 
 
 

 
 
Safe Harbor 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
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
Revenues
  $ 28,166     $ 21,212     $ 56,450     $ 45,326  
Cost of revenues
    8,056       5,753       16,252       12,493  
Gross profit
    20,110       15,459       40,198       32,833  
                                 
Operating expenses:
                               
Research and development costs, net
    7,188       6,898       14,409       13,800  
Sales and marketing
    10,637       9,896       21,133       19,723  
General and administrative
    2,931       2,666       5,818       5,304  
Total operating expenses
    20,756       19,460       41,360       38,827  
Operating loss
    (646 )     (4,001 )     (1,162 )     (5,994 )
Financial and other income, net
    87       168       236       355  
loss before income tax benefit
    (559 )     (3,833 )     (926 )     (5,639 )
 
                               
Tax expenses
    61       32       82       73  
Net loss
    (620 )     (3,865 )     (1,008 )     (5,712 )
                                 
 Basic net loss per share
  $ (0.02 )   $ (0.12 )   $ (0.03 )   $ (0.18 )
                                 
 Diluted net loss per share
  $ (0.02 )   $ (0.12 )   $ (0.03 )   $ (0.18 )
                                 
Weighted average number of shares
                               
used in computing basic  net
                               
earnings per share
    33,111,197       32,630,280       33,025,671       32,596,317  
                                 
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    33,111,197       32,630,280       33,025,671       32,596,317  
 
 
 

 
 
 
TABLE  - 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)
 
     
Three Months Ended
   
Six Months Ended
 
     
June 30,
   
June 30,
 
     
2014
   
2013
   
2014
   
2013
 
     
(Unaudited)
   
(Unaudited)
 
                           
GAAP net loss as reported
  $ (620 )   $ (3,865 )   $ (1,008 )   $ (5,712 )
                                   
Non-GAAP adjustments
                               
Fair value adjustment for acquired deferred revenues write down
    11       276       23       313  
Expenses recorded for stock-based compensation
                               
 
Cost of revenues
    90       115       178       201  
 
Research and development costs, net
    487       412       956       823  
 
Sales and marketing
    811       874       1,632       1,620  
 
General and administrative
    599       649       1,213       1,235  
Expenses related to M&A activities and compliance with regulatory matters (*)
                               
 
General and administrative
    25       21       33       33  
 
Research and development costs, net
    -       22       -       28  
 
Sales and marketing
    -       12       -       12  
Intangible assets amortization
                               
 
Cost of revenues
    400       503       799       1,006  
 
Sales and marketing
    65       57       131       115  
                                   
Total adjustments
    2,488       2,941       4,965       5,386  
                                   
 Non-GAAP net profit (loss)
  $ 1,868     $ (924 )   $ 3,957     $ (326 )
                                   
Non- GAAP basic net profit (loss) per share
  $ 0.06     $ (0.03 )   $ 0.12     $ (0.01 )
                                   
Non- GAAP diluted net profit (loss) per share
  $ 0.06     $ (0.03 )   $ 0.12     $ (0.01 )
                                   
Weighted average number of shares
                               
used in computing basic net
                               
earnings per share
    33,111,197       32,630,280       33,025,671       32,596,317  
                                   
Weighted average number of shares
                               
used in computing diluted net
                               
earnings per share
    33,947,801       32,630,280       33,927,121       32,596,317  
 
(*) Mostly legal, finance and compensation expenses related to the acquisition
           
 
 
 

 
 
TABLE  - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  REVENUES
(U.S. dollars in thousands, except share and per share data)
 
   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
GAAP Revenues
  $ 28,166     $ 21,212     $ 56,450     $ 45,326  
                                 
Fair value adjustment for acquired deferred revenues write down
    11       276       23       313  
                                 
Non-GAAP Revenues
  $ 28,177     $ 21,488     $ 56,473     $ 45,639  

 
 

 

 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
June 30,
   
December 31,
 
   
2014
   
2013
 
   
(Unaudited)
   
(Audited)
 
   
 
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 59,829     $ 42,813  
Short term deposits
    8,500       38,000  
Marketable securities and restricted cash
    55,287       40,798  
Trade receivables, net
    23,786       16,908  
Other receivables and prepaid expenses
    8,819       8,218  
Inventories
    13,877       13,798  
Total current assets
    170,098       160,535  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    278       254  
Deferred taxes
    1,436       1,602  
Other assets
    2,544       771  
Total long-term assets
    4,258       2,627  
                 
PROPERTY AND EQUIPMENT, NET
    5,925       5,874  
GOODWILL AND INTANGIBLE ASSETS, NET
    29,291       30,221  
                 
Total assets
  $ 209,572     $ 199,257  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 7,493     $ 3,191  
Deferred revenues
    11,793       12,504  
Other payables and accrued expenses
    12,180       10,906  
Total current liabilities
    31,466       26,601  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    3,522       2,447  
Accrued severance pay
    303       282  
Total long-term liabilities
    3,825       2,729  
                 
SHAREHOLDERS' EQUITY
    174,281       169,927  
                 
Total liabilities and shareholders' equity
  $ 209,572     $ 199,257  

 
 

 

 
TABLE  - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
Cash flows from operating activities:
                       
                         
Net Loss
  $ (620 )   $ (3,865 )   $ (1,008 )   $ (5,712 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
                               
Depreciation
    762       867       1,562       1,747  
Stock-based compensation related to options granted to employees
    1,987       2,050       3,979       3,879  
Amortization of intangible assets
    465       560       930       1,122  
Capital loss
    -       14       -       14  
Increase in accrued severance pay, net
    (7 )     (26 )     (3 )     (2 )
Decrease (Increase) in other assets
    12       16       (70 )     (13 )
Decease in accrued interest and amortization of premium on marketable securities
    37       46       245       57  
Decrease (Increase) in trade receivables
    (2,372 )     2,868       (6,878 )     (2,483 )
Decrease (Increase) in other receivables and prepaid expenses
    301       (1,625 )     199       (1,669 )
Increase in inventories
    (403 )     (1,101 )     (79 )     (781 )
Decrease in deferred taxes, net
    56       -       56       -  
Increase in trade payables
    2,606       1,602       4,302       221  
Increase (Decrease) in employees and payroll accruals
    (57 )     (538 )     1,005       (1,260 )
Increase (Decrease) in deferred revenues
    (732 )     (1,070 )     364       (4,058 )
Increase (Decrease) in other payables and accrued expenses
    (629 )     963       247       2,136  
                                 
Net cash provided by (used in) operating activities
    1,406       761       4,851       (6,802 )
                                 
Cash flows from investing activities:
                               
                                 
Decrease (Increase) in restricted deposit
    -       (3 )     -       1  
Redemption of short-term deposits
    22,000       15,000       29,500       76,042  
Purchase of property and equipment
    (697 )     (572 )     (1,613 )     (1,428 )
Investment in marketable securities
    (18,081 )     (13,704 )     (18,981 )     (29,366 )
Proceeds from redemption or sale of marketable securities
    3,363       1,432       4,264       3,711  
Loan provided to third party
    -       -       (2,735 )     -  
Proceeds from loan provided to third party
    170       -       342       -  
                                 
Net cash provided by investing activities
    6,755       2,153       10,777       48,960  
                                 
Cash flows from financing activities:
                               
                                 
Exercise of employee stock options
    632       105       1,388       269  
                                 
Net cash provided by financing activities
    632       105       1,388       269  
                                 
Increase in cash and cash equivalents
    8,793       3,019       17,016       42,427  
Cash and cash equivalents at the beginning of the period
    51,036       89,434       42,813       50,026  
                                 
Cash and cash equivalents at the end of the period
  $ 59,829     $ 92,453     $ 59,829     $ 92,453