Allot Provides Business Update in view of COVID-19 Pandemic
April 16 2020 - 5:06AM
Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider
of innovative network intelligence and security-as-a-service
(SECaaS) solutions for communication service providers and
enterprises, is issuing this announcement today to advise as to the
effects of the COVID-19 pandemic on Allot activities and business
to date.
Management expects revenues for the first quarter of 2020, ended
March 31, to be approximately $29 million (compared to $25.3
million in the first quarter of 2019). It is noted that Allot has
not yet completed a full review of first quarter financials and,
therefore, this number is only an estimate and is not final. During
the first quarter of 2020, some deals which were expected to book
were delayed as a consequence of the COVID-19 pandemic and are now
expected to close during the second quarter. Allot did sign several
new security deals during the first quarter, including two new
recurring revenue deals with new operators (a small deal in APAC
and a medium-sized deal in Latin America). Management expects the
second quarter to be a quarter of revenue growth compared both to
the second quarter of 2019 and the first quarter of 2020.
Allot places the health and safety of its employees as a top
priority. All employees, in any location in the world, are required
to strictly adhere to their local government’s health regulations
as updated from time to time. All international flights to and from
anywhere on Company business have been prohibited for several weeks
already. The majority of the Allot global workforce is working from
home, with the company expending a broad range of resources and
effort to ensure an effective platform to enable this.
“Allot continues to place great emphasis and focus on the timely
meeting of all our commitments to customers,” commented Erez
Antebi, CEO of Allot. “We are continuing remote support of our
customers; delivery of products; remote installation of products
ordered, and we are continuing with product development. We are
continuing to receive new orders and sign customer
contracts. Across the company, we are continuing to work to
achieve our goals per our annual workplan.
“Across CSP networks we are seeing several changes, including a
sharp rise in network traffic volume – as much as 30% to 40%. Our
customers are also seeing an increase in cyber attacks such as
phishing attacks. Finally, people working or studying from home
have significantly increased their use of communication
applications (such as Zoom, Microsoft Teams and others).”
Mr. Antebi continued, “As a result of the above changes, we are
seeing new trends among some of our customers. All CSPs we
work with continue to operate, although many of their staff are
also working remotely, and all the work we do with them is now done
remotely. Many CSPs require more bandwidth to support their
customers and have requested expanded bandwidth licenses from
Allot. Some CSPs are changing priorities and delaying
less-critical tasks, while others are going ahead with the
introduction of new services, such as security for their
customers.
“At this time, we see overall demand from customers continuing
at rates that are similar to before the COVID-19 pandemic and, in
some areas, we even see some increase in demand. We expect some
delays in the signing of additional recurring security revenue
deals, but we do expect to sign additional such deals during the
remainder of 2020.”
Concluded Mr. Antebi, “Based on the current circumstances and
given the changes in the traffic many CSPs are experiencing, as
well as taking into account our backlog and pipeline of new deals,
we are currently reconfirming our full guidance for 2020, including
annual revenues at $135 to $140 million, and new recurring security
revenue contracts with an aggregate MAR* of $140 million.”
###
Additional Resources:Allot Blog:
https://www.allot.com/blogFollow us on Twitter: @allot_ltdFollow us
on LinkedIn:
https://www.linkedin.com/company/allot-communications
About AllotAllot 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 23 million subscribers in Europe.
Allot. See. Control. Secure.
For more information, visit www.allot.com
*MAR (maximum annual revenue potential of concluded
transactions) was estimated by Allot upon transaction signature and
constitutes an approximation of the theoretical annual revenues
Allot would receive if 100% of the customer’s subscribers, as
estimated by Allot, signed up for the service.
Forward-Looking StatementThis 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
expressed or implied by such forward-looking statements. Important
factors that could cause or contribute to such differences include
risks relating to: acceptance of our products by our reseller and
customer in EMEA, 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; 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 third-party channel partners for
a material portion of our revenues; 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.
Seth Greenberg
Allot
0549222294
sgreenberg@allot.com
Ashley Ray
Fusion PR for Allot
ashley.ray@fusionpr.com
Ehud Helft
Allot Investor Relations
+1-646-201-9246
allot@gkir.com
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