Bandwidth Management Solutions
Login to access the Allot resource center.
Forgot Password Login
New user? Register
Your Allot profile is stored securely and will not be passed on to any third party.

Financial Releases

Share Subscribe
12.05.2009

Allot Communications Reports $9.4 Million in Revenues for First Quarter of 2009

Quarterly Revenues Increase by 13% over First Quarter of 2008

Key highlights:

  • First quarter revenues totaled $9.4 million, representing a 13% increase over first quarter of 2008
  • First quarter non-GAAP net loss declined to $0.8 million, or $0.04 per basic and diluted share, from $1.1 million, or $0.05 per basic and diluted share, in the fourth quarter of 2008, and from $1.9 million, or $0.09 per basic and diluted share, in the first quarter of 2008
  • As of March 31, 2009, cash, cash equivalents, deposits and investments in marketable securities totaled $54.1 million
  • Large projects contributed significant revenues during the quarter
  • Announced partnership with HP to address mobile market


Hod Hasharon, ISRAEL – May12, 2009 – Allot Communications Ltd. (NASDAQ: ALLT), a leader in IP service optimization solutions based on deep packet inspection (DPI) technology, today announced financial results for the first quarter ended March 31, 2009.

Total revenues for the first quarter of 2009 reached $9.4 million, a 13% increase from the $8.3 million of revenues reported in the first quarter of 2008 and a 2% decline from the $9.6 million of revenues reported for the fourth quarter of 2008.  On a GAAP basis, net loss for the first quarter of 2009 was $2.9 million, or $0.13 per share (basic and diluted).  This compares with a net loss of $4.8 million, or $0.22 per share (basic and diluted), in the first quarter of 2008, and net income of $1.0 million, or $0.05 per share (basic and diluted), for the fourth quarter of 2008.

On a non-GAAP basis, excluding the impact of share-based compensation, auction-rate securities (ARS) devaluation, certain legal expenses and amortization of acquired core technology, net loss for the first quarter of 2009 totaled $0.8 million, or $0.04 per share (basic and diluted), as compared with a non-GAAP net loss of $1.9 million, or $0.09 per share (basic and diluted), for the first quarter of 2008 and a non-GAAP net loss of $1.1 million, or $0.05 per share (basic and diluted), for the fourth quarter of 2008.  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 net loss 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.

“The strategic decisions which we have previously discussed, both on a product and market level, contributed to our sales growth during the quarter,” commented Rami Hadar, Allot’s President and CEO.  “The Service Gateway approach which we pioneered, has become a fixture with our customers.  A significant portion of revenues during the quarter was from larger projects, some of which included value added services from third parties, which we believe is testament to the success of this product line.  We also unveiled the next generation Service Gateway Sigma and the NetEnforcer AC-10000, which will enable us to enhance our ability to support larger deployments, as well as offer value added services to our customers on a single platform that delivers 40Gbps throughput.

“We also continue our success in the mobile market.  The recently announced partnership with HP enables us to offer customers a robust, end-to-end solution for their mobile broadband architecture.  This relationship has already demonstrated results, with deployment in the network of one tier-1 mobile operator,” concluded Hadar.

Recently, the Company achieved the following significant goals:
  • 17 service providers worldwide already using the Service Gateway platform;
  •  During the quarter, concluded 12 large deals with service providers, of which five represented new customers and seven represented expansion deals; and
  • First commercial sales of the recently introduced NetEnforcer AC-10000.

As of March 31, 2009, cash, cash equivalents, deposits and investments in marketable securities totaled $54.1 million.  Recent external valuations showed a further devaluation of certain ARS in the Company’s portfolio as of the end of the first quarter while others showed an appreciation. As a result, the Company recorded an additional impairment charge of $1.6 million in its statement of operations on a GAAP basis, in respect of certain ARS, the devaluation of which is considered "other than temporary” and an unrealized gain of $0.4 million to the other comprehensive income in its shareholders’ equity in respect of appreciated ARS, leaving the Company with a total of $14.2 million in ARS at the end of the quarter. To date, our ARS have paid all their interest payments.

The Company also announced today that its Board of Directors approved offering  certain employees who hold options the opportunity to exchange their "underwater" options for new options, each having an exercise price of the higher of $3.00 or the then-current market price per share at the time of the grant of the new options.  Up to approximately 650,000 of such underwater options may be exchanged in the program.  Under the terms of the offer, employees surrendering options will receive an amount of options equal to 90% of the options which are surrendered.  The vesting schedule for the newly issued options will begin on the date of the grant of such options.  All other terms and conditions of the options will be subject to the Company’s Incentive Compensation Plan.  The Company expects that based on the current market price on a GAAP basis, the impact of this plan will not significantly affect its Profit and Loss Statement.

Conference Call & Webcast


The Allot management team will host a conference call to discuss its first quarter 2009 earnings results on Tuesday, May 12, 2009, at 8:30 AM EDT, 3:30 PM Israel time.  To access the conference call, please dial one of the following numbers: US: 1-866-966-5335, International: +44-20-3003-2666, Israel: 1-809-216-213.

A replay of the conference call will be available from 12:01 am EST on May 13, 2009 through June 13, 2009 at 11:59 pm EST.  To access the replay, please dial: +44-20-8196-1998, access code: 650204#.

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 (NASDAQ: ALLT) is a leading provider of intelligent IP service optimization solutions for DSL, wireless and mobile broadband carriers, service providers, and enterprises. Allot's rich portfolio of hardware platforms and software applications utilizes deep packet inspection (DPI) technology 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, security, application control and subscriber management that are vital to managing Internet service delivery, guaranteeing quality of experience (QoE), containing operating costs, and maximizing revenue in broadband networks.

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: the impact of the stock-option trade-in plan on the Company’s Profit and Loss Statement 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
Back