Allot Announces Second Quarter 2021 Financial Results
HOD HASHARON, Israel, Aug. 10, 2021 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited results for the second quarter of 2021, ended June 30, 2021.
Second Quarter 2021 Highlights
- Revenue growth of 8% YoY to $35.3 million
- Operating loss and net loss reduced by almost 40% YoY
- Cash and investments increased to $105.6 million
- 5G Netprotect product gaining momentum with another win with a Tier-1 in APAC
- Signed additional SECaas contracts with multiple operators in APAC, EMEA and Latam
- Signed a SECaas deal with a Tier-1 Communications Group with operating units in the EU and North America
Financial Outlook
- Management continues to expect:
- 2021 revenues to grow to between $145-150 million;
- Recurring security deals to be closed in 2021 with an MAR* of at least $180 million;
- Recurring security revenues in 2021 of around $5 million and approximately $25 million in 2022;
Management Comment
Erez Antebi, President & CEO of Allot, commented: "We are very pleased with our performance in the second quarter and are confident we are on our way to achieve the goals we set for 2021. The revolution of shifting cybersecurity responsibility from the individual to the CSP is growing worldwide and gaining momentum. This is evidenced by growth in several directions: In the number of CSPs that are engaging with us; in the number of operators that contract with us; and in the number of consumers signing up for cybersecurity protection once the operator launches the service. I am very proud that Allot is the technology company leading this revolution."
Q2 2021 Financial Results Summary
Total revenues for the second quarter of 2021 were $35.3 million, an increase of 8% compared to $32.8 million in the second quarter of 2020.
Gross profit on a GAAP basis for the second quarter of 2021 was $24.5 million (gross margin of 69%), compared with $23.0 million (gross margin of 70%) in the second quarter of 2020.
Gross profit on a non-GAAP basis for the second quarter of 2021 was $24.8 million (gross margin of 70.2%), compared with $23.2 million (gross margin of 70.7%) in the second quarter of 2020.
Net loss on a GAAP basis for the second quarter of 2021 was $4.0 million, or $0.11 loss per basic share, compared with a net loss of $3.6 million, or $0.10 loss per basic share, in the second quarter of 2020.
Net loss on a non-GAAP basis for the second quarter of 2021 was $1.5 million, or $0.04 loss per basic share compared with a non-GAAP net loss of $2.4 million, or $0.07 loss per basic share, in the second quarter of 2020.
Cash and investments as of June 30, 2021 totaled $105.6 million, compared with $99.4 million, as of December 31, 2020.
Conference Call & Webcast
The Allot management team will host a conference call to discuss the second quarter results today, August 10, 2021 at 8:30 am ET, 3:30 pm Israel time.
To access the conference call, please dial one of the following numbers:
US: 1-888-668-5032, Israel: +972-3-918-0609, UK: 0 800 917 5108
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 and enterprises 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 20 million subscribers globally.
Allot. See. Control. Secure.
For more information, visit www.allot.com
*MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer's subscribers, as estimated by Allot, signed up for the service.
GAAP to Non-GAAP Reconciliation
Non-GAAP net income is defined as GAAP net income after excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, exchange rate differences related to revaluation of assets and liabilities denominated in non-dollar currencies 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.
Investor Relations Contact: GK Investor Relations Ehud Helft +1 646 201 9246 | Public Relations Contact: Seth Greenberg, Allot Ltd.
|
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 | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
Revenues | $ 35,288 | $ 32,790 | $ 66,471 | $ 62,079 | |||||
Cost of revenues | 10,822 | 9,838 | 20,413 | 17,448 | |||||
Gross profit | 24,466 | 22,952 | 46,058 | 44,631 | |||||
Operating expenses: | |||||||||
Research and development costs, net | 11,373 | 10,396 | 21,940 | 19,095 | |||||
Sales and marketing | 12,818 | 11,780 | 24,411 | 23,302 | |||||
General and administrative | 4,080 | 4,554 | 7,280 | 7,595 | |||||
Total operating expenses | 28,271 | 26,730 | 53,631 | 49,992 | |||||
Operating loss | (3,805) | (3,778) | (7,573) | (5,361) | |||||
Financial and other income, net | 194 | 717 | 309 | 868 | |||||
Loss before income tax expenses | (3,611) | (3,061) | (7,264) | (4,493) | |||||
Tax expenses | 368 | 553 | 673 | 781 | |||||
Net Loss | (3,979) | (3,614) | (7,937) | (5,274) | |||||
Basic net loss per share | $ (0.11) | $ (0.10) | $ (0.22) | $ (0.15) | |||||
Diluted net loss per share | $ (0.11) | $ (0.10) | $ (0.22) | $ (0.15) | |||||
Weighted average number of shares used in | |||||||||
computing basic net loss per share | 35,941,378 | 34,917,617 | 35,739,556 | 34,771,624 | |||||
Weighted average number of shares used in | |||||||||
computing diluted net loss per share | 35,941,378 | 34,917,617 | 35,739,556 | 34,771,624 | |||||
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 | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||
(Unaudited) | (Unaudited) | ||||||||
GAAP cost of revenues | $ 10,822 | $ 9,838 | $ 20,413 | $ 17,448 | |||||
Share-based compensation (1) | (164) | (86) | (283) | (153) | |||||
Amortization of intangible assets (2) | (152) | (152) | (304) | (304) | |||||
Non-GAAP cost of revenues | $ 10,506 | $ 9,600 | $ 19,826 | $ 16,991 | |||||
GAAP gross profit | $ 24,466 | $ 22,952 | $ 46,058 | $ 44,631 | |||||
Gross profit adjustments | 316 | 238 | 587 | 457 | |||||
Non-GAAP gross profit | $ 24,782 | $ 23,190 | $ 46,645 | $ 45,088 | |||||
GAAP operating expenses | $ 28,271 | $ 26,730 | $ 53,631 | $ 49,992 | |||||
Share-based compensation (1) | (2,097) | (1,146) | (3,422) | (2,003) | |||||
Income related to M&A activities (3) | - | (137) | - | (34) | |||||
Non-GAAP operating expenses | $ 26,174 | $ 25,447 | $ 50,209 | $ 47,955 | |||||
GAAP financial and other income | $ 194 | $ 717 | $ 309 | $ 868 | |||||
Exchange rate differences* | 14 | (316) | 90 | (98) | |||||
Non-GAAP Financial and other income | $ 208 | $ 401 | $ 399 | $ 770 | |||||
GAAP taxes on income | $ 368 | $ 553 | $ 673 | $ 781 | |||||
Tax expenses in respect of net deferred tax asset recorded | (102) | (15) | (169) | (75) | |||||
Non-GAAP taxes on income | $ 266 | $ 538 | $ 504 | $ 706 | |||||
GAAP Net Loss | $ (3,979) | $ (3,614) | $ (7,937) | $ (5,274) | |||||
Share-based compensation (1) | 2,261 | 1,232 | 3,705 | 2,156 | |||||
Amortization of intangible assets (2) | 152 | 152 | 304 | 304 | |||||
Income related to M&A activities (3) | - | 137 | - | 34 | |||||
Exchange rate differences* | 14 | (316) | 90 | (98) | |||||
Tax expenses in respect of net deferred tax asset recorded | 102 | 15 | 169 | 75 | |||||
Non-GAAP Net loss | $ (1,450) | $ (2,394) | $ (3,669) | $ (2,803) | |||||
GAAP Loss per share (diluted) | $ (0.11) | $ (0.10) | $ (0.22) | $ (0.15) | |||||
Share-based compensation | 0.06 | 0.04 | 0.10 | 0.06 | |||||
Amortization of intangible assets | 0.01 | 0.00 | 0.02 | 0.01 | |||||
Income related to M&A activities | 0.00 | (0.00) | - | - | |||||
Exchange rate differences* | 0.00 | (0.01) | - | 0.00 | |||||
Tax expense in respect of net deferred tax asset recorded | 0.00 | 0.00 | - | 0.00 | |||||
Non-GAAP Net loss per share (diluted) | $ (0.04) | $ (0.07) | $ (0.10) | $ (0.08) | |||||
Weighted average number of shares used in | |||||||||
computing GAAP diluted net loss per share | 35,941,378 | 34,917,617 | 35,739,556 | 34,771,624 | |||||
Weighted average number of shares used in | |||||||||
computing non-GAAP diluted net loss per share | 35,941,378 | 34,917,617 | 35,739,556 | 34,771,624 | |||||
* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. | |||||||||
TABLE - 2 cont. | |||||||||
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 | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||
(Unaudited) | (Unaudited) | ||||||||
(1) Share-based compensation: | |||||||||
Cost of revenues | $ 164 | $ 86 | $ 283 | $ 153 | |||||
Research and development costs, net | 699 | 361 | 1,094 | 603 | |||||
Sales and marketing | 930 | 533 | 1,512 | 911 | |||||
General and administrative | 468 | 252 | 816 | 489 | |||||
$ 2,261 | $ 1,232 | $ 3,705 | $ 2,156 | ||||||
(2) Amortization of intangible assets | |||||||||
Cost of revenues | $ 152 | $ 152 | $ 304 | $ 304 | |||||
$ 152 | $ 152 | $ 304 | $ 304 | ||||||
(3) Income related to M&A activities | |||||||||
Research and development costs, net | $ - | $ 137 | - | 34 | |||||
$ - | $ 137 | $ - | $ 34 | ||||||
TABLE - 3 | |||||
ALLOT LTD. | |||||
AND ITS SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(U.S. dollars in thousands) | |||||
June 30, | December 31, | ||||
2021 | 2020 | ||||
(Unaudited) | (Audited) | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 10,606 | $ 23,599 | |||
Short-term bank deposits | 71,425 | 47,225 | |||
Restricted deposits | 4,074 | 1,200 | |||
Available-for-sale marketable securities | 19,308 | 27,178 | |||
Trade receivables, net | 30,941 | 20,685 | |||
Other receivables and prepaid expenses | 8,862 | 14,205 | |||
Inventories | 9,297 | 12,586 | |||
Total current assets | 154,513 | 146,678 | |||
LONG-TERM ASSETS: | |||||
Long-term bank deposits | 215 | 215 | |||
Severance pay fund | 469 | 434 | |||
Operating lease right-of-use assets | 2,974 | 4,458 | |||
Deferred taxes | 246 | 420 | |||
Other assets | 1,603 | 2,975 | |||
Total long-term assets | 5,507 | 8,502 | |||
PROPERTY AND EQUIPMENT, NET | 13,394 | 11,993 | |||
GOODWILL AND INTANGIBLE ASSETS, NET | 35,608 | 34,427 | |||
Total assets | $ 209,022 | $ 201,600 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
Trade payables | $ 1,556 | $ 2,092 | |||
Deferred revenues | 32,852 | 26,658 | |||
Short-term operating lease liabilities | 1,573 | 2,813 | |||
Other payables and accrued expenses | 23,569 | 27,299 | |||
Total current liabilities | 59,550 | 58,862 | |||
LONG-TERM LIABILITIES: | |||||
Deferred revenues | 20,200 | 9,782 | |||
Long-term operating lease liabilities | 880 | 1,835 | |||
Accrued severance pay | 944 | 969 | |||
Total long-term liabilities | 22,024 | 12,586 | |||
SHAREHOLDERS' EQUITY | 127,448 | 130,152 | |||
Total liabilities and shareholders' equity | $ 209,022 | $ 201,600 | |||
TABLE - 4 | ||||||||
ALLOT LTD. | ||||||||
AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(U.S. dollars in thousands) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
Cash flows from operating activities: | ||||||||
Net Loss | $ (3,979) | $ (3,614) | $ (7,937) | $ (5,274) | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 1,141 | 897 | 2,229 | 1,685 | ||||
Stock-based compensation | 2,261 | 1,232 | 3,705 | 2,156 | ||||
Amortization of intangible assets | 234 | 152 | 471 | 304 | ||||
Increase (Decrease) in accrued severance pay, net | 12 | (1) | (60) | - | ||||
Decrease (Increase) in other assets | (458) | (1) | 1,041 | 159 | ||||
Decrease in accrued interest and amortization of premium on marketable securities | 32 | 57 | 107 | 228 | ||||
Changes in operating leases, net | (479) | 544 | (711) | (167) | ||||
Decrease (Increase) in trade receivables | (3,113) | 1,616 | (10,256) | 7,484 | ||||
Decrease (Increase) in other receivables and prepaid expenses | 3,094 | (518) | 3,522 | (919) | ||||
Decrease (Increase) in inventories | 4,246 | (2,113) | 3,289 | (6,598) | ||||
Decrease in long-term deferred taxes, net | 103 | 20 | 175 | 104 | ||||
Increase (Decrease) in trade payables | 334 | (6,468) | (536) | (4,200) | ||||
Increase (Decrease) in employees and payroll accruals | 1,286 | 1,024 | (623) | (301) | ||||
Increase (Decrease) in deferred revenues | 1,640 | 4,169 | 16,612 | (1,457) | ||||
Increase (Decrease) in other payables, accrued expenses and other long term liabilities | (2,761) | 2,235 | (3,364) | 517 | ||||
Net cash provided by (used in) operating activities | 3,593 | (769) | 7,664 | (6,279) | ||||
Cash flows from investing activities: | ||||||||
Decrease (Increase) in restricted deposit | (2,440) | 9,002 | (2,874) | 10,502 | ||||
Redemption of (Investment in) short-term deposits | 100 | (14,200) | (24,200) | (9,443) | ||||
Purchase of property and equipment | (1,934) | (2,345) | (3,629) | (3,696) | ||||
Investment in available-for sale marketable securities | - | - | - | (375) | ||||
Proceeds from sales and maturity of available-for sale marketable securities | 3,231 | 8,523 | 7,579 | 21,446 | ||||
Net cash provided by (used in) investing activities | (1,043) | 980 | (23,124) | 18,434 | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 908 | 837 | 2,467 | 1,457 | ||||
Net cash provided by financing activities | 908 | 837 | 2,467 | 1,457 | ||||
Increase (Decrease) in cash and cash equivalents | 3,458 | 1,048 | (12,993) | 13,612 | ||||
Cash and cash equivalents at the beginning of the period | 7,148 | 29,494 | 23,599 | 16,930 | ||||
Cash and cash equivalents at the end of the period | $ 10,606 | $ 30,542 | $ 10,606 | $ 30,542 | ||||
Other financial metrics (Unaudited) | |||||||||
U.S. dollars in millions, except number of full time employees, % of top- | |||||||||
Q2-2021 | YTD 2021 | FY 2020 | |||||||
Revenues geographic breakdown | |||||||||
Americas | 2.5 | 7% | 7.7 | 12% | 8.1 | 6% | |||
EMEA | 21.8 | 62% | 41.9 | 63% | 104.3 | 77% | |||
Asia Pacific | 11.0 | 31% | 16.9 | 25% | 23.5 | 17% | |||
35.3 | 100% | 66.5 | 100% | 135.9 | 100% | ||||
Breakdown between products & services revenues | |||||||||
Products | 23.0 | 65% | 40.8 | 62% | 92.5 | 68% | |||
Professional Services | 3.4 | 10% | 7.5 | 11% | 13.3 | 10% | |||
Support & Maintenance | 8.9 | 25% | 18.2 | 27% | 30.1 | 22% | |||
35.3 | 100% | 66.5 | 100% | 135.9 | 100% | ||||
Revenues per customer type | |||||||||
CSP | 28.1 | 80% | 50.9 | 76% | 114.8 | 84% | |||
Enterprise | 7.2 | 20% | 15.6 | 24% | 21.1 | 16% | |||
35.3 | 100% | 66.5 | 100% | 135.9 | 100% | ||||
% of top-10 end-customers out of revenues | 64% | 60% | 71% | ||||||
Total number of full time employees | 695 | 695 | 676 | ||||||
(end of period) | |||||||||
Number of basic shares (in millions) | 35.9 | 35.7 | 35.0 | ||||||
Non-GAAP weighted average number of | 38.3 | 38.1 | 37.2 | ||||||
View original content:https://www.prnewswire.com/news-releases/allot-announces-second-quarter-2021-financial-results-301351799.html
SOURCE Allot Ltd.
