ALLOT
ALLOT
- USD (-)
- Temps différé 15min - Actions NASDAQ
Ouverture: -
Variation: -
Volume: -
+ Bas: -
+ Haut: -
Ecart + Bas / + Haut: -
Type: Actions
Ticker: ALLT
ISIN: IL0010996549

Allot Announces Fourth Quarter and Full Year 2018 Financial Results

  • 63
Allot Announces Fourth Quarter and Full Year 2018 Financial Results
17% Year-Over-Year Growth in Revenue and 24% Growth in Backlog

PR Newswire

HOD HASHARON, Israel, Feb. 5, 2019 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a global provider of leading innovative network intelligence and security solutions for service providers worldwide, today announced its fourth quarter and full year 2018 financial results.

Allot Logo (PRNewsfoto/Allot Communications Ltd.)

 Fourth Quarter 2018 – Financial Highlights

  • Revenues were $26.9 million, up 16% year-over-year;
  • GAAP gross margin improved to 69.1% up from 66.8% in Q4 2017;
  • Non-GAAP gross margin improved to 70.3% up from 68.4% in Q4 2017;
  • GAAP operating loss narrowed to $1.4 million compared to $4.3 million in Q4 2017;
  • Non-GAAP operating loss at $99 thousand compared to a loss of $1.3 million in Q4 2017; 
  • Book-to-bill above one;

2018 – Financial Highlights

  • Revenues were $95.8 million, up 17% year-over-year;
  • GAAP gross margin improved to 69.4% up from 65.2% in 2017; Non-GAAP gross margin improved to 70.7% up from 68.0% in 2017;
  • GAAP operating loss reduced to $10.2 million compared to a loss of $17.4 million in 2017; Non-GAAP operating loss reduced to $4.8 million compared to $8.6 million in 2017;
  • Full year book-to-bill above one;
  • Backlog grew by $13.3 million to $68.9 million at year-end 2018 compared to $55.6 million at year-end 2017;
  • Year-end cash and investments totaled to $103.9 million;

Financial Outlook

  • Management expects 2019 revenues to grow to between $106-110 million, representing continued double-digit year-over-year growth;
  • Full year 2019 book to bill ratio is expected to be above 1;
  • Management expects to close several security subscription-based deals in 2019 in addition to the Tier-1 European deal recently announced

Management Comment

Erez Antebi, President & CEO of Allot, commented: "We are very pleased with our performance in 2018, with revenues growing at a faster pace than we had originally expected . Our DPI business performed well in 2018, resulting from much improved execution of our teams across the globe. We are also satisfied with our performance in the security space: our pipeline of "security opex deals" is strong and we expect to close several such deals that can bring impact on our future growth beyond 2019."

Continued Mr. Antebi, "As we enter into 2019, I have increased confidence in our long-term potential. Following our restructuring and changes, we are now executing better in sales, support and R&D and we look forward to continue to leverage these strengths to create continuing growth in 2019 and beyond."

 Q4 2018 Financial Results Summary

Total revenues for the fourth quarter of 2018 were $26.9 million, up 16% compared to $23.2 million in the fourth quarter of 2017.

Gross profit on a GAAP basis for the fourth quarter of 2018 was $18.6 million (gross margin of 69.1%), a 20% improvement compared with $15.5 million (gross margin of 66.8%) in the fourth quarter of 2017.

Gross profit on a non-GAAP basis for the fourth quarter of 2018 was $18.9 million (gross margin of 70.3%), a 19% improvement compared with $15.9 million (gross margin of 68.4%) in the fourth quarter of 2017.

Net loss on a GAAP basis for the fourth quarter of 2018 was $1.8 million, or $0.05 per basic share, an improvement compared with a net loss of $4.3 million, or $0.13 per basic share, in the fourth quarter of 2017.

Non-GAAP net loss for the fourth quarter of 2018 was $455 thousand, or $0.01 per basic share, an improvement compared with a non-GAAP net loss of $1.5 million, or $0.04 per basic share, in the fourth quarter of 2017.

2018 Financial Results Summary

Total revenues for 2018 were $95.8 million, up 17% compared to $82.0 million in 2017.

Gross profit on a GAAP basis for 2018 was $66.5 million (gross margin of 69.4%), a 24% improvement compared with $53.5 million (gross margin of 65.2%) in 2017.

Gross profit on a non-GAAP basis for 2018 was $67.8 million (gross margin of 70.7%), a 22% improvement compared with $55.7 million (gross margin of 68.0%) in 2017.

Net loss on a GAAP basis for 2018 was $10.4 million, or $0.31 per basic share, an improvement compared with a net loss of $18.1 million, or $0.54 per basic share, in 2017.

Non-GAAP net loss for 2018 was $5.1 million, or $0.15 per basic share, an improvement compared with a non-GAAP net loss of $8.7 million, or $0.26 per basic share, in 2017.

Cash and investments as of December 31, 2018 totaled $103.9 million, compared to $104.7 million as of September 30, 2018 and $110.0 million as of December 31, 2017.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss fourth quarter and full year 2018 earnings results today, February 5, 2019 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US:  1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0609

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm  

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 21 million subscribers in Europe. Allot. See. Control. Secure.

For more information, visit www.allot.com

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, changes in taxes related items 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 is 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 fourth 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 LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)











Three Months Ended



Year Ended


December 31,



December 31,


2018


2017



2018


2017


(Unaudited)


(Unaudited)



(Unaudited)


(Audited)










Revenues

$       26,885


$       23,198



$       95,837


$       81,992

Cost of revenues

8,296


7,710



29,349


28,530

Gross profit  

18,589


15,488



66,488


53,462










Operating expenses:









Research and development costs, net

6,632


5,753



25,418


21,852

Sales and marketing

10,754


10,810



40,849


38,316

General and administrative

2,616


3,187



10,416


10,696

Total operating expenses

20,002


19,750



76,683


70,864

Operating loss

(1,413)


(4,262)



(10,195)


(17,402)

Financial and other income, net

601


338



2,208


894

Loss before income tax expenses

(812)


(3,924)



(7,987)


(16,508)










Tax expenses

1,005


416



2,428


1,564

Net Loss

(1,817)


(4,340)



(10,415)


(18,072)










 Basic net loss per share

$          (0.05)


$          (0.13)



$          (0.31)


$          (0.54)



















 Diluted net loss per share

$          (0.05)


$          (0.13)



$          (0.31)


$          (0.54)










Weighted average number of shares used in 









computing basic net loss per share

33,860,114


33,412,701



33,710,507


33,253,158










Weighted average number of shares used in 









computing diluted net loss per share

33,860,114


33,412,701



33,710,507


33,253,158



















 

 

TABLE  - 2

ALLOT 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


Year Ended



December 31,


December 31,



2018


2017


2018


2017



(Unaudited)


(Unaudited)










 GAAP Revenues 

$     26,885


$     23,198


$     95,837


$     81,992

 Fair value adjustment for acquired deferred revenues write down 

-


-


-


37

 Non-GAAP Revenues 

$     26,885


$     23,198


$     95,837


$     82,029









GAAP cost of revenues

$        8,296


$        7,710


$     29,349


$     28,530

 Share-based compensation (1) 

(60)


(83)


(316)


(362)

 Amortization of intangible assets (2) 

(233)


(232)


(930)


(938)

 Restructuring expenses (4) 

-


-


-


(887)

 Changes in tax related items (5)

(17)


(56)


(17)


(56)

Non-GAAP cost of revenues

$        7,986


$        7,339


$     28,086


$     26,287









 GAAP gross profit 

$     18,589


$     15,488


$     66,488


$     53,462

 Gross profit adjustments 

310


372


1,263


2,280

 Non-GAAP gross profit 

$     18,899


$     15,860


$     67,751


$     55,742









 GAAP operating expenses 

$     20,002


$     19,750


$     76,683


$     70,864

 Share-based compensation (1) 

(634)


(706)


(2,546)


(2,813)

 Amortization of intangible assets (2) 

(175)


(135)


(700)


(539)

 Expenses related to M&A activities (3) 

(93)


(178)


(394)


(267)

 Restructuring expenses (4) 

(62)


(200)


(62)


(1,464)

 Changes in tax related items (5)

(40)


(1,416)


(420)


(1,416)

 Non-GAAP operating expenses 

$     18,998


$     17,115


$     72,561


$     64,365









 GAAP financial and other income 

$           601


$           338


$        2,208


$           894

 Expenses related to M&A activities (3) 

(75)


84


(224)


625

 Non-GAAP Financial and other income 

$           526


$           422


$        1,984


$        1,519









 GAAP taxes on income 

$        1,005


$           416


$        2,428


$        1,564

 Tax expenses (benefits) in respect of net deferred tax asset recorded 

(123)


214


(116)


17

 Non-GAAP taxes on income 

$           882


$           630


$        2,312


$        1,581









 GAAP Net Loss 

$      (1,817)


$      (4,340)


$   (10,415)


$   (18,072)

 Share-based compensation (1) 

694


789


2,862


3,175

 Amortization of intangible assets (2) 

408


367


1,630


1,477

 Expenses related to M&A activities (3) 

18


262


170


892

 Restructuring expenses (4) 

62


200


62


2,351

 Changes in tax related items (5)

57


1,472


437


1,472

 Fair value adjustment for acquired deferred revenues write down 

-


-


-


37

 Tax benefits (expenses) in respect of net deferred tax asset recorded 

123


(214)


116


(17)

 Non-GAAP Net Loss 

$         (455)


$      (1,464)


$      (5,138)


$      (8,685)









 GAAP Loss per share (diluted) 

$        (0.05)


$        (0.13)


$        (0.31)


$        (0.54)

 Share-based compensation 

0.02


0.02


0.08


0.10

 Amortization of intangible assets 

0.01


0.01


0.05


0.04

 Expenses related to M&A activities 

(0.00)


0.01


0.01


0.03

 Restructuring expenses 

0.00


0.01


0.00


0.07

 Fair value adjustment for acquired deferred revenues write down 

-


0.05


-


0.04

 Changes in taxes and headcount related items 

0.00


0.00


0.01


0.00

 Tax benefits (expenses) in respect of net deferred tax asset recorded 

0.01


(0.01)


0.01


-

 Non-GAAP Net loss per share (diluted) 

$        (0.01)


$        (0.04)


$        (0.15)


$        (0.26)

 

Weighted average number of shares used in

computing GAAP diluted net loss per share  

33,860,114


33,412,701


33,710,507


33,253,158

 

Weighted average number of shares used in 

computing non-GAAP diluted net loss per share  

33,860,114


33,412,701


33,710,507


33,253,158



























TABLE  - 2 cont.

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


Year Ended



December 31,


December 31,



2018


2017


2018


2017



(Unaudited)


(Unaudited)










(1) Share-based compensation:









Cost of revenues

$             60


$             83


$           316


$           362


Research and development costs, net

174


155


678


608


Sales and marketing

227


307


928


1,015


General and administrative

233


244


940


1,190



$           694


$           789


$        2,862


$        3,175










 (2) Amortization of intangible assets 









Cost of revenues

$           233


$           232


$           930


$           938


Sales and marketing

175


135


700


539



$           408


$           367


$        1,630


$        1,477










 (3) Expenses related to M&A activities 









General and administrative 

$              -


$           178


$             69


$           267


Research and development costs, net

93


-


325


-


Financial expenses (income)

(75)


84


(224)


625



$             18


$           262


$           170


$           892










 (4) Restructuring expenses 









Cost of revenues

$              -


$              -


$              -


$           887


Research and development costs, net

-


-


-


154


Sales and marketing

-


-


-


976


General and administrative

62


200


62


334



$             62


$           200


$             62


$        2,351










 (5) Changes in tax related items 









Research and development costs, net

$              -


$           201


$              -


$           201


Sales and marketing

40


1,045


262


1,045


Cost of revenues

17


56


17


56


General and administrative

-


170


158


170



$             57


$        1,472


$           437


$        1,472










 

TABLE  - 3


ALLOT LTD.


AND ITS SUBSIDIARIES


CONSOLIDATED  BALANCE  SHEETS


(U.S. dollars in thousands)
















December 31,


December 31,




2018


2017




(Unaudited)


(Audited)






ASSETS






CURRENT ASSETS:






Cash and cash equivalents


$            16,336


$            15,342


Short term deposits


22,543


31,043


Restricted deposit


465


428


Marketable securities 


64,290


63,194


Trade receivables, net


26,093


22,737


Other receivables and prepaid expenses


3,647


2,649


Inventories


11,345


7,897


Total current assets


144,719


143,290








LONG-TERM ASSETS:






Restricted deposit


257


-


Severance pay fund


345


302


Deferred taxes


281


301


Other assets 


600


1,135


Total long-term assets


1,483


1,738








PROPERTY AND EQUIPMENT, NET


6,249


5,002


GOODWILL AND INTANGIBLE ASSETS, NET


37,393


34,495








Total assets


$          189,844


$          184,525








LIABILITIES AND SHAREHOLDERS'
EQUITY






CURRENT LIABILITIES:






Trade payables


$               7,813


$               5,857


Deferred revenues


13,855


11,370


Other payables and accrued expenses


21,052


14,277


Total current liabilities


42,720


31,504








LONG-TERM LIABILITIES:






Deferred revenues


4,247


3,878


Accrued severance pay


806


747


Other long term liabilities


6,168


5,267


Total long-term liabilities


11,221


9,892








SHAREHOLDERS' EQUITY


135,903


143,129








Total liabilities and shareholders' equity


$          189,844


$          184,525




















 

 

TABLE  - 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands)










Three Months Ended


Year Ended


December 31,


December 31,


2018


2017


2018


2017


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)









Cash flows from operating activities:
















Net Loss

$        (1,817)


$     (4,340)


$   (10,415)


$   (18,072)

Adjustments to reconcile net income  to net cash used in operating activities:








Depreciation

601


632


2,204


2,191

Stock-based compensation related to options granted to employees

694


787


2,862


3,366

Amortization of intangible assets

408


366


1,630


1,477

Capital loss 

-


13


39


27

Decrease (Increase) in accrued severance pay, net

(18)


(8)


16


105

Decrease (Increase) in other assets

83


(607)


535


1

Decrease in accrued interest and  amortization of premium on marketable securities 

193


319


805


913

Decrease (Increase) in trade receivables

359


(86)


(3,356)


1,421

Decrease (Increase) in other receivables and prepaid expenses

184


1,841


(1,101)


1,350

Decrease (Increase) in inventories

607


1,214


(3,448)


(662)

Decrease (Increase) in long-term deferred taxes, net

27


(234)


20


(34)

Increase (Decrease) in trade payables

(4,370)


(611)


1,945


2,582

Increase (Decrease) in employees and payroll accruals

(998)


35


(1,178)


1,140

Increase (Decrease) in deferred revenues

1,421


(518)


3,566


518

Increase in other payables and accrued expenses

3,383


2,288


6,906


3,449









Net cash provided by (used in) operating activities

757


1,091


1,030


(228)









Cash flows from investing activities:








Increase in restricted deposit

(32)


(428)


(294)


(428)

Redemption of (Investment in) short-term deposits 

1,900


(9,300)


8,500


(1,222)

Purchase of property and equipment

(1,427)


(776)


(3,485)


(2,833)

Investment in marketable securities

(9,584)


(10,913)


(34,777)


(30,123)

Proceeds from redemption or sale of marketable securities

8,924


11,075


32,651


26,488

Acquisitions

-


-


(3,048)


-

Net cash used in investing activities

(219)


(10,342)


(453)


(8,118)









Cash flows from financing activities:
















Exercise of employee stock options 

74


265


417


362









Net cash provided by financing activities

74


265


417


362

















Increase (Decrease) in cash and cash equivalents

612


(8,986)


994


(7,984)

Cash and cash equivalents at the beginning of the period

15,724


24,328


15,342


23,326









Cash and cash equivalents at the end of the period

$        16,336


$     15,342


$     16,336


$     15,342

















































Investor Relations Contact:
GK Investor Relations
Ehud Helft/Gavriel Frohwein
+1-646-688-3559
[email protected]

Public Relations Contact:
Jodi Joseph Asiag
Director of Corporate Communications
[email protected]

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/allot-announces-fourth-quarter-and-full-year-2018-financial-results-300789711.html

SOURCE Allot Communications Ltd.

PR Newswire
PR Newswire

PR Newswire est une agence de presse américaine, située à New York spécialisée dans la publication de communiqués de presse.