Allot achieves its first major win in US market with DISH Network
Hod Hasharon, Israel – May 11, 2020 – 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 first quarter 2021 financial results.
First Quarter 2021 Highlights
- Continued growth: revenues of $31.2 million, up 6% year-over-year;
- End of quarter cash and investments of $103 million;
- Allot’s first major penetration into US market: DISH Network Selected Allot to Protect the United States’ First Cloud-native, OpenRAN-based 5G Network and its Customers from Cybersecurity Threats.
- Management continues to expect 2021 revenues to grow to between $145-150 million;
- Management continues to expect to close recurring security deals in 2021 with an MAR* expected to exceed $180 million;
- Management continues to expect recurring security revenues in 2021 to be at least $6 million, and around $25 million in 2022.
Erez Antebi, President & CEO of Allot, commented: “We are pleased with our start to 2021 with continued year-over-year revenue growth. From the strategic perspective, we are very happy with our first major penetration into the US market and are thrilled that DISH chose to partner with us to help secure their innovative 5G network, which will be one of the most advanced in the US market. This deal, together with Dish’s stated intent to sign an additional deal with Allot to launch network based security services to their customers, is a major indication on the importance of security to 5G networks and customers worldwide.”
Continued Mr. Antebi, “We see 2021 as a transformation year for Allot. We expect that as our SECaaS partners begin to launch their services over the coming months, we will see the initial ramp of these recurring revenues. We are very encouraged by the traction we have been gaining and look forward to continue signing additional recurring security revenue deals, ensuring further long-term sustainable growth.”
Q1 2021 Financial Results Summary
Total revenues for the first quarter of 2021 were $31.2 million, an increase of 6% compared to $29.3 million in the first quarter of 2020.
Gross profit on a GAAP basis for the first quarter of 2021 was $21.6 million (gross margin of 69.2%), with no material change when compared with $21.7 million (gross margin of 74%) in the first quarter of 2020.
Gross profit on a non-GAAP basis for the first quarter of 2021 was $21.9 million (gross margin of 70.1%), similar when compared with $21.9 million (gross margin of 74.8%) in the first quarter of 2020.
Net loss on a GAAP basis for the first quarter of 2021 was $4 million, or $0.11 loss per basic share, compared with a net loss of $1.7 million, or $0.05 loss per basic share, in the first quarter of 2020.
Net loss on a non-GAAP basis for the first quarter of 2021 was $2.2 million, or $0.06 loss per basic share compared with a non-GAAP net loss of $0.4 million, or $0.01 loss per basic share, in the first quarter of 2020.
Cash and investments as of March 31, 2021 totaled $103.2 million, compared with $99.4 million, as of December 31, 2020.
Analyst & Investor Event
Allot will host a virtual Analyst & Investor event later today, May 11, 2021 at 9am ET. The event will provide more color on the growth potential of the Company and on the Revolution of Consumer Cybersecurity. It will feature presentations delivered by various members of the Allot management team as well as talks by some of the Company’s cybersecurity customers.
The Analyst & Investor event will be hosted via a Zoom Webinar. To register for the event, please use the following link: https://www.allot.com/210511-investor-day-lp/
A recording of the event, including the presentations, will be archived and available for viewing on the Allot website a few days following the event.
For further details about the agenda and participating in the virtual Investor Day event and the earnings results call, please refer to the Allot investor relations website at https://investors.allot.com.
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