--Revenues reach $22 million; EPS was $0.14 on a non-GAAP basis ($0.12 on a GAAP basis)--
- Fourth quarter revenues reached $22 million, a 36% increase over the fourth quarter of 2010
- Fourth quarter non-GAAP net income of $4.2 million; non-GAAP EPS grows to $0.14 from $0.13 in the third quarter of 2011, despite dilution effect due to public offering
- Cash, cash equivalents and marketable securities totaled $159.4 million; generated approximately $7.7 million in cash from operations during the quarter; $15 million for the year 2011
- Revenues for 2011 increase by 36% to $77.8 million; non-GAAP EPS reaches $0.46
Hod Hasharon, Israel – February 7, 2012 – 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 sales and profitability continued to increase during the fourth quarter of 2011, and that the Company’s net profit tripled for the year 2011 on a non-GAAP basis.
Total revenues for the fourth quarter of 2011 reached $22 million, a 36% increase from the $16.2 million of revenues reported for the fourth quarter of 2010, and a 10% increase from the $20.1 million of revenues reported for the third quarter of 2011. On a GAAP basis, net profit for the fourth quarter of 2011 was $3.5 million, or $0.13 per basic share and $0.12 per diluted share. This compares with net profit of $1.3 million, or $0.06 per basic share and $0.05 per diluted share, in the fourth quarter of 2010, and net profit of $2.1 million, or $0.09 per basic share and $0.08 per diluted share, in the third quarter of 2011. For the full year 2011, revenues reached $77.8 million, representing a 36% increase over the $57 million of revenues in 2010. On a GAAP basis, net profit for the year 2011 was $8.8 million, or $0.35 per basic share and $0.33 per diluted share, as compared with a net loss of $5.8 million, or $0.25 per share (basic and diluted), in 2010.
The weighted average number of diluted shares increased in the fourth quarter of 2011 reflecting the issuance of new shares as part of the Company’s public offering which closed on November 15, 2011.
On a non-GAAP basis, excluding the impact of share-based compensation and amortization of certain intangibles, non-GAAP net profit for the fourth quarter of 2011 totaled $4.2 million, or $0.15 per basic share and $0.14 per diluted share, compared with non-GAAP net profit of $1.8 million, or $0.08 per basic share and $0.07 per diluted share, for the fourth quarter of 2010, and non-GAAP net profit $3.4 million or $0.14 per basic share and $0.13 per diluted share, for the third quarter of 2011. For the full year 2011, excluding the impact of share-based compensation and amortization of certain intangibles and one-time expenses related to M&A activities, non-GAAP net profit for the year 2011 reached $12.5 million, or $0.50 per basic share and $0.46 per diluted share, compared with a non-GAAP net profit of $4.1 million, or $0.18 per basic share and $0.17 per diluted share, for the full year 2010.
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 Tables 2 and 3. 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.
“Allot continued strong growth in 2011, primarily attributable to its leading position in the mobile market," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. “With video-based applications becoming an ever-increasing challenge for wireline and mobile data networks, we are seeing an increasing number of opportunities throughout Europe, APAC and the Americas. Our Service Gateway provides the broadest and most robust feature set and services for Tier 1 operators. It is a major reason for our being chosen for the largest mobile DPI deployment in the world, which covers both 3G and 4G/LTE topologies.”
Recently, the Company achieved the following significant goals:
- During the quarter, received orders from 10 large service providers, 5 of which represented new customers; of these, three new large customers were mobile operators;
- Deepened penetration into a second Tier 1 account in Europe;
- Announced a $9.5 million order from a Tier 1 wireline account in APAC;
- Completed LTE deployments in Europe: and
- Raised $85 million in a secondary offering.
As of December 31, 2011, cash, cash equivalents, short term deposits and marketable securities totaled $159.4 million, with no debt.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its fourth quarter and year end 2011 earnings results today at 8:30 AM ET, 3:30 PM Israel time.
To access the conference call, please dial one of the following numbers: US: +1 646 254 3364, UK: +44 (0)20 7136 2054, Israel: +972 3 721 9510, participant code 4434985.
A replay of the conference call will be available from 12:01 am ET on February 8, 2012 through March 8, 2012 at 11:59 pm ET. To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 7111 1244, access code: 4434985#.
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 data traffic optimization and monetization solutions for fixed and mobile broadband operators and large enterprises. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing fixed and mobile data, enhancing user experience, containing operating costs, and enabling service providers to generate revenues from their broadband networks. 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. 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: our ability to increase the breadth and functionality of the Service Gateway platform through additional partnerships, changes in general economic and business conditions; 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:
Executive Director Investor Relations
International access code +972-54-221-1365