Allot Communications Ltd. | |||
By:
|
/s/ Shmuel Arvatz | ||
Shmuel Arvatz | |||
Chief Financial Officer
|
|||
Exhibit | Description |
99.1 | Allot Communications Announces Second Quarter 2016 Financial Results |
· | Revenues were $23M, up 6% year over year. |
· | Non-GAAP gross margin was 73%, GAAP gross margin was 72% |
· | Non-GAAP operating income of $786K, GAAP operating loss of $939K; |
· | Company implemented an internal re-organization to better align the company structure with its new strategy of increased focus on security solutions and profitability; |
· | Book-to-bill was below one. Updated yearly revenue guidance to $90-$94M; |
Investor Relations Contact:
GK Investor Relations
Ehud Helft/Gavriel Frohwein
+1 646 688 3559
allot@gkir.com
|
Public Relations Contact:
Sigalit Orr
Director Corporate Communications International dialing +972-54-268-1500 sorr@allot.com |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenues
|
$
|
22,958
|
$
|
21,592
|
$
|
45,896
|
$
|
51,124
|
||||||||
Cost of revenues
|
6,524
|
6,432
|
13,667
|
14,200
|
||||||||||||
Gross profit
|
16,434
|
15,160
|
32,229
|
36,924
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development costs, net
|
5,957
|
6,691
|
12,818
|
13,500
|
||||||||||||
Sales and marketing
|
8,846
|
10,836
|
19,117
|
22,644
|
||||||||||||
General and administrative
|
2,570
|
3,375
|
5,267
|
6,626
|
||||||||||||
Total operating expenses
|
17,373
|
20,902
|
37,202
|
42,770
|
||||||||||||
Operating loss
|
(939
|
)
|
(5,742
|
)
|
(4,973
|
)
|
(5,846
|
)
|
||||||||
Financial and other income (loss), net
|
211
|
(111
|
)
|
327
|
94
|
|||||||||||
Loss before income tax benefit
|
(728
|
)
|
(5,853
|
)
|
(4,646
|
)
|
(5,752
|
)
|
||||||||
Tax expenses
|
499
|
171
|
870
|
307
|
||||||||||||
Net loss
|
(1,227
|
)
|
(6,024
|
)
|
(5,516
|
)
|
(6,059
|
)
|
||||||||
Basic net loss per share
|
$
|
(0.04
|
)
|
$
|
(0.18
|
)
|
$
|
(0.17
|
)
|
$
|
(0.18
|
)
|
||||
Diluted net loss per share
|
$
|
(0.04
|
)
|
$
|
(0.18
|
)
|
$
|
(0.17
|
)
|
$
|
(0.18
|
)
|
||||
Weighted average number of shares
used in computing basic net |
33,234,040
|
33,457,887
|
33,357,014
|
33,408,174
|
||||||||||||
|
||||||||||||||||
Weighted average number of shares
used in computing diluted net |
33,234,040
|
33,457,887
|
33,357,014
|
33,408,174
|
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
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Revenues
|
$
|
22,958
|
$
|
21,592
|
$
|
45,896
|
$
|
51,124
|
||||||||
Fair value adjustment for acquired deferred revenues write down
|
36
|
11
|
101
|
22
|
||||||||||||
Non-GAAP Revenues
|
$
|
22,994
|
$
|
21,603
|
$
|
45,997
|
$
|
51,146
|
||||||||
GAAP cost of revenue
|
$
|
6,524
|
$
|
6,432
|
$
|
13,667
|
$
|
14,200
|
||||||||
Share-based compensation (1)
|
(104
|
)
|
(83
|
)
|
(173
|
)
|
(165
|
)
|
||||||||
Amortization of intangible assets (2)
|
(233
|
)
|
(627
|
)
|
(481
|
)
|
(1,081
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
6,187
|
$
|
5,722
|
$
|
13,013
|
$
|
12,954
|
||||||||
GAAP gross profit
|
$
|
16,434
|
$
|
15,160
|
$
|
32,229
|
$
|
36,924
|
||||||||
Gross profit adjustments
|
373
|
721
|
755
|
1,268
|
||||||||||||
Non-GAAP gross profit
|
$
|
16,807
|
$
|
15,881
|
$
|
32,984
|
$
|
38,192
|
||||||||
GAAP operating expenses
|
$
|
17,373
|
$
|
20,902
|
$
|
37,202
|
$
|
42,770
|
||||||||
Share-based compensation (1)
|
(1,220
|
)
|
(1,842
|
)
|
(2,806
|
)
|
(3,627
|
)
|
||||||||
Amortization of intangible assets (2)
|
(132
|
)
|
(159
|
)
|
(270
|
)
|
(216
|
)
|
||||||||
Expenses related to M&A activities (3)
|
-
|
-
|
-
|
(577
|
)
|
|||||||||||
Non-GAAP operating expenses
|
$
|
16,021
|
$
|
18,901
|
$
|
34,126
|
$
|
38,350
|
||||||||
GAAP financial and other income
|
$
|
211
|
$
|
(111
|
)
|
$
|
327
|
$
|
94
|
|||||||
Expenses related to M&A activities (3)
|
(135
|
)
|
264
|
143
|
264
|
|||||||||||
Non-GAAP Financial and other income
|
$
|
76
|
$
|
153
|
$
|
470
|
$
|
358
|
||||||||
GAAP taxes on income
|
$
|
499
|
$
|
171
|
$
|
870
|
$
|
307
|
||||||||
Tax benefit (in respect of net deferred tax asset recorded)
|
(69
|
)
|
-
|
(131
|
)
|
-
|
||||||||||
Non-GAAP taxes on income
|
$
|
430
|
$
|
171
|
$
|
739
|
$
|
307
|
||||||||
GAAP Net Loss
|
$
|
(1,227
|
)
|
$
|
(6,024
|
)
|
$
|
(5,516
|
)
|
$
|
(6,059
|
)
|
||||
Share-based compensation (1)
|
1,324
|
1,925
|
2,979
|
3,792
|
||||||||||||
Amortization of intangible assets (2)
|
365
|
786
|
751
|
1,297
|
||||||||||||
Expenses related to M&A activities (3)
|
(135
|
)
|
264
|
143
|
841
|
|||||||||||
Fair value adjustment for acquired deferred revenues write down
|
36
|
11
|
101
|
22
|
||||||||||||
Tax benefit (in respect of net deferred tax asset recorded)
|
69
|
-
|
131
|
-
|
||||||||||||
Non-GAAP Net income (Loss)
|
$
|
432
|
$
|
(3,038
|
)
|
$
|
(1,411
|
)
|
$
|
(107
|
)
|
|||||
GAAP Loss per share (diluted)
|
$
|
(0.04
|
)
|
$
|
(0.18
|
)
|
$
|
(0.17
|
)
|
$
|
(0.18
|
)
|
||||
Share-based compensation
|
0.04
|
0.06
|
0.09
|
0.11
|
||||||||||||
Amortization of intangible assets
|
0.01
|
0.02
|
0.02
|
0.04
|
||||||||||||
Expenses related to M&A activities
|
0.00
|
0.01
|
0.01
|
0.03
|
||||||||||||
Fair value adjustment for acquired deferred revenues write down
|
0.00
|
0.00
|
0.00
|
0.00
|
||||||||||||
Tax benefit (in respect of net deferred tax asset recorded)
|
0.00
|
-
|
0.01
|
-
|
||||||||||||
Non-GAAP Net income (Loss) per share (diluted)
|
$
|
0.01
|
$
|
(0.09
|
)
|
$
|
(0.04
|
)
|
$
|
(0.00
|
)
|
|||||
|
||||||||||||||||
Weighted average number of shares
used in computing GAAP diluted net |
33,234,040
|
33,457,887
|
33,357,014
|
33,408,174
|
||||||||||||
|
||||||||||||||||
Weighted average number of shares
used in computing non-GAAP diluted net |
33,736,414
|
33,457,887
|
33,357,014
|
33,408,174
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
(1) Share-based compensation:
|
||||||||||||||||
Cost of revenues
|
$
|
104
|
$
|
83
|
$
|
173
|
$
|
165
|
||||||||
Research and development costs, net
|
280
|
425
|
706
|
845
|
||||||||||||
Sales and marketing
|
467
|
739
|
1,089
|
1,491
|
||||||||||||
General and administrative
|
473
|
678
|
1,011
|
1,291
|
||||||||||||
$
|
1,324
|
$
|
1,925
|
$
|
2,979
|
$
|
3,792
|
|||||||||
(2) Amortization of intangible assets
|
||||||||||||||||
Cost of revenues
|
$
|
233
|
$
|
627
|
$
|
481
|
$
|
1,081
|
||||||||
Sales and marketing
|
132
|
159
|
270
|
216
|
||||||||||||
$
|
365
|
$
|
786
|
$
|
751
|
$
|
1,297
|
|||||||||
(3) Expenses related to M&A activities
|
||||||||||||||||
General and administrative
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
351
|
||||||||
Research and development costs, net
|
-
|
-
|
-
|
45
|
||||||||||||
Sales and marketing
|
-
|
-
|
-
|
181
|
||||||||||||
Finanacial expensees
|
(135
|
)
|
264
|
143
|
264
|
|||||||||||
$
|
(135
|
)
|
$
|
264
|
$
|
143
|
$
|
841
|
TABLE - 3
|
ALLOT COMMUNICATIONS LTD.
|
AND ITS SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in thousands)
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
20,145
|
$
|
15,470
|
||||
Short term deposits
|
32,967
|
42,700
|
||||||
Restricted cash
|
203
|
203
|
||||||
Marketable securities
|
63,281
|
64,921
|
||||||
Trade receivables, net
|
23,332
|
23,874
|
||||||
Other receivables and prepaid expenses
|
4,320
|
4,513
|
||||||
Inventories
|
10,308
|
10,169
|
||||||
Total current assets
|
154,556
|
161,850
|
||||||
|
||||||||
LONG-TERM ASSETS:
|
||||||||
Severance pay fund
|
258
|
282
|
||||||
Deferred taxes
|
378
|
501
|
||||||
Other assets
|
2,338
|
2,712
|
||||||
Total long-term assets
|
2,974
|
3,495
|
||||||
|
||||||||
PROPERTY AND EQUIPMENT, NET
|
4,710
|
5,189
|
||||||
GOODWILL AND INTANGIBLE ASSETS, NET
|
36,930
|
37,681
|
||||||
|
||||||||
Total assets
|
$
|
199,170
|
$
|
208,215
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
4,202
|
$
|
7,107
|
||||
Deferred revenues
|
14,078
|
14,066
|
||||||
Other payables and accrued expenses
|
12,695
|
13,921
|
||||||
Total current liabilities
|
30,975
|
35,094
|
||||||
|
||||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues
|
4,836
|
4,912
|
||||||
Accrued severance pay
|
654
|
651
|
||||||
Other long term liabilities
|
4,262
|
4,153
|
||||||
Total long-term liabilities
|
9,752
|
9,716
|
||||||
|
||||||||
SHAREHOLDERS' EQUITY
|
158,443
|
163,405
|
||||||
|
||||||||
Total liabilities and shareholders' equity
|
$
|
199,170
|
$
|
208,215
|
TABLE - 4
|
|||||
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,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
|
||||||||||||||||
Net Loss
|
$
|
(1,227
|
)
|
$
|
(6,024
|
)
|
$
|
(5,516
|
)
|
$
|
(6,059
|
)
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation
|
596
|
634
|
1,195
|
1,397
|
||||||||||||
Stock-based compensation related to options granted to employees
|
1,324
|
1,925
|
2,979
|
3,792
|
||||||||||||
Amortization of intangible assets
|
365
|
786
|
751
|
1,234
|
||||||||||||
Capital loss
|
21
|
11
|
20
|
15
|
||||||||||||
Decrease in accrued severance pay, net
|
9
|
41
|
27
|
53
|
||||||||||||
Decrease (Increase) in other assets
|
483
|
(188
|
)
|
374
|
(366
|
)
|
||||||||||
Decease in accrued interest and amortization of premium on marketable securities
|
402
|
173
|
740
|
473
|
||||||||||||
Increase (Decrease) in trade receivables
|
261
|
(2,300
|
)
|
542
|
(2,125
|
)
|
||||||||||
Decrease (Increase) in other receivables and prepaid expenses
|
(92
|
)
|
1,378
|
242
|
(1,313
|
)
|
||||||||||
Decrease (Increase) in inventories
|
(513
|
)
|
(23
|
)
|
(139
|
)
|
1,765
|
|||||||||
Decrease (Increase) in long-term deferred taxes, net
|
61
|
(236
|
)
|
123
|
(140
|
)
|
||||||||||
Increase (Decrease) in trade payables
|
(3,060
|
)
|
1,661
|
(2,905
|
)
|
1,237
|
||||||||||
Increase (Decrease) in employees and payroll accruals
|
(12
|
)
|
257
|
(597
|
)
|
(169
|
)
|
|||||||||
Increase (Decrease) in deferred revenues
|
1,163
|
283
|
(64
|
)
|
383
|
|||||||||||
Decrease in other payables and accrued expenses
|
(1,004
|
)
|
(727
|
)
|
(404
|
)
|
(435
|
)
|
||||||||
Net cash used in operating activities
|
(1,223
|
)
|
(2,349
|
)
|
(2,632
|
)
|
(258
|
)
|
||||||||
|
||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Redemption of short-term deposits
|
-
|
25,500
|
-
|
38,000
|
||||||||||||
Investment in short-term deposit
|
(267
|
)
|
-
|
9,733
|
-
|
|||||||||||
Purchase of property and equipment
|
(409
|
)
|
(418
|
)
|
(736
|
)
|
(1,084
|
)
|
||||||||
Investment in marketable securities
|
(8,200
|
)
|
(11,548
|
)
|
(16,980
|
)
|
(18,275
|
)
|
||||||||
Proceeds from redemption or sale of marketable securities
|
7,690
|
6,079
|
18,590
|
11,607
|
||||||||||||
Acquisitions
|
-
|
-
|
-
|
(10,052
|
)
|
|||||||||||
Net cash provided by (used in) investing activities
|
(1,186
|
)
|
19,613
|
10,607
|
20,196
|
|||||||||||
|
||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Exercise of employee stock options
|
15
|
24
|
26
|
100
|
||||||||||||
Purchase of treasury stocks
|
(2,279
|
)
|
-
|
(3,326
|
)
|
-
|
||||||||||
|
||||||||||||||||
Net cash provided by (used in) financing activities
|
(2,264
|
)
|
24
|
(3,300
|
)
|
100
|
||||||||||
Increase in cash and cash equivalents
|
(4,673
|
)
|
17,288
|
4,675
|
20,038
|
|||||||||||
Cash and cash equivalents at the beginning of the period
|
24,818
|
21,930
|
15,470
|
19,180
|
||||||||||||
Cash and cash equivalents at the end of the period
|
$
|
20,145
|
$
|
39,218
|
$
|
20,145
|
$
|
39,218
|