Company Achieves $0.01 EPS on a non-GAAP Basis
Key highlights:
- First quarter revenues reached $12.5 million, a 33% increase over the first quarter of 2009
- First quarter non-GAAP net income of $177,000, as Company achieved profitability
- Cash, cash equivalents, deposits and investments in marketable securities increased to $55.9 million
- Allot receives additional $8 million in orders from a global Tier 1 mobile operator during the quarter
Hod Hasharon, ISRAEL – May 11, 2010 – Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband service providers worldwide, today announced that it has moved to profitability on a non-GAAP basis for the first quarter of 2010, as it reported its financial results for the first quarter ended March 31, 2010.
Total revenues for the first quarter of 2010 reached $12.5 million, a 33% increase from the $9.4 million of revenues reported in the first quarter of 2009, and a 8% increase from the $11.5 million revenues reported for the fourth quarter of 2009. On a GAAP basis, net loss for the first quarter of 2010 was $446,000, or $0.02 per share (basic and diluted). This compares with net loss of $2.9 million, or $0.13 per share (basic and diluted), in the first quarter of 2009, and a net loss of $1.5 million, or $0.07 per share (basic and diluted), in the fourth quarter of 2009.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization and ARS devaluation and recoveries, non-GAAP net income for the first quarter of 2010 totaled $177,000 or $0.01 per share (basic and diluted), compared with a non-GAAP net loss of $776,000, or $0.04 per share (basic and diluted), for the first quarter of 2009 and non-GAAP income of $19,000, or $0.00 per share (basic and diluted), for the fourth quarter of 2009. These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. 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 that 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 that they are useful to investors in enhancing an understanding of the Company’s operating performance.
“As we anticipated, revenues continued to grow in the quarter, and we are pleased to report reaching profitability, while also improving our cash position," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “During the quarter we received an additional $8 million in orders from the global Tier 1 mobile operator we have been reporting on for the past year, bringing total orders from this customer to $25 million, representing Allot’s largest deployment to date. With our strong solution offering, we continue to maintain our leadership in the growing mobile market.”
Recently, the Company achieved the following significant goals:
- During the quarter, concluded 14 large deals with service providers, of which 8 represented new customers and 6 represented expansion deals;
- Of these deals, 8 were with mobile operators;
- Concluded its first deployment of its new Cellwise solution, which provides a centralized policy and traffic control solution to solve cell congestion in mobile data networks.
As of March 31, 2010, cash, cash equivalents, deposits and investments in marketable securities totaled $55.9 million. Recent external valuations showed a decrease in value of certain ARS in the Company's portfolio as of the end of the first quarter. As a result, the Company recorded an unrealized net loss of $0.4 million to other comprehensive income in its shareholders' equity, leaving the Company with a total of $14.1 million in ARS at the end of the quarter.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its first quarter 2010 earnings results on Tuesday, May 11, 2010, at 8:30 AM EDT, 3:30 PM Israel time. The quarterly results will be published prior to the conference call.
To access the conference call, please dial one of the following numbers: US: +1 212 444 0412, International: +44 (0)20 7806 1953, Israel: +972 3721 9509.
A replay of the conference call will be available from 12:01 am EDT on May 12, 2010 through June 12, 2010 at 11:59 pm EDT. To access the replay, please dial: +44 (0)20 7111 1244, access code: 4042379#.
A live webcast of the conference call can be accessed on the Allot Communications website at www.allot.com. The webcast will also be archived on the website following the conference call.
About Allot Communications
Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent IP service optimization solutions for fixed and mobile broadband operators and large enterprises. Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value added Internet services. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing Internet service delivery, enhancing user experience, containing operating costs, and maximizing revenue in broadband networks. For more information, please visit http://www.allot.com
Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to: changes in general economic and business conditions and, specifically, a decline in demand for the Company’s products; the Company’s inability to develop and introduce new technologies, products and applications; loss of market; 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. 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:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
jkalish@allot.com