zk1618429.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 2016
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 3, 2016, Allot Communications Ltd. issued a press release announcing the First Quarter 2016 Financial Results.

A copy of the press release entitled “Allot Communications Announces First Quarter 2016 Financial Results” 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 3, 2016
 
2

 

EXHIBIT INDEX

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

Exhibit
Description

99.1
Allot Communications Announces First Quarter 2016 Financial Results
 
3


exhibit_99-1.htm


Exhibit 99.1
 
 
 Allot Communications Announces First Quarter 2016
Financial Results
 
Hod Hasharon, Israel – May 3, 2016 - Allot Communications Ltd. (NASDAQ, TASE: ALLT), a leading global provider of security and monetization solutions that enable service providers to protect and personalize the digital experience, today announced its first quarter 2016 financial results.
 
 Q1 2016 – Financial Highlights:
 
 
·
GAAP revenues were $22.9, Non-GAAP revenues were $23.0 million, down 22% year over year
 
 
·
GAAP gross margin was 69%, Non-GAAP gross margin was 70%
 
 
·
GAAP operating margin was negative 18%, Non-GAAP operating margin  was negative 8%
 
 
·
Book-to-bill was below one
 
 
·
The Company recorded negative operating cash flow of $1.4 million
 
 
·
Net cash and cash equivalents as of March 31st 2016 totaled $120.7 million
 
 
·
During the quarter we repurchased our shares in a total amount of $1.0 million
 
Q1 2016 Financial results:
 
On a GAAP basis, total revenues for the first quarter of 2016 were $22.9 million compared to $25.4 million of revenue reported for the fourth quarter of 2015 and $29.5 million of revenue reported for the first quarter of 2015. Net loss for the first quarter of 2016 was $4.3 million, or $0.13 per basic and diluted share. This compares with a net loss of $10.4 million, or $0.31 per basic and diluted share, in the fourth quarter of 2015 and a net loss of $0.03 million, or $0.00 per basic and diluted share, in the first quarter of 2015.
 
On a non-GAAP basis, total revenues for the first quarter of 2016 were $23.0 million, compared with $25.7 million of revenue reported for the fourth quarter of 2015 and $29.5 million of revenue reported for the first quarter of 2015.  On a non-GAAP basis, net loss for the first quarter of 2016 was $1.8 million, or $0.06 per basic and diluted share. This compares with non-GAAP net income of $0.7 million, or $0.02 per basic and diluted share, in the fourth quarter of 2015 and non-GAAP net income of $2.9 million, or $0.09 per basic and diluted share, in the first quarter of 2015.
 
Q1 2016 - Key Achievements:
 
 
·
During Q1 2016, 11 large orders were received.
 
 
·
6 of the large orders came from mobile-service providers.
 
 
·
4 of the large orders were from fixed-line service providers
 
 
·
1 of the large orders was from cloud service provider.
 
 
 

 
 
 
·
During Q1 2016, Allot received two, over $1 million deals, compared to five in the previous quarter and zero during Q1, 2015.
 
 
·
Leading LATAM Operator Safeguards Businesses from Internet Security Threats with Allot Web Safe Business.
 
 
·
Launched the Service Gateway 9500, a powerful Intel-based appliance. The product received 6 orders during the first quarter.
 
 
·
Allot Smart Data Source was selected by five Tier 1 mobile operators and integrates with Oracle communication analytics to enable operators to monetize network data.
 
 
·
Published its 20th Allot Mobile Trends report, together with Kaspersky Lab, revealing that Mobile business users incur the highest malware risk.
 
2016 Outlook
 
Based on current backlog and the Company's funnel of opportunities, the Company reiterates 2016 guidance and expects revenues to be in the range of $102-$108 million in 2016, on a non-GAAP basis. Revenues for the second half of 2016 are expected to be higher than in the first half.
 
"Q1 results came in below our expectations mainly due to slow turning of backlog into revenues. However, we have several significant projects in deployment which we expect to materialize throughout the year. During the quarter, we launched the SG-9500, an Intel-based service gateway and shipped 6 orders. This new offering extends our addressable market by providing a mid-range solution with low cost of ownership, rich functionality and great scalability." Said Andrei Elefant, President & CEO of Allot Communications. "We are also encouraged by the progress made this quarter in the security segment as existing customers are continuously adding licenses and our funnel includes opportunities with new customers. Our strong backlog supports our original revenue guidance and we believe that revenues will grow during 2016, year over year."
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss first quarter 2016 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: +12124440895, UK: +44(0)2034271916, Israel: +97237630147, participant code 9640625.
 
A replay of the conference call will be available from 12:00 AM ET on May 10 2016 until June 1st 2016. To access the replay, please dial: US: National free number 18669325017, or +13473669565; UK: National free number 08003587735, or +44(0)2034270598, access code: 96406254#. 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 (NASDAQ, TASE: ALLT) is a leading provider of security and monetization solutions that enable service providers to protect and personalize the digital experience. Allot’s flexible and highly scalable service delivery framework leverages the intelligence in data networks, enabling service providers to get closer to their customers, safeguard network assets and users, and accelerate time-to-revenue for value-added services. We employ innovative technology, proven know-how and a collaborative approach to provide the right solution for every network environment. Allot solutions are currently deployed at 5 of the top 10 global mobile operators and in thousands of CSP and enterprise networks worldwide. 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, deferred tax asset update and acquisition-related expenses.
 
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 contains 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 set forth in 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; the timing of completion of key project milestones which impact the timing of our revenue recognition; 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; court approval of the Company’s proposed share buy-back program; 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 dialing +972-52-569-4441
rrozen@allot.com
Public Relations Contact:
 
Sigalit Orr
Director Corporate Communications
International dialing +972-54-268-1500
sorr@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,
 
   
2016
   
2015
 
   
(Unaudited)
 
             
Revenues
  $ 22,938     $ 29,532  
Cost of revenues
    7,143       7,769  
Gross profit
    15,795       21,763  
                 
Operating expenses:
               
Research and development costs, net
    6,862       6,809  
Sales and marketing
    10,271       11,808  
General and administrative
    2,697       3,250  
Total operating expenses
    19,830       21,867  
Operating  loss
    (4,035 )     (104 )
Financial and other income, net
    115       205  
Profit (Loss) before income tax benefit
    (3,920 )     101  
 
               
Tax expenses
    370       135  
Net loss
    (4,290 )     (34 )
                 
Basic net loss per share
  $ (0.13 )   $ (0.00 )
                 
Diluted net loss per share
  $ (0.13 )   $ (0.00 )
                 
Weighted average number of shares
               
used in computing basic  net
               
earnings per share
    33,481,650       33,357,909  
                 
Weighted average number of shares
               
used in computing diluted net
               
earnings per share
    33,481,650       33,357,909  

 
 

 
 

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, 2016
   
March 31, 2015
 
     
(Unaudited)
   
(Unaudited)
 
      $    
% of Revenues
    $    
% of Revenues
 
                               
 GAAP Operating loss
  $ (4,035 )     (18 )%   $ (104 )     0 %
 Share-based compensation (1)
    1,655               1,867          
 Amortization of intangible assets (2)
    386               511          
 Expenses related to M&A activities (3)
    -               577          
 Fair value adjustment for acquired deferred revenues write down
    65               11          
 Non-GAAP Operating income (loss)
  $ (1,929 )     (8 )%   $ 2,862       10 %
                                   
 GAAP Net loss
    $ (4,290 )     (19 )%   $ (34 )     0 %
 Share-based compensation (1)
    1,655               1,867          
 Amortization of intangible assets (2)
    386               511          
 Expenses related to M&A activities (3)
    -               577          
 Fair value adjustment for acquired deferred revenues write down
    65               11          
 Finanacial expensees
    278               -          
 Tax benefit (in respect of net deferred tax asset recorded)
    62               -          
 Non-GAAP Net income (loss)
  $ (1,844 )     (8 )%   $ 2,932       10 %
                                   
 GAAP loss per share (diluted)
  $ (0.13 )           $ (0.00 )        
 Share-based compensation
    0.05               0.05          
 Amortization of intangible assets
    0.01               0.02          
 Expenses related to M&A activities
    -               0.02          
 Fair value adjustment for acquired deferred revenues write down
    0.00               0.00          
 Finanacial expensees
    0.01               -          
 Tax benefit (in respect of net deferred tax asset recorded)
    0.00               -          
 Non-GAAP Net income (loss) per share (diluted)
  $ (0.06 )           $ 0.09          
                                   
 (1) Share-based compensation:
                               
                  Cost of revenues   $ 69             $ 82          
                  Research and development costs, net     426               420          
                  Sales and marketing     622               752          
                  General and administrative     538               613          
      $ 1,655             $ 1,867          
                                   
 (2) Amortization of intangible assets
                               
                  Cost of revenues   $ 248             $ 454          
                  Sales and marketing     138               57          
      $ 386             $ 511          
                                   
 (3) Expenses related to M&A activities
                               
                  General and administrative   $ -             $ 351          
                  Research and development costs, net     -             $ 45          
                  Sales and marketing     -             $ 181          
      $ -             $ 577          

 
 

 
 
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,
 
   
2016
   
2015
 
   
(Unaudited)
 
             
GAAP Revenues
  $ 22,938     $ 29,532  
                 
Fair value adjustment for acquired deferred revenues write down
    65       11  
                 
Non-GAAP Revenues
  $ 23,003     $ 29,543  
 
 
 

 
 
 
TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
March 31,
   
March 31,
 
   
2016
   
2015
 
   
(Unaudited)
   
(Unaudited)
 
   
 
       
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 24,818     $ 21,930  
Short term deposits
    32,700       46,500  
Restricted cash
    203          
Marketable securities and restricted cash
    62,994       55,344  
Trade receivables, net
    22,934       23,584  
Other receivables and prepaid expenses
    4,489       6,634  
Inventories
    9,795       8,321  
Total current assets
    157,933       162,313  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    252       260  
Deferred taxes
    439       1,620  
Other assets
    2,738       3,626  
Total long-term assets
    3,429       5,506  
                 
PROPERTY AND EQUIPMENT, NET
    4,916       6,011  
GOODWILL AND INTANGIBLE ASSETS, NET
    37,295       45,903  
                 
Total assets
  $ 203,573     $ 219,733  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
  $ 6,164     $ 5,876  
Deferred revenues
    13,097       12,340  
Other payables and accrued expenses
    13,865       15,232  
Total current liabilities
    33,126       33,448  
                 
LONG-TERM LIABILITIES:
               
Deferred revenues
    4,654       4,777  
Accrued severance pay
    639       292  
Other long term liabilities
    4,314       3,915  
Total long-term liabilities
    9,607       8,984  
                 
SHAREHOLDERS' EQUITY
    160,840       177,301  
                 
Total liabilities and shareholders' equity
  $ 203,573     $ 219,733  
 
 
 

 
 
 
TABLE  - 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
 
   
March 31,
 
   
2016
   
2015
 
   
(Unaudited)
 
             
Cash flows from operating activities:
           
             
Net Loss
  $ (4,290 )   $ (34 )
Adjustments to reconcile net income  to net cash provided by  operating activities:
               
Depreciation
    600       762  
Stock-based compensation related to options granted to employees
    1,665       1,849  
Amortization of intangible assets
    386       449  
Capital loss (gain)
    (1 )     4  
Decrease in accrued severance pay, net
    18       12  
Increase in other assets
    (109 )     (178 )
Decrease  in accrued interest and  amortization of premium on marketable securities
    338       300  
Increase in trade receivables
    281       175  
Decrease (Increase) in other receivables and prepaid expenses
    334       (2,691 )
Decrease in inventories
    374       1,788  
Increase in long-term deferred taxes, net
    62       96  
Increase (Decrease) in trade payables
    155       (424 )
Decrease in employees and payroll accruals
    (595 )     (409 )
Increase (Decrease) in deferred revenues
    (1,227 )     100  
Increase in other payables and accrued expenses
    600       99  
                 
Net cash provided by (used in) operating activities
    (1,409 )     1,898  
                 
Cash flows from investing activities:
               
                 
Redemption of short-term deposits
    -       12,500  
Investment in short-term deposit
    10,000       -  
Purchase of property and equipment
    (327 )     (666 )
Investment in marketable securities
    (8,780 )     (6,727 )
Proceeds from redemption and sale of marketable securities
    10,900       5,528  
Acquisitions of certain assets and liabilities
    -       (9,859 )
                 
Net cash provided by investing activities
    11,793       776  
                 
Cash flows from financing activities:
               
                 
Exercise of employee stock options
    11       76  
Purchase of treasury stocks, net
    (1,047 )     -  
                 
Net cash provided by (used in) financing activities
    (1,036 )     76  
                 
Increase in cash and cash equivalents
    9,348       2,750  
Cash and cash equivalents at the beginning of the period
    15,470       19,180  
                 
Cash and cash equivalents at the end of the period
  $ 24,818     $ 21,930