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 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): ___

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.

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 7, 2018, Allot Communications Ltd. issued a press release announcing the Second Quarter 2018 Financial Results.

A copy of the press release entitled “Allot Communications Announces Second 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 Chief Financial Officer

Date: August 7, 2018

 

 

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 2018 Financial Results

---

Allot Announces

Second Quarter 2018 Financial Results

 

Revenues increased 18% Year over Year with Continued Improvement in Margins

Hod Hasharon, Israel – August 7, 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 second quarter 2018 financial results.

 

 Q2 2018 – Financial Highlights

 

·	Revenues were $23.0 million, up 18% year-over-year;

·	GAAP gross margin improved to 70.8% up from 65.8% in Q2 2017;

·	Non-GAAP gross margin was 72.2% up from 67.6%in Q2 2017;

·	GAAP operating loss narrowed to $2.8 million compared to $3.8 million in Q2 2017;

·	Non-GAAP operating loss narrowed to $1.3 million compared to $2.4 million in Q2 2017;

·	Book-to-bill was above one for the sixth consecutive quarter;

·	Cash and cash equivalents increased to $105.9 million;

 

·	Management continues to expect 2018 revenues to grow to between $91 - 95 million, with revenues trending toward the upper half of the range;

·	2018 Book to Bill is expected at above 1;

 

 

Erez Antebi, President & CEO of Allot, commented:

 

“I am very pleased with our progress as demonstrated through our second quarter results, which represent another quarter of growth and improvement in margins. We are investing additional resources in pursuing and capturing the increasing growth opportunities we see in our end markets. We expect these investments to continue to bring us growth.

 

“Much of our growth in the first half of the year came from actionable intelligence use cases and we are pleased with our improvements in this market segment. Furthermore, we are very encouraged by the market traction we are seeing for our security solutions. We expect to announce soon a new unified security deal for Telefonica Spain. We look forward to close additional security deals over the quarters and years ahead.”

 

 

 

Total revenues for the second quarter of 2018 were $23.0 million, up 18% compared to $19.5 million in the second quarter of 2017.

 

Gross profit on a GAAP basis for the second quarter of 2018 was $16.3 million (gross margin of 70.8%), a 27% improvement compared with $12.8 million (gross margin of 65.8%) in the second quarter of 2017.

 

Gross profit on a non-GAAP basis for the second quarter of 2018 was $16.6 million (gross margin of 72.2%), a 26% improvement compared with $13.2 million (gross margin of 67.6%) in the second quarter of 2017. The higher level of gross margin represents a favorable sales mix in the quarter.

 

Net loss on a GAAP basis for the second quarter of 2018 was $2.4 million, or $0.07 per basic share, an improvement compared with a net loss of $4.0 million, or $0.12 per basic share, in the second quarter of 2017.

 

Non-GAAP net loss for the second quarter of 2018 was $1.2 million, or $0.04 per basic share, an improvement compared with a non-GAAP net loss of $2.3 million, or $0.07 per basic share, in the second quarter of 2017.

 

Cash and investments as of June 30, 2018 totaled $105.9 million, compared to $104.7 million in March 31, 2018.

 

# # #

 

Conference Call & Webcast:

 

The Allot management team will host a conference call to discuss second quarter 2018 earnings results today, August 7, 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.

 

 

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 is 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.

 

 

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								Six Months Ended
		June 30,								June 30,
		2018				2017				2018				2017
		(Unaudited)								(Unaudited)
Revenues		$	23,003			$	19,502			$	44,735			$	37,937
Cost of revenues			6,712				6,662				13,636				12,980
Gross profit			16,291				12,840				31,099				24,957
Operating expenses:
Research and development costs, net			6,298				5,364				12,091				10,897
Sales and marketing			10,182				8,747				20,215				17,727
General and administrative			2,579				2,519				5,045				5,060
Total operating expenses			19,059				16,630				37,351				33,684
Operating loss			(2,768	)			(3,790	)			(6,252	)			(8,727	)
Financial and other income, net			806				112				1,036				474
Loss before income tax expenses			(1,962	)			(3,678	)			(5,216	)			(8,253	)
Tax expenses			455				352				887				854
Net Loss			(2,417	)			(4,030	)			(6,103	)			(9,107	)
Basic net loss per share		$	(0.07	)		$	(0.12	)		$	(0.18	)		$	(0.27	)
Diluted net loss per share		$	(0.07	)		$	(0.12	)		$	(0.18	)		$	(0.27	)
Weighted average number of shares used in
computing basic net loss per share			33,655,940				33,200,982				33,606,236				33,146,715
Weighted average number of shares used in
computing diluted net loss per share			33,655,940				33,200,982				33,606,236				33,146,715

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								Six Months Ended
		June 30,								June 30,
		2018				2017				2018				2017
		(Unaudited)								(Unaudited)
GAAP Revenues		$	23,003			$	19,502			$	44,735			$	37,937
Fair value adjustment for acquired deferred revenues write down			-				13				-				37
Non-GAAP Revenues		$	23,003			$	19,515			$	44,735			$	37,974
GAAP cost of revenues		$	6,712			$	6,662			$	13,636			$	12,980
Share-based compensation (1)			(90	)			(96	)			(170	)			(192	)
Amortization of intangible assets (2)			(232	)			(242	)			(465	)			(474	)
Non-GAAP cost of revenues		$	6,390			$	6,324			$	13,001			$	12,314
GAAP gross profit		$	16,291			$	12,840			$	31,099			$	24,957
Gross profit adjustments		$	322				351				635				703
Non-GAAP gross profit		$	16,613			$	13,191			$	31,734			$	25,660
GAAP operating expenses		$	19,059			$	16,630			$	37,351			$	33,684
Share-based compensation (1)			(630	)			(870	)			(1,254	)			(1,618	)
Amortization of intangible assets (2)			(175	)			(135	)			(350	)			(269	)
Expenses related to M&A activities (3)			(151	)			-				(189	)			(89	)
Changes in tax related items (4)			(170	)			-				(170	)			-
Non-GAAP operating expenses		$	17,933			$	15,625			$	35,388			$	31,708
GAAP financial and other income		$	806			$	112			$	1,036			$	474
Expenses related to M&A activities (3)			(292	)			306				(142	)			379
Non-GAAP Financial and other income		$	514			$	418			$	894			$	853
GAAP taxes on income		$	455			$	352			$	887			$	854
Tax expenses (in respect of net deferred tax asset recorded)			(19	)			(64	)			(38	)			(130	)
Non-GAAP taxes on income		$	436			$	288			$	849			$	724
GAAP Net Loss		$	(2,417	)		$	(4,030	)		$	(6,103	)		$	(9,107	)
Share-based compensation (1)			720				966				1,424				1,810
Amortization of intangible assets (2)			407				377				815				743
Expenses related to M&A activities (3)			(141	)			306				47				468
Changes in tax related items (4)			170				-				170				-
Fair value adjustment for acquired deferred revenues write down			-				13				-				37
Tax expenses in respect of net deferred tax asset recorded			19				64				38				130
Non-GAAP Net income (Loss)		$	(1,242	)		$	(2,304	)		$	(3,609	)		$	(5,919	)
GAAP Loss per share (diluted)		$	(0.07	)		$	(0.12	)		$	(0.18	)		$	(0.27	)
Share-based compensation			0.02				0.03				0.04				0.05
Amortization of intangible assets			0.01				0.01				0.02				0.02
Expenses related to M&A activities			(0.01	)			0.01				0.00				0.01
Fair value adjustment for acquired deferred revenues write down			-				0.00				-				0.00
Changes in taxes and headcount related items			0.01				0.00				0.01				0.00
Tax benefit (in respect of net deferred tax asset recorded)			0.00				0.00				-				0.01
Non-GAAP Net loss per share (diluted)			(0.04	)		$	(0.07	)		$	(0.11	)		$	(0.18	)
Weighted average number of shares used in computing GAAP diluted net loss per share			33,655,940				33,200,982				33,606,236				33,146,715
Weighted average number of shares used in computing non-GAAP diluted net loss per share			33,655,940				33,200,982				33,606,236				33,146,715

---

 

---

 

---