EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1


Allot Announces Fourth Quarter & Full Year 2021
Financial Results
 
Total ARR up 39% year-over-year; New security recurring revenue deals executed in 2021
added $193 million of incremental MAR;

Hod Hasharon, Israel – February 15, 2022 - 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 fourth quarter and full year 2021 financial results.
 
 Financial Highlights
 

 •
Fourth quarter revenues were $41.0 million, up 5% year-over-year;
 

 •
Full year revenues were $145.6 million, up 7% year-over-year;
 

 •
Gross margin on a non-GAAP basis in 2021 was 70% compared to 71% in 2020;
 

 •
Total ARR* for December 2021, including SECaaS ARR* and Support & Maintenance ARR* was $47 million, up 39% year-over-year;
 

 •
Incremental MAR** (maximum annual revenue potential of concluded transactions) reported for the year 2021 was $193 million;
 

 •
GAAP operating loss for Q4 2021 was $3.7 million compared to $1.2 in Q4 2020;
 

 •
Non-GAAP operating loss for Q4 2021 was $2 million compared to an operating profit of $0.5 million in Q4 2020;
 
Financial Outlook
 
For 2022, management expects:
 

•
Revenues to be between $147-153 million;
 

 •
Additional recurring security deals to be executed, providing incremental MAR** of more than $180 million;
 

 •
December 2022 total ARR* including SECaaS ARR* and Support & Maintenance ARR* to be between $61-$73 million, representing more than 40% year-over-year growth versus 2021 at the midpoint;
 

 •
December 2022 SECaaS ARR* to be between $20-$30 million;
 

 •
Recurring security revenue to be between $10-$15 million;
 
Management Comment
 
Erez Antebi, President & CEO of Allot, commented: “During 2021 more of our SECaaS partners began to launch their service, and we started to show traction and revenue growth from recurring security services. This year, more network-based security deals were signed by operators worldwide than in any previous year. By our count, we won most of these deals that were closed during the year. We see this as a testament to the accelerated growth in the network-based security market, as well as our leadership and strength in the market. I expect this trend will continue in 2022 and beyond.”
 
Convertible Notes
 
The Company issued a separate Press Release announcing the signing of a $40 million private financing with Lynrock Lake Master Fund LP.
 
 Q4 2021 Financial Results Summary
 
Total revenues for the fourth quarter of 2021 were $41.0 million, an increase of 5% compared to $39.1 million in the fourth quarter of 2020.
 
Gross profit on a GAAP basis for the fourth quarter of 2021 was $28.5 million (gross margin of 69.5%), a 4% improvement compared with $27.5 million (gross margin of 70.3%) in the fourth quarter of 2020.
 
Gross profit on a non-GAAP basis for the fourth quarter of 2021 was $28.7 million (gross margin of 70.2%), a 4% improvement compared with $27.7 million (gross margin of 70.9%) in the fourth quarter of 2020.
 
Net loss on a GAAP basis for the fourth quarter of 2021 was $4.0 million, or $0.11 per basic share, compared with a net loss of $1.7 million, or $0.05 per basic share, in the fourth quarter of 2020.
 
Net loss on a non-GAAP for the fourth quarter of 2021 was $2.1 million, or $0.06 loss per basic share compared with a net income of $0.4 million, or $0.01 earning per basic share, in the fourth quarter of 2020.
 
2021 Financial Results Summary
 
Total revenues for 2021 were $145.6 million, an increase of 7% compared to $135.9 million in 2020.
 
Gross profit on a GAAP basis for 2021 was $101.0 million (gross margin of 69.4%), a 5% improvement compared with $95.8 million (gross margin of 70.5%) in 2020.
 
Gross profit on a non-GAAP basis for 2021 was $102.2 million (gross margin of 70.2%), a 6% improvement compared with $96.8 million (gross margin of 71.2%) in 2020.
 
Net loss on a GAAP basis for 2021 was $15.0 million, or $0.42 per basic share, compared with a net loss of $9.3 million, or $0.27 per basic share, in 2020.
 
Net loss on a non-GAAP basis for 2021 was $6.0 million, or $0.17 per basic share, compared with a net loss of $3.6 million, or $0.10 per basic share, in 2020.
 
Cash and investments as of December 31, 2021 totaled $85.7 million, compared to $99.4 million as of December 31, 2020.
 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss fourth quarter and full year 2021 earnings results today, February 15, 2022 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:
 
US:  1-888-668-5032, Israel: +972-3-918-0609
 
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm
 
About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of 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 has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe. Allot. See. Control. Secure.
 
For more information, visit www.allot.com
 
*  Total ARR - Support & Maintenance ARR (measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4) and SECaaS ARR (measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected revenues in the current month of December and multiplied by 12).
 
**  MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer’s subscribers, as estimated by Allot, signed up for the service.
 
GAAP to Non-GAAP Reconciliation:
 
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, changes in taxes related items and other acquisition-related expenses.
 
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.
 
Safe Harbor Statement
 
This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; court approval of the Company’s proposed share buy-back program; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
GK Investor Relations
Ehud Helft
+1 212 378 8040
allot@gkir.com
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com

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,
  
   
2021
    
2020
    
2021
    
2020
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Revenues
  
$
40,974
    
$
39,091
    
$
145,600
    
$
135,922
  
Cost of revenues
    
12,516
      
11,627
      
44,553
      
40,082
  
Gross profit
    
28,458
      
27,464
      
101,047
      
95,840
  
                                 
Operating expenses:
                                
Research and development costs, net
    
13,005
      
12,611
      
47,093
      
43,447
  
Sales and marketing
    
15,025
      
12,787
      
52,337
      
47,528
  
General and administrative
    
4,145
      
3,223
      
15,145
      
13,894
  
Total operating expenses
    
32,175
      
28,621
      
114,575
      
104,869
  
Operating loss
    
(3,717
)
    
(1,157
)
    
(13,528
)
    
(9,029
)
Financial and other income, net
    
176
      
343
      
339
      
1,857
  
Loss before income tax expenses
    
(3,541
)
    
(814
)
    
(13,189
)
    
(7,172
)
                                 
Tax expenses
    
489
      
867
      
1,851
      
2,176
  
Net Loss
    
(4,030
)
    
(1,681
)
    
(15,040
)
    
(9,348
)
                                 
 Basic net loss per share
  
$
(0.11
)
  
$
(0.05
)
  
$
(0.42
)
  
$
(0.27
)
                                 
 Diluted net loss per share
  
$
(0.11
)
  
$
(0.05
)
  
$
(0.42
)
  
$
(0.27
)
                                 
Weighted average number of shares used in
                          
computing basic net loss per share
    
36,426,471
      
35,317,213
      
36,050,540
      
35,007,201
  
                                 
Weighted average number of shares used in
                          
computing diluted net loss per share
    
36,426,471
      
35,317,213
      
36,050,540
      
35,007,201
  

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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
   
(Unaudited)
    
(Unaudited)
  
GAAP cost of revenues
  
$
12,516
    
$
11,627
    
$
44,553
    
$
40,082
  
 Share-based compensation (1)
    
(137
)
    
(113
)
    
(581
)
    
(355
)
 Amortization of intangible assets (2)
    
(152
)
    
(152
)
    
(608
)
    
(608
)
Non-GAAP cost of revenues
  
$
12,227
    
$
11,362
    
$
43,364
    
$
39,119
  
                                 
 GAAP gross profit
  
$
28,458
    
$
27,464
    
$
101,047
    
$
95,840
  
 Gross profit adjustments
    
289
      
265
      
1,189
      
963
  
 Non-GAAP gross profit
  
$
28,747
    
$
27,729
    
$
102,236
    
$
96,803
  
                                 
 GAAP operating expenses
  
$
32,175
    
$
28,621
    
$
114,575
    
$
104,869
  
 Share-based compensation (1)
    
(1,749
)
    
(1,663
)
    
(7,419
)
    
(4,843
)
 Expenses related to M&A activities (3)
    
-
      
-
      
-
      
(82
)
 Changes in taxes and headcount related items (4)
    
367
      
296
      
367
      
296
  
 Non-GAAP operating expenses
  
$
30,793
    
$
27,254
    
$
107,523
    
$
100,240
  
                                 
 GAAP financial and other income
  
$
176
    
$
343
    
$
339
    
$
1,857
  
 Exchange rate differences*
    
12
      
(84
)
    
454
      
(552
)
 Non-GAAP Financial and other income
  
$
188
    
$
259
    
$
793
    
$
1,305
  
                                 
 GAAP taxes on income
  
$
489
    
$
867
    
$
1,851
    
$
2,176
  
 Tax expenses in respect of net deferred tax asset recorded
    
(118
)
    
(15
)
    
(282
)
    
(202
)
 Changes in tax related items
    
(100
)
    
(500
)
    
(100
)
    
(500
)
 Non-GAAP taxes on income
  
$
271
    
$
352
    
$
1,469
    
$
1,474
  
                                 
 GAAP Net Loss
  
$
(4,030
)
  
$
(1,681
)
  
$
(15,040
)
  
$
(9,348
)
 Share-based compensation (1)
    
1,886
      
1,776
      
8,000
      
5,198
  
 Amortization of intangible assets (2)
    
152
      
152
      
608
      
608
  
 Expenses related to M&A activities (3)
    
-
      
-
      
-
      
82
  
 Changes in taxes and headcount related items (4)
    
(367
)
    
(296
)
    
(367
)
    
(296
)
 Exchange rate differences*
    
12
      
(84
)
    
454
      
(552
)
 Tax expenses in respect of net deferred tax asset recorded
    
118
      
15
      
282
      
202
  
 Changes in tax related items
    
100
      
500
      
100
      
500
  
 Non-GAAP Net income (loss)
  
$
(2,129
)
  
$
382
    
$
(5,963
)
  
$
(3,606
)
                                 
 GAAP Loss per share (diluted)
  
$
(0.11
)
  
$
(0.05
)
  
$
(0.42
)
  
$
(0.27
)
 Share-based compensation
    
0.05
      
0.05
      
0.22
      
0.15
  
 Amortization of intangible assets
    
0.00
      
0.01
      
0.02
      
0.02
  
 Expenses related to M&A activities
    
-
      
-
      
-
      
0.01
  
 Changes in taxes and headcount related items
    
(0.01
)
    
(0.01
)
    
(0.01
)
    
(0.01
)
 Exchange rate differences*
    
0.01
      
(0.00
)
    
0.02
      
(0.01
)
 Changes in tax related items
    
0.00
      
0.01
      
0.00
      
0.01
  
 Non-GAAP Net income (loss) per share (diluted)
  
$
(0.06
)
  
$
0.01
    
$
(0.17
)
  
$
(0.10
)
                                 
Weighted average number of shares used in
                                
computing GAAP diluted net loss per share
    
36,426,471
      
35,317,213
      
36,050,540
      
35,007,201
  
                                 
Weighted average number of shares used in
                                
computing non-GAAP diluted net loss per share
    
36,426,471
      
37,574,546
      
36,050,540
      
35,007,201
  

* 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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
   
(Unaudited)
    
(Unaudited)
  
                         
(1)  Share-based compensation:
                        
Cost of revenues
  
$
137
    
$
113
    
$
581
    
$
355
  
Research and development costs, net
    
646
      
412
      
2,499
      
1,368
  
Sales and marketing
    
740
      
683
      
3,212
      
2,145
  
General and administrative
    
363
      
568
      
1,708
      
1,330
  
   
$
1,886
    
$
1,776
    
$
8,000
    
$
5,198
  
                                 
(2)  Amortization of intangible assets
                                
Cost of revenues
  
$
152
    
$
152
    
$
608
    
$
608
  
   
$
152
    
$
152
    
$
608
    
$
608
  
                                 
(3)  Expenses related to M&A activities
                                
Research and development costs, net
  
$
-
    
$
-
    
$
-
    
$
82
  
   
$
-
    
$
-
    
$
-
    
$
82
  
                                 
(4)  Changes in taxes and headcount related items
                                
Sales and marketing
  
$
(367
)
  
$
(296
)
  
$
(367
)
  
$
(296
)
   
$
(367
)
  
$
(296
)
  
$
(367
)
  
$
(296
)
 
TABLE  - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)

   
December 31,
    
December 31,
  
   
2021
    
2020
  
   
(Unaudited)
    
(Audited)
  
             
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
11,717
    
$
23,599
  
Short-term bank deposits
    
60,720
      
47,225
  
Restricted deposits
    
1,480
      
1,200
  
Available-for-sale marketable securities
    
11,531
      
27,178
  
Trade receivables, net
    
30,829
      
20,685
  
Other receivables and prepaid expenses
    
8,490
     
14,205
  
Inventories
    
11,092
      
12,586
  
Total current assets
    
135,859
     
146,678
  
                 
LONG-TERM ASSETS:
                
Long-term bank deposits
    
215
      
215
  
Severance pay fund
    
407
      
434
  
Operating lease right-of-use assets
    
8,513
      
4,458
  
Trade receivables, net
    
6,643
      
-
  
Deferred taxes
    
(0
)
    
420
  
Other assets
    
1,639
      
2,975
  
Total long-term assets
    
17,417
      
8,502
  
                 
PROPERTY AND EQUIPMENT, NET
    
15,000
      
11,993
  
GOODWILL AND INTANGIBLE ASSETS, NET
    
35,138
      
34,427
  
                 
Total assets
  
$
203,414
   
$
201,600
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
  
$
3,940
   
$
2,092
  
Deferred revenues
    
22,138
      
26,658
  
Short-term operating lease liabilities
    
2,785
      
2,813
  
Other payables and accrued expenses
    
26,250
     
27,299
  
Total current liabilities
    
55,113
     
58,862
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
    
15,942
      
9,782
  
Long-term operating lease liabilities
    
5,467
      
1,835
  
Accrued severance pay
    
884
      
969
  
Total long-term liabilities
    
22,293
      
12,586
  
                 
SHAREHOLDERS' EQUITY
    
126,008
      
130,152
  
                 
Total liabilities and shareholders' equity
  
$
203,414
   
$
201,600
  
 
TABLE  - 4
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Cash flows from operating activities:
                        
                         
Net Loss
  
$
(4,030
)
  
$
(1,681
)
  
$
(15,040
)
  
$
(9,348
)
Adjustments to reconcile net income to net cash used in operating activities:
                                
Depreciation
    
1,255
      
1,041
      
4,635
      
3,704
  
Stock-based compensation
    
1,886
      
1,776
      
8,000
      
5,198
  
Amortization of intangible assets
    
235
      
152
      
941
      
608
  
Capital loss
    
-
      
18
      
-
      
18
  
Increase (Decrease) in accrued severance pay, net
    
(14
)
    
92
      
(58
)
    
128
  
Decrease (Increase) in other assets
    
(138
)
    
(2,315
)
    
1,006
      
(2,048
)
Decrease in accrued interest and  amortization of premium on marketable securities
    
17
      
11
      
182
      
357
  
Changes in operating leases, net
    
(84
)
    
198
      
(451
)
    
(413
)
Decrease (Increase) in trade receivables
    
(6,250
)
    
(1,740
)
    
(16,787
)
    
8,323
  
Decrease (Increase) in other receivables and prepaid expenses
    
1,197
      
(6,126
)
    
4,902
      
(7,272
)
Decrease (Increase)  in inventories
    
(2,194
)
    
2,950
      
1,494
      
(1,918
)
Decrease (Increase) in long-term deferred taxes, net
    
255
      
(76
)
    
420
      
96
  
Increase (Decrease) in trade payables
    
2,552
      
(8,807
)
    
1,848
      
(9,584
)
Increase in employees and payroll accruals
    
2,531
      
2,395
      
458
      
2,047
  
Increase (Decrease) in deferred revenues
    
(9,684
)
    
4,215
      
1,640
      
(5,182
)
Increase (Decrease) in other payables, accrued expenses and other long term liabilities
    
1,938
      
2,091
      
(1,559
)
    
3,061
  
             
     
     
 
Net cash used in operating activities
    
(10,528
)
    
(5,806
)
    
(8,369
)
    
(12,225
)
                                 
Cash flows from investing activities:
                                
Decrease (Increase) in restricted deposit
    
120
      
519
      
(280
)
    
32,896
  
Redemption of (Investment in) short-term deposits
    
14,205
      
7,936
      
(13,495
)
    
(41,883
)
Purchase of property and equipment
    
(3,051
)
    
(2,035
)
    
(7,642
)
    
(7,582
)
Investment in available-for sale marketable securities
    
-
      
(844
)
    
-
      
(1,219
)
Proceeds from redemption or sale of available-for sale marketable securities
    
5,162
      
5,483
      
15,094
      
34,847
  
Net cash provided by (used in) investing activities
    
16,436
      
11,059
      
(6,323
)
    
17,059
  
                                 
Cash flows from financing activities:
                                
                                 
Proceeds from exercise of stock options
    
150
      
155
      
2,810
      
1,835
  
Net cash provided by financing activities
    
150
      
155
      
2,810
      
1,835
  
                                 
                                 
Increase (Decrease) in cash and cash equivalents
    
6,058
      
5,408
      
(11,882
)
    
6,669
  
Cash and cash equivalents at the beginning of the period
    
5,659
      
18,191
      
23,599
      
16,930
  
                                 
Cash and cash equivalents at the end of the period
  
$
11,717
    
$
23,599
    
$
11,717
    
$
23,599
  



Other financial metrics (Unaudited)
U.S. dollars in millions, except number of full time employees, % of top-10 end-customers out of revenues and number of shares

     
Q4-2021
    
FY 2021
    
FY 2020
  
Revenues geographic breakdown
                                      
Americas
    
9.8
      
24
%
    
19.4
      
14
%
    
8.1
      
6
%
EMEA
    
16.5
      
40
%
    
82.0
      
56
%
    
104.3
      
77
%
Asia Pacific
    
14.7
      
36
%
    
44.2
      
30
%
    
23.5
      
17
%
     
41.0
      
100
%
    
145.6
      
100
%
    
135.9
      
100
%
                                                 
Breakdown between products & services revenues
                                                
Products
    
23.2
      
56
%
    
88.1
      
60
%
    
92.5
      
68
%
Professional Services
    
7.3
      
18
%
    
19.3
      
14
%
    
13.3
      
10
%
Support & Maintenance
    
10.5
      
26
%
    
38.2
      
26
%
    
30.1
      
22
%
     
41.0
      
100
%
    
145.6
      
100
%
    
135.9
      
100
%
                                                 
Revenues per customer type
                                                
CSP
    
34.5
      
84
%
    
116.9
      
80
%
    
114.8
      
84
%
Enterprise
    
6.5
      
16
%
    
28.7
      
20
%
    
21.1
      
16
%
     
41.0
      
100
%
    
145.6
      
100
%
    
135.9
      
100
%
                                                 
Security revenues
                    
40.1
              
22.8
          
                                                 
SECaaS (Security as a Service) revenues
                    
4.1
              
1.9
          
                                                 
Incremental MAR*
                    
193.0
              
192.0
          
                                                 
Backlog (end of period)
                    
88.6
              
109.7
          
                                                 
% of top-10 end-customers out of revenues
    
69
%
            
51
%
            
71
%
        
                                                 
Total number of full time employees (end of period)
    
741
              
741
              
676
          
                                                 
Non-GAAP Weighted average number of basic shares  (in millions)
    
36.4
              
36.1
              
35
          
                                                 
Non-GAAP weighted average number of fully diluted shares  (in millions)
    
38.6
              
38.4
              
37.2
          

*  MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer’s subscribers, as estimated by Allot, signed up for the service (the MAR of previous years ($ millions): 2018- 3, 2019- 85)
 
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)

Q4-2021:
    
1.3
    
Q3-2021:
    
1.2
    
Q2-2021:
    
0.9
    
Q1-2021:
    
0.8
    

SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited)

Dec. 2021:
    
5.2
    
Dec. 2020:
    
2.7
    
Dec. 2019:
    
0.5
    

*  ARR: annualized recurring SECaaS revenues, calculated based on the monthly revenues multiplied by 12

ARR - U.S. dollars in millions (Unaudited)

   
Dec. 2020
    
Dec. 2021
    
Dec. 2022 estimation
    
2021 vs. 2020
    
2022 (est.) vs. 2021
  
Support & maintenance ARR *
    
31.2
      
42.0
      
41-43
      
35%
   
(2%)-2%

                               
       
SECaaS ARR **
    
2.7
      
5.2
      
20-30
      
93%
   
285%-477%

                               
       
Total ARR
    
33.9
      
47.2
      
61-73
      
39%
   
29%-55%


*  Support & Maintenance ARR measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4.

**  SECaaS ARR measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected revenues in the current month of December and multiplied by 12.