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 2018
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 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): ___


EXPLANATORY NOTE

On May 8, 2018, Allot Communications Ltd. issued a press release announcing the First Quarter 2018 Financial Results.

A copy of the press release entitled “Allot Announces First Quarter 2018 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
 
   
CFO
 

May 8, 2018
 

EXHIBIT INDEX

Exhibit Number
Description




Exhibit 99.1
 

Allot Announces
First Quarter 2018 Financial Results
 
Revenues increased 18% Year over Year

Hod Hasharon, Israel – May 8, 2018 - Allot Communications Ltd. (NASDAQ: ALLT, TASE: ALLT), a global provider of leading innovative network intelligence and security solutions for service providers worldwide, today announced its first quarter 2018 financial results.
 
 Q1 2018 – Financial Highlights
 
·
Revenues were $21.7 million, up 18% year-over-year;
 
·
GAAP gross margin was 68%; Non-GAAP gross margin was 70%;
 
·
GAAP operating loss of $3.5 million; non-GAAP operating loss of $2.3 million;
 
·
Book-to-bill above one for the fifth consecutive quarter;
 
Financial Outlook:
 
·
Management maintains its previously issued guidelines for 2018.
 
·
Management continues to expect 2018 revenues to grow to between $91 - 95 million with the second half of the year stronger than the first half, reflecting typical seasonality;
 
·
2018 Book to Bill is expected at above 1;
 
Management Comment
 
Erez Antebi, President & CEO of Allot, commented:
 
The results in the first quarter of 2018 show we are on track in successfully executing the turnaround process we began last year and the transition to a security company.
 
We see a growing number of communication service providers worldwide realize that offering secure broadband at a premium price creates a substantial revenue potential as well as providing an important service to their customers.
 
Allot’s position as a leading technology provider for such security services puts us in a unique position to take advantage of this market opportunity.  We strongly believe that with over 20 million subscribers  protected by AllotSecure technology worldwide, this is just the beginning.”
 

 
Q1 2018 Financial Results Summary
 
Total revenues for the first quarter of 2018 were $21.7 million, up 18% compared to $18.4 million in the first quarter of 2017.
 
Gross profit on a GAAP basis for the first quarter of 2018 was $14.8 million (gross margin of 68.1%), a 22% improvement compared with $12.1 million (gross margin of 65.7%) in the first quarter of 2017.
 
Gross profit on a non-GAAP basis for the first quarter of 2018 was $15.1 million (gross margin of 69.6%), a 21% improvement compared with $12.5 million (gross margin of 67.5%) in the first quarter of 2017.
 
Net loss on a GAAP basis for the first quarter of 2018 was $3.7 million, or $0.11 per basic share, compared with a net loss of $5.1 million, or $0.15 per basic share, in the first quarter of 2017.
 
Non-GAAP net loss for the first quarter of 2018 was $2.4 million, or $0.07 per basic share, compared with a non-GAAP net loss of $3.6 million, or $0.11 per basic share, in the first quarter of 2017.
 
Cash and investments as of March 31, 2018 totaled $104.7 million. The Company recorded negative operating cash flow of $1.1 million during the first quarter of 2018.
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss first quarter 2018 earnings results today, May 8, 2018 at 8:30 am ET, 3:30 pm 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 live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot Communications website at: http://investors.allot.com/index.cfm
 
About Allot Communications

Allot Communications Ltd. (NASDAQ, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe. Allot. See. Control. Secure. For more information, 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, changes in taxes related items 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:
Vered Zur
Vice-President Marketing
International dialing +972-54-240 0042
vzur@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,
 
   
2018
   
2017
 
   
(Unaudited)
 
             
Revenues
 
$
21,732
   
$
18,435
 
Cost of revenues
   
6,924
     
6,318
 
Gross profit
   
14,808
     
12,117
 
                 
Operating expenses:
               
Research and development costs, net
   
5,793
     
5,533
 
Sales and marketing
   
10,033
     
8,980
 
General and administrative
   
2,466
     
2,541
 
Total operating expenses
   
18,292
     
17,054
 
Operating loss
   
(3,484
)
   
(4,937
)
Financial and other income, net
   
230
     
362
 
Loss before income tax expenses
   
(3,254
)
   
(4,575
)
                 
Tax expenses
   
432
     
502
 
Net Loss
   
(3,686
)
   
(5,077
)
                 
 Basic net loss per share
 
$
(0.11
)
 
$
(0.15
)
                 
 Diluted net loss per share
 
$
(0.11
)
 
$
(0.15
)
                 
Weighted average number of shares used in computing basic net loss per share
   
33,555,980
     
33,091,845
 
                 
Weighted average number of shares used in computing diluted net loss per share
   
33,555,980
     
33,091,845
 


TABLE  - 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)
 
   
Three Months Ended
 
   
March 31,
 
   
2018
   
2017
 
   
(Unaudited)
 
             
 GAAP Revenues
 
$
21,732
   
$
18,435
 
 Fair value adjustment for acquired deferred revenues write down
   
-
     
24
 
 Non-GAAP Revenues
 
$
21,732
   
$
18,459
 
                 
GAAP cost of revenues
 
$
6,924
   
$
6,318
 
 Share-based compensation (1)
   
(80
)
   
(95
)
 Amortization of intangible assets (2)
   
(232
)
   
(232
)
Non-GAAP cost of revenues
 
$
6,612
   
$
5,991
 
                 
 GAAP gross profit
 
$
14,808
   
$
12,117
 
 Gross profit adjustments
 
$
312
     
351
 
 Non-GAAP gross profit
 
$
15,120
   
$
12,468
 
                 
 GAAP operating expenses
 
$
18,292
   
$
17,054
 
 Share-based compensation (1)
   
(624
)
   
(749
)
 Amortization of intangible assets (2)
   
(175
)
   
(135
)
 Expenses related to M&A activities (3)
   
(38
)
   
(89
)
 Non-GAAP operating expenses
 
$
17,455
   
$
16,081
 
                 
 GAAP financial and other income
 
$
230
   
$
362
 
 Expenses related to M&A activities (3)
   
150
     
74
 
 Non-GAAP Financial and other income
 
$
380
   
$
436
 
                 
 GAAP taxes on income
 
$
432
   
$
502
 
 Tax expenses (in respect of net deferred tax asset recorded)
   
(19
)
   
(67
)
 Non-GAAP taxes on income
 
$
413
   
$
435
 
                 
 GAAP Net Loss
 
$
(3,686
)
 
$
(5,077
)
 Share-based compensation (1)
   
704
     
844
 
 Amortization of intangible assets (2)
   
407
     
367
 
 Expenses related to M&A activities (3)
   
188
     
163
 
 Fair value adjustment for acquired deferred revenues write down
   
-
     
24
 
 Tax expenses in respect of net deferred tax asset recorded
   
19
     
67
 
 Non-GAAP Net income (Loss)
 
$
(2,368
)
 
$
(3,612
)
                 
 GAAP Loss per share (diluted)
 
$
(0.11
)
 
$
(0.15
)
 Share-based compensation
   
0.02
     
0.03
 
 Amortization of intangible assets
   
0.01
     
0.01
 
 Expenses related to M&A activities
   
0.01
     
0.00
 
 Tax expenses (in respect of net deferred tax asset recorded)
   
0.00
     
0.00
 
 Non-GAAP Net loss per share (diluted)
   
(0.07
)
 
$
(0.11
)
                 
Weighted average number of shares used in computing GAAP diluted net loss per share
   
33,555,980
     
33,091,845
 
                 
Weighted average number of shares used in computing non-GAAP diluted net loss per share
   
33,555,980
     
33,091,845
 
 

TABLE  - 2 cont.
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)
 
     
Three Months Ended
 
     
March 31,
 
     
2018
   
2017
 
     
(Unaudited)
 
               
(1)
Share-based compensation (*):
           
 
Cost of revenues
 
$
80
   
$
95
 
 
Research and development costs, net
   
155
     
229
 
 
Sales and marketing
   
222
     
241
 
 
General and administrative
   
247
     
279
 
     
$
704
   
$
844
 
                   
(2)
Amortization of intangible assets
               
 
Cost of revenues
 
$
232
   
$
232
 
 
Sales and marketing
   
175
     
135
 
     
$
407
   
$
367
 
                   
(3)
Expenses related to M&A activities
               
 
General and administrative
 
$
38
   
$
89
 
 
Financial income
   
150
     
74
 
     
$
188
   
$
163
 


TABLE  - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)
 
 
 
March 31,
   
December 31,
 
 
 
2018
   
2017
 
 
 
(Unaudited)
   
(Audited)
 
 
     
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
22,835
   
$
15,342
 
Short term deposits
   
16,943
     
31,043
 
Restricted deposit
   
228
     
428
 
Marketable securities
   
64,682
     
63,194
 
Trade receivables, net
   
21,991
     
22,737
 
Other receivables and prepaid expenses
   
4,390
     
2,649
 
Inventories
   
8,174
     
7,897
 
Total current assets
   
139,243
     
143,290
 
 
               
LONG-TERM ASSETS:
               
Severance pay fund
   
303
     
302
 
Deferred taxes
   
282
     
301
 
Other assets
   
347
     
1,135
 
Total long-term assets
   
932
     
1,738
 
 
               
PROPERTY AND EQUIPMENT, NET
   
5,198
     
5,002
 
GOODWILL AND INTANGIBLE ASSETS, NET
   
38,616
     
34,495
 
 
               
Total assets
 
$
183,989
   
$
184,525
 
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
 
$
6,470
   
$
5,857
 
Deferred revenues
   
11,032
     
11,370
 
Other payables and accrued expenses
   
15,579
     
14,277
 
Total current liabilities
   
33,081
     
31,504
 
 
               
LONG-TERM LIABILITIES:
               
Deferred revenues
   
4,235
     
3,878
 
Accrued severance pay
   
781
     
747
 
Other long term liabilities
   
5,516
     
5,267
 
Total long-term liabilities
   
10,532
     
9,892
 
 
               
SHAREHOLDERS' EQUITY
   
140,376
     
143,129
 
 
               
Total liabilities and shareholders' equity
 
$
183,989
   
$
184,525
 


TABLE  - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2018
   
2017
 
 
 
(Unaudited)
   
(Unaudited)
 
 
           
Cash flows from operating activities:
           
Net Loss
 
$
(3,686
)
 
$
(5,077
)
Adjustments to reconcile net income  to net cash used in operating activities:
               
Depreciation
   
498
     
529
 
Stock-based compensation related to options granted to employees
   
704
     
844
 
Amortization of intangible assets
   
407
     
367
 
Capital loss
   
3
     
4
 
Decrease in accrued severance pay, net
   
33
     
28
 
Decrease in other assets
   
788
     
308
 
Decrease in accrued interest and  amortization of premium on marketable securities
   
246
     
126
 
Decrease in trade receivables
   
746
     
1,260
 
Increase in other receivables and prepaid expenses
   
(1,879
)
   
(622
)
Increase in inventories
   
(277
)
   
(762
)
Decrease in long-term deferred taxes, net
   
19
     
67
 
Increase in trade payables
   
602
     
1,849
 
Increase (Decrease) in employees and payroll accruals
   
(499
)
   
276
 
Increase (Decrease) in deferred revenues
   
731
     
(853
)
Increase in other payables and accrued expenses
   
486
     
491
 
Net cash used in operating activities
   
(1,078
)
   
(1,165
)
 
               
Cash flows from investing activities:
               
Decrease in restricted deposit
   
200
     
-
 
Redemption of short-term deposits
   
14,100
     
473
 
Purchase of property and equipment
   
(694
)
   
(811
)
Investment in marketable securities
   
(7,061
)
   
(6,588
)
Proceeds from redemption or sale of marketable securities
   
4,991
     
4,749
 
Acquisitions
   
(3,048
)
   
-
 
Net cash provided by (used in) investing activities
   
8,488
     
(2,177
)
 
               
Cash flows from financing activities:
               
Exercise of employee stock options
   
83
     
24
 
Net cash provided by financing activities
   
83
     
24
 
                 
Increase (Decrease) in cash and cash equivalents
   
7,493
     
(3,318
)
Cash and cash equivalents at the beginning of the period
   
15,342
     
23,326
 
Cash and cash equivalents at the end of the period
 
$
22,835
   
$
20,008