zk1516691.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 May 2015
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 May 5, 2015, Allot Communications Ltd. issued a press release announcing the quarterly results for the first quarter of 2015.

A copy of the press release entitled “Allot Communications Reports Non-GAAP 4.4% Revenue Growth for Q1 2015” 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/ Shmuel Arvatz  
   
Shmuel Arvatz
 
   
Chief Financial Officer
 
       
Date: May 5, 2015
 
 

 

EXHIBIT INDEX

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

Exhibit
 
99.1
Description
 
Allot Communications Reports Non-GAAP 4.4% Revenue Growth for Q1 2015
 
3


exhibit_99-1.htm


Exhibit 99.1
 
 
Allot Communications Reports Non-GAAP 4.4% Revenue
Growth for Q1 2015
 
Net Income Has Grown By More Than 40% Year Over Year.
 
Hod Hasharon, Israel - May 5, 2015 - 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 first quarter 2015 results, with non-GAAP revenues reaching $29.5 million.
 
Q1 2015 – Financial Highlights:
 
 
·
Non-GAAP Revenues were $29.5 million, up 4.4% year over year
 
 
·
Non-GAAP Gross Margin reached 76%
 
 
·
Non-GAAP Operating Margin was 10%
 
 
·
Book-to-bill was below one
 
 
·
The Company generated $2.1 million of Operating Cash Flow
 
 
·
Net Cash as of March 31, 2015 totaled $123.8 million
 
Financial results:
 
On a GAAP basis, total revenues for the first quarter of 2015 were $29.5 million compared to $30.6 million of revenue reported for the fourth quarter of 2014 and $28.3 million of revenue reported for the first quarter of 2014.  Net loss for the first quarter of 2015 was zero, or $0.00 per basic and diluted share. This compares with a net loss of $2.3 million, or $0.07 per basic and diluted share, in the fourth quarter of 2014 and a net loss of $0.4 million, or $0.01 per basic and diluted share, in the first quarter of 2014.
 
On a non-GAAP basis, total revenues for the first quarter of 2015 reached $29.5 million, compared with $30.6 million of revenue reported for the fourth quarter of 2014 and $28.3 million of revenue reported for the first quarter of 2014.  On a non-GAAP basis, net income for the first quarter of 2015 was $2.9 million, or $0.09 per basic share and diluted share. This compares with non-GAAP net income of $3.4 million, or $0.10 per basic and diluted share, in the fourth quarter of 2014 and non-GAAP net income of $2.1 million, or $0.06 per basic and diluted share, in the first quarter of 2014.
 
Q1 2015 - Key Achievements:
 
 
·
During Q1 2015, 18 large orders were received, 3 of which were from new customers
 
 
·
8 of the large orders came from mobile-service providers and 8 were from fixed-line service providers
 
 
·
In addition, 2 large orders were received for private and public cloud deployments
 
 
 

 
 
 
·
Allot completed the acquisition of Optenet during the first quarter. The impact over the first quarter results was minimal.
 
 
·
Allot launched SmartEngage which enables mobile operators to increase subscriber service uptake.
 
 
·
Received four orders from Tier-1 operators to enable delivery of Security-as-a-Service and Comply with Regulation.
 
"During the first quarter we completed the acquisition of Optenet, a global leader in the field of Security-as-a-Service. We believe that the acquisition will significantly enhance our security offering and support future growth opportunities" said Andrei Elefant, President & CEO of Allot Communications. "We continued to improve our margins in the first quarter, expend our customer base and increase our market share. Security and monetization remained top performers within our VAS offering and we continue to view these two segments as key growth engines to our future growth”
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss first quarter 2015 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)2034271906, Israel: +97237219510, participant code 6727250.
 
A replay of the conference call will be available from 12:00 AM ET on May 6 2015 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44(0)2034270598, access code:  6727250. 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 difference 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 income is defined as GAAP net income 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, inventory write-off expenses, regulatory matter expenses, acquisition-related expenses, restructuring costs 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
 
   
March 31,
 
   
2015
   
2014
 
   
(Unaudited)
 
             
Revenues
  $ 29,532     $ 28,284  
Cost of revenues
    7,769       8,195  
Gross profit
    21,763       20,089  
                 
Operating expenses:
               
Research and development costs, net
    6,809       7,221  
Sales and marketing
    11,808       10,497  
General and administrative
    3,250       2,887  
Total operating expenses
    21,867       20,605  
Operating  loss
    (104 )     (516 )
Financial and other income, net
    205       149  
Profit (loss) before income tax benefit
    101       (367 )
 
               
Tax expenses
    135       21  
Net loss
    (34 )     (388 )
                 
 Basic net loss per share
  $ (0.00 )   $ (0.01 )
                 
                 
 Diluted net loss per share
  $ (0.00 )   $ (0.01 )
                 
Weighted average number of shares
               
used in computing basic  net
               
earnings per share
    33,357,909       32,939,195  
                 
Weighted average number of shares
               
used in computing diluted net
               
earnings per share
    33,357,909       32,939,195  
 
 
 

 
 
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
   
Three Months Ended
 
     
March 31, 2015
   
March 31, 2014
 
     
(Unaudited)
   
(Unaudited)
 
      $    
% of Revenues
    $    
% of Revenues
 
                               
 GAAP Operating (loss)
  $ (104 )     0 %   $ (516 )     (2 )%
 Share-based compensation (1)
    1,867               1,992          
 Amortization of intangible assets (2)
    511               465          
 Expenses related to M&A activities (3)
    577               8          
 Fair value adjustment for acquired deferred revenues write down
    11               12          
 Non-GAAP Operating income
  $ 2,862       10 %   $ 1,961       7 %
                                   
 GAAP Net (loss)
  $ (34 )     0 %   $ (388 )     (1 )%
 Share-based compensation (1)
    1,867               1,992          
 Amortization of intangible assets (2)
    511               465          
 Expenses related to M&A activities (3)
    577               8          
 Fair value adjustment for acquired deferred revenues write down
    11               12          
 Non-GAAP Net income
  $ 2,932       10 %   $ 2,089       7 %
                                   
 GAAP loss per share (diluted)
  $ (0.00 )           $ (0.01 )        
 Share-based compensation
    0.05               0.06          
 Amortization of intangible assets
    0.02               0.01          
 Expenses related to M&A activities
    0.02               0.00          
 Fair value adjustment for acquired deferred revenues write down
    0.00               0.00          
 Non-GAAP Net income per share (diluted)
  $ 0.09             $ 0.06          
                                   
(1) Share-based compensation:
                               
 
Cost of revenues
  $ 82             $ 88          
 
Research and development costs, net
    420               469          
 
Sales and marketing
    752               821          
 
General and administrative
    613               614          
      $ 1,867             $ 1,992          
                                   
 (2) Amortization of intangible assets
                               
 
Cost of revenues
  $ 454             $ 399          
 
Sales and marketing
    57               66          
      $ 511             $ 465          
                                   
 (3) Expenses related to M&A activities
                               
 
General and administrative
  $ 351             $ 8          
 
Research and development costs, net
    45               -          
 
Sales and marketing
    181               -          
      $ 577             $ 8          
 
 
 

 
 
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
 
   
March 31,
 
   
2015
   
2014
 
   
(Unaudited)
 
             
GAAP Revenues
  $ 29,532     $ 28,284  
                 
Fair value adjustment for acquired deferred revenues write down
    11       12  
                 
Non-GAAP Revenues
  $ 29,543     $ 28,296  
 
 
 

 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
March 31,
   
March 31,
 
   
2015
   
2014
 
   
(Unaudited)
   
(Unaudited)
 
   
 
       
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 21,930     $ 51,036  
Short term deposits
    46,500       30,500  
Marketable securities and restricted cash
    55,344       40,639  
Trade receivables, net
    23,584       21,414  
Other receivables and prepaid expenses
    6,634       8,906  
Inventories
    8,321       13,474  
Total current assets
    162,313       165,969  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    260       260  
Deferred taxes
    1,620       1,602  
Other assets
    3,626       2,726  
Total long-term assets
    5,506       4,588  
                 
PROPERTY AND EQUIPMENT, NET
    6,011       5,990  
GOODWILL AND INTANGIBLE ASSETS, NET
    45,995       29,756  
                 
Total assets
  $ 219,825     $ 206,303  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 5,876     $ 4,887  
Deferred revenues
    12,340       13,527  
Other payables and accrued expenses
    15,324       12,851  
Total current liabilities
    33,540       31,265  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    4,777       2,520  
Accrued severance pay
    292       292  
Other long term liabilities
    3,915       0  
Total long-term liabilities
    8,984       2,812  
                 
SHAREHOLDERS' EQUITY
    177,301       172,226  
                 
Total liabilities and shareholders' equity
  $ 219,825     $ 206,303  
 
 
 

 
TABLE  - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
 
   
March 31,
 
   
2015
   
2014
 
   
(Unaudited)
 
             
Cash flows from operating activities:
           
             
Net Loss
  $ (34 )   $ (388 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
               
Depreciation
    762       800  
Stock-based compensation related to options granted to employees
    1,849       1,992  
Amortization of intangible assets
    449       465  
Capital loss
    4       -  
Decrease in accrued severance pay, net
    12       4  
Increase in other assets
    (178 )     (82 )
Decrease  in accrued interest and  amortization of premium on marketable securities
    300       208  
Increase (Decrease) in trade receivables
    175       (4,506 )
Increase in other receivables and prepaid expenses
    (2,691 )     (102 )
Decrease in inventories
    1,788       324  
Increase in long-term deferred taxes, net
    96       -  
Increase (Decrease) in trade payables
    (424 )     1,696  
Increase (Decrease) in employees and payroll accruals
    (409 )     1,062  
Increase in deferred revenues
    100       1,096  
Increase in other payables and accrued expenses
    292       876  
                 
Net cash provided by operating activities
    2,091       3,445  
                 
Cash flows from investing activities:
               
                 
Redemption of short-term deposits
    12,500       7,500  
Purchase of property and equipment
    (666 )     (916 )
Investment in marketable securities
    (6,727 )     (900 )
Proceeds from redemption or sale of marketable securities
    5,528       901  
Acquisitions of certain assets and liabilities
    (10,052 )     -  
Loan provided to third party, net
    -       (2,563 )
                 
Net cash provided by investing activities
    583       4,022  
                 
Cash flows from financing activities:
               
                 
Exercise of employee stock options
    76       756  
                 
Net cash provided by financing activities
    76       756  
                 
Increase in cash and cash equivalents
    2,750       8,223  
Cash and cash equivalents at the beginning of the period
    19,180       42,813  
                 
Cash and cash equivalents at the end of the period
  $ 21,930     $ 51,036