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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 Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Revenues $ 24,051 $ 22,164 $ 47,201 $ 44,054 Cost of revenues 6,721 6,989 13,823 13,781 Gross profit 17,330 15,175 33,378 30,273 Operating expenses: Research and development costs, net 7,261 7,326 13,252 14,475 Sales and marketing 7,261 7,911 14,599 15,701 General and administrative 3,215 3,304 6,643 6,206 Total operating expenses 17,737 18,541 34,494 36,382 Operating loss (407) (3,366) (1,116) (6,109) Loss from extinguishment (1,410) – (1,410) – Other income 100 – 100 – Financial income, net 359 489 1,033 1,029 Loss before income tax expenses (1,358) (2,877) (1,393) (5,080) Income tax expenses 332 479 628 786 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 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 Weighted average number of shares used in computing diluted net loss per share 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 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 Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (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 312 476 559 782 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* 104 110 43 204 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) 1,449 2,187 2,430 3,547 Amortization of intangible assets (2) 152 152 305 304 Loss from extinguishment 1,410 – 1,410 – Exchange rate differences* 104 110 43 204 Changes in tax related items 25 133 70 177 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 0.03 0.06 0.06 0.10 Amortization of intangible assets 0.01 0.01 0.01 0.01 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 4,01,40,875 3,87,12,407 3,99,44,413 3,85,62,065 Weighted average number of shares used in computing non-GAAP diluted net income (loss) per share 4,37,94,580 3,87,12,407 4,37,50,663 3,85,62,065 * 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 Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) (1) Share-based compensation: Cost of revenues $ 160 $ 324 $ 254 $ 478 Research and development costs, net 380 787 622 1,285 Sales and marketing 466 792 771 1,235 General and administrative 443 284 783 549 $ 1,449 $ 2,187 $ 2,430 $ 3,547 (2) Amortization of intangible assets Cost of revenues $ 152 $ 152 $ 305 $ 304 Sales 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, 2025 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 26,943 $ 16,142 Restricted deposit 501 904 Short-term bank deposits 11,050 15,250 Available-for-sale marketable securities 11,518 26,470 Trade receivables, net (net of allowance for credit losses of $22,392 and $25,306 on June 30, 2025 and December 31, 2024 , respectively) 20,135 16,482 Other receivables and prepaid expenses 8,641 6,317 Inventories 8,505 8,611 Total current assets 87,293 90,176 NON-CURRENT ASSETS: Severance pay fund $ 243 $ 464 Restricted deposit 329 279 Available-for-sale marketable securities 21,672 – Operating lease right-of-use assets 6,091 6,741 Other assets 552 2,151 Property and equipment, net 6,039 7,692 Intangible assets, net – 305 Goodwill 31,833 31,833 Total non-current assets 66,759 49,465 Total assets $ 1,54,052 $ 1,39,641 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 924 $ 946 Employees and payroll accruals 8,780 8,208 Deferred revenues 20,647 17,054 Short-term operating lease liabilities 484 562 Other payables and accrued expenses 10,996 9,200 Total current liabilities 41,831 35,970 LONG-TERM LIABILITIES: Deferred revenues 6,079 7,136 Long-term operating lease liabilities 5,611 5,807 Accrued severance pay 814 946 Convertible debt – 39,973 Total long-term liabilities 12,504 53,862 SHAREHOLDERS' EQUITY 99,717 49,809 Total 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 Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (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 1,073 1,359 2,419 2,776 Share-based compensation 1,449 2,187 2,430 3,547 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 196 955 1,619 1,672 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 275 622 579 1,174 Increase in trade receivables (901) (2,789) (3,653) (2,980) Decrease (Increase) in inventories (312) 2,101 106 2,268 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 273 595 2,536 1,965 Increase (Decrease) in other payables and accrued expenses 511 542 914 (12) Net cash provided by (used in) operating activities 4,384 1,174 6,069 (1,135) Cash flows from investing activities: Decrease (Increase) in restricted deposit 50 (1) 353 703 Investment in short-term bank deposits (7,050) (3,800) (15,750) (3,800) Withdrawal of short-term bank deposits 12,700 – 19,950 10,000 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 27,283 7,225 49,683 32,060 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 – 1 238 1 Redemption of convertible debt (31,410) – (31,410) – Net cash provided by financing activities 6,281 1 6,519 1 Increase (Decrease) in cash and cash equivalents 16,882 (6,835) 10,801 1,691 Cash, cash equivalents at the beginning of the period 10,061 22,718 16,142 14,192 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 shares Q2-25 FY 2024 FY 2023 Revenues geographic breakdown Americas 4.2 17 % 14.2 15 % 16.6 18 % EMEA 15.8 66 % 54.0 59 % 56.1 60 % Asia Pacific 4.1 17 % 24.0 26 % 20.5 22 % 24.1 100 % 92.2 100 % 93.2 100 % Revenues breakdown by type Products 7.6 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) 40.1 38.9 37.9 Non-GAAP weighted average number of fully diluted shares (in millions) 43.8 42.3 40.3 SECaaS (Security as a Service) revenues– U.S. dollars in millions (Unaudited) Q2-2025: 6.4 Q1-2025: 5.1 Q4-2024: 4.8 Q3-2024: 4.7 Q2-2024: 3.7 SECaaS ARR* – U.S. dollars in millions (Unaudited) Jun. 2025: 25.2 Dec. 2024: 18.2 Dec. 2023: 12.7 Dec. 2022: 9.2 Logo: View original content:
Associated Press
07-07-2025
- Business
- Associated Press
Allot Signs Landmark Deal with Tier 1 EMEA Telecom Operator, Valued at Tens of Millions of Dollars
Hod Hasharon, Israel, July 07, 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 and enterprises, today announced that it has signed an agreement valued at tens of millions of dollars to provide an integrated network intelligence and cybersecurity solution to a Tier-1 telecom operator in EMEA for their converged mobile and fixed network. The multi-year agreement includes Allot Smart solutions for Traffic Management, Policy & Charging Control, Network Visibility and Analytics and a set of cybersecurity services including DDoS attack protection, anti-botnet and reputation protection. The solution will be based on the recently launched SG Tera-III platform, the highest capacity multiservice gateway in the telecommunications market. 'This is a major customer win for Allot, the largest in five years, and is pivotal in our journey as we continue to expand our security and network intelligence presence across EMEA' said Eyal Harari, CEO of Allot. 'We are excited with this new partnership as we leverage our unique technological advantages and core expertise to support all customer requirements as we progress with our 'security-first' strategy.' The integrated Allot solutions will offer services, including cybersecurity services, for fixed fiber as well as mobile 5G and 4G networks, on a unified service gateway platform. The combination of solutions to be provided by Allot are designed to reduce the telecom operator's access bandwidth costs, defer capacity expansion, cut OPEX through automation and assure high QoE for the operator's customers. ### Additional Resources: Allot Blog: Telco CyberTalk Podcast: Follow us on Twitter: @allot_ltd Follow us on LinkedIn: 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-native cybersecurity services, network and application analytics, traffic control and shaping, 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-native security-as-a-service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure. Forward-Looking 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 expressed or implied 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. Seth Greenberg Allot +972 54 922 2294 [email protected] Ehud Helft/Kenny Green Allot Investor Relations +1-212-378-8040 [email protected]
Yahoo
01-04-2025
- Business
- Yahoo
Allot to Present at the LD Micro Invitational XV Conference on April 10, 2025
Hod Hasharon, Israel, April 01, 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 and enterprises, today announced that it will be participating at the 15th Annual LD Micro Invitational investor conference taking place in New York on April 9th and 10th, 2025. The event is expected to feature leading small-cap companies presenting in half-hour increments, as well as private one-on-one meetings. Mr. Eyal Harari, CEO of Allot, will be presenting to investors on Thursday, April 10 between 12:00-12:25pm in Track 1. Interested parties are invited to register to watch the presentation virtually through a link on Allot's website. In addition, management will also be available for one-on-one meetings with investors throughout that day at the conference. To schedule a meeting with management, please contact an LD Micro representative or email a request to the investor relations team at allot@ 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-native cybersecurity services, network and application analytics, traffic control and shaping, 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-native security-as-a-service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure. For more information, visit 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. CONTACT: Seth Greenberg Allot +972 54 922 2294 sgreenberg@ Ehud Helft Allot Investor Relations +1 212 378 8040 allot@ in to access your portfolio
Yahoo
06-03-2025
- Business
- Yahoo
Allot to Present at the Roth Growth Conference on March 17, 2025
Hod Hasharon, Israel, March 06, 2025 (GLOBE NEWSWIRE) -- 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 that its management will be meeting with investors and presenting at the 37th Annual Roth Conference taking place between March 16 and 18, 2025. Allot's CEO, Eyal Harari will be attending and meeting one-on-one with investors on Monday March 17. For more information about the conference, or to schedule a meeting with Allot's management, please contact your Roth representative or email the investor relations team at Allot. 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-native cybersecurity services, network and application analytics, traffic control and shaping, 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-native security-as-a-service solution is already used by many millions of subscribers See. Control. Secure. For more information, visit 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. CONTACT: Seth Greenberg Allot +972 54 922 2294 sgreenberg@ Ehud Helft Allot Investor Relations +1-212-378-8040 Allot@
Yahoo
25-02-2025
- Business
- Yahoo
Allot Announces Fourth Quarter 2024 Financial Results
Strong Double-Digit SECaaS Growth and Significant Improvement in Profitability HOD HASHARON, Israel, Feb. 25, 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 fourth quarter and full year of 2024. Financial Highlights for the Fourth Quarter Revenues of $24.9 million increased 2% year over year and 7% sequentially, representing a return to revenue growth; Security as a Service (SECaaS) revenues continued to grow strongly, increasing 49% year-over-year to $4.8 million; December 2024 SECaaS ARR* grew to $18.2 million, an increase of 43% year-over-year; Non-GAAP gross margin was 69.7%, a strong improvement versus gross margin of 51.7% in the fourth quarter of last year; Non-GAAP operating profit was $1.8 million, GAAP operating income was $0.3 million, versus operating losses last year; Generated strong positive operating cash flow in the quarter of $4.1 million; Management Comment Eyal Harari, CEO of Allot, commented, "We are very pleased to report solid fourth-quarter and full year 2024 results, demonstrating that Allot is at a key inflection point in its turnaround process. Our results show renewed revenue growth and a return to profitability, with growing positive cash flow generation. Our SECaaS growth engine continued its strong performance in 2024, with high double-digit growth rates in both revenues and ARR." Continued Mr. Harari, "Our security-first strategy and renewed go-to-market focus are gaining strong traction and momentum. As we recently announced, we were very excited to sign a new major agreement with Verizon Business. We are very happy that the significant Verizon Business mobile customer base will have the opportunity to sign up for Allot's cybersecurity protection solution. This new agreement adds to the strong momentum that Allot has recently seen, including our announcements with Vodafone, O2 and MEO. These important partnerships illustrate our growing success and expand our potential for long-term recurring revenue." Concluded Mr. Harari, "Looking ahead to 2025, we remain focused on advancing our strategy and executing on another year of double-digit SECaaS revenue and ARR growth, and improved profitability." Fourth Quarter 2024 Financial Results Summary Total revenues for the fourth quarter of 2024 were $24.9 million, a 7% increase sequentially compared with $23.2 million in the prior quarter and a 2% increase year-over-year compared with $24.3 million in the fourth quarter of 2023. . Gross profit on a GAAP basis for the fourth quarter of 2024 was $17.1 million (gross margin of 68.5%), a 49.6% increase compared with $11.4 million (gross margin of 46.8%) in the fourth quarter of 2023. Gross profit on a non-GAAP basis for the fourth quarter of 2024 was $17.4 million (gross margin of 69.7%), a 37.9% increase compared with $12.6 million (gross margin of 51.7%) in the fourth quarter of 2023. Operating income on a GAAP basis for the fourth quarter of 2024 was $0.3 million, compared with an operating loss of $18.9 million in the fourth quarter of 2023. Operating income on a non-GAAP basis for the fourth quarter of 2024 was $1.8 million, compared with an operating loss of $17.0 million in the fourth quarter of 2023. Net income on a GAAP basis for the fourth quarter of 2024 was $0.2 million, or $0.01 income per diluted share, an improvement compared to the net loss of $18.3 million, or $0.48 loss per basic share, in the fourth quarter of 2023. Net income on a non-GAAP basis for the fourth quarter of 2024 was $2.0 million, or $0.05 income per diluted share, an improvement compared to the non-GAAP net loss of $16.4 million, or $0.43 loss per basic share, in the fourth quarter of 2023. Operating cash flow generated in the quarter was $4.1 million. Full Year 2024 Financial Results Summary Total revenues for 2024 were $92.2 million, a 1% decrease compared to $93.2 million in 2023. Gross profit on a GAAP basis for 2024 was $63.7 million (gross margin of 69.1%), a 20.9% increase compared with $52.7 million (gross margin of 56.6%) in 2023. Gross profit on a non-GAAP basis for 2024 was $65.1 million (gross margin of 70.6%), a 17.2% year-over-year growth compared with $55.5 million (gross margin of 59.6%) in 2023. Net loss on a GAAP basis for 2024 was $5.9 million, or $0.15 per basic share, compared with a net loss of $62.8 million, or $1.66 per basic share, in 2023. Net income on a non-GAAP basis for 2024 was $1.6 million, or $0.04 income per diluted share, compared with a net loss of $53.3 million, or $1.41 loss per basic share, in 2023. Operating cash flow generated in 2024 was $4.8 million. Cash and cash equivalents, short-term bank deposits, short-term restricted deposits, and investments as of December 31, 2024, totaled $58.8 million, versus $54.8 million as of December 31, 2023. Conference Call & Webcast: The Allot management team will host a conference call to discuss its fourth quarter and full year 2024 earnings results today, February 25, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers: US: 1-888-642-5032, UK: 0-800-917-5108, Israel: +972-3-918-0610 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 of SECaaS revenues, which is calculated based on estimated revenues for the month of December 2024 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: EK Global Investor Relations Ehud Helft +1 212 378 8040 allot@ Public Relations Contact: Seth Greenberg, Allot Ltd. +972 54 922 2294 sgreenberg@ 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 31,20242023 20242023(Unaudited) (Unaudited)(Audited)Revenues $ 24,906$ 24,342 $ 92,195$ 93,150 Cost of revenues 7,85312,941 28,50540,464 Gross profit 17,05311,401 63,69052,686Operating expenses: Research and development costs, net 5,7157,942 26,11239,115 Sales and marketing 7,50812,057 30,90843,850 General and administrative 3,51810,316 12,68434,656 Total operating expenses 16,74130,315 69,704117,621 Operating profit (loss) 312(18,914) (6,014)(64,935) Financial and other income (loss), net 368661 1,9103,215 Profit (Loss) before income tax benefit 680(18,253) (4,104)(61,720)Tax expenses 43996 1,7651,084 Net profit (Loss) 241(18,349) (5,869)(62,804) Basic net profit (loss) per share $ 0.01$ (0.48) $ (0.15)$ (1.66) Diluted net profit (loss) per share $ 0.01$ (0.48) $ (0.15)$ (1.66)Weighted average number of shares used in computing basic net loss per share 39,379,25438,293,808 38,928,47537,911,214Weighted average number of shares used in computing diluted net loss per share 41,772,40238,293,808 40,899,29437,911,214 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 EndedYear Ended December 31,December 31, 2024202320242023 (Unaudited)(Unaudited) GAAP cost of revenues $ 7,853$ 12,941$ 28,505$ 40,464 Share-based compensation (1) (148)(162)(779)(1,219) Amortization of intangible assets (2) (152)(1,024)(608)(1,606) Non-GAAP cost of revenues $ 7,553$ 11,755$ 27,118$ 37,639 GAAP gross profit $ 17,053$ 11,401$ 63,690$ 52,686 Gross profit adjustments 3001,1861,3872,825 Non-GAAP gross profit $ 17,353$ 12,587$ 65,077$ 55,511 GAAP operating expenses $ 16,741$ 30,315$ 69,704$ 117,621 Share-based compensation (1) (1,176)(1,449)(5,261)(7,626) Income related to M&A activities (2) -699-699 Non-GAAP operating expenses $ 15,565$ 29,565$ 64,443$ 110,694 GAAP financial and other income $ 368$ 661$ 1,910$ 3,215 Exchange rate differences* 159(50)502(378) Expenses related to M&A activities (3) ---43 Non-GAAP Financial and other income $ 527$ 611$ 2,412$ 2,880 GAAP taxes on income $ 439$ 96$ 1,765$ 1,084 Changes in tax related items (130)(25)(352)(100) Non-GAAP taxes on income $ 309$ 71$ 1,413$ 984 GAAP Net profit (Loss) $ 241$ (18,349)$ (5,869)$ (62,804) Share-based compensation (1) 1,3241,6116,0408,845 Amortization of intangible assets (2) 1521,0246081,606 Expenses related to M&A activities (3) -(699)-(656) Exchange rate differences* 159(50)502(378) Changes in tax related items 13025352100 Non-GAAP Net income (loss) $ 2,006$ (16,438)$ 1,633$ (53,287) GAAP profit (Loss) per share (diluted) $ 0.01$ (0.48)$ (0.15)$ (1.66) Share-based compensation 0.030.040.160.23 Amortization of intangible assets 0.000.030.020.05 Expenses related to M&A activities -(0.02)-(0.02) Exchange rate differences* 0.01(0.00)0.01(0.01) Changes in tax related items 0.000.000.000.00 Non-GAAP Net income (loss) per share (diluted) $ 0.05$ (0.43)$ 0.04$ (1.41) Weighted average number of shares used in computing GAAP diluted net income (loss) per share 39,379,25438,293,80838,928,47537,911,214 Weighted average number of shares used in computing non-GAAP diluted net income (loss) per share 42,560,45738,293,80842,289,63737,911,214* 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 EndedYear Ended December 31,December 31, 2024202320242023 (Unaudited)(Unaudited)(1) Share-based compensation: Cost of revenues $ 148$ 162$ 779$ 1,219Research and development costs, net 3015971,9883,010Sales and marketing 3104731,8552,651General and administrative 5653791,4181,965 $ 1,324$ 1,611$ 6,040$ 8,845 (2) Amortization of intangible assets Cost of revenues $ 152$ 1,024$ 608$ 1,606 $ 152$ 1,024$ 608$ 1,606 (3) Expenses related to M&A activities General and administrative $ -$ (699)$ -$ (699)Financial expenses (income) ---43 $ -$ (699)$ -$ (656) TABLE - 3 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) December 31,December 31, 20242023 (Unaudited)(Audited)ASSETS CURRENT ASSETS: Cash and cash equivalents$ 16,142$ 14,192 Short-term bank deposits15,25010,000 Restricted deposits9041,728 Available-for-sale marketable securities26,47028,853 Trade receivables, net (net of allowance for credit losses of $25,306 and $25,253 on December 31, 2024 and 2023, respectively)16,48214,828 Other receivables and prepaid expenses6,3178,437 Inventories8,61111,874 Total current assets90,17689,912LONG-TERM ASSETS: Severance pay fund464395 Restricted deposit279158 Operating lease right-of-use assets6,7413,057 Other assets 2,151704 Property and equipment, net7,69211,189 Intangible assets, net305915 Goodwill31,83331,833 Total non-current assets49,46548,251Total assets$ 139,641$ 138,163LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables$ 946$ 969 Deferred revenues17,05414,892 Short-term operating lease liabilities5621,453 Other payables and accrued expenses17,41222,094 Total current liabilities35,97439,408LONG-TERM LIABILITIES: Deferred revenues7,1367,437 Long-term operating lease liabilities5,807702 Accrued severance pay9461,080 Convertible debt39,97339,773 Total long-term liabilities53,86248,992SHAREHOLDERS' EQUITY49,80549,763Total liabilities and shareholders' equity$ 139,641$ 138,163 TABLE - 4 ALLOT LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)Three Months EndedYear EndedDecember 31,December 31,2024202320242023(Unaudited)(Unaudited)(Audited) Cash flows from operating activities:Net profit (Loss) $ 241$ (18,349)$ (5,869)$ (62,804) Adjustments to reconcile net income to net cash provided by (used in) operating activities:Depreciation 2,1451,6385,6135,536 Stock-based compensation 1,3241,6116,0408,845 Amortization of intangible assets 1531,7666102,596 Increase (Decrease) in accrued severance pay, net (48)37(203)116 Decrease (Increase) in other assets, other receivables and prepaid expenses (274)(62)702621 Increase in accrued interest and amortization of premium/discount on marketable securities (223)(305)(1,392)(712) Decrease in operating leases liability (545)(845)(1,644)(3,322) Decrease in operating lease right-of-use asset 3256812,1742,686 Decrease (Increase) in trade receivables 8889,784(1,654)34,273 Decrease in inventories 1,4382,1653,2631,388 Decrease in trade payables (2,178)(2,857)(23)(10,692) Increase (Decrease) in employees and payroll accruals (1,798)1,115(4,358)(1,571) Increase (Decrease) in deferred revenues 3,265(2,806)1,861(5,781) Increase in other payables, accrued expenses and other long term liabilities (684)1,200(493)(1,113) Amortization of issuance costs of Convertible debt 5050200198 Net cash provided by (used in) operating activities 4,079(5,177)4,827(29,736) Cash flows from investing activities:Decrease (Increase) in restricted deposit -(804)703(836) Investment in short-term bank deposits (15,250)-(24,550)(15,900) Withdrawal of short-term bank deposits 5,5003,60019,30074,665 Purchase of property and equipment (445)(621)(2,117)(2,489) Investment in marketable securities (16,719)(12,064)(61,003)(46,742) Proceeds from redemption or sale of marketable securities 10,7507,75064,79022,935 Net cash provided by investing activities (16,164)(2,139)(2,877)31,633 Cash flows from financing activities:Proceeds from exercise of stock options 1(1)-- Net cash provided by (used in) financing activities 1(1)-- Increase (Decrease) in cash and cash equivalents (12,084)(7,317)1,9501,897 Cash and cash equivalents at the beginning of the period 28,22621,50914,19212,295 Cash and cash equivalents at the end of the period $16,142$ 14,192$ 16,142$ 14,192 Non-cash activity:Right-of-use assets obtained in the exchange for operating lease liabilities $ 63$ 279$ 5,858$ 356 Other financial metrics (Unaudited) U.S. dollars in millions, except number of full time employees, top 10 customers as a % of revenues and number of sharesQ4-2024FY 2024FY 2023Revenues geographic breakdownAmericas4.4 18 % 14.2 15 % 16.6 18 %EMEA15.8 63 % 54.0 59 % 56.1 60 %Asia Pacific4.7 19 % 24.0 26 % 20.5 22 %24.9 100 % 92.2 100 % 93.2 100 %Revenues breakdown by typeProducts4.9 20 % 30.1 33 % 37.6 40 %Professional Services 2.8 11 % 8.3 9 % 6.1 7 %SECaaS (Security as a Service) 4.8 19 % 16.5 18 % 10.6 11 %Support & Maintenance 12.5 50 % 37.3 40 % 38.9 42 %24.9 100 % 92.2 100 % 93.2 100 %Revenues per customer typeCSP20.7 83 % 75.4 82 % 75.1 81 %Enterprise4.2 17 % 16.8 18 % 18.1 19 %24.9 100 % 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) 39.438.937.9 Non-GAAP weighted average number of fully diluted shares (in millions) 42.642.340.3 SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)Q4-2024: 4.8 Q3-2024: 4.7 Q2-2024: 3.7 Q1-2024: 3.4 Q4-2023: 3.2 SECaaS ARR* - U.S. dollars in millions (Unaudited)Dec. 2024: 18.2 Dec. 2023: 12.7 Dec. 2022: 9.2 Dec. 2021: 5.2 Logo - View original content: SOURCE Allot Ltd. 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