Allot Misses Q1 Revenue, FY21 Revenue Guidance Falls Short

Allot Ltd ALLT reported first-quarter FY21 revenue growth of 6% year-on-year to $31.2 million, missing the analyst consensus of $31.92 million.
Revenue from Americas amounted to $5.1 million, EMEA $20.2 million, and the Asia Pacific $5.9 million.
Revenue from Products amounted to $17.8 million, Professional Services $4.1 million, and Support & Maintenance $9.3 million.
CSP generated $22.8 million in revenue, and Enterprise customers generated $8.4 million.
Non-GAAP gross margin contracted 470 basis points to 70.1%.
Non-GAAP net loss was $2.2 million, with an adjusted EPS loss of ($0.06), beating the analyst consensus of ($0.12) loss.
The company held $103.2 million in cash and equivalents and generated $5.7 million in operating cash flow.
Guidance: Allot sees FY21 revenue guidance of $145 million-150 million, below the analyst consensus of $151.53 million. It expects a recurring security revenue guidance of $6 million in FY21 and $25 million in FY22.
The company was satisfied with its first major penetration into the US market and DISH Network Corp DISH partnership to secure their 5G network, CEO Erez Antebi said.
The deal, along with Dish's intent to sign an additional deal with Allot to launch network-based security services to their customers, indicated the importance of security to 5G networks and customers worldwide, Antebi said.
Price action: ALLT shares traded lower by 3.61% at $17.35 on the last check Tuesday.