Revenue Growth Continues: Q3 Revenue Increase 14% Year-over-Year
Hod Hasharon, Israel – November 5, 2019 – 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 third quarter 2019 financial results.
Third Quarter 2019 – Financial Highlights
- Revenue growth to $27.6 million, up 14% year-over-year
- Cash and investments increased by $13.3 million to $114.8 million
- GAAP gross profit up 14% year-over-year to $19.2 million; non-GAAP gross profit up 13% to $19.4 million
- GAAP operating loss of $2.2 million; non-GAAP operating loss of $2.2 million
- Management continues to maintain its expectations of full year 2019 revenues between $106-$110 million, representing continued double-digit year-over-year growth
- Management maintains its expectation that full year 2019 book to bill ratio will be above 1
Erez Antebi, President & CEO of Allot, commented: “We are pleased with our continued ongoing year-over-year revenue growth and we remain on target with our strategy and longer-term goals. We have been successful in signing new significant deals in recent months. Our pipeline remains strong and we expect to enter next year with significant backlog that will enable Allot to accelerate revenue growth in 2020.”
Third Quarter 2019 Financial Results Summary
Total revenue for the quarter was $27.6 million, an increase of 14% compared with $24.2 million in the third quarter of 2018.
Gross profit on a GAAP basis for the quarter was $19.2 million (gross margin of 69.4%), a 14% improvement compared with $16.8 million (gross margin of 69.4%) in the third quarter of 2018.
Gross profit on a non-GAAP basis for the quarter of was $19.4 million (gross margin of 70.2%), a 13% improvement compared with $17.1 million (gross margin of 70.7%) in the third quarter of 2018.
Operating loss on a GAAP basis for the quarter was $2.2 million, compared with an operating loss of $2.5 million, in the third quarter of 2018.
Non-GAAP operating loss for the quarter was $2.2 million, compared with a non-GAAP operating loss of $1.1 million in the third quarter of 2018.
Net loss on a GAAP basis for the quarter was $2.1 million, or $0.06 per basic and diluted share, compared with a net loss of $2.5 million, or $0.07 per basic and diluted share, in the third quarter of 2018.
Non-GAAP net loss for the quarter was $1.9 million, or $0.05 per basic share, compared with a non-GAAP net loss of $1.1 million, or $0.03 per basic share, in the third quarter of 2018.
Cash and investments as of September 30, 2019 totaled $114.8 million, compared with $101.6 million as of June 30, 2019.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss third quarter 2019 earnings results today, November 5, 2019 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: 0-800-917-5108, Israel: +972-3-918-0610
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/index.cfm
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises 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 21 million subscribers in Europe. Allot. See. Control. Secure.
For more information, visit www.allot.com
GAAP to Non-GAAP Reconciliation
Non-GAAP net income is defined as GAAP net income after excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, exchange rate differences related to revaluation of assets and liabilities denominated in non-dollar currencies 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 fourth 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.
Investors Relations Contact:
GK Investors Relations
Ehud Helft/Gavriel Frohwein
Public Relations Contact:
Director of Corporate Communications