HOD HASHARON, Israel,
May 14, 2019 /PRNewswire/
-- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a global provider
of leading innovative network intelligence and security solutions
for service providers worldwide, today announced its first quarter
2019 financial results.
First Quarter 2019 – Financial Highlights
- Revenues were $25.3 million, up
17% year-over-year;
- GAAP gross margin improved to 71.2% up from 68.1% in Q1 2018;
Non-GAAP gross margin improved to 72.4% up from 69.6% in Q1
2018;
- GAAP operating loss narrowed to $3.3
million compared to $3.5
million in Q1 2018; Non-GAAP operating loss narrowed to
$1.8 million compared to $2.3 million in Q1 2018;
Financial Outlook
- Management maintains its 2019 expectations of revenues between
$106-110 million, representing
continued double-digit year-over-year growth;
- Continue to expect full year 2019 book to bill ratio at above
1;
- Management goal to sign security OPEX deals with an aggregate
MAR (Maximum Annual Revenue) of $100M
during 2019, remains unchanged.
Management Comment
Erez Antebi, President &
CEO of Allot, commented: "We are pleased with the continued
strong year-over-year growth in revenue as well as the improvement
in profitability parameters in the quarter, and we are on target
with our longer-term goals. Our momentum in the quarter
remained positive and includes the win of a contract to provide a
full suite of solutions comprising of network-based traffic
management and network security solutions to Rakuten Mobile in
Japan. Our pipeline of potential
security OPEX deals remains strong and we are actively working to
close further deals. We look forward to continued and sustainable
growth in 2019 and beyond."
Q1 2019 Financial Results Summary
Total revenues for the quarter were $25.3 million, up 17% compared to $21.7 million in the first quarter of 2018.
Gross profit on a GAAP basis for the quarter was
$18.0 million (gross margin of
71.2%), a 22% improvement compared with $14.8 million (gross margin of 68.1%) in the
first quarter of 2018.
Gross profit on a non-GAAP basis for the quarter of was
$18.3 million (gross margin of
72.4%), a 21% improvement compared with $15.1 million (gross margin of 69.6%) in the
first quarter of 2018.
Operating loss on a GAAP basis for the quarter was
$3.3 million, an improvement compared
with an operating loss of $3.5
million, in the first quarter of 2018.
Non-GAAP operating loss for the quarter of 2019 was
$1.8 million, an improvement compared
with a non-GAAP operating loss of $2.3
million in the first quarter of 2018.
Net loss on a GAAP basis for the quarter was $3.3
million, or $0.1 per basic and
diluted share, an improvement compared with a net loss of
$3.7 million, or $0.11 per basic and diluted share, in the first
quarter of 2018.
Non-GAAP net loss for the quarter was $1.9 million, or $0.05 per basic and diluted share, an improvement
compared with a non-GAAP net loss of $2.4
million, or $0.07 per basic
and diluted share, in the first quarter of 2018.
Cash and investments as of March
31, 2019 totaled $101.5
million, compared to $103.9
million as of December 31,
2018.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss
first quarter 2019 earnings results today, May 14, 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: +972-3-918-0609
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
About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading
innovative network intelligence and security solutions for service
providers 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.
TABLE -
1
|
ALLOT
LTD.
|
AND ITS
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2019
|
|
2018
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenues
|
$
25,342
|
|
$
21,732
|
|
|
Cost of
revenues
|
7,293
|
|
6,924
|
|
|
Gross
profit
|
18,049
|
|
14,808
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development costs, net
|
7,174
|
|
5,793
|
|
|
Sales and
marketing
|
11,477
|
|
10,033
|
|
|
General and
administrative
|
2,705
|
|
2,466
|
|
|
Total operating
expenses
|
21,356
|
|
18,292
|
|
|
Operating
loss
|
(3,307)
|
|
(3,484)
|
|
|
Financial and other
income, net
|
532
|
|
230
|
|
|
Loss before income
tax expenses
|
(2,775)
|
|
(3,254)
|
|
|
|
|
|
|
|
|
Tax
expenses
|
558
|
|
432
|
|
|
Net Loss
|
(3,333)
|
|
(3,686)
|
|
|
|
|
|
|
|
|
Basic net
loss per share
|
$
(0.10)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.10)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
computing basic net
loss per share
|
33,983,863
|
|
33,555,980
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
computing diluted net
loss per share
|
33,983,863
|
|
33,555,980
|
|
|
TABLE -
2
|
|
|
|
|
ALLOT
LTD.
|
|
|
|
|
AND ITS
SUBSIDIARIES
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
(U.S. dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenues
|
$
7,293
|
|
$
6,924
|
|
|
|
|
|
Share-based
compensation (1)
|
(60)
|
|
(80)
|
|
|
|
|
|
Amortization of
intangible assets (2)
|
(232)
|
|
(232)
|
|
|
|
|
|
Non-GAAP cost of
revenues
|
$
7,001
|
|
$
6,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
18,049
|
|
$
14,808
|
|
|
|
|
|
Gross profit
adjustments
|
292
|
|
312
|
|
|
|
|
|
Non-GAAP gross
profit
|
$
18,341
|
|
$
15,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
21,356
|
|
$
18,292
|
|
|
|
|
|
Share-based
compensation (1)
|
(685)
|
|
(624)
|
|
|
|
|
|
Amortization of
intangible assets (2)
|
(188)
|
|
(175)
|
|
|
|
|
|
Expenses
related to M&A activities (3)
|
(295)
|
|
(38)
|
|
|
|
|
|
Non-GAAP
operating expenses
|
$
20,188
|
|
$
17,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP financial
and other income
|
$
532
|
|
$
230
|
|
|
|
|
|
Exchange rate
differences*
|
(2)
|
|
150
|
|
|
|
|
|
Non-GAAP
Financial and other income
|
$
530
|
|
$
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income
|
$
558
|
|
$
432
|
|
|
|
|
|
Tax expenses in
respect of net deferred tax asset
recorded
|
(16)
|
|
(19)
|
|
|
|
|
|
Non-GAAP taxes
on income
|
$
542
|
|
$
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$
(3,333)
|
|
$
(3,686)
|
|
|
|
|
|
Share-based
compensation (1)
|
745
|
|
704
|
|
|
|
|
|
Amortization of
intangible assets (2)
|
420
|
|
407
|
|
|
|
|
|
Expenses
related to M&A activities (3)
|
295
|
|
38
|
|
|
|
|
|
Exchange rate
differences
|
(2)
|
|
150
|
|
|
|
|
|
Tax expenses in
respect of net deferred tax asset recorded
|
16
|
|
19
|
|
|
|
|
|
Non-GAAP Net
Loss
|
$
(1,859)
|
|
$
(2,368)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Loss per
share (diluted)
|
$
(0.10)
|
|
$
(0.11)
|
|
|
|
|
|
Share-based
compensation
|
0.02
|
|
0.02
|
|
|
|
|
|
Amortization of
intangible assets
|
0.02
|
|
0.01
|
|
|
|
|
|
Expenses
related to M&A activities
|
0.01
|
|
0.00
|
|
|
|
|
|
Exchange rate
differences
|
(0.00)
|
|
0.01
|
|
|
|
|
|
Tax expense in
respect of net deferred tax asset recorded
|
0.00
|
|
0.00
|
|
|
|
|
|
Non-GAAP Net
loss per share (diluted)
|
$
(0.05)
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
computing GAAP
diluted net loss per share
|
33,983,863
|
|
33,555,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
computing non-GAAP
diluted net loss per share
|
33,983,863
|
|
33,555,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Financial income or
expenses related to exchange rate differences in connection with
revaluation of assets and liabilities in non-dollar denominated
currencies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE - 2
cont.
|
|
|
|
|
ALLOT
COMMUNICATIONS LTD.
|
|
|
|
|
AND ITS
SUBSIDIARIES
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
(U.S. dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
60
|
|
$
80
|
|
|
|
|
|
|
Research and
development costs, net
|
169
|
|
155
|
|
|
|
|
|
|
Sales and
marketing
|
283
|
|
222
|
|
|
|
|
|
|
General and
administrative
|
233
|
|
247
|
|
|
|
|
|
|
|
$
745
|
|
$
704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
232
|
|
$
232
|
|
|
|
|
|
|
Sales and
marketing
|
188
|
|
175
|
|
|
|
|
|
|
|
$
420
|
|
$
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Expenses
related to M&A activities
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
38
|
|
|
|
|
|
|
Research and
development costs, net
|
295
|
|
-
|
|
|
|
|
|
|
|
$
295
|
|
$
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE -
3
|
|
ALLOT
LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2019
|
|
2018
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
17,430
|
|
$
16,336
|
|
Short term
deposits
|
|
18,557
|
|
22,543
|
|
Restricted
deposit
|
|
548
|
|
465
|
|
Marketable
securities
|
|
64,713
|
|
64,290
|
|
Trade receivables,
net
|
|
28,686
|
|
26,093
|
|
Other receivables and
prepaid expenses
|
|
5,449
|
|
3,647
|
|
Inventories
|
|
13,255
|
|
11,345
|
|
Total current
assets
|
|
148,638
|
|
144,719
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Restricted
deposit
|
|
257
|
|
257
|
|
Severance pay
fund
|
|
341
|
|
345
|
|
Operating lease
right-of-use assets
|
|
7,137
|
|
-
|
|
Deferred
taxes
|
|
314
|
|
281
|
|
Other
assets
|
|
533
|
|
600
|
|
Total long-term
assets
|
|
8,582
|
|
1,483
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
6,362
|
|
6,249
|
|
GOODWILL AND
INTANGIBLE ASSETS, NET
|
|
36,223
|
|
37,393
|
|
Total
assets
|
|
$
199,805
|
|
$
189,844
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
10,370
|
|
$
7,813
|
|
Deferred
revenues
|
|
13,299
|
|
13,855
|
|
Short-term operating
lease liabilities
|
|
2,460
|
|
-
|
|
Other payables and
accrued expenses
|
|
23,805
|
|
21,052
|
|
Total current
liabilities
|
|
49,934
|
|
42,720
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred
revenues
|
|
4,211
|
|
4,247
|
|
Long-term operating
lease liabilities
|
|
4,471
|
|
-
|
|
Accrued severance
pay
|
|
737
|
|
806
|
|
Other long term
liabilities
|
|
5,763
|
|
6,168
|
|
Total long-term
liabilities
|
|
15,182
|
|
11,221
|
|
SHAREHOLDERS'
EQUITY
|
|
134,689
|
|
135,903
|
|
Total liabilities and
shareholders' equity
|
|
$
199,805
|
|
$
189,844
|
|
|
|
|
|
|
|
TABLE -
4
|
ALLOT
LTD.
|
AND ITS
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net Loss
|
$
(3,333)
|
|
$
(3,686)
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
616
|
|
498
|
|
Stock-based
compensation related to options granted to employees
|
745
|
|
704
|
|
Amortization of
intangible assets
|
420
|
|
407
|
|
Capital
loss
|
-
|
|
3
|
|
Decrease (Increase)
in accrued severance pay, net
|
(65)
|
|
33
|
|
Decrease in other
assets
|
67
|
|
788
|
|
Decrease in accrued
interest and amortization of premium on marketable
securities
|
77
|
|
246
|
|
Changes in operating
leases, net
|
(206)
|
|
-
|
|
Decrease (Increase)
in trade receivables
|
(2,593)
|
|
746
|
|
Increase in other
receivables and prepaid expenses
|
(1,147)
|
|
(1,879)
|
|
Increase in
inventories
|
(1,910)
|
|
(277)
|
|
Decrease (Increase)
in long-term deferred taxes, net
|
(33)
|
|
19
|
|
Increase in trade
payables
|
2,557
|
|
602
|
|
Increase (Decrease)
in employees and payroll accruals
|
1,023
|
|
(499)
|
|
Increase (Decrease)
in deferred revenues
|
(592)
|
|
731
|
|
Increase in other
payables and accrued expenses
|
1,893
|
|
486
|
|
Net cash used in
operating activities
|
(2,481)
|
|
(1,078)
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Decrease (Increase)
in restricted deposit
|
(83)
|
|
200
|
|
Redemption of
short-term deposits
|
3,986
|
|
14,100
|
|
Purchase of property
and equipment
|
(729)
|
|
(694)
|
|
Investment in
marketable securities
|
(11,584)
|
|
(7,061)
|
|
Proceeds from
redemption or sale of marketable securities
|
11,379
|
|
4,991
|
|
Acquisitions
|
-
|
|
(3,048)
|
|
Net cash provided by
investing activities
|
2,969
|
|
8,488
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
606
|
|
83
|
|
Net cash provided by
financing activities
|
606
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
1,094
|
|
7,493
|
|
Cash and cash
equivalents at the beginning of the period
|
16,336
|
|
15,342
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
17,430
|
|
$
22,835
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations
Contact:
GK Investor
Relations
Ehud Helft/Gavriel
Frohwein
+1 646 688
3559
allot@gkir.com
|
Public Relations
Contact:
Jodi Joseph
Asiag
Director of Corporate
Communications
jasiag@allot.com
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/allot-announces-first-quarter-2019-financial-results-300849523.html
SOURCE Allot Ltd.