(MENAFNEditorial) HOD HASHARON, Israel, Aug. 1, 2017 /PRNewswire/ -- (NASDAQ: ;TASE: ALLT), a leading global provider of security and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience, today announced its second quarter 2017 financial results.
Q2 2017 Highlights
GAAP revenues were $19.5M, up from $18.4M in Q1 2017; GAAP operating loss was $3.8M, down from $4.9M in Q1 2017; Book-to-bill above one for the second consecutive quarter. Management Comment
Erez Antebi, President & CEO of Allot Communications, commented, "The past quarter was the second consecutive quarter with book-to-bill ratio above one. We are also seeing a steady, consistent increase in the number of consumers who are enjoying the benefits of our network security solutions. Internally, we are aligning the organization to fit the new strategy and generate growth. I strongly believe we are on the right path to materialize on the market opportunities we identified as growth engines, and we continue to demonstrate the value of our solutions and commitment to customer success."
Q2 2017 Financial results
On a GAAP basis, total revenues for the second quarter of 2017 were $19.5 million, compared to $18.4 million reported for the first quarter of 2017. Net loss for the second quarter of 2017 was $4.0 million, or $0.12 per basic and diluted share. This compares with a net loss of $5.1 million, or $0.15 per basic and diluted share, in the first quarter of 2017.
On a non-GAAP basis, total revenues for the second quarter of 2017 were $19.5 million compared to $18.5 million reported for the first quarter of 2017. Net loss for the second quarter of 2017 was $2.3 million, or $0.07 per basic and diluted share. This compares with a net loss of $3.6 million, or $0.11 per basic and diluted share, in the first quarter of 2017.
Cash and investments as of June 30, 2017 totaled $111.3 million. The Company recorded a positive operating cash flow of $0.9 million during the quarter.
2017 Outlook
Management reiterates its previously issued guidance and expects 2017 revenues in the range of $80 - $84 million. Revenues for the second half of 2017 are expected to be better than for the first half and the book to bill ratio for the year is expected to be above 1.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss second quarter 2017 earnings results today, August 1, 2017 at 8:30 AM ET, 3:30 p.m. Israel time. To access the conference call, please dial one of the following numbers:
US: +1-888-668-9141, UK: +44(0) 800-917-5108, Israel: +972-3-918-0609.
A recording of the conference call will be available from 12:00PM ET on August 1, 2017 for 30 days. To access the recording, please dial: +1-866-276-1485; UK: +44(0) 800-917-1246; Intl: +972-3-925-5928
A live webcast of the conference call can be accessed on the Allot Communications website at: .
The webcast will also be archived on the website following the conference call.
About Allot Communications
Allot Communications (NASDAQ: ALLT, TASE: ALLT) is a leading provider of security and monetization solutions that enables service providers and enterprises to protect and personalize the digital experience. Allot's flexible and highly scalable service delivery framework leverages the intelligence in data networks, enabling service providers to get closer to their customers, safeguard network assets and users, and accelerate time-to-revenue for value-added services. We employ innovative technology, proven know-how and a collaborative approach to provide the right solution for every network environment. Allot solutions are currently deployed at 5 of the top 10 global mobile operators and in thousands of CSP and enterprise networks worldwide. For more information, please visit.
GAAP to Non-GAAP Reconciliation:
The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, restructuring expenses 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 are 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 third 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 COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
Revenues
$ 19,502
$ 22,958
$ 37,937
$ 45,896
Cost of revenues
6,662
6,524
12,980
13,667
Gross profit
12,840
16,434
24,957
32,229
Operating expenses:
Research and development costs, net
5,364
5,957
10,897
12,818
Sales and marketing
8,747
8,846
17,727
19,117
General and administrative
2,519
2,570
5,060
5,267
Total operating expenses
16,630
17,373
33,684
37,202
Operating loss
(3,790)
(939)
(8,727)
(4,973)
Financial and other income , net
112
211
474
327
Loss before income tax benefit
(3,678)
(728)
(8,253)
(4,646)
Tax expenses
352
499
854
870
Net loss
(4,030)
(1,227)
(9,107)
(5,516)
Basic net loss per share
$ (0.12)
$ (0.04)
$ (0.27)
$ (0.17)
Diluted net loss per share
$ (0.12)
$ (0.04)
$ (0.27)
$ (0.17)
Weighted average number of shares
used in computing basic net
earnings per share
33,200,982
33,234,040
33,146,715
33,357,014
Weighted average number of shares
used in computing diluted net
earnings per share
33,200,982
33,234,040
33,146,715
33,357,014
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 Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
GAAP Revenues
$ 19,502
$ 22,958
$ 37,937
$ 45,896
Fair value adjustment for acquired deferred revenues write down
13
36
37
101
Non-GAAP Revenues
$ 19,515
$ 22,994
$ 37,974
$ 45,997
GAAP cost of revenues
$ 6,662
$ 6,524
$ 12,980
$ 13,667
Share-based compensation (1)
(96)
(104)
(192)
(173)
Amortization of intangible assets (2)
(242)
(233)
(474)
(481)
Non-GAAP cost of revenues
$ 6,324
$ 6,187
$ 12,314
$ 13,013
GAAP gross profit
$ 12,840
$ 16,434
$ 24,957
$ 32,229
Gross profit adjustments
351
373
703
755
Non-GAAP gross profit
$ 13,191
$ 16,807
$ 25,660
$ 32,984
GAAP operating expenses
$ 16,630
$ 17,373
$ 33,684
$ 37,202
Share-based compensation (1)
(870)
(1,220)
(1,618)
(2,806)
Amortization of intangible assets (2)
(135)
(132)
(269)
(270)
Expenses related to M & A activities (3)
-
-
(89)
-
Non-GAAP operating expenses
$ 15,625
$ 16,021
$ 31,708
$ 34,126
GAAP financial and other income
$ 112
$ 211
$ 474
$ 327
Expenses related to M & A activities (3)
306
(135)
379
143
Non-GAAP Financial and other income
$ 418
$ 76
$ 853
$ 470
GAAP taxes on income
$ 352
$ 499
$ 854
$ 870
Tax benefit (in respect of net deferred tax asset recorded)
(64)
(69)
(130)
(131)
Non-GAAP taxes on income
$ 288
$ 430
$ 724
$ 739
GAAP Net Loss
$ (4,030)
$ (1,227)
$ (9,107)
$ (5,516)
Share-based compensation (1)
966
1,324
1,810
2,979
Amortization of intangible assets (2)
377
365
743
751
Expenses related to M & A activities (3)
306
(135)
468
143
Fair value adjustment for acquired deferred revenues write down
13
36
37
101
Tax benefit (in respect of net deferred tax asset recorded)
64
69
130
131
Non-GAAP Net income (Loss)
$ (2,304)
$ 432
$ (5,919)
$ (1,411)
GAAP Loss per share (diluted)
$ (0.12)
$ (0.04)
$ (0.27)
$ (0.17)
Share-based compensation
0.03
0.04
0.05
0.09
Amortization of intangible assets
0.01
0.01
0.02
0.02
Expenses related to M & A activities
0.01
(0.00)
0.01
0.01
Fair value adjustment for acquired deferred revenues write down
0.00
0.00
0.00
0.00
Tax benefit (in respect of net deferred tax asset recorded)
0.00
0.00
0.01
0.01
Non-GAAP Net income (Loss) per share (diluted)
$ (0.07)
$ 0.01
$ (0.18)
$ (0.04)
Weighted average number of shares used in
computing GAAP diluted net earnings per share
33,200,982
33,234,040
33,146,715
33,357,014
Weighted average number of shares used in
computing non-GAAP diluted net earnings per share
33,200,982
33,736,414
33,146,715
33,357,014
TABLE - 2 cont.
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 Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
(1) Share-based compensation:
Cost of revenues
$ 96
$ 104
$ 192
$ 173
Research and development costs, net
217
280
446
706
Sales and marketing
246
467
487
1,089
General and administrative
407
473
685
1,011
$ 966
$ 1,324
$ 1,810
$ 2,979
(2) Amortization of intangible assets
Cost of revenues
$ 242
$ 233
$ 474
$ 481
Sales and marketing
135
132
269
270
$ 377
$ 365
$ 743
$ 751
(3) Expenses related to M & A activities
General and administrative
$ -
$ -
$ 89
$ -
Finanacial expenses
306
(135)
379
143
$ 306
$ (135)
$ 468
$ 143
TABLE - 3
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30,
December 31,
2017
2016
(Unaudited)
(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 23,460
$ 23,326
Short term deposits
24,543
29,821
Marketable securities
63,252
60,507
Trade receivables, net
24,367
24,158
Other receivables and prepaid expenses
3,926
3,879
Inventories
10,084
7,235
Total current assets
149,632
148,926
LONG-TERM ASSETS:
Severance pay fund
287
252
Deferred taxes
133
267
Other assets
570
1,136
Total long-term assets
990
1,655
PROPERTY AND EQUIPMENT, NET
5,076
4,387
GOODWILL AND INTANGIBLE ASSETS, NET
35,229
35,972
Total assets
$ 190,927
$ 190,940
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables
$ 9,411
$ 3,275
Deferred revenues
10,679
11,133
Other payables and accrued expenses
11,482
10,538
Total current liabilities
31,572
24,946
LONG-TERM LIABILITIES:
Deferred revenues
3,090
3,597
Accrued severance pay
711
592
Other long term liabilities
4,857
4,502
Total long-term liabilities
8,658
8,691
SHAREHOLDERS' EQUITY
150,697
157,303
Total liabilities and shareholders' equity
$ 190,927
$ 190,940
TABLE - 4
ALLOT COMMUNICATIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net Loss
$ (4,030)
$ (1,227)
$ (9,107)
$ (5,516)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
535
596
1,065
1,195
Stock-based compensation related to options granted to employees
966
1,324
1,809
2,979
Amortization of intangible assets
376
365
743
751
Capital loss
3
21
7
20
Decrease in accrued severance pay, net
56
9
84
27
Decrease in other assets
258
483
566
374
Decease in accrued interest and amortization of premium on marketable securities
376
402
502
740
Decrease (Increase) in trade receivables
(1,469)
261
(209)
542
Decrease (Increase) in other receivables and prepaid expenses
1,028
(92)
406
242
Increase in inventories
(2,087)
(513)
(2,849)
(139)
Decrease in long-term deferred taxes, net
67
61
134
123
Increase (Decrease) in trade payables
4,287
(3,060)
6,136
(2,905)
Increase (Decrease) in employees and payroll accruals
340
(12)
616
(597)
Increase (Decrease) in deferred revenues
(108)
1,163
(961)
(64)
Increase (Decrease) in other payables and accrued expenses
269
(1,004)
760
(404)
Net cash provided by (used in) operating activities
867
(1,223)
(298)
(2,632)
Cash flows from investing activities:
Redemption of (Investment in) short-term deposits
4,805
(267)
5,278
9,733
Purchase of property and equipment
(949)
(409)
(1,760)
(736)
Investment in marketable securities
(8,950)
(8,200)
(15,538)
(16,980)
Proceeds from redemption or sale of marketable securities
7,662
7,690
12,411
18,590
Net cash provided by (used in) investing activities
2,568
(1,186)
391
10,607
Cash flows from financing activities:
Exercise of employee stock options
17
15
41
26
Purchase of treasury stocks
-
(2,279)
-
(3,326)
Net cash provided by (used in) financing activities
17
(2,264)
41
(3,300)
Increase (Decrease) in cash and cash equivalents
3,452
(4,673)
134
4,675
Cash and cash equivalents at the beginning of the period
20,008
24,818
23,326
15,470
Cash and cash equivalents at the end of the period
$ 23,460
$ 20,145
$ 23,460
$ 20,145
Investor Relations Contact:
GK Investor Relations
Ehud Helft/Gavriel Frohwein
+1 646 688 3559
Public Relations Contact:
Sigalit Orr
Director Corporate Communications
International dialing +972-54-268-1500
View original content:
SOURCE Allot Communications Ltd.
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