Hod Hasharon, Israel – August 16, 2022 – Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited second quarter 2022 financial results.
Second Quarter 2022 Financial Highlights
- Second quarter revenues were $32.8 million compared with $35.3 million in the second quarter of last year;
- Gross margin on a non-GAAP basis was 70%;
- GAAP operating loss was $6.5 million and non-GAAP operating loss was $4.2 million;
- GAAP net loss was $6.2 million and non-GAAP net loss was $4.2 million.
Financial Outlook
For 2022, management adjusts its previously announced guidance as follows:
- Revenues to be between $125 – 130 million; (the third quarter of 2022 is expected to be approximately $25 million);
- Additional recurring security deals to be executed, providing incremental MAR** of more than $180 million for the full year 2022;
- December 2022 total ARR* including SECaas ARR* and Support & Maintenance ARR* to be between $50-52 million, representing approximately 15% year-over-year growth versus 2021 at the midpoint;
- December 2022 SECaas ARR* to be approximately $9 million;
- Recurring security revenue to be approximately $7 million.
Management Comment
Erez Antebi, President & CEO of Allot, commented, “Several sizeable CAPEX deals that we expected to conclude and be able to at least partially delivered in the second and third quarters, are now not expected to close before the fourth quarter. As a result, we are modifying our revenue forecast for the remainder of this year.”
Continued Mr. Antebi, “Looking at the DPI market in general, we continue to see many opportunities and an overall solid DPI market. In the SECaas business, we closed several new deals this quarter and 2 additional operators launched the security service.”
“We are fully aware of the challenges we face. We have set a goal to be profitable in 2024 by growing our SECaas revenues and closely controlling our expenses. We have full faith in our company, our team, our products and in our ability to meet these goals, ” concluded Antebi.
Q2 2022 Financial Results Summary
Total revenues for the second quarter of 2022 were $32.8 million, a decrease of 7% compared to $35.3 million in the second quarter of 2021.
Gross profit on a GAAP basis for the second quarter of 2022 was $22.5 million (gross margin of 68.7%), an 8% decline compared with $24.5 million (gross margin of 69.3%) in the second quarter of 2021.
Gross profit on a non-GAAP basis for the second quarter of 2022 was $23.0 million (gross margin of 70.2%), a 7% decline compared with $24.8 million (gross margin of 70.2%) in the second quarter of 2021.
Net loss on a GAAP basis for the second quarter of 2022 was $6.2 million, or $0.17 per basic share, compared with a net loss of $4.0 million, or $0.11 per basic share, in the second quarter of 2021.
Net loss on a non-GAAP for the second quarter of 2022 was $4.2 million, or $0.11 per basic share compared with a non-GAAP net loss of $1.5 million, or $0.04 per basic share, in the second quarter of 2021.
Cash and investments as of June 30,2022 totaled $108.0 million, compared to $85.7 million as of December 31, 2021.
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Conference Call & Webcast:
The Allot management team will host a conference call to discuss its second quarter 2022 earnings results today, August 16, 2022 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:
US: 1-888-642-5032, UK: 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 website at: http://investors.allot.com/index.cfm
