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 August 2017

Commission File Number: 001-33129

 (Translation of registrant’s name into English)

22 Hanagar Street

Neve Ne'eman Industrial Zone B

Hod-Hasharon 45240

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 August 1, 2017, Allot Communications Ltd. issued a press release announcing the Second Quarter 2017 Financial Results.

A copy of the press release entitled “Allot Communications Announces Second Quarter 2017 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: August 1, 2017

 

EXHIBIT INDEX

The following exhibit has been filed as part of this Form 6-K:

 

Exhibit Number

Description

 

99.1	Allot Communications Announces Second Quarter 2017 Financial Results

---

 

 Allot Communications Announces

Second Quarter 2017 Financial Results

 

Revenues in Q2 up from Q1 2017, with smaller loss in Q2 compared to Q1 2017

Hod Hasharon, Israel – August 1, 2017 - Allot Communications Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of security and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience, today announced its second quarter 2017 financial results.

 

 Q2 2017 Highlights

 

·

GAAP revenues were $19.5M, up from $18.4M in Q1 2017;

 

·

GAAP operating loss was $3.8M, down from $4.9M in Q1 2017;

 

·

Book-to-bill above one for the second consecutive quarter.

 

 

Erez Antebi, President & CEO of Allot Communications, commented, “The past quarter was the second consecutive quarter with book-to-bill ratio above one. We are also seeing a steady, consistent increase in the number of consumers who are enjoying the benefits of our network security solutions. Internally, we are aligning the organization to fit the new strategy and generate growth. I strongly believe we are on the right path to materialize on the market opportunities we identified as growth engines, and we continue to demonstrate the value of our solutions and commitment to customer success.”

 

 

On a GAAP basis, total revenues for the second quarter of 2017 were $19.5 million, compared to $18.4 million reported for the first quarter of 2017. Net loss for the second quarter of 2017 was $4.0 million, or $0.12 per basic and diluted share. This compares with a net loss of $5.1 million, or $0.15 per basic and diluted share, in the first quarter of 2017.

 

On a non-GAAP basis, total revenues for the second quarter of 2017 were $19.5 million compared to $18.5 million reported for the first quarter of 2017. Net loss for the second quarter of 2017 was $2.3 million, or $0.07 per basic and diluted share. This compares with a net loss of $3.6 million, or $0.11 per basic and diluted share, in the first quarter of 2017.

 

Cash and investments as of June 30, 2017 totaled $111.3 million. The Company recorded a positive operating cash flow of $0.9 million during the quarter.

 

 

Management reiterates its previously issued guidance and expects 2017 revenues in the range of $80 - $84 million.  Revenues for the second half of 2017 are expected to be better than for 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 second quarter 2017 earnings results today, August 1, 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: +1-888-668-9141, UK: +44(0) 800-917-5108, Israel: +972-3-918-0609.

 

A recording of the conference call will be available from 12:00PM ET on August 1, 2017 for 30 days. To access the recording, please dial: +1-866-276-1485; UK: +44(0) 800-917-1246; Intl: +972-3-925-5928

 

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.

 

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.

 

 

ALLOT COMMUNICATIONS LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2017				2016				2017				2016
		(Unaudited)								(Unaudited)
Revenues		$	19,502			$	22,958			$	37,937			$	45,896
Cost of revenues			6,662				6,524				12,980				13,667
Gross profit			12,840				16,434				24,957				32,229
Operating expenses:
Research and development costs, net			5,364				5,957				10,897				12,818
Sales and marketing			8,747				8,846				17,727				19,117
General and administrative			2,519				2,570				5,060				5,267
Total operating expenses			16,630				17,373				33,684				37,202
Operating loss			(3,790	)			(939	)			(8,727	)			(4,973	)
Financial and other income, net			112				211				474				327
Loss before income tax benefit			(3,678	)			(728	)			(8,253	)			(4,646	)
Tax expenses			352				499				854				870
Net loss			(4,030	)			(1,227	)			(9,107	)			(5,516	)
Basic net loss per share		$	(0.12	)		$	(0.04	)		$	(0.27	)		$	(0.17	)
Diluted net loss per share		$	(0.12	)		$	(0.04	)		$	(0.27	)		$	(0.17	)
Weighted average number of shares
used in computing basic net
earnings per share			33,200,982				33,234,040				33,146,715				33,357,014
Weighted average number of shares
used in computing diluted net
earnings per share			33,200,982				33,234,040				33,146,715				33,357,014

 

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,
		2017				2016				2017				2016
		(Unaudited)								(Unaudited)
GAAP Revenues		$	19,502			$	22,958			$	37,937			$	45,896
Fair value adjustment for acquired deferred revenues write down			13				36				37				101
Non-GAAP Revenues		$	19,515			$	22,994			$	37,974			$	45,997
GAAP cost of revenues		$	6,662			$	6,524			$	12,980			$	13,667
Share-based compensation (1)			(96	)			(104	)			(192	)			(173	)
Amortization of intangible assets (2)			(242	)			(233	)			(474	)			(481	)
Non-GAAP cost of revenues		$	6,324			$	6,187			$	12,314			$	13,013
GAAP gross profit		$	12,840			$	16,434			$	24,957			$	32,229
Gross profit adjustments			351				373				703				755
Non-GAAP gross profit		$	13,191			$	16,807			$	25,660			$	32,984
GAAP operating expenses		$	16,630			$	17,373			$	33,684			$	37,202
Share-based compensation (1)			(870	)			(1,220	)			(1,618	)			(2,806	)
Amortization of intangible assets (2)			(135	)			(132	)			(269	)			(270	)
Expenses related to M&A activities (3)			-				-				(89	)			-
Non-GAAP operating expenses		$	15,625			$	16,021			$	31,708			$	34,126
GAAP financial and other income		$	112			$	211			$	474			$	327
Expenses related to M&A activities (3)			306				(135	)			379				143
Non-GAAP Financial and other income		$	418			$	76			$	853			$	470
GAAP taxes on income		$	352			$	499			$	854			$	870
Tax benefit (in respect of net deferred tax asset recorded)			(64	)			(69	)			(130	)			(131	)
Non-GAAP taxes on income		$	288			$	430			$	724			$	739
GAAP Net Loss		$	(4,030	)		$	(1,227	)		$	(9,107	)		$	(5,516	)
Share-based compensation (1)			966				1,324				1,810				2,979
Amortization of intangible assets (2)			377				365				743				751
Expenses related to M&A activities (3)			306				(135	)			468				143
Fair value adjustment for acquired deferred revenues write down			13				36				37				101
Tax benefit (in respect of net deferred tax asset recorded)			64				69				130				131
Non-GAAP Net income (Loss)		$	(2,304	)		$	432			$	(5,919	)		$	(1,411	)
GAAP Loss per share (diluted)		$	(0.12	)		$	(0.04	)		$	(0.27	)		$	(0.17	)
Share-based compensation			0.03				0.04				0.05				0.09
Amortization of intangible assets			0.01				0.01				0.02				0.02
Expenses related to M&A activities			0.01				(0.00	)			0.01				0.01
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				0.00				0.01				0.01
Non-GAAP Net income (Loss) per share (diluted)		$	(0.07	)		$	0.01			$	(0.18	)		$	(0.04	)
Weighted average number of shares used in
computing GAAP diluted net earnings per share			33,200,982				33,234,040				33,146,715				33,357,014
Weighted average number of shares used in
computing non-GAAP diluted net earnings per share			33,200,982				33,736,414				33,146,715				33,357,014

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,
		2017				2016				2017				2016
		(Unaudited)								(Unaudited)
(1) Share-based compensation:
Cost of revenues		$	96			$	104			$	192			$	173
Research and development costs, net			217				280				446				706
Sales and marketing			246				467				487				1,089
General and administrative			407				473				685				1,011
		$	966			$	1,324			$	1,810			$	2,979
(2) Amortization of intangible assets
Cost of revenues		$	242			$	233			$	474			$	481
Sales and marketing			135				132				269				270
		$	377			$	365			$	743			$	751
(3) Expenses related to M&A activities
General and administrative		$	-			$	-			$	89			$	-
Finanacial expenses			306				(135	)			379				143
		$	306			$	(135	)		$	468			$	143

 

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

 

ALLOT COMMUNICATIONS LTD.