Allot Communications Reports Growth in Revenues and Net Profit for Second Quarter of 2011
--Revenues reach $18.5 million; EPS hits $0.10 on a non-GAAP basis ($0.06 on a GAAP basis)--
Key highlights:
- Second quarter revenues reached $18.5 million, a 35% increase over the second quarter of 2010
- Second quarter non-GAAP net profit of $2.7 million; non-GAAP EPS grew to $0.10 from $0.08 in the first quarter of 2011
- Cash, cash equivalents, marketable securities and restricted cash totaled approximately $63.5 million; generated approximately $3 million in cash from operations during the quarter
- Added five new Tier 1 service providers during the second quarter
BOSTON, Aug. 1, 2011 /PRNewswire/ -- 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 improved financial results for the second quarter of 2011.
Total revenues for the second quarter of 2011 reached $18.5 million, a 35% increase from the $13.6 million of revenues reported for the second quarter of 2010, and an 8% increase from the $17.2 million of revenues reported for the first quarter of 2011. On a GAAP basis, net profit for the second quarter of 2011 was $1.6 million, or $0.07 per basic share and $0.06 per diluted share. This compares with a net loss of $7.4 million, or $0.33 per share (basic and diluted), in the second 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 first quarter of 2011.
On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and one-time expenses related to M&A activities, non-GAAP net profit for the second quarter of 2011 totaled $2.7 million, or $0.11 per basic share and $0.10 per diluted share, compared with a non-GAAP net profit of $0.8 million, or $0.03 per share (basic and diluted), for the second quarter of 2010, and non-GAAP net profit of $2.2 million, or $0.09 per basic share and $0.08 per diluted share, for the first 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.
"We are pleased to report another solid growth quarter, as demand for Allot's solutions continues to grow across an increasing number of service providers throughout the world, particularly among Tier 1 mobile and fixed operators," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. "The Service Gateway has become a leading solution to meet the ever-increasing challenge our customers face in managing mobile data. We continue to explore ways to increase the breadth and functionality of the Service Gateway platform through additional partnerships as well as through M&A opportunities."
Recently, the Company achieved the following significant goals:
- Added 5 new service providers, located throughout the world, to its growing customer list;
- During the quarter, received orders from 18 large service providers, of which 5 represented new customers and 13 represented expansion deals;
- Signed the first contract with a Russian Tier 1 operator through its partnership with Nokia Siemens Networks.
As of June 30, 2011, cash, cash equivalents, marketable securities and restricted cash totaled approximately $63.5 million.
Conference Call & Webcast
The Allot management team will host a conference call to discuss its second quarter 2011 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: +1 212 444 0412, UK: +44 (0)20 7136 6283, Israel: +972 3721 9509, confirmation code 9577749.
A replay of the conference call will be available from 12:01 am ET on August 2, 2011 through September 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: 9577749#.
A live webcast of the conference call can be accessed on the Allot Communications website at 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 IP service optimization and revenue generation solutions for fixed and mobile service providers. 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 maximizing revenue in 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 as well as through M&A opportunities, 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.
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
[email protected]
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 |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
Revenues |
$ 18,454 |
$ 13,626 |
$ 35,637 |
$ 26,097 |
||||
Cost of revenues |
5,305 |
3,915 |
10,157 |
7,270 |
||||
Gross profit |
13,149 |
9,711 |
25,480 |
18,827 |
||||
Operating expenses: |
||||||||
Research and development costs, net |
3,092 |
2,728 |
6,064 |
5,316 |
||||
Sales and marketing |
6,388 |
5,413 |
12,701 |
10,664 |
||||
General and administrative |
1,979 |
1,305 |
3,406 |
2,637 |
||||
Total operating expenses |
11,459 |
9,446 |
22,171 |
18,617 |
||||
Operating profit |
1,690 |
265 |
3,309 |
210 |
||||
Financial and other income (expenses), net |
(63) |
(7,555) |
29 |
(7,977) |
||||
Profit (loss) before income tax expenses |
1,627 |
(7,290) |
3,338 |
(7,767) |
||||
Tax expenses |
16 |
127 |
101 |
96 |
||||
Net profit (loss) |
1,611 |
(7,417) |
3,237 |
(7,863) |
||||
Basic net profit (loss) per share |
$ 0.07 |
$ (0.33) |
$ 0.14 |
$ (0.35) |
||||
Diluted net profit (loss) per share |
$ 0.06 |
$ (0.33) |
$ 0.12 |
$ (0.35) |
||||
Weighted average number of shares |
||||||||
used in computing basic net |
||||||||
earnings per share |
24,195,495 |
22,711,470 |
23,948,546 |
22,572,070 |
||||
Weighted average number of shares |
||||||||
used in computing diluted net |
||||||||
earnings per share |
26,253,139 |
22,711,470 |
25,963,671 |
22,572,070 |
||||
TABLE - 2 |
|||||||||
ALLOT COMMUNICATIONS LTD. |
|||||||||
AND ITS SUBSIDIARIES |
|||||||||
RECONCILIATION 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, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||
(Unaudited) |
(Unaudited) |
||||||||
GAAP net profit (loss) as reported |
$ 1,611 |
$ (7,417) |
$ 3,237 |
$ (7,863) |
|||||
Non-GAAP adjustments |
|||||||||
Expenses recorded for stock-based compensation |
|||||||||
Cost of revenues |
27 |
22 |
50 |
51 |
|||||
Research and development costs, net |
96 |
93 |
188 |
186 |
|||||
Sales and marketing |
238 |
212 |
459 |
442 |
|||||
General and administrative |
186 |
143 |
367 |
376 |
|||||
Expenses related to M&A activities |
|||||||||
General and administrative |
538 |
538 |
|||||||
Core technology amortization- cost of revenues |
30 |
30 |
60 |
60 |
|||||
Total adjustments to operating loss |
1,115 |
500 |
1,662 |
1,115 |
|||||
Financial and other expenses, net |
7,703 |
7,711 |
|||||||
Total adjustments |
1,115 |
8,203 |
1,662 |
8,826 |
|||||
Non-GAAP net profit |
$ 2,726 |
$ 786 |
$ 4,899 |
$ 963 |
|||||
Non- GAAP basic net profit per share |
$ 0.11 |
$ 0.03 |
$ 0.20 |
$ 0.04 |
|||||
Non- GAAP diluted net profit per share |
$ 0.10 |
$ 0.03 |
$ 0.19 |
$ 0.04 |
|||||
Weighted average number of shares |
|||||||||
used in computing basic net |
|||||||||
earnings per share |
24,195,495 |
22,711,470 |
23,948,546 |
22,572,070 |
|||||
Weighted average number of shares |
|||||||||
used in computing diluted net |
|||||||||
earnings per share |
26,399,604 |
24,266,272 |
26,116,991 |
23,960,442 |
|||||
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, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
(Unaudited) |
(Unaudited) |
|||||||
Revenues |
$ 18,454 |
$ 13,626 |
$ 35,637 |
$ 26,097 |
||||
Cost of revenues |
5,248 |
3,863 |
10,047 |
7,159 |
||||
Gross profit |
13,206 |
9,763 |
25,590 |
18,938 |
||||
Operating expenses: |
||||||||
Research and development costs, net |
2,996 |
2,635 |
5,876 |
5,130 |
||||
Sales and marketing |
6,150 |
5,201 |
12,242 |
10,222 |
||||
General and administrative |
1,255 |
1,162 |
2,501 |
2,261 |
||||
Total operating expenses |
10,401 |
8,998 |
20,619 |
17,613 |
||||
Operating profit |
2,805 |
765 |
4,971 |
1,325 |
||||
Financial and other income (expenses), net |
(63) |
148 |
29 |
(266) |
||||
Profit before income tax expenses |
2,742 |
913 |
5,000 |
1,059 |
||||
Tax expenses |
16 |
127 |
101 |
96 |
||||
Net profit |
2,726 |
786 |
4,899 |
963 |
||||
Basic net profit per share |
$ 0.11 |
$ 0.03 |
$ 0.20 |
$ 0.04 |
||||
Diluted net profit per share |
$ 0.10 |
$ 0.03 |
$ 0.19 |
$ 0.04 |
||||
Weighted average number of shares |
||||||||
used in computing basic net |
||||||||
earnings per share |
24,195,495 |
22,711,470 |
23,948,546 |
22,572,070 |
||||
Weighted average number of shares |
||||||||
used in computing diluted net |
||||||||
earnings per share |
26,399,604 |
24,266,272 |
26,116,991 |
23,960,442 |
||||
TABLE - 4 |
|||||
ALLOT COMMUNICATIONS LTD. |
|||||
AND ITS SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(U.S. dollars in thousands) |
|||||
June 30, |
December 31, |
||||
2011 |
2010 |
||||
(Unaudited) |
(Audited) |
||||
ASSETS |
|||||
CURRENT ASSETS: |
|||||
Cash and cash equivalents |
$ 46,116 |
$ 42,858 |
|||
Marketable securities and restricted cash |
17,382 |
16,591 |
|||
Trade receivables, net |
11,142 |
10,739 |
|||
Other receivables and prepaid expenses |
6,763 |
4,958 |
|||
Inventories |
9,724 |
10,830 |
|||
Total current assets |
91,127 |
85,976 |
|||
LONG-TERM ASSETS: |
|||||
Severance pay fund |
188 |
162 |
|||
Other assets |
341 |
340 |
|||
Total long-term assets |
529 |
502 |
|||
PROPERTY AND EQUIPMENT, NET |
5,115 |
5,193 |
|||
GOODWILL AND INTANGIBLE ASSETS, NET |
3,455 |
3,516 |
|||
Total assets |
$ 100,226 |
$ 95,187 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
CURRENT LIABILITIES: |
|||||
Trade payables |
$ 2,094 |
$ 5,140 |
|||
Deferred revenues |
11,384 |
10,828 |
|||
Other payables and accrued expenses |
11,240 |
10,167 |
|||
Total current liabilities |
24,718 |
26,135 |
|||
LONG-TERM LIABILITIES: |
|||||
Deferred revenues |
4,381 |
3,873 |
|||
Accrued severance pay |
223 |
191 |
|||
Total long-term liabilities |
4,604 |
4,064 |
|||
SHAREHOLDERS' EQUITY |
70,904 |
64,988 |
|||
Total liabilities and shareholders' equity |
$ 100,226 |
$ 95,187 |
|||
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, |
|||||
2011 |
2010 |
2011 |
2010 |
|||
(Unaudited) |
(Unaudited) |
|||||
Cash flows from operating activities: |
||||||
Net income (loss) |
1,611 |
(7,417) |
3,237 |
(7,863) |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation |
679 |
650 |
1,336 |
1,301 |
||
Stock-based compensation related to options granted to employees and non-employees |
547 |
471 |
1,064 |
1,055 |
||
Amortization of intangible assets |
31 |
30 |
61 |
62 |
||
Capital (gain) loss |
13 |
(29) |
9 |
(2) |
||
Increase (Decrease) in accrued severance pay, net |
3 |
43 |
6 |
(65) |
||
Decrease (Increase) in other assets |
2 |
6 |
(1) |
6 |
||
Increase in accrued interest and amortization of premium on marketable securities |
48 |
- |
47 |
- |
||
Decrease (Increase) in trade receivables |
2,364 |
(1,724) |
(403) |
746 |
||
Decrease (Increase) in other receivables and prepaid expenses |
(1,240) |
1,232 |
(1,334) |
390 |
||
Decrease (Increase) in inventories |
1,920 |
(1,420) |
1,106 |
(2,485) |
||
Increase (Decrease) in trade payables |
(3,075) |
2,654 |
(3,046) |
1,512 |
||
Increase (Decrease) in employees and payroll accruals |
(17) |
21 |
(609) |
(491) |
||
Increase (Decrease) in deferred revenues |
(396) |
(1,941) |
1,064 |
3,088 |
||
Increase in other payables and accrued expenses |
405 |
1,247 |
1,323 |
3 |
||
Other than temporary loss on marketable securities |
- |
7,682 |
- |
7,712 |
||
Net cash provided by operating activities |
2,895 |
1,505 |
3,860 |
4,969 |
||
Cash flows from investing activities: |
||||||
Increase in restricted deposit |
(1) |
- |
(487) |
- |
||
Investment in short-term deposits |
- |
(582) |
- |
(3,644) |
||
Purchase of property and equipment |
(588) |
(624) |
(1,298) |
(1,461) |
||
Proceeds from sale of property and equipment |
- |
38 |
30 |
38 |
||
Investment in marketable securities |
(1,061) |
- |
(1,914) |
- |
||
Proceeds from redemption or sale of marketable securities |
800 |
12,252 |
1,600 |
12,252 |
||
Net cash provided by (used in) investing activities |
(850) |
11,084 |
(2,069) |
7,185 |
||
Cash flows from financing activities: |
||||||
Exercise of warrants and employee stock options and repayment of non-recourse loan |
214 |
453 |
1,467 |
767 |
||
Net cash provided by financing activities |
214 |
453 |
1,467 |
767 |
||
Increase in cash and cash equivalents |
2,259 |
13,042 |
3,258 |
12,921 |
||
Cash and cash equivalents at the beginning of the period |
43,857 |
36,349 |
42,858 |
36,470 |
||
Cash and cash equivalents at the end of the period |
$ 46,116 |
$ 49,391 |
$ 46,116 |
$ 49,391 |
||
SOURCE Allot Communications Ltd.
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