Allot Beats Q2 Earnings As Cybersecurity Responsibility Shifts To CSPs; Reiterates FY21 Guidance

Allot Ltd ALLT reported second-quarter FY21 revenue growth of 8% year-on-year to $35.3 million, beating the analyst consensus of $34.1 million.
Margin: The GAAP margin reduced 100 bps to 69% as costs rose 10% Y/Y. The non-GAAP gross margin contracted 50 bps to 70.2%.
Non-GAAP EPS loss of $(0.04) beat the analyst consensus loss of $(0.09).
Allot held $105.6 million in cash and equivalents and generated $3.6 million in operating cash flow.
Growth Drivers: The Q2 results reflect the growth and momentum of the revolution of shifting cybersecurity responsibility from the individual to the Communications Service Providers (CSPs).
The 5G Netprotect product is gaining momentum with another win with a Tier-1 in APAC. Allot inked additional SECaas contracts with multiple operators in APAC, EMEA, and Latam.
Outlook: Allot reiterated FY21 revenue outlook of $145 million - $150 million versus the analyst consensus of $147.1 million.
Price action: ALLT shares closed lower by 7.38% at $17.33 on Tuesday.

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