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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 February 2017
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   ☒          Form 40-F   ☐

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   ☐          No  ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
EXPLANATORY NOTE

On February 7, 2017, Allot Communications Ltd. issued a press release announcing its fourth quarter and full year 2016 financial results.

A copy of the press release entitled “Allot Communications Announces Fourth Quarter and Full Year 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/ Alberto Sessa  
    Alberto Sessa  
    Chief Financial Officer  
       
Date: February 7, 2017
 
2
EXHIBIT INDEX
 
The following exhibits have been filed as part of this Form 6-K:
 
Exhibit 
Description

99.1
Allot Communications Announces Fourth Quarter and Full Year 2016 Financial Results.
 
 
Exhibit 99.1

 

 Allot Communications Announces
Fourth Quarter and Full Year 2016 Financial Results

Hod Hasharon, Israel – February 7, 2016 - Allot Communications Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of security and monetization solutions that enables service providers and enterprises to protect and personalize the digital experience, today announced its fourth quarter and year end 2016 financial results.
 
 Q4 2016 – Financial Highlights
 
·
GAAP and non-GAAP Revenues were $23.5M;
 
·
GAAP gross margin was 69%, Non-GAAP gross margin was 71%;
 
·
GAAP operating profit of $1.3M, Non-GAAP operating profit of $1.8M;
 
·
Book-to-bill below one;
 
2016 – Financial Highlights
 
·
GAAP Revenues were $90.4M, Non-GAAP Revenues were $90.5M;
 
·
GAAP gross margin was 69%, Non-GAAP gross margin was 71%;
 
·
GAAP operating loss of $6.8M, Non-GAAP operating profit of $0.4M;
 
·
Book-to-bill below one;
 
Management Comment
 
Erez Antebi, President & CEO of Allot Communications, commented, “In my first days with Allot, I am impressed with much of what I see, most notably the quality and professionalism of the people. I believe the combination Allot has of the right products and technology, the right people and the large customer base is a strong foundation on which we can build Allot's growth.”
 
Mr. Antebi, continued, “A significant part of the role of the new management team will be to improve on the company’s execution and to realize its full potential, and I look forward to working with the team and taking the company to the next level.”
 

 
Q4 2016 Financial results
 
On a GAAP basis, total revenues for the fourth quarter of 2016 were $23.5 million compared to $25.4 million reported for the fourth quarter of 2015. Net profit for the fourth quarter of 2016 was $0.9 million, or $0.03 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.
 
On a non-GAAP basis, total revenues for the fourth quarter of 2016 were $23.5 million compared to $25.7 million reported for the fourth quarter of 2015. On a non-GAAP basis, net profit for the fourth quarter of 2016 was $1.2 million, or $0.03 per basic and diluted share. This compares with non-GAAP net profit of $0.7 million, or $0.02 per basic and diluted share, in the fourth quarter of 2015.
 
Net cash and cash equivalents as of December 31, 2016 totaled $113.7 million. The Company recorded positive operating cash flow of $4.2 million during the quarter. During the fourth quarter of 2016, cash used for the repurchase of the Company’s shares in the market totaled $0.5 million.
 
2016 Financial results
 
On a GAAP basis, total revenues for the full year of 2016 were $90.4 million compared to $100.0 million in 2015. Net loss for the full year of 2016 was $8.0 million, or $0.24 per basic and diluted share. This compares with a net loss of $19.8 million, or $0.59 per basic and diluted share, in 2015.
 
On a non-GAAP basis, total revenues for the full year of 2016 were $90.5 million compared to $100.3 million in 2015. On a non-GAAP basis, net loss for the full year of 2016 was $0.7 million, or $0.02 per basic and diluted share. This compares with non-GAAP net loss of $0.1 million, or $0.00 per basic and diluted share, in 2015.
 
During the year of 2016, the Company recorded negative operating cash flow of $3.4 million and cash used for the repurchase of the Company’s shares in the market totaled $3.8 million.
 
2017 Outlook
 
Management expects 2017 revenues in the range of $80 - $84 million.  The second half of 2017 is expected to be better than the first half and the book to bill ratio for the year is expected to be above 1.
 
# # #
 
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss fourth quarter and year end 2016 earnings results today, February 7, 2017 at 8:30 AM ET, 3:30 p.m. Israel time. To access the conference call, please dial one of the following numbers:
 
US: +1-347-293-1926, UK: +44(0) 20-3514-1906, Israel: +972-3-918-0609.
 
A recording of the conference call will be available from 12:00PM ET on February 7, 2017 for 30 days. To access the recording, please dial: +1-888-269-0005; UK: +44(0) 800-917-1246.
 
A live webcast of the conference call can be accessed on the Allot Communications website at: http://www.allot.com.
 
The webcast will also be archived on the website following the conference call.
 
About Allot Communications

Allot Communications (NASDAQ: ALLT, TASE: ALLT) is a leading provider of security and monetization solutions that enables service providers and enterprises 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 adjustment, restructuring expenses and other 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:
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
 
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Revenues
  
$
23,487
    
$
25,382
    
$
90,369
    
$
99,967
  
Cost of revenues
    
7,348
      
13,185
      
27,895
      
33,427
  
Gross profit
    
16,139
      
12,197
      
62,474
      
66,540
  
                                 
Operating expenses:
                                
Research and development costs, net
    
5,461
      
6,476
      
24,221
      
26,422
  
Sales and marketing
    
7,476
      
10,142
      
35,290
      
43,318
  
General and administrative
    
1,910
      
3,209
      
9,812
      
12,702
  
Total operating expenses
    
14,847
      
19,827
      
69,323
      
82,442
  
Operating profit (loss)
    
1,292
      
(7,630
)
    
(6,849
)
    
(15,902
)
Financial and other income (loss), net
    
423
      
232
      
1,059
      
(584
)
Profit (loss) before income tax expenses
    
1,715
      
(7,398
)
    
(5,790
)
    
(16,486
)
                                 
Tax expenses
    
773
      
2,982
      
2,204
      
3,356
  
Net profit (loss)
    
942
      
(10,380
)
    
(7,994
)
    
(19,842
)
                                 
 Basic net profit (loss) per share
  
$
0.03
    
$
(0.31
)
  
$
(0.24
)
  
$
(0.59
)
                                 
 Diluted net profit (loss) per share
  
$
0.03
    
$
(0.31
)
  
$
(0.24
)
  
$
(0.59
)
                                 
Weighted average number of shares
                                
used in computing basic  net
                                
earnings per share
    
33,090,708
      
33,559,698
      
33,202,309
      
33,419,917
  
                                 
Weighted average number of shares
                                
used in computing diluted net
                                
earnings per share
    
33,415,193
      
33,559,698
      
33,202,309
      
33,419,917
  
 
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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
 GAAP Revenues
  
$
23,487
    
$
25,382
    
$
90,369
    
$
99,967
  
 Fair value adjustment for acquired deferred revenues write down
    
31
      
271
      
165
      
304
  
 Non-GAAP Revenues
  
$
23,518
    
$
25,653
    
$
90,534
    
$
100,271
  
                                 
GAAP cost of revenue
  
$
7,348
    
$
13,185
    
$
27,895
    
$
33,427
  
 Share-based compensation (1)
    
(109
)
    
(79
)
    
(345
)
    
(324
)
 Amortization of intangible assets (2)
    
(367
)
    
(6,373
)
    
(1,173
)
    
(8,075
)
 Restructuring expenses (4)
    
-
      
-
      
(127
)
    
-
  
Non-GAAP cost of revenue
  
$
6,872
    
$
6,733
    
$
26,250
    
$
25,028
  
                                 
 GAAP gross profit
  
$
16,139
    
$
12,197
    
$
62,474
    
$
66,540
  
 Gross profit adjustments
    
507
      
6,723
      
1,810
      
8,703
  
 Non-GAAP gross profit
  
$
16,646
    
$
18,920
    
$
64,284
    
$
75,243
  
                                 
 GAAP operating expenses
  
$
14,847
    
$
19,827
    
$
69,323
    
$
82,442
  
 Share-based compensation (1)
    
(845
)
    
(1,545
)
    
(4,667
)
    
(6,846
)
 Amortization of intangible assets (2)
    
(132
)
    
(284
)
    
(535
)
    
(658
)
 Expenses related to M&A activities (3)
    
962
      
-
      
962
      
(678
)
 Restructuring expenses (4)
    
-
      
-
      
(1,163
)
    
-
  
 Non-GAAP operating expenses
  
$
14,832
    
$
17,998
    
$
63,920
    
$
74,260
  
                                 
 GAAP financial and other income (loss)
  
$
423
    
$
232
    
$
1,059
    
$
(584
)
 Expenses related to M&A activities (3)
    
(348
)
    
(89
)
    
(179
)
    
193
  
 Non-GAAP Financial and other income (loss)
  
$
75
    
$
143
    
$
880
    
$
(391
)
                                 
 GAAP taxes on income
  
$
773
    
$
2,982
    
$
2,204
    
$
3,356
  
 Tax expenses (in respect of net deferred tax asset recorded)
    
(36
)
    
(2,628
)
    
(230
)
    
(2,628
)
 Non-GAAP taxes on income
  
$
737
    
$
354
    
$
1,974
    
$
728
  
                                 
 GAAP Net income (loss)
  
$
942
    
$
(10,380
)
  
$
(7,994
)
  
$
(19,842
)
 Share-based compensation (1)
    
954
      
1,624
      
5,012
      
7,170
  
 Amortization of intangible assets (2)
    
499
      
6,657
      
1,708
      
8,733
  
 Expenses related to M&A activities (3)
    
(1,310
)
    
(89
)
    
(1,141
)
    
871
  
 Restructuring expenses (4)
    
-
      
-
      
1,290
      
-
  
 Fair value adjustment for acquired deferred revenues write down
    
31
      
271
      
165
      
304
  
 Tax expenses (in respect of net deferred tax asset recorded)
    
36
      
2,628
      
230
      
2,628
  
 Non-GAAP Net income (loss)
  
$
1,152
    
$
711
    
$
(730
)
  
$
(136
)
                                 
 GAAP Loss per share (diluted)
  
$
0.03
    
$
(0.31
)
  
$
(0.24
)
  
$
(0.59
)
 Share-based compensation
    
0.03
      
0.05
      
0.15
      
0.21
  
 Amortization of intangible assets
    
0.01
      
0.20
      
0.05
      
0.26
  
 Expenses related to M&A activities
    
(0.04
)
    
0.00
      
(0.03
)
    
0.03
  
 Restructuring expenses
    
-
      
-
      
0.04
      
-
  
 Fair value adjustment for acquired deferred revenues write down
    
0.00
      
0.01
      
0.00
      
0.02
  
 Tax expenses (in respect of net deferred tax asset recorded)
    
0.00
      
0.07
      
0.01
      
0.07
  
 Non-GAAP Net income (Loss) per share (diluted)
  
$
0.03
    
$
0.02
    
$
(0.02
)
  
$
(0.00
)
                                 
Weighted average number of shares used in
                                
computing GAAP diluted net earnings per share
    
33,415,193
      
33,559,698
      
33,202,309
      
33,419,917
  
                                 
Weighted average number of shares used in
                                
computing non-GAAP diluted net earnings per share
    
33,697,889
      
33,829,088
      
33,202,309
      
34,013,721
  
 
 
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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
(1) Share-based compensation (*):
                        
   Cost of revenues
  
$
109
    
$
79
    
$
345
    
$
324
  
   Research and development costs, net
    
244
      
366
      
1,223
      
1,637
  
   Sales and marketing
    
322
      
631
      
1,745
      
2,802
  
   General and administrative
    
279
      
548
      
1,699
      
2,407
  
   
$
954
    
$
1,624
    
$
5,012
    
$
7,170
  
                                 
 (2) Amortization of intangible assets
                                
   Cost of revenues
  
$
367
    
$
6,373
    
$
1,173
    
$
8,075
  
   Sales and marketing
    
132
      
284
      
535
      
658
  
   
$
499
    
$
6,657
    
$
1,708
    
$
8,733
  
                                 
 (3) Expenses related to M&A activities
                                
   General and administrative
  
$
(962
)
  
$
-
    
$
(962
)
  
$
452
  
   Research and development costs, net
    
-
      
-
      
-
      
45
  
   Sales and marketing
    
-
      
-
      
-
      
181
  
   Finanacial expensees
    
(348
)
    
(89
)
    
(179
)
    
193
  
   
$
(1,310
)
  
$
(89
)
  
$
(1,141
)
  
$
871
  
                                 
 (4) Restructuring expenses
                                
   Cost of revenues
  
$
-
    
$
-
    
$
127
    
$
-
  
   Research and development costs, net
    
-
      
-
      
370
      
-
  
   Sales and marketing
    
-
      
-
      
720
      
-
  
   General and administrative
    
-
      
-
      
73
      
-
  
   
$
-
    
$
-
    
$
1,290
    
$
-
  
 
(*) Excluding share-based compensation related to the restructuring plan, which was already included under restructuring expenses.
 
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
   
December 31,
    
December 31,
  
   
2016
    
2015
  
   
(Unaudited)
    
(Audited)
  
             
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
23,326
    
$
15,470
  
Short term deposits
    
29,821
      
42,700
  
Restricted cash
    
0
      
203
  
Marketable securities
    
60,507
      
64,921
  
Trade receivables, net
    
24,158
      
23,874
  
Other receivables and prepaid expenses
    
3,750
      
4,513
  
Inventories
    
7,235
      
10,169
  
Total current assets
    
148,797
      
161,850
  
                 
LONG-TERM ASSETS:
                
Severance pay fund
    
252
      
282
  
Deferred taxes
    
267
      
501
  
Other assets
    
1,136
      
2,712
  
Total long-term assets
    
1,655
      
3,495
  
                 
PROPERTY AND EQUIPMENT, NET
    
4,387
      
5,189
  
GOODWILL AND INTANGIBLE ASSETS, NET
    
35,972
      
37,681
  
                 
Total assets
  
$
190,811
    
$
208,215
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
  
$
3,275
    
$
7,107
  
Deferred revenues
    
11,133
      
14,066
  
Other payables and accrued expenses
    
10,538
      
13,921
  
Total current liabilities
    
24,946
      
35,094
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
    
3,597
      
4,912
  
Accrued severance pay
    
592
      
651
  
Other long term liabilities
    
4,502
      
4,153
  
Total long-term liabilities
    
8,691
      
9,716
  
                 
SHAREHOLDERS' EQUITY
    
157,174
      
163,405
  
                 
Total liabilities and shareholders' equity
  
$
190,811
    
$
208,215
  
 
 
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three Months Ended
    
Year ended Ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Cash flows from operating activities:
                        
                         
Net income (Loss)
  
$
942
    
$
(10,380
)
  
$
(7,994
)
  
$
(19,842
)
Adjustments to reconcile net income  to net cash provided by  operating activities:
                                
Depreciation
    
569
      
631
      
2,334
      
2,752
  
Stock-based compensation related to options granted to employees
    
1,005
      
1,628
      
5,181
      
7,170
  
Amortization of intangible assets
    
499
      
6,658
      
1,709
      
8,733
  
Capital loss
    
4
      
190
      
24
      
328
  
Decrease (Increase) in accrued severance pay, net
    
(4
)
    
197
      
(29
)
    
349
  
Decrease in other assets
    
828
      
1,237
      
1,575
      
1,205
  
Decrease in accrued interest and  amortization of premium on marketable securities
    
215
      
253
      
1,238
      
967
  
Decrease (Increase) in trade receivables
    
2,795
      
(872
)
    
(284
)
    
(847
)
Decrease (Increase) in other receivables and prepaid expenses
    
206
      
(2,092
)
    
699
      
(2,623
)
Decrease (Increase) in inventories
    
1,410
      
(120
)
    
2,934
      
(60
)
Decrease in long-term deferred taxes, net
    
49
      
1,543
      
234
      
1,403
  
Increase (Decrease) in trade payables
    
302
      
1,532
      
(3,832
)
    
2,218
  
Increase (Decrease) in employees and payroll accruals
    
(241
)
    
1,819
      
(851
)
    
901
  
Increase (Decrease) in deferred revenues
    
(2,664
)
    
313
      
(4,248
)
    
1,961
  
Decrease in other payables and accrued expenses
    
(1,719
)
    
(1,000
)
    
(2,156
)
    
(429
)
Net cash provided by (used in) operating activities
    
4,196
      
1,537
      
(3,466
)
    
4,186
  
                                 
Cash flows from investing activities:
                                
                                 
Redemption of (Investment in) restricted cash
    
-
      
(203
)
    
203
      
(203
)
Redemption of (Investment in) short-term deposits
    
(2,502
)
    
(5,950
)
    
12,879
      
16,300
  
Purchase of property and equipment
    
(398
)
    
(617
)
    
(1,582
)
    
(2,223
)
Proceeds from sale of property and equipment
    
26
      
-
      
26
      
-
  
Investment in marketable securities
    
(7,598
)
    
(13,286
)
    
(28,695
)
    
(34,098
)
Proceeds from redemption or sale of marketable securities
    
10,403
      
5,822
      
32,208
      
22,221
  
Acquisitions
    
-
      
193
      
-
      
(9,859
)
Net cash provided by (used in) investing activities
    
(69
)
    
(14,041
)
    
15,039
      
(7,862
)
                                 
Cash flows from financing activities:
                                
                                 
Exercise of employee stock options
    
20
      
28
      
115
      
132
  
Purchase of treasury stocks
    
(506
)
    
(166
)
    
(3,832
)
    
(166
)
Net cash provided by financing activities
    
(486
)
    
(138
)
    
(3,717
)
    
(34
)
                                 
Increase (Decrease) in cash and cash equivalents
    
3,641
      
(12,642
)
    
7,856
      
(3,710
)
Cash and cash equivalents at the beginning of the period
    
19,685
      
28,112
      
15,470
      
19,180
  
Cash and cash equivalents at the end of the period
  
$
23,326
    
$
15,470
    
$
23,326
    
$
15,470