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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Posted In: EarningsNewsGuidanceSmall CapTechBriefs
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