Allot Communications Ltd.
|
|||
|
By:
|
/s/ Donna Rahav | |
Donna Rahav
|
|||
Deputy General Counsel
|
|||
Exhibit
|
Description
|
99.1
|
Press Release Announcing Acquisition of Oversi Networks Dated July 31, 2012
|
99.2
|
Press Release Announcing Financial Results Dated July 31, 2012
|
|
·
|
Oversi will contribute approximately $2.0 million in revenues per quarter.
|
|
·
|
Gross margins for the Oversi offering should be within Allot’s current gross margin range.
|
|
·
|
Operating expenses will increase by approximately $2.0 million per quarter, which will impact earnings per share by approximately $0.02 per share in the 4th quarter.
|
|
·
|
The offering should reach break-even by the first quarter of 2013.
|
|
·
|
During the quarter, received large orders from 14 service providers, 6 of which represented new customers;
|
|
·
|
6 of the large orders came from mobile service providers, 2 of which were new customers
|
|
·
|
Announced closing the acquisition of Ortiva Wireless on May 15, which provides Allot with a best-of-breed video optimization solution.
|
|
·
|
Announced the deployment of Ortiva’s video optimization solution at 3UK, a subsidiary of the Hutchison Group;
|
|
·
|
Announced the acquisition of Oversi Networks, a leading provider of video caching solutions.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenues
|
$ | 26,405 | $ | 18,454 | $ | 50,622 | $ | 35,637 | ||||||||
Cost of revenues
|
7,755 | 5,305 | 14,656 | 10,157 | ||||||||||||
Gross profit
|
18,650 | 13,149 | 35,966 | 25,480 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development costs, net
|
5,332 | 3,092 | 9,342 | 6,064 | ||||||||||||
Sales and marketing
|
8,126 | 6,388 | 15,881 | 12,701 | ||||||||||||
General and administrative
|
2,659 | 1,979 | 5,433 | 3,406 | ||||||||||||
Total operating expenses
|
16,117 | 11,459 | 30,656 | 22,171 | ||||||||||||
Operating profit
|
2,533 | 1,690 | 5,310 | 3,309 | ||||||||||||
Financial and other income (expenses), net
|
187 | (63 | ) | 649 | 29 | |||||||||||
Profit before income tax expenses
|
2,720 | 1,627 | 5,959 | 3,338 | ||||||||||||
|
||||||||||||||||
Tax expenses
|
21 | 16 | 24 | 101 | ||||||||||||
Net profit
|
2,699 | 1,611 | 5,935 | 3,237 | ||||||||||||
Basic net profit per share
|
$ | 0.08 | $ | 0.07 | $ | 0.19 | $ | 0.14 | ||||||||
Diluted net profit per share
|
$ | 0.08 | $ | 0.06 | $ | 0.18 | $ | 0.12 | ||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing basic net
|
||||||||||||||||
earnings per share
|
31,873,752 | 24,195,495 | 31,548,294 | 23,948,546 | ||||||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing diluted net
|
||||||||||||||||
earnings per share
|
33,356,308 | 26,253,139 | 33,169,640 | 25,963,671 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP net profit as reported
|
$ | 2,699 | $ | 1,611 | $ | 5,935 | $ | 3,237 | ||||||||
Non-GAAP adjustments
|
||||||||||||||||
Expenses recorded for stock-based compensation
|
||||||||||||||||
Cost of revenues
|
52 | 27 | 97 | 50 | ||||||||||||
Research and development costs, net
|
240 | 96 | 428 | 188 | ||||||||||||
Sales and marketing
|
446 | 238 | 763 | 459 | ||||||||||||
General and administrative
|
288 | 186 | 454 | 367 | ||||||||||||
Expenses related to M&A activities and compliance with regulatory matters (*)
|
||||||||||||||||
General and administrative
|
666 | 538 | 1,711 | 538 | ||||||||||||
Research and development costs, net
|
250 | - | 250 | - | ||||||||||||
Sales and marketing
|
93 | - | 93 | - | ||||||||||||
Intangible assets amortization - cost of revenues
|
262 | 30 | 293 | 60 | ||||||||||||
Total adjustments
|
2,297 | 1,115 | 4,089 | 1,662 | ||||||||||||
Non-GAAP net profit
|
$ | 4,996 | $ | 2,726 | $ | 10,024 | $ | 4,899 | ||||||||
Non- GAAP basic net profit per share
|
$ | 0.16 | $ | 0.11 | $ | 0.32 | $ | 0.20 | ||||||||
Non- GAAP diluted net profit per share
|
$ | 0.15 | $ | 0.10 | $ | 0.30 | $ | 0.19 | ||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing basic net
|
||||||||||||||||
earnings per share
|
31,873,752 | 24,195,495 | 31,548,294 | 23,948,546 | ||||||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing diluted net
|
||||||||||||||||
earnings per share
|
33,662,390 | 26,399,604 | 33,401,374 | 26,116,991 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenues
|
$ | 26,405 | $ | 18,454 | $ | 50,622 | $ | 35,637 | ||||||||
Cost of revenues
|
7,441 | 5,248 | 14,266 | 10,047 | ||||||||||||
Gross profit
|
18,964 | 13,206 | 36,356 | 25,590 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development costs, net
|
4,842 | 2,996 | 8,664 | 5,876 | ||||||||||||
Sales and marketing
|
7,587 | 6,150 | 15,025 | 12,242 | ||||||||||||
General and administrative
|
1,705 | 1,255 | 3,268 | 2,501 | ||||||||||||
Total operating expenses
|
14,134 | 10,401 | 26,957 | 20,619 | ||||||||||||
Operating profit
|
4,830 | 2,805 | 9,399 | 4,971 | ||||||||||||
Financial and other income (expenses), net
|
187 | (63 | ) | 649 | 29 | |||||||||||
Profit before income tax expenses
|
5,017 | 2,742 | 10,048 | 5,000 | ||||||||||||
|
||||||||||||||||
Tax expenses
|
21 | 16 | 24 | 101 | ||||||||||||
Net profit
|
4,996 | 2,726 | 10,024 | 4,899 | ||||||||||||
Basic net profit per share
|
$ | 0.16 | $ | 0.11 | $ | 0.32 | $ | 0.20 | ||||||||
Diluted net profit per share
|
$ | 0.15 | $ | 0.10 | $ | 0.30 | $ | 0.19 | ||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing basic net
|
||||||||||||||||
earnings per share
|
31,873,752 | 24,195,495 | 31,548,294 | 23,948,546 | ||||||||||||
Weighted average number of shares
|
||||||||||||||||
used in computing diluted net
|
||||||||||||||||
earnings per share
|
33,662,390 | 26,399,604 | 33,401,374 | 26,116,991 |
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 70,083 | $ | 116,682 | ||||
Short term deposits
|
71,000 | 24,000 | ||||||
Marketable securities and restricted cash
|
18,692 | 18,718 | ||||||
Trade receivables, net
|
17,454 | 11,926 | ||||||
Other receivables and prepaid expenses
|
4,387 | 5,950 | ||||||
Inventories
|
11,673 | 10,501 | ||||||
Total current assets
|
193,289 | 187,777 | ||||||
LONG-TERM ASSETS:
|
||||||||
Severance pay fund
|
181 | 178 | ||||||
Other assets and deferred taxes
|
355 | 356 | ||||||
Total long-term assets
|
536 | 534 | ||||||
PROPERTY AND EQUIPMENT, NET
|
5,913 | 5,352 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
|
17,424 | 3,395 | ||||||
Total assets
|
$ | 217,162 | $ | 197,058 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$ | 7,316 | $ | 2,684 | ||||
Deferred revenues
|
17,156 | 16,694 | ||||||
Other payables and accrued expenses
|
12,787 | 9,462 | ||||||
Total current liabilities
|
37,259 | 28,840 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues
|
5,135 | 5,430 | ||||||
Accrued severance pay
|
229 | 219 | ||||||
Total long-term liabilities
|
5,364 | 5,649 | ||||||
SHAREHOLDERS' EQUITY
|
174,539 | 162,569 | ||||||
Total liabilities and shareholders' equity
|
$ | 217,162 | $ | 197,058 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$ | 2,699 | $ | 1,611 | $ | 5,935 | $ | 3,237 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation
|
718 | 679 | 1,363 | 1,336 | ||||||||||||
Stock-based compensation related to options granted to employees and non-employees
|
1,026 | 547 | 1,742 | 1,064 | ||||||||||||
Amortization of intangible assets
|
262 | 31 | 293 | 61 | ||||||||||||
Capital loss
|
- | 13 | 4 | 9 | ||||||||||||
Increase in accrued severance pay, net
|
13 | 3 | 7 | 6 | ||||||||||||
Decrease (Increase) in other assets
|
2 | 2 | 1 | (1 | ) | |||||||||||
Decease in accrued interest and amortization of premium on marketable securities
|
11 | 48 | 48 | 47 | ||||||||||||
Increase (Decrease) in trade receivables
|
(1,112 | ) | 2,364 | (5,499 | ) | (403 | ) | |||||||||
Decrease (Increase) in other receivables and prepaid expenses
|
1,402 | (1,240 | ) | 1,626 | (1,334 | ) | ||||||||||
Decrease in inventories
|
472 | 1,920 | 321 | 1,106 | ||||||||||||
Increase (Decrease) in trade payables
|
(763 | ) | (3,075 | ) | 2,492 | (3,046 | ) | |||||||||
Increase (Decrease) in employees and payroll accruals
|
113 | (17 | ) | 378 | (609 | ) | ||||||||||
Increase (Decrease) in deferred revenues
|
(2,847 | ) | (396 | ) | (1,636 | ) | 1,064 | |||||||||
Increase in other payables and accrued expenses
|
2,794 | 405 | 2,117 | 1,323 | ||||||||||||
Net cash provided by operating activities
|
4,790 | 2,895 | 9,192 | 3,860 | ||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Decrease (Increase) in restricted deposit
|
65 | (1 | ) | 21 | (487 | ) | ||||||||||
Investment in short-term deposit
|
(65,000 | ) | - | (47,000 | ) | - | ||||||||||
Purchase of property and equipment
|
(766 | ) | (588 | ) | (1,469 | ) | (1,298 | ) | ||||||||
Proceeds from sale of property and equipment
|
- | - | - | 30 | ||||||||||||
Investment in marketable securities
|
(1,000 | ) | (1,061 | ) | (1,251 | ) | (1,914 | ) | ||||||||
Proceeds from redemption or sale of marketable securities
|
750 | 800 | 1,200 | 1,600 | ||||||||||||
Acquisition of Ortiva
|
(10,399 | ) | - | (10,399 | ) | - | ||||||||||
Loan issued to Ortiva
|
(1,000 | ) | - | (1,000 | ) | - | ||||||||||
Net cash used in investing activities
|
(77,350 | ) | (850 | ) | (59,898 | ) | (2,069 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Exercise of warrants and employee stock options
|
1,741 | 214 | 4,107 | 1,467 | ||||||||||||
Net cash provided by financing activities
|
1,741 | 214 | 4,107 | 1,467 | ||||||||||||
Increase (Decrease) in cash and cash equivalents
|
(70,819 | ) | 2,259 | (46,599 | ) | 3,258 | ||||||||||
Cash and cash equivalents at the beginning of the year
|
140,902 | 43,857 | 116,682 | 42,858 | ||||||||||||
Cash and cash equivalents at the end of the year
|
$ | 70,083 | $ | 46,116 | $ | 70,083 | $ | 46,116 |