Allot Communications Reports 43% Revenue Rise for Second Quarter of 2012
Revenues reach $26.4 million; EPS was $0.15 on a non-GAAP basis ($0.08 on a GAAP basis)
HOD HASHARON, Israel, July 31, 2012 /PRNewswire/ --
Key highlights:
- Second quarter revenues increased to $26.4 million, a 43% increase over the second quarter of 2011 and 9% increase over the previous quarter
- Second quarter non-GAAP net profit reaches $5.0 million, 83% increase over second quarter 2011; non-GAAP EPS of $0.15, similar to first quarter level, despite dilutive effect from Ortiva acquisition in the quarter
- Cash, cash equivalents and marketable securities totaled $159.8 million after acquisition closing; generated approximately $4.8 million in cash from operations during the quarter
Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile data worldwide, today announced continued growth in sales during the second quarter of 2012.
Total revenues for the second quarter of 2012 reached $26.4 million, a 43% increase from the $18.5 million of revenues reported for the second quarter of 2011, and a 9% increase from the $24.2 million of revenues reported for the first quarter of 2012. On a GAAP basis, net profit for the second quarter of 2012 was $2.7 million, or $0.08 per basic and diluted share. This compares with net profit of $1.6 million, or $0.07 per basic share and $0.06 per diluted share, in the second quarter of 2011, and net profit of $3.2 million, or $0.10 per basic and diluted share, in the first quarter of 2012.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and certain one-time charges incurred related to M&A activities and compliance with regulatory matters, non-GAAP net profit for the second quarter of 2012 totaled $5.0 million, or $0.16 per basic share and $0.15 per diluted share, compared with 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, and non-GAAP net profit $5.0 million, or $0.16 per basic share and $0.15 per diluted share, for the first quarter of 2012. The results reflect added operating expenses from the Ortiva Wireless acquisition, which closed on May 15, 2012.
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.
"Allot continued to demonstrate sustained revenue growth during the quarter," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. "The demand for network optimization and revenue generating solutions which we offer through our Service Gateway continues to increase as data traffic continues to grow throughout the world. With today's announcement regarding the acquisition of Oversi, we now offer the most comprehensive video solution in the industry."
Recently, the Company achieved the following significant goals:
- During the quarter, received large orders from 14 service providers, 6 of which represented new customers;
- 6 of the large orders came from mobile service providers, 2 of which were new customers
- Announced closing the acquisition of Ortiva Wireless on May 15, which provides Allot with a best-of-breed video optimization solution.
- Announced the deployment of Ortiva's video optimization solution at 3UK, a subsidiary of the Hutchison Group;
- Announced the acquisition of Oversi Networks, a leading provider of video caching solutions.
As of June 30, 2012, cash, cash equivalents, short term deposits and marketable securities totaled $159.8 million, post-closing the Ortiva acquisition, with no debt. The preliminary allocation of the purchase price for Ortiva is based upon estimates and assumptions that are subject to change within the purchase price allocation period, which is generally one year from the acquisition date. The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its second quarter 2012 earnings results today at 8:30 AM ET, 3:30 PM Israel time.
To access the conference call, please dial one of the following numbers: US: +1 646 254 3362, UK: +44 (0)20 3450 9987, Israel: +972 3763 0146, participant code 7208054.
A replay of the conference call will be available from 12:01 am ET on August 1, 2012 through August 31, 2012 at 11:59 pm UK time. To access the replay, please dial: US: +1 347 366 9565, UK: +44 (0)20 3427 0598, access code: 7208054#.
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 worldwide. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing fixed and mobile data, 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, 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 (U.S. dollars in thousands, except share and per share data)
Three Months Ended Six Months Ended June 30, June 30, 2012 2011 2012 2011 (Unaudited) (Unaudited) Revenues $ 26,405 $ 18,454 $ 50,622 $ 35,637 Cost of revenues 7,755 5,305 14,656 10,157 Gross profit 18,650 13,149 35,966 25,480 Operating expenses: Research and development costs, net 5,332 3,092 9,342 6,064 Sales and marketing 8,126 6,388 15,881 12,701 General and administrative 2,659 1,979 5,433 3,406 Total operating expenses 16,117 11,459 30,656 22,171 Operating profit 2,533 1,690 5,310 3,309 Financial and other income (expenses), net 187 (63) 649 29 Profit before income tax expenses 2,720 1,627 5,959 3,338 Tax expenses 21 16 24 101 Net profit 2,699 1,611 5,935 3,237 Basic net profit per share $ 0.08 $ 0.07 $ 0.19 $ 0.14 Diluted net profit per share $ 0.08 $ 0.06 $ 0.18 $ 0.12 Weighted average number of shares used in computing basic net earnings per share 31,873,752 24,195,495 31,548,294 23,948,546 Weighted average number of shares used in computing diluted net earnings per share 33,356,308 26,253,139 33,169,640 25,963,671
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, 2012 2011 2012 2011 (Unaudited) (Unaudited) GAAP net profit as reported $ 2,699 $ 1,611 $ 5,935 $ 3,237 Non-GAAP adjustments Expenses recorded for stock-based compensation Cost of revenues 52 27 97 50 Research and development costs, net 240 96 428 188 Sales and marketing 446 238 763 459 General and administrative 288 186 454 367 Expenses related to M&A activities and compliance with regulatory matters (*) General and administrative 666 538 1,711 538 Research and development costs, net 250 - 250 - Sales and marketing 93 - 93 - Intangible assets amortization - cost of revenues 262 30 293 60 Total adjustments 2,297 1,115 4,089 1,662 Non-GAAP net profit $ 4,996 $ 2,726 $ 10,024 $ 4,899 Non- GAAP basic net profit per share $ 0.16 $ 0.11 $ 0.32 $ 0.20 Non- GAAP diluted net profit per share $ 0.15 $ 0.10 $ 0.30 $ 0.19 Weighted average number of shares used in computing basic net earnings per share 31,873,752 24,195,495 31,548,294 23,948,546 Weighted average number of shares used in computing diluted net earnings per share 33,662,390 26,399,604 33,401,374 26,116,991 (*) Mostly legal, finance and compensation expenses related to the acquisition
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 Six Months Ended June 30, June 30, 2012 2011 2012 2011 (Unaudited) (Unaudited) Revenues $ 26,405 $ 18,454 $ 50,622 $ 35,637 Cost of revenues 7,441 5,248 14,266 10,047 Gross profit 18,964 13,206 36,356 25,590 Operating expenses: Research and development costs, net 4,842 2,996 8,664 5,876 Sales and marketing 7,587 6,150 15,025 12,242 General and administrative 1,705 1,255 3,268 2,501 Total operating expenses 14,134 10,401 26,957 20,619 Operating profit 4,830 2,805 9,399 4,971 Financial and other income (expenses), net 187 (63) 649 29 Profit before income tax expenses 5,017 2,742 10,048 5,000 Tax expenses 21 16 24 101 Net profit 4,996 2,726 10,024 4,899 Basic net profit per share $ 0.16 $ 0.11 $ 0.32 $ 0.20 Diluted net profit per share $ 0.15 $ 0.10 $ 0.30 $ 0.19 Weighted average number of shares used in computing basic net earnings per share 31,873,752 24,195,495 31,548,294 23,948,546 Weighted average number of shares used in computing diluted net earnings per share 33,662,390 26,399,604 33,401,374 26,116,991
TABLE - 4 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) June 30, December 31, 2012 2011 (Unudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 70,083 $ 116,682 Short term deposits 71,000 24,000 Marketable securities and restricted cash 18,692 18,718 Trade receivables, net 17,454 11,926 Other receivables and prepaid expenses 4,387 5,950 Inventories 11,673 10,501 Total current assets 193,289 187,777 LONG-TERM ASSETS: Severance pay fund 181 178 Other assets and deferred taxes 355 356 Total long-term assets 536 534 PROPERTY AND EQUIPMENT, NET 5,913 5,352 GOODWILL AND INTANGIBLE ASSETS, NET 17,424 3,395 Total assets $ 217,162 $ 197,058 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 7,316 $ 2,684 Deferred revenues 17,156 16,694 Other payables and accrued expenses 12,787 9,462 Total current liabilities 37,259 28,840 LONG-TERM LIABILITIES: Deferred revenues 5,135 5,430 Accrued severance pay 229 219 Total long-term liabilities 5,364 5,649 SHAREHOLDERS' EQUITY 174,539 162,569 Total liabilities and shareholders' equity $ 217,162 $ 197,058
TABLE - 5 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, 2012 2011 2012 2011 (Unaudited) (Unaudited) Cash flows from operating activities: Net income $ 2,699 $ 1,611 $ 5,935 $ 3,237 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 718 679 1,363 1,336 Stock-based compensation related to options granted to employees and non-employees 1,026 547 1,742 1,064 Amortization of intangible assets 262 31 293 61 Capital loss - 13 4 9 Increase in accrued severance pay, net 13 3 7 6 Decrease (Increase) in other assets 2 2 1 (1) Decease in accrued interest and amortization of premium on marketable securities 11 48 48 47 Increase (Decrease) in trade receivables (1,112) 2,364 (5,499) (403) Decrease (Increase) in other receivables and prepaid expenses 1,402 (1,240) 1,626 (1,334) Decrease in inventories 472 1,920 321 1,106 Increase (Decrease) in trade payables (763) (3,075) 2,492 (3,046) Increase (Decrease) in employees and payroll accruals 113 (17) 378 (609) Increase (Decrease) in deferred revenues (2,847) (396) (1,636) 1,064 Increase in other payables and accrued expenses 2,794 405 2,117 1,323 Net cash provided by operating activities 4,790 2,895 9,192 3,860 Cash flows from investing activities: Decrease (Increase) in restricted deposit 65 (1) 21 (487) Investment in short-term deposit (65,000) - (47,000) - Purchase of property and equipment (766) (588) (1,469) (1,298) Proceeds from sale of property and equipment - - - 30 Investment in marketable securities (1,000) (1,061) (1,251) (1,914) Proceeds from redemption or sale of marketable securities 750 800 1,200 1,600 Acquisition of Ortiva (10,399) - (10,399) - Loan issued to Ortiva (1,000) - (1,000) - Net cash used in investing activities (77,350) (850) (59,898) (2,069) Cash flows from financing activities: Exercise of warrants and employee stock options 1,741 214 4,107 1,467 Net cash provided by financing activities 1,741 214 4,107 1,467 Increase (Decrease) in cash and cash equivalents (70,819) 2,259 (46,599) 3,258 Cash and cash equivalents at the beginning of the period 140,902 43,857 116,682 42,858 Cash and cash equivalents at the end of the period $ 70,083 $ 46,116 $ 70,083 $ 46,116
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
[email protected]
SOURCE Allot Communications Ltd.
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