Latest news with #AllotLtd
Globe and Mail
4 days ago
- Business
- Globe and Mail
Should Allot Stock Be in Your Portfolio Before Q2 Earnings?
Allot Ltd. ALLT is scheduled to report its second-quarter 2025 results on Aug. 14, before the bell. The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at a breakeven compared with a loss of 2 cents in the year-ago reported quarter. The consensus estimate for revenues stands at $22.9 million, indicating a 3.3% year-over-year increase. There has been no change in analyst estimates or revisions for the to-be-reported quarter lately. ALLT's Lesser Chance of Q2 Earnings Beat Our proven model doesn't conclusively predict an earnings beat for ALLT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ALLT has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. ALLT Should be Riding Growth Momentum Strong demand for Smart and Tera III products, driven by multiple multi-million-dollar agreements with new tier-1 customers, is boosting revenue. Growing interest in SECaaS offerings, highlighted by Verizon Business integrating the service into new mobile plans, is expanding the customer base and driving recurring revenue streams higher. Rising high-margin recurring revenues from SECaaS, combined with increased ARR, are expected to grow around 50% year over year, improving profitability. Efficient execution and scaling of operations, alongside strong sales momentum for premium solutions like Tera III, are enhancing margins and supporting the company's goal of achieving profitable growth in full-year 2025. Radware RDWR and Ceragon Networks CRNT operate in similar network/security and telecom infrastructure spaces. Radware is seeing traction in its security portfolio with large enterprises, while Ceragon Networks is expanding its wireless transport solutions footprint in emerging markets. Radware's ongoing shift toward subscription-based services and Ceragon Networks' focus on 5G backhaul upgrades mirror ALLT's recurring-revenue-driven margin expansion strategy. ALLT Stock Looking Pricey ALLT shares have surged 28% year to date. This performance has significantly outpaced the 19% growth of its industry. At this moment, it is worth noting that at its current valuation, Palantir is looking pricey. Based on the trailing 12-month EV-to-EBITDA, ALLT is currently trading at 71.63X, way above the industry's 35.85X. If we look at the forward 12-month Price/Earnings ratio, the company's shares are currently trading at 36.22X forward earnings, well above the industry's 24.49X. Investment Considerations Allot's solid product demand, especially for Smart and Tera III solutions, alongside the growing adoption of its SECaaS offerings, positions the company for steady revenue and profitability improvements. Strategic wins with tier-1 customers and partnerships like Verizon's mobile plan integration enhance recurring revenue visibility and long-term growth potential. However, the stock's strong year-to-date rally has pushed valuations to elevated levels, leaving limited near-term upside without a meaningful earnings catalyst. While the business outlook remains positive, the current price already reflects much of the optimism. Investors may consider a hold strategy, monitoring execution on growth initiatives and upcoming results for opportunities to accumulate on potential price corrections. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Radware Ltd. (RDWR): Free Stock Analysis Report Allot Ltd. (ALLT): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Allot Announces Second Quarter 2025 Financial Results
Exceptionally strong 73% year-over-year growth in SECaaS ARR; raising full year guidance HOD HASHARON, Israel, Aug. 14, 2025 /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 financial results for the second quarter 2025. Financial Highlights for the Second Quarter of 2025 Revenues of $24.1 million, up 9% year-over-year with SECaaS representing 27% of overall revenue; June 2025 SECaaS ARR* of $25.2 million, up 73% year-over-year; GAAP operating loss of $0.4 million versus $3.4 million operating loss last year; Non-GAAP operating profit of $1.2 million versus an operating loss of $1.0 million in Q2 2024; Strong positive operating cash flow of $4.4 million, compared to $1.2 million in Q2 2024; Management Comment Eyal Harari, CEO of Allot, commented, "We are very pleased with our strong Q2 financial results, which benefitted from exceptional SECaaS performance. SECaaS ARR was up 73% year-over-year, and SECaaS revenue exceeded 25% of our overall revenue. This strong SECaaS performance drove our overall company revenue growth to 9% year-over-year and supported our improvement in profitability." Continued Mr. Harari, "Our recent agreements illustrate the growing traction of our cyber-security offering. Verizon Business's new mobile offering, which includes our SECaaS service, is gaining significant traction among end-customers and is already contributing meaningfully to our strong SECaaS revenue growth. "As we announced in July, we won a landmark deal valued in the tens of millions of dollars with a tier-1 EMEA telecom operator. The multi-year agreement is one of Allot's largest ever customer wins to-date and is particularly strategic as it demonstrates the value of our unique technological advantages and core expertise for major telco players in two key areas: cyber security and network intelligence." Concluded Mr. Harari, "In light of our accelerated SECaaS growth, improved visibility, and high level of backlog, we are introducing full year 2025 revenue guidance of $98-102 million, positioning us for a year of profitable growth. Furthermore, we are increasing our 2025 SECaaS ARR year-over-year growth expectations to a range of 55-60%." Second Quarter 2025 Financial Results Summary Total revenues for the second quarter of 2025 were $24.1 million, a 9% increase year-over-year compared with $22.2 million in the second quarter of 2024. Gross profit on a GAAP basis for the second quarter of 2025 was $17.3 million (gross margin of 72.1%), a 14% increase compared with $15.2 million (gross margin of 68.5%) in the second quarter of 2024. Gross profit on a non-GAAP basis for the second quarter of 2025 was $17.6 million (gross margin of 73.4%), a 13% increase compared with $15.7 million (gross margin of 70.6%) in the second quarter of 2024. Operating loss on a GAAP basis for the second quarter of 2025 was $0.4 million, compared with an operating loss of $3.4 million in the second quarter of 2024. Operating income on a non-GAAP basis for the second quarter of 2025 was $1.2 million, compared with an operating loss of $1.0 million in the second quarter of 2024. Net loss on a GAAP basis for the second quarter of 2025 was $1.7 million, or $0.04 per share, an improvement compared to the net loss of $3.4 million, or $0.09 per share, in the second quarter of 2024. Net income on a non-GAAP basis for the second quarter of 2025 was $1.5 million, or $0.03 profit per diluted share, compared to the non-GAAP net loss of $0.8 million, or $0.02 loss per basic share, in the second quarter of 2024. Operating cash flow generated in the quarter was $4.4 million. Net cash and cash equivalents, bank deposits, restricted deposits and investments as of June 30, 2025, totaled $72 million, an increase of $13 million versus $59 million cash and cash equivalents, bank deposits, restricted deposits and investment as of December 31, 2024. As of June 30, 2025, the company has no debt. During the quarter, Allot closed a public offering of $46 million, out of which $40 million in gross proceeds were received during the second quarter and an additional $6 million in gross proceeds were received following the close of the quarter. The Company used the net proceeds to repay $31.4 million in convertible debt and the balance for general corporate purposes. Conference Call & Webcast: The Allot management team will host a conference call to discuss its second quarter 2025 earnings results today, August 14, 2025 at 9:00 am ET, 4:00 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: +972-3-918-0644 A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: 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 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure. For more information, visit Performance Metrics * SECaaS ARR – measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of June 2025 and multiplied by 12. 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 and changes in taxes-related items. 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 accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; 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; 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: Public Relations Contact: EK Global Investor Relations Seth Greenberg, Allot Ltd Ehud Helft +972 54 922 2294 +1 212 378 8040 sgreenberg@ allot@ 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 EndedJune 30, June 30,20252024 20252024(Unaudited) (Unaudited)Revenues $ 24,051$ 22,164 $ 47,201$ 44,054 Cost of revenues 6,7216,989 13,82313,781 Gross profit 17,33015,175 33,37830,273Operating expenses: Research and development costs, net 7,2617,326 13,25214,475 Sales and marketing 7,2617,911 14,59915,701 General and administrative 3,2153,304 6,6436,206 Total operating expenses 17,73718,541 34,49436,382 Operating loss (407)(3,366) (1,116)(6,109) Loss from extinguishment (1,410)- (1,410)- Other income 100- 100- Financial income, net 359489 1,0331,029 Loss before income tax expenses (1,358)(2,877) (1,393)(5,080)Income tax expenses 332479 628786 Net loss $ (1,690)$ (3,356) $ (2,021)$ (5,866) Basic net loss per share $ (0.04)$ (0.09) $ (0.05)$ (0.16) Diluted net loss per share $ (0.04)$ (0.09) $ (0.05)$ (0.16)Weighted average number of shares used in computing basic net loss per share 4,01,40,8753,87,12,407 3,99,44,4133,85,62,065Weighted average number of shares used in computing diluted net loss per share 4,01,40,8753,87,12,407 3,99,44,4133,85,62,065 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 EndedSix Months Ended June 30,June 30, 2025202420252024 (Unaudited)(Unaudited) GAAP cost of revenues $ 6,721$ 6,989$ 13,823$ 13,781 Share-based compensation (1) (160)(324)(254)(478) Amortization of intangible assets (2) (152)(152)(305)(304) Non-GAAP cost of revenues $ 6,409$ 6,513$ 13,264$ 12,999 GAAP gross profit $ 17,330$ 15,175$ 33,378$ 30,273 Gross profit adjustments 312476559782 Non-GAAP gross profit $ 17,642$ 15,651$ 33,937$ 31,055 GAAP operating expenses $ 17,737$ 18,541$ 34,494$ 36,382 Share-based compensation (1) (1,289)(1,863)(2,176)(3,069) Non-GAAP operating expenses $ 16,448$ 16,678$ 32,318$ 33,313 GAAP Loss from extinguishment $ (1,410)$ -$ (1,410)$ - Loss from extinguishment 1,410-1,410- Non-GAAP Loss from extinguishment $ -$ -$ -$ - GAAP financial and other income $ 359$ 489$ 1,033$ 1,029 Exchange rate differences* 10411043204 Non-GAAP Financial and other income $ 463$ 599$ 1,076$ 1,233 GAAP taxes on income $ 332$ 479$ 628$ 786 Changes in tax related items (25)(133)(70)(177) Non-GAAP taxes on income $ 307$ 346$ 558$ 609 GAAP Net profit (Loss) $ (1,690)$ (3,356)$ (2,021)$ (5,866) Share-based compensation (1) 1,4492,1872,4303,547 Amortization of intangible assets (2) 152152305304 Loss from extinguishment 1,410-1,410- Exchange rate differences* 10411043204 Changes in tax related items 2513370177 Non-GAAP Net income (loss) $ 1,450$ (774)$ 2,237$ (1,634) GAAP Loss per share (diluted) $ (0.04)$ (0.09)$ (0.05)$ (0.16) Share-based compensation 0.030.060.060.10 Amortization of intangible assets 0.010.010.010.01 Loss from extinguishment 0.03-0.03- Non-GAAP Net income (Loss) per share (diluted) $ 0.03$ (0.02)$ 0.05$ (0.05) -Weighted average number of shares used in computing GAAP diluted net income (loss) per share 4,01,40,8753,87,12,4073,99,44,4133,85,62,065 Weighted average number of shares used in computing non-GAAP diluted net income (loss) per share 4,37,94,5803,87,12,4074,37,50,6633,85,62,065* 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 EndedSix Months Ended June 30,June 30, 2025202420252024 (Unaudited)(Unaudited)(1) Share-based compensation: Cost of revenues $ 160$ 324$ 254$ 478Research and development costs, net 3807876221,285Sales and marketing 4667927711,235General and administrative 443284783549 $ 1,449$ 2,187$ 2,430$ 3,547 (2) Amortization of intangible assets Cost of revenues $ 152$ 152$ 305$ 304Sales and marketing$ 152$ 152$ 305$ 304 TABLE - 3 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) June 30,December 31, 20252024 (Unaudited)(Audited)ASSETS CURRENT ASSETS: Cash and cash equivalents$ 26,943$ 16,142 Restricted deposit501904 Short-term bank deposits11,05015,250 Available-for-sale marketable securities11,51826,470 Trade receivables, net (net of allowance for credit losses of $22,392 and $25,306 on June 30, 2025 and December 31, 2024 , respectively)20,13516,482 Other receivables and prepaid expenses8,6416,317 Inventories8,5058,611 Total current assets87,29390,176NON-CURRENT ASSETS: Severance pay fund$ 243$ 464 Restricted deposit329279 Available-for-sale marketable securities21,672- Operating lease right-of-use assets6,0916,741 Other assets 5522,151 Property and equipment, net6,0397,692 Intangible assets, net-305 Goodwill31,83331,833 Total non-current assets66,75949,465Total assets$ 1,54,052$ 1,39,641LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables$ 924$ 946 Employees and payroll accruals8,7808,208 Deferred revenues20,64717,054 Short-term operating lease liabilities484562 Other payables and accrued expenses10,9969,200 Total current liabilities41,83135,970LONG-TERM LIABILITIES: Deferred revenues6,0797,136 Long-term operating lease liabilities5,6115,807 Accrued severance pay814946 Convertible debt-39,973 Total long-term liabilities12,50453,862SHAREHOLDERS' EQUITY99,71749,809Total liabilities and shareholders' equity$ 1,54,052$ 1,39,641 TABLE - 4 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)Three Months EndedSix Months EndedJune 30,June 30,2025202420252024(Unaudited)(Unaudited) Cash flows from operating activities:Net loss $ (1,690)$ (3,356)$ (2,021)$ (5,866) Adjustments to reconcile net loss to net cash used in operating activities:Depreciation, amortization and impairment 1,0731,3592,4192,776 Share-based compensation 1,4492,1872,4303,547 Capital loss --255- Loss from extinguishment 1,410-1,410- Other income (100)-(100)- Changes in operating assets and liabilities:Decrease (Increase) in accrued severance pay, net 93(107)89(165) Decrease in other assets, other receivables and prepaid expenses 1969551,6191,672 Decrease in accrued interest and amortization of premium on available-for sale marketable securities (521)(405)(862)(777) Decrease in operating leases liability (60)(159)(203)(618) Decrease in operating lease right-of-use asset 2756225791,174 Increase in trade receivables (901)(2,789)(3,653)(2,980) Decrease (Increase) in inventories (312)2,1011062,268 Increase (Decrease) in trade payables (97)278(22)16 Increase (Decrease) in employees and payroll accruals 2,785(649)573(4,135) Increase in deferred revenues 2735952,5361,965 Increase (Decrease) in other payables and accrued expenses 511542914(12) Net cash provided by (used in) operating activities 4,3841,1746,069(1,135) Cash flows from investing activities:Decrease (Increase) in restricted deposit 50(1)353703 Investment in short-term bank deposits (7,050)(3,800)(15,750)(3,800) Withdrawal of short-term bank deposits 12,700-19,95010,000 Purchase of property and equipment (408)(957)(689)(1,386) Investment in marketable securities (26,458)(10,477)(55,434)(34,752) Proceeds from redemption or sale of marketable securities 27,2837,22549,68332,060 Proceeds from sale of patent 100-100- Net cash provided by (used in) investing activities 6,217(8,010)(1,787)2,825 Cash flows from financing activities:Issuance of share capital 37,691-37,691- Proceeds from exercise of stock options -12381 Redemption of convertible debt (31,410)-(31,410)- Net cash provided by financing activities 6,28116,5191 Increase (Decrease) in cash and cash equivalents 16,882(6,835)10,8011,691 Cash, cash equivalents at the beginning of the period 10,06122,71816,14214,192 Cash, cash equivalents at the end of the period $ 26,943$ 15,883$ 26,943$ 15,883 Non-cash activities:ROU asset and lease liability decrease, due to lease termination --(71)- Redemption of convertible debt (10,000)-(10,000)- Other financial metrics (Unaudited) U.S. dollars in millions, except top 10 customers as a % of revenues and number of sharesQ2-25FY 2024FY 2023Revenues geographic breakdownAmericas4.2 17 % 14.2 15 % 16.6 18 %EMEA15.8 66 % 54.0 59 % 56.1 60 %Asia Pacific4.1 17 % 24.0 26 % 20.5 22 %24.1 100 % 92.2 100 % 93.2 100 %Revenues breakdown by typeProducts7.6 31 % 30.1 33 % 37.6 40 %Professional Services 1.6 7 % 8.3 9 % 6.1 7 %SECaaS (Security as a Service) 6.4 27 % 16.5 18 % 10.6 11 %Support & Maintenance 8.5 35 % 37.3 40 % 38.9 42 %24.1 100 % 92.2 100 % 93.2 100 %Top 10 customers as a % of revenues 55 %43 %47 % Non-GAAP Weighted average number of basic shares (in millions) 40.138.937.9 Non-GAAP weighted average number of fully diluted shares (in millions) 43.842.340.3SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)Q2-2025: 6.4Q1-2025: 5.1Q4-2024: 4.8Q3-2024: 4.7Q2-2024: 3.7 SECaaS ARR* - U.S. dollars in millions (Unaudited)Jun. 2025: 25.2Dec. 2024: 18.2Dec. 2023: 12.7Dec. 2022: 9.2Logo: View original content: SOURCE Allot Ltd. 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Yahoo
29-07-2025
- Business
- Yahoo
Allot to Release Second Quarter 2025 Results and Host Conference Call on August 14, 2025
Hod Hasharon, Israel, July 29, 2025 (GLOBE NEWSWIRE) -- Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative security-as-a-service (SECaaS) and network intelligence solutions for communication service providers (CSPs) and enterprises, announced today that it will host a conference call to discuss its second quarter 2025 results on Thursday, August 14, 2025 at 9:00AM ET (2:00PM UK, 4:00PM Israel). The unaudited financial results of the quarter will be published prior to the commencement of the conference call. To access the conference call, please dial one of the following numbers: US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644 A live webcast of the conference call can be accessed on the Allot website at The webcast will also be archived on the website following the conference call. About Allot Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative converged cybersecurity solutions and network intelligence 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 is already used by many millions of subscribers globally. Allot. See. Control. Secure. For more information, visit CONTACT: Seth Greenberg Allot +972 54 922 2294 sgreenberg@ Ehud Helft Allot Investor Relations +1 212 378 8040 allot@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
While institutions own 32% of Allot Ltd. (NASDAQ:ALLT), individual investors are its largest shareholders with 36% ownership
Allot's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public The top 7 shareholders own 52% of the company 32% of Allot is held by Institutions Our free stock report includes 1 warning sign investors should be aware of before investing in Allot. Read for free now. A look at the shareholders of Allot Ltd. (NASDAQ:ALLT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Institutions, on the other hand, account for 32% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Let's take a closer look to see what the different types of shareholders can tell us about Allot. View our latest analysis for Allot Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Allot already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Allot, (below). Of course, keep in mind that there are other factors to consider, too. It looks like hedge funds own 31% of Allot shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Lynrock Lake LP, with ownership of 22%. With 9.4% and 9.3% of the shares outstanding respectively, Kanen Wealth Management LLC and QVT Financial LP are the second and third largest shareholders. We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can see that insiders own shares in Allot Ltd.. As individuals, the insiders collectively own US$3.9m worth of the US$324m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 36% stake in Allot. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Allot has 1 warning sign we think you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Allot Ltd (ALLT) Q1 2025 Earnings Call Highlights: A Return to Growth with Strategic Partnerships
Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Allot Ltd (NASDAQ:ALLT) reported a 6% year-over-year increase in first-quarter revenues, marking a return to growth. The company's Security as a Service Solution, CIA, contributed significantly to revenue, with a 55% year-over-year increase. Allot Ltd (NASDAQ:ALLT) achieved a non-GAAP net income of $0.8 million, compared to a loss in the same quarter last year. The company reported positive operating cash flow of $1.7 million, increasing its cash position to over $60 million. Allot Ltd (NASDAQ:ALLT) secured a significant expansion of its partnership with Verizon Business, offering a substantial growth opportunity. The official launch of Verizon's mobile service occurred only in mid-April, resulting in minimal contribution to Q1 results. The company's growth projections are reliant on the marketing efforts and campaigns of service providers, introducing uncertainty. Despite positive results, there is still potential for CIA's ARR growth to be slightly below the 50% target. The transition of Vodafone's partnership to a CCAS revenue structure is still ongoing, with some agreements not yet fully realized. The competitive nature of the industry and reliance on external service providers' marketing strategies pose risks to growth projections. Warning! GuruFocus has detected 4 Warning Signs with ALLT. Q: Did Verizon Business Mobile Internet Security contribute to your Q1 CCAS ARR results? A: (CEO) The official launch of the service happened only in mid-April, so there was minimal contribution for Q1. Most of the impact will be seen in Q2 and beyond as the service gains traction. Q: What was the main driver for your biggest CCAS ARR growth this quarter? A: (CEO) The growth was driven by new service launches and agreements, particularly with Vodafone and other carriers. These are starting to contribute to our revenue, and we expect further growth throughout the year. Q: Is there a possibility that CCAS ARR growth could be less than 50%? A: (CEO) While we are comfortable with the 50% growth estimate, there are still many moving parts, and we rely on service providers' marketing efforts. It could be slightly lower or higher, but we do not anticipate it dropping to 30%. Q: Did Verizon become the largest contributor to CCAS revenue this quarter? A: (CEO) Yes, Verizon became our number one account for CCAS revenue due to the initial launch of their mobile service and the traction of their fixed wireless access. Q: Are you seeing increased opportunities to cross-sell CCAS solutions to telecom customers in the smart business? A: (CEO) Yes, we see synergies and potential for expansion into CCAS with existing and new smart customers. Our pipeline is growing, and we are optimistic about future demand for our products. Q: Do you think Verizon's decision to include security features in its mobile plan will influence other operators? A: (CEO) Verizon's move shows a strong commitment to cybersecurity, and we believe other operators will consider similar strategies as they observe Verizon's success. Q: Can you provide more details on the large deals in the smart product line pipeline? A: (CEO) We have several eight-figure deals in the pipeline, driven by demand from existing customers and new projects. Our new Terra platform is attracting interest, and we are focused on executing these opportunities. Q: How is the transition to a CCAS revenue structure with Vodafone progressing? A: (CEO) We have started seeing revenue from these agreements, but some are not yet fully realized. We expect growth from these agreements as we expand into more geographies within the Vodafone Group. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
