Net Income Has Grown By More Than 40% Year Over Year
HOD HASHARON, Israel, May 5, 2015 /PRNewswire/ -- Allot Communications Ltd. ALLT, a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband operators and cloud providers worldwide, today announced its first quarter 2015 results, with non-GAAP revenues reaching $29.5 million.
Q1 2015 – Financial Highlights:
- Non-GAAP Revenues were $29.5 million, up 4.4% year over year
- Non-GAAP Gross Margin reached 76%
- Non-GAAP Operating Margin was 10%
- Book-to-bill was below one
- The Company generated $2.1 million of Operating Cash Flow
- Net Cash as of March 31, 2015 totaled $123.8 million
Financial results:
On a GAAP basis, total revenues for the first quarter of 2015 were $29.5 million compared to $30.6 million of revenue reported for the fourth quarter of 2014 and $28.3 million of revenue reported for the first quarter of 2014. Net loss for the first quarter of 2015 was zero, or $0.00 per basic and diluted share. This compares with a net loss of $2.3 million, or $0.07 per basic and diluted share, in the fourth quarter of 2014 and a net loss of $0.4 million, or $0.01 per basic and diluted share, in the first quarter of 2014.
On a non-GAAP basis, total revenues for the first quarter of 2015 reached $29.5 million, compared with $30.6 million of revenue reported for the fourth quarter of 2014 and $28.3 million of revenue reported for the first quarter of 2014. On a non-GAAP basis, net income for the first quarter of 2015 was $2.9 million, or $0.09 per basic share and diluted share. This compares with non-GAAP net income of $3.4 million, or $0.10 per basic and diluted share, in the fourth quarter of 2014 and non-GAAP net income of $2.1 million, or $0.06 per basic and diluted share, in the first quarter of 2014.
Q1 2015 - Key Achievements:
- During Q1 2015, 18 large orders were received, 3 of which were from new customers
- 8 of the large orders came from mobile-service providers and 8 were from fixed-line service providers
- In addition, 2 large orders were received for private and public cloud deployments
- Allot completed the acquisition of Optenet during the first quarter. The impact over the first quarter results was immaterial.
- Allot launched SmartEngage which enables mobile operators to increase subscriber service uptake.
- Received four orders from Tier-1 operators to enable delivery of Security-as-a-Service and Comply with Regulation.
"During the first quarter we completed the acquisition of Optenet, a global leader in the field of Security-as-a-Service. We believe that the acquisition will significantly enhance our security offering and support future growth opportunities," said Andrei Elefant, President & CEO of Allot Communications. "We continued to improve our margins in the first quarter, expend our customer base and increase our market share. Security and monetization remained top performers within our VAS offering and we continue to view these two segments as key growth engines to our future growth."
Conference Call & Webcast:
The Allot management team will host a conference call to discuss first quarter 2015 earnings results today at 8:30 AM ET, 3:30 p.m. Israel time. To access the conference call, please dial one of the following numbers: US: +1646 254 3361, UK: +44(0)2034271906, Israel: +97237219510, participant code 6727250.
A replay of the conference call will be available from 12:00 AM ET on May 6 2015 for 30 days. To access the replay, please dial: US: +1 347 366 9565; UK: +44(0)2034270598, access code: 6727250. A live webcast of the conference call can be accessed on the Allot Communications website at www.allot.com. The webcast also will be archived on the website following the conference call.
About Allot Communications
Allot Communications Ltd. (NASDAQ, TASE: ALLT) empowers service providers to monetize and optimize their networks, enterprises to enhance productivity and consumers to enjoy an always-on digital lifestyle. Allot's advanced DPI-based broadband solutions identify and leverage network intelligence to analyze, protect, improve and enrich mobile, fixed and cloud service delivery and user experience. Allot's unique blend of innovative technology, proven know-how and collaborative approach to industry standards and partnerships enables network operators worldwide to elevate their role in the digital lifestyle ecosystem and to open the door to a wealth of new business opportunities. For more information, please 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, regulatory matter expenses, acquisition-related expenses and restructuring costs.
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 may contain 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 expressed or implied by 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; 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; 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.
Investor Relations Contact:
Rami Rozen
AVP Corporate Development
International access code +972-52-569-4441
rrozen@allot.com
Public Relations Contact:
Maya Lustig
Director Corporate Communications
International access code +972-54-677-8100
mlustig@allot.com
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 |
|||||
March 31, |
|||||
2015 |
2014 |
||||
(Unaudited) |
|||||
Revenues |
$ 29,532 |
$ 28,284 |
|||
Cost of revenues |
7,769 |
8,195 |
|||
Gross profit |
21,763 |
20,089 |
|||
Operating expenses: |
|||||
Research and development costs, net |
6,809 |
7,221 |
|||
Sales and marketing |
11,808 |
10,497 |
|||
General and administrative |
3,250 |
2,887 |
|||
Total operating expenses |
21,867 |
20,605 |
|||
Operating loss |
(104) |
(516) |
|||
Financial and other income, net |
205 |
149 |
|||
Profit (loss) before income tax benefit |
101 |
(367) |
|||
Tax expenses |
135 |
21 |
|||
Net loss |
(34) |
(388) |
|||
Basic net loss per share |
$ (0.00) |
$ (0.01) |
|||
Diluted net loss per share |
$ (0.00) |
$ (0.01) |
|||
Weighted average number of shares |
|||||
used in computing basic net |
|||||
earnings per share |
33,357,909 |
32,939,195 |
|||
Weighted average number of shares |
|||||
used in computing diluted net |
|||||
earnings per share |
33,357,909 |
32,939,195 |
|||
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 |
Three Months Ended | |||||
March 31, 2015 |
March 31, 2014 | |||||
(Unaudited) |
(Unaudited) | |||||
$ |
% of Revenues |
$ |
% of Revenues | |||
GAAP Operating loss |
$ (104) |
0% |
$ (516) |
-2% | ||
Share-based compensation (1) |
1,867 |
1,992 |
||||
Amortization of intangible assets (2) |
511 |
465 |
||||
Expenses related to M&A activities (3) |
577 |
8 |
||||
Fair value adjustment for acquired deferred revenues write down |
11 |
12 |
||||
Non-GAAP Operating income |
$ 2,862 |
10% |
$ 1,961 |
7% | ||
GAAP Net loss |
$ (34) |
0% |
$ (388) |
-1% | ||
Share-based compensation (1) |
1,867 |
1,992 |
||||
Amortization of intangible assets (2) |
511 |
465 |
||||
Expenses related to M&A activities (3) |
577 |
8 |
||||
Fair value adjustment for acquired deferred revenues write down |
11 |
12 |
||||
Non-GAAP Net income |
$ 2,932 |
10% |
$ 2,089 |
7% | ||
GAAP loss per share (diluted) |
$ (0.00) |
$ (0.01) |
||||
Share-based compensation |
0.05 |
0.06 |
||||
Amortization of intangible assets |
0.02 |
0.01 |
||||
Expenses related to M&A activities |
0.02 |
0.00 |
||||
Fair value adjustment for acquired deferred revenues write down |
0.00 |
0.00 |
||||
Non-GAAP Net income per share (diluted) |
$ 0.09 |
$ 0.06 |
||||
(1) Share-based compensation: |
||||||
Cost of revenues |
$ 82 |
$ 88 |
||||
Research and development costs, net |
420 |
469 |
||||
Sales and marketing |
752 |
821 |
||||
General and administrative |
613 |
614 |
||||
$ 1,867 |
$ 1,992 |
|||||
(2) Amortization of intangible assets |
||||||
Cost of revenues |
$ 454 |
$ 399 |
||||
Sales and marketing |
57 |
66 |
||||
$ 511 |
$ 465 |
|||||
(3) Expenses related to M&A activities |
||||||
General and administrative |
$ 351 |
$ 8 |
||||
Research and development costs, net |
45 |
- |
||||
Sales and marketing |
181 |
- |
||||
$ 577 |
$ 8 |
|||||
TABLE - 3 | ||||
ALLOT COMMUNICATIONS LTD. | ||||
AND ITS SUBSIDIARIES | ||||
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED REVENUES | ||||
(U.S. dollars in thousands, except share and per share data) | ||||
Three Months Ended |
||||
March 31, |
||||
2015 |
2014 |
|||
(Unaudited) |
||||
GAAP Revenues |
$ 29,532 |
$ 28,284 |
||
Fair value adjustment for acquired deferred revenues write down |
11 |
12 |
||
Non-GAAP Revenues |
$ 29,543 |
$ 28,296 |
||
TABLE - 4 | ||||
ALLOT COMMUNICATIONS LTD. | ||||
AND ITS SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(U.S. dollars in thousands) | ||||
March 31, |
March 31, | |||
2015 |
2014 | |||
(Unaudited) |
(Unaudited) | |||
ASSETS |
||||
CURRENT ASSETS: |
||||
Cash and cash equivalents |
$ 21,930 |
$ 51,036 | ||
Short term deposits |
46,500 |
30,500 | ||
Marketable securities and restricted cash |
55,344 |
40,639 | ||
Trade receivables, net |
23,584 |
21,414 | ||
Other receivables and prepaid expenses |
6,634 |
8,906 | ||
Inventories |
8,321 |
13,474 | ||
Total current assets |
162,313 |
165,969 | ||
LONG-TERM ASSETS: |
||||
Severance pay fund |
260 |
260 | ||
Deferred taxes |
1,620 |
1,602 | ||
Other assets |
3,626 |
2,726 | ||
Total long-term assets |
5,506 |
4,588 | ||
PROPERTY AND EQUIPMENT, NET |
6,011 |
5,990 | ||
GOODWILL AND INTANGIBLE ASSETS, NET |
45,995 |
29,756 | ||
Total assets |
$ 219,825 |
$ 206,303 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
CURRENT LIABILITIES: |
||||
Trade payables |
$ 5,876 |
$ 4,887 | ||
Deferred revenues |
12,340 |
13,527 | ||
Other payables and accrued expenses |
15,324 |
12,851 | ||
Total current liabilities |
33,540 |
31,265 | ||
LONG-TERM LIABILITIES: |
||||
Deferred revenues |
4,777 |
2,520 | ||
Accrued severance pay |
292 |
292 | ||
Other long term liabilities |
3,915 |
0 | ||
Total long-term liabilities |
8,984 |
2,812 | ||
SHAREHOLDERS' EQUITY |
177,301 |
172,226 | ||
Total liabilities and shareholders' equity |
$ 219,825 |
$ 206,303 | ||
TABLE - 5 |
|||
ALLOT COMMUNICATIONS LTD. |
|||
AND ITS SUBSIDIARIES |
|||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(U.S. dollars in thousands) |
|||
Three Months Ended |
|||
March 31, |
|||
2015 |
2014 |
||
(Unaudited) |
|||
Cash flows from operating activities: |
|||
Net Loss |
$ (34) |
$ (388) |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation |
762 |
800 |
|
Stock-based compensation related to options granted to employees |
1,849 |
1,992 |
|
Amortization of intangible assets |
449 |
465 |
|
Capital loss |
4 |
- |
|
Decrease in accrued severance pay, net |
12 |
4 |
|
Increase in other assets |
(178) |
(82) |
|
Decrease in accrued interest and amortization of premium on marketable securities |
300 |
208 |
|
Increase (Decrease) in trade receivables |
175 |
(4,506) |
|
Increase in other receivables and prepaid expenses |
(2,691) |
(102) |
|
Decrease in inventories |
1,788 |
324 |
|
Increase in long-term deferred taxes, net |
96 |
- |
|
Increase (Decrease) in trade payables |
(424) |
1,696 |
|
Increase (Decrease) in employees and payroll accruals |
(409) |
1,062 |
|
Increase in deferred revenues |
100 |
1,096 |
|
Increase in other payables and accrued expenses |
292 |
876 |
|
Net cash provided by operating activities |
2,091 |
3,445 |
|
Cash flows from investing activities: |
|||
Redemption of short-term deposits |
12,500 |
7,500 |
|
Purchase of property and equipment |
(666) |
(916) |
|
Investment in marketable securities |
(6,727) |
(900) |
|
Proceeds from redemption or sale of marketable securities |
5,528 |
901 |
|
Acquisitions of certain assets and liabilities |
(10,052) |
- |
|
Loan provided to third party, net |
- |
(2,563) |
|
Net cash provided by investing activities |
583 |
4,022 |
|
Cash flows from financing activities: |
|||
Exercise of employee stock options |
76 |
756 |
|
Net cash provided by financing activities |
76 |
756 |
|
Increase in cash and cash equivalents |
2,750 |
8,223 |
|
Cash and cash equivalents at the beginning of the period |
19,180 |
42,813 |
|
Cash and cash equivalents at the end of the period |
$ 21,930 |
$ 51,036 |
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/allot-communications-reports-non-gaap-44-revenue-growth-for-q1-2015-300077502.html
SOURCE Allot Communications Ltd.
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