zk1415758.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 November 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 November 4, 2014, Allot Communications Ltd. issued a press release announcing the quarterly results for the third quarter of 2014.

A copy of the press release entitled “Allot Communications Reports Non-GAAP 25% Revenue Growth for Q3 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/ Rael Kolevsohn  
   
Rael Kolevsohn
 
   
VP Legal Affairs & General Counsel
 
       
Date: November 6, 2014
 
 
2

 

EXHIBIT INDEX


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

Exhibit
 
99.1
Description
 
Allot Communications Reports Non-GAAP 25% Revenue Growth for Q3 2014
 
3

exhibit_99-1.htm


Exhibit 99.1
 
 
 
Allot Communications Reports Non-GAAP 25% Revenue Growth for Q3 2014
 
Non-GAAP Revenues reach $30.1 million, compared with $24.1 million for Q3 2013
 
Hod Hasharon, Israel - November 4, 2014 - Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband operators and cloud providers worldwide, today announced its third quarter 2014 results, with non-GAAP revenues reaching $30.1 million.
 
Q3 2014 - Key Highlights:
 
 
·
Non-GAAP Revenues grew 25% year on year and 7% sequentially
 
 
·
Non-GAAP Gross Margin was 75% (73% on a GAAP basis)
 
 
·
Non-GAAP Operating Margin was 10% (2% on a GAAP basis)
 
 
·
Book-to-bill above one
 
 
·
Generated $2.9 million of Operating Cash Flow
 
 
·
Net Cash as of September 30, 2014 totaled $125.4 million
 
Financial results:
 
On a non-GAAP basis, total revenues for Q3 2014 reached $30.1 million, compared with $24.1 million of non-GAAP revenue reported for Q3 2013 and $28.2 million of non-GAAP revenue reported for Q2 2014.  On a non-GAAP basis, net profit for Q3 2014 was $3.1 million, or $0.09 per basic and diluted share. This compares with non-GAAP net profit of $1.1 million, or $0.03 per basic and diluted share, in Q3 2013 and a non-GAAP net profit of $1.9 million, or $0.06 per basic and diluted share, in Q2 2014.
 
Total GAAP revenues for Q3 2014 reached $30.1 million compared to $24.0 million of revenue reported for Q3 2013 and $28.2 million of GAAP revenue reported for Q2 2014. On a GAAP basis, net profit for Q3 2014 was $0.8 million, or of $0.02 per basic and diluted share. This compares with a net loss of $1.9 million, or $0.06 per basic and diluted share, in Q3 2013 and a net loss of $0.6 million, or $0.02 per basic and diluted share, in Q2 2014.
 
Q3 2014 - Key Achievements:
 
·
During Q3 2014, 10 large orders were received, 2 of which are new customers
 
·
3 of the large orders came from mobile-service providers and 4 were from fixed-line service providers
 
·
In addition, 3 large orders were received for private and public cloud deployments
 
·
Received an expansion order of more than $15 million from a Tier-1 operator. The order includes Allot Service Gateway Tera and Allot ServiceProtector.
 
 
 

 
 
·
Received an expansion order of over $5 million for the Tera platform from two Tier-1 service providers.
 
·
Secured 3 orders from major cloud service providers to ensure user experience and productivity through greater application visibility, control and security.
 
"We are pleased with our performance during the third quarter and the ongoing strong momentum in our booking flow. During the third quarter we continued to execute well on all fronts, increased our revenues by 25% YoY and 7% sequentially, improved our gross margin and book to bill was once again above 1." said Andrei Elefant, President & CEO of Allot Communications. "We continue to see a strong demand from service provides for revenue generating services. The advanced value added services provided on our Service Gateway Tera continue to gain tractions among Service Provides”
 
# # #
 
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss third 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 3361, UK: +44(0)2034271907, Israel: +97237630145, participant code 1230659.
 
A replay of the conference call will be available from 12:00 PM ET on November 4 2014 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44(0)2034270598, access code: 1230659. 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) empowers service providers to monetize and optimize their networks, enterprises to enhance productivity and consumers to enjoy an always-on digital lifestyle. Allot’s advanced DPI-based broadband solutions identify and leverage network intelligence to analyze, protect, improve and enrich mobile, fixed and cloud service delivery and user experience. Allot’s unique blend of innovative technology, proven know-how and collaborative approach to industry standards and partnerships enables network operators 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
 
Public Relations Contact:
 
Maya Lustig
Director Corporate Communications
International access code +972-54-677-8100
mlustig@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,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
Revenues
  $ 30,101     $ 23,949     $ 86,551     $ 69,274  
Cost of revenues
    8,059       6,568       24,311       19,061  
Gross profit
    22,042       17,381       62,240       50,213  
                                 
Operating expenses:
                               
Research and development costs, net
    7,240       6,599       21,649       20,399  
Sales and marketing
    11,411       9,982       32,544       29,704  
General and administrative
    2,798       2,942       8,616       8,246  
Total operating expenses
    21,449       19,523       62,809       58,349  
Operating profit (loss)
    593       (2,142 )     (569 )     (8,136 )
Financial and other income, net
    224       229       460       584  
Profit (loss) before income tax benefit
    817       (1,913 )     (109 )     (7,552 )
 
                               
Tax expenses
    52       17       134       90  
Net profit (loss)
    765       (1,930 )     (243 )     (7,642 )
                                 
 Basic net profit (loss) per share
  $ 0.02     $ (0.06 )   $ (0.01 )   $ (0.23 )
                                 
 Diluted net profit (loss) per share
  $ 0.02     $ (0.06 )   $ (0.01 )   $ (0.23 )
                                 
Weighted average number of shares
                               
  used in computing basic  net
                               
  earnings per share
    33,234,558       32,710,885       33,096,065       32,634,926  
                                 
Weighted average number of shares
                               
  used in computing diluted net
                               
  earnings per share
    33,631,356       32,710,885       33,096,065       32,634,926  

 
 

 
 
 
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,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
 GAAP net profit (loss) as reported
  $ 765     $ (1,930 )   $ (243 )   $ (7,642 )
                                 
Non-GAAP adjustments
                               
Expenses recorded for stock-based compensation
                               
Cost of revenues
    90       88       268       289  
Research and development costs, net
    476       428       1,432       1,251  
Sales and marketing
    830       796       2,462       2,415  
General and administrative
    498       705       1,710       1,940  
Expenses related to M&A activities and compliance with regulatory matters (*)
                               
General and administrative
    -       3       33       36  
Research and development costs, net
                    -       28  
Sales and marketing
                    -       12  
Intangible assets amortization
                               
Cost of revenues
    400       587       1,199       1,593  
Sales and marketing
    57       58       188       173  
Fair value adjustment for acquired deferred revenues write down
    11       147       34       460  
Expense related to settlement of OCS grants (Cost of revenues)
    -       250       -       250  
                                 
Total adjustments
    2,362       3,062       7,326       8,447  
                                 
 Non-GAAP net profit
  $ 3,127     $ 1,132     $ 7,083     $ 805  
                                 
Non- GAAP basic  net profit  per share
  $ 0.09     $ 0.03     $ 0.21     $ 0.02  
                                 
Non- GAAP diluted net profit per share
  $ 0.09     $ 0.03     $ 0.21     $ 0.02  
                                 
Weighted average number of shares
                               
  used in computing basic net
                               
  earnings per share
    33,234,558       32,710,885       33,096,065       32,634,926  
                                 
Weighted average number of shares
                               
  used in computing diluted net
                               
  earnings per share
    33,943,166       33,579,948       33,949,132       33,453,921  
 
(*) 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,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
GAAP Revenues
  $ 30,101     $ 23,949     $ 86,551     $ 69,274  
                                 
Fair value adjustment for acquired deferred revenues write down
    11       147     $ 34     $ 460  
                                 
Non-GAAP Revenues
  $ 30,112     $ 24,096     $ 86,585     $ 69,734  
 
 
 

 
 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
September 30,
   
December 31,
 
   
2014
   
2013
 
   
(Unaudited)
   
(Audited)
 
   
 
       
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 31,631     $ 42,813  
Short term deposits
    38,500       38,000  
Marketable securities and restricted cash
    55,276       40,798  
Trade receivables, net
    25,325       16,908  
Other receivables and prepaid expenses
    9,962       8,218  
Inventories
    13,042       13,798  
Total current assets
    173,736       160,535  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    268       254  
Deferred taxes
    1,436       1,602  
Other assets
    2,256       771  
Total long-term assets
    3,960       2,627  
                 
PROPERTY AND EQUIPMENT, NET
    6,061       5,874  
GOODWILL AND INTANGIBLE ASSETS, NET
    28,834       30,221  
                 
Total assets
  $ 212,591     $ 199,257  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 5,372     $ 3,191  
Deferred revenues
    12,156       12,504  
Other payables and accrued expenses
    14,954       10,906  
Total current liabilities
    32,482       26,601  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    4,472       2,447  
Accrued severance pay
    289       282  
Total long-term liabilities
    4,761       2,729  
                 
SHAREHOLDERS' EQUITY
    175,348       169,927  
                 
Total liabilities and shareholders' equity
  $ 212,591     $ 199,257  
 
 
 

 
 
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,
 
   
2014
   
2013
   
2014
   
2013
 
   
(Unaudited)
   
(Unaudited)
 
                         
Cash flows from operating activities:
                       
                         
Net income (Loss)
  $ 765     $ (1,930 )   $ (243 )   $ (7,642 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
                               
Depreciation
    764       837       2,326       2,584  
Stock-based compensation related to options granted to employees
    1,894       2,017       5,873       5,896  
Amortization of intangible assets
    457       645       1,387       1,767  
Capital loss
    -       4       -       18  
Decrease (Increase) in accrued severance pay, net
    (4 )     (2 )     (7 )     (4 )
Decrease (Increase) in other assets
    131       27       60       14  
Decease (Increase) in accrued interest and  amortization of premium on marketable securities
    275       151       520       208  
Increase (Decrease) in trade receivables
    (1,539 )     (761 )     (8,417 )     (3,244 )
Decrease (Increase) in other receivables and prepaid expenses
    (1,468 )     (971 )     (1,269 )     (2,640 )
Decrease (Increase) in inventories
    835       (1,325 )     756       (2,106 )
Increase in long-term deferred taxes, net
    -       -       56       -  
Increase (Decrease) in trade payables
    (2,121 )     (263 )     2,181       (42 )
Increase (Decrease) in employees and payroll accruals
    (598 )     (144 )     407       (1,404 )
Increase (Decrease) in deferred revenues
    1,313       (590 )     1,677       (4,648 )
Increase (Decrease) in other payables and accrued expenses
    2,212       (1,135 )     2,459       1,001  
Increase in Liability related to settlement of OCS grants
    -       (16,024 )     -       (16,024 )
                                 
Net cash provided by (used in) operating activities
    2,916       (19,464 )     7,766       (26,266 )
                                 
Cash flows from investing activities:
                               
                                 
Increase in restricted deposit
    -       145       -       146  
Redemption of short-term deposits
    -       -       29,500       76,042  
Investment in short-term deposit
    (30,000 )     (21,600 )     (30,000 )     (21,600 )
Purchase of property and equipment
    (900 )     (552 )     (2,513 )     (1,980 )
Investment in marketable securities
    (885 )     (525 )     (19,866 )     (29,891 )
Proceeds from redemption or sale of marketable securities
    500       1,100       4,764       4,811  
Loan provided to third party
    -       -       (2,735 )     -  
Proceeds from loan provided to third party
    157       -       500          
                                 
Net cash provided by (used in) investing activities
    (31,128 )     (21,432 )     (20,350 )     27,528  
                                 
Cash flows from financing activities:
                               
                                 
Exercise of employee stock options
    14       304       1,402       573  
                                 
Net cash provided by financing activities
    14       304       1,402       573  
                                 
Increase in cash and cash equivalents
    (28,198 )     (40,592 )     (11,182 )     1,835  
Cash and cash equivalents at the beginning of the period
    59,829       92,453       42,813       50,026  
                                 
Cash and cash equivalents at the end of the period
  $ 31,631     $ 51,861     $ 31,631     $ 51,861