Allot Communications Reports Continued Growth in Revenues and Net Profit for Third Quarter of 2011
November 01, 2011 4:02 AM
Allot Communications Reports Continued Growth in Revenues and Net Profit for Third Quarter of 2011
Revenues reach $20.1 million; EPS was $0.13 on a non-GAAP basis ($0.08 on a GAAP basis)
PR Newswire
BOSTON, November 1, 2011
BOSTON, November 1, 2011 /PRNewswire/ --
Key highlights:
- Third quarter revenues reached record $20.1 million, a 37% increase over the third quarter of 2010
- Third quarter non-GAAP net profit of $3.4 million; non-GAAP EPS grew to $0.13 from $0.10 in the second quarter of 2011; non-GAAP operating margin reaches 16%
- Cash, cash equivalents, marketable securities and restricted cash totaled approximately $66.7 million; generated approximately $3.4 million in cash from operations during the quarter
- Added 5 new service providers during the third quarter
Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband service providers worldwide, today announced continued growth in revenues and net profit for the third quarter of 2011.
Total revenues for the third quarter of 2011 reached $20.1 million, a 37% increase from the $14.7 million of revenues reported for the third quarter of 2010, and a 9% increase from the $18.5 million of revenues reported for the second quarter of 2011. On a GAAP basis, net profit for the third quarter of 2011 was $2.1 million, or $0.09 per basic share and $0.08 per diluted share. This compares with net income of $0.8 million, or $0.03 per share (basic and diluted), in the third quarter of 2010, and a net profit of $1.6 million, or $0.07 per basic share and $0.06 per diluted share, in the second quarter of 2011.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and expenses related to financing activities, non-GAAP net profit for the third quarter of 2011 totaled $3.4 million, or $0.14 per basic share and $0.13 per diluted share, compared with a non-GAAP net profit of $1.3 million, or $0.06 per basic share and $0.05 per diluted share, for the third quarter of 2010, and non-GAAP net profit of $2.7 million, or $0.11 per basic share and $0.10 per diluted share, for the second quarter of 2011.
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 are provided in the accompanying Tables 2 and 3. The Company provides these non-GAAP financial measures because it believes that 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 that they are useful to investors in enhancing an understanding of the Company's operating performance.
"Growth during the quarter was fueled by increasing activity across the wireless and wireline markets," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. "We continue to win large mobile service providers across the globe, maintaining our leadership position in this market. An increasing number of our customers are looking to our solutions, primarily the Service Gateway, to provide them with new and unique ways to monetize their networks, primarily in the area of smart charging. Our industry leading 160Gbps throughput capabilities, along with our ability to incorporate a wide range of services on a single platform, are key factors in our steady and continuing growth."
Recently, the Company achieved the following significant goals:
- Added 3 new mobile service providers, located throughout the world, to its growing customer list;
- During the quarter, received orders from 9 large service providers, of which 5 represented new customers and 4 represented expansion deals;
- Recently announced signing a new, $9.5 million deal with a Tier 1 fixed-line operator in Asia;
- Recently announced a combined solution with Openet, enabling smart charging and new revenue streams for service providers.
As of September 30, 2011, cash, cash equivalents, marketable securities and restricted cash totaled approximately $66.7 million.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its third quarter results today at 8:30 AM ET, 2:30 PM Israel time.
To access the conference call, please dial one of the following numbers: US: +1-646-254-3362, UK: +44-(0)20-3140-8286, Israel: +972-3763-0146, confirmation code 3107484.
A replay of the conference call will be available from 12:01 am ET on November 2, 2011 through December 1, 2011 at 11:59 pm ET. To access the replay, please dial: US: +1-347-366-9565, UK: +44 (0)20 7111 1244, access code: 3107484#.
A live webcast of the conference call can be accessed on the Allot Communications website at http://www.allot.com. The webcast will also be archived on the website following the conference call.
About Allot Communications
Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent data traffic optimization and monetization solutions for fixed and mobile broadband operators and large enterprises. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing Internet service delivery, enhancing user experience, containing operating costs, and enabling service providers to generate revenues from their broadband networks. Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value added Internet services. For more information, please visit http://www.allot.com.
Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to: our ability to increase the breadth and functionality of the Service Gateway platform through additional partnerships, changes in general economic and business conditions; the Company's inability to develop and introduce new technologies, products and applications; loss of market; 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. 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 COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS on a GAAP BASIS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2011 2010 2011 2010
--------- ----------- ----------- ----------
(Unaudited) (Unaudited) (Unaudited)
------------------------- --------------------------
Revenues $ 20,088 $ 14,668 $ 55,725 $ 40,765
Cost of
revenues $ 5,728 4,125 15,885 11,395
-------- ----------- --------- ---------- Gross profit $ 14,360 10,543 39,840 29,370
-------- ----------- --------- ----------
Operating
expenses:
Research and
development
costs, net $ 3,467 2,945 9,531 8,261
Sales and
marketing $ 6,575 5,611 19,276 16,275
General and
administrative $ 2,379 1,382 5,785 4,019
-------- ----------- --------- ----------
Total
operating
expenses $ 12,421 9,938 34,592 28,555
Operating
profit $ 1,939 605 5,248 815
Financial and
other income
(expenses),
net $ 149 247 178 (7,730)
-------- ----------- --------- ----------
Profit (loss)
before income
tax expenses $ 2,088 852 5,426 (6,915)
Tax expenses $ 13 100 114 196
-------- ----------- --------- ----------
Net profit
(loss) $ 2,075 752 5,312 (7,111)
-------- ----------- --------- ----------
-------- ----------- --------- ----------
Basic net
profit (loss)
per share $ 0.09 $ 0.03 $ 0.22 $ (0.31)
-------- ----------- --------- ----------
-------- ----------- --------- ----------
Diluted net
profit (loss)
per share $ 0.08 $ 0.03 $ 0.20 $ (0.31)
-------- ----------- --------- ----------
-------- ----------- --------- ----------
Weighted
average number
of shares
used in
computing
basic net
earnings per
share 24,296,038 22,813,134 24,159,643 22,656,343
---------- ----------- ---------- ----------
---------- ----------- ---------- ----------
Weighted
average number
of shares
used in
computing
diluted net
earnings per
share 26,184,244 23,642,725 26,072,423 22,656,343
---------- ----------- ---------- ----------
---------- ----------- ---------- ----------
TABLE 2
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three Months Nine Months
Ended Ended September 30, September 30,
------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ----------
(Unaudited) (Unaudited)
------------------- --------------------
GAAP net profit (loss)
as reported $ 2,075 $ 752 $ 5,312 $ (7,111)
--------- --------- --------- ----------
Non-GAAP adjustments
Expenses recorded for
stock-based compensation
Cost of revenues 19 21 69 72
Research and
development costs, net 99 87 287 273
Sales and marketing 223 213 682 655
General and administrative 165 152 532 528
Expenses related to M&A
and financing activities
General and administrative 798 1,336
Core technology amortization-
cost of revenues 30 30 90 90
--------- --------- --------- ----------
Total adjustments to operating
loss 1,334 503 2,996 1,618
Financial and other
expenses, net 7,711
--------- --------- --------- ----------
Total adjustments 1,334 503 2,996 9,329
--------- --------- --------- ----------
Non-GAAP net profit $ 3,409 $ 1,255 $ 8,308 $ 2,218
--------- --------- --------- ----------
--------- --------- --------- ----------
Non-GAAP basic net profit
per share $ 0.14 $ 0.06 $ 0.34 $ 0.10
--------- --------- --------- ----------
--------- --------- --------- ----------
Non-GAAP diluted net profit
per share $ 0.13 $ 0.05 $ 0.32 $ 0.09
--------- --------- --------- ----------
--------- --------- --------- ----------
Weighted average number of shares
used in computing basic net
earnings per share 24,296,038 22,813,134 24,159,643 22,656,343
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average number of shares
used in computing diluted net
earnings per share 26,287,478 24,244,210 26,172,819 23,997,119
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TABLE 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS on a NON-GAAP BASIS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
2011 2010 2011 2010
------- -------- ------- --------
(Unaudited) (Unaudited)
---------------------- -----------------------
Revenues $ 20,088 $ 14,668 $ 55,725 $ 40,765
Cost of
revenues 5,679 4,074 15,726 11,233
------- -------- ------- --------
Gross profit 14,409 10,594 39,999 29,532
------- -------- ------- --------
Operating
expenses:
Research and
development
costs, net 3,368 2,858 9,244 7,988
Sales and
marketing 6,352 5,398 18,594 15,620
General and
administrative 1,416 1,230 3,917 3,491
------- -------- ------- --------
Total operating
expenses 11,136 9,486 31,755 27,099
Operating
profit 3,273 1,108 8,244 2,433
Financial and
other income
(expenses), net 149 247 178 (19)
------- -------- ------- --------
Profit before
income tax
expenses 3,422 1,355 8,422 2,414
Tax expenses 13 100 114 196
------- -------- ------- --------
Net profit 3,409 1,255 8,308 2,218
------- -------- ------- --------
------- -------- ------- --------
Basic net
profit per
share $ 0.14 $ 0.06 $ 0.34 $ 0.10
------- -------- ------- --------
------- -------- ------- --------
Diluted net
profit per
share $ 0.13 $ 0.05 $ 0.32 $ 0.09
------- -------- ------- --------
------- -------- ------- --------
Weighted
average number
of shares
used in
computing basic
net
earnings per
share 24,296,038 22,813,134 24,159,643 22,656,343
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted
average number
of shares
used in
computing
diluted net
earnings per
share 26,287,478 24,244,210 26,172,819 23,997,119
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TABLE 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
September 30, December 31,
2011 2010
------------ -----------
(Unaudited) (Audited)
------------ -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 29,794 $ 42,858
Short term deposits 18,000 -
Marketable securities and restricted cash 18,872 16,591
Trade receivables, net 12,799 10,739
Other receivables and prepaid expenses 4,063 4,958
Inventories 9,048 10,830
------------ ----------
Total current assets 92,576 85,976
------------ ----------
LONG-TERM ASSETS:
Severance pay fund 179 162
Other assets 246 340
------------ ----------
Total long-term assets 425 502
------------ ----------
------------ ----------
PROPERTY AND EQUIPMENT, NET 5,144 5,193
------------ ----------
GOODWILL AND INTANGIBLE ASSETS, NET 3,425 3,516
------------ ----------
Total assets $ 101,570 $ 95,187
------------ ----------
------------ ----------
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 3,830 $ 5,140
Deferred revenues 10,317 10,828
Other payables and accrued expenses 10,149 10,167
------------ ----------
Total current liabilities 24,296 26,135
------------ ----------
LONG-TERM LIABILITIES:
Deferred revenues 4,065 3,873
Accrued severance pay 213 191
------------ ----------
Total long-term liabilities 4,278 4,064
------------ ----------
------------ ----------
SHAREHOLDERS' EQUITY 72,996 64,988
------------ ----------
Total liabilities and shareholders' equity $ 101,570 $ 95,187
------------ ----------
------------ ----------
TABLE 5
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------
2011 2010 2011 2010
--------------------------------------
(Unaudited) (Unaudited)
--------------------------------------
Cash flows from operating
activities:
Net income (loss) $ 2,075 $ 752 $ 5,312 $ (7,111)
Adjustments to reconcile
net income (loss) to net
cash provided by operating
activities:
Depreciation 712 660 2,048 1,961
Write-off of property and
of equipment, net - 158 - 158
Stock-based compensation
related to options granted
to employees and
non-employees 506 473 1,57 1,528
Amortization of intangible
assets 30 31 9 93
Capital loss - 57 55
Increase (Decrease) in
accrued severance pay, net (1) (8) 5 (73)
Decrease in other assets 95 83 94 89
Decrease in accrued
interest and amortization
of premium on marketable
securities 19 - 66 -
Decrease (Increase) in
trade receivables (1,657) (442) (2,060) 304
Decrease in other
receivables and prepaid
expenses 2,129 241 795 631
Decrease (Increase) in
inventories 676 (2,148) 1,782 (4,633)
Decrease in long-term
deferred taxes 49 - 49
Increase (Decrease) in
trade payables 1,735 (55) (1,310) 1,457
Increase (Decrease) in
employees and payroll
accruals 95 566 (514) 75
Increase (Decrease) in
deferred revenues (1,383) (18) (319) 3,070
Increase (Decrease) in
other payables and accrued
expenses (1,649) 563 (326) 566
Other than temporary loss
on marketable securities - - - 7,712
--------------------------------------
Net cash provided by
operating activities 3,382 962 7,240 5,931
--------------------------------------
Cash flows from investing
activities:
Increase in restricted
deposit - - (487) -
Investment in short-term
deposits (18,000) (18,000) -
Redemption of short-term
deposits 4,908 1,264
Purchase of property and
equipment (740) (525) (2,038) (1,986)
Proceeds from sale of
property and equipment - - 30 38
Investment in marketable
securities (2,317) (5,243) (4,231) (5,243)
Proceeds from redemption
or sale of marketable
securities 803 - 2,403 12,252
--------------------------------------
Net cash provided by (used
in) investing activities (20,254) (860) (22,324) 6,325
--------------------------------------
Cash flows from financing
activities:
Exercise of warrants and
employee stock options and
repayment of non-recourse
loan 550 435 2,020 1,202
--------------------------------------
Net cash provided by
financing activities 550 435 2,020 1,202
--------------------------------------
Increase (Decrease) in
cash and cash equivalents (16,322) 537 (13,064) 13,458
Cash and cash equivalents
at the beginning of the
period 46,116 49,391 42,858 36,470
--------------------------------------
Cash and cash equivalents
at the end of the period $ 29,794 $ 49,928 $ 29,794 $ 49,928
--------------------------------------
--------------------------------------
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
jkalish@allot.com
SOURCE Allot Communications Ltd.
