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Allot Communications Reports Non-GAAP Revenues Of $28.5 Million For Fourth Quarter Of 2012 And $107.1 Million For The Year

Jay Kalish

Executive Director Investor Relations

International access code +972-54-221-1365

jkalish@allot.com


   
                                TABLE  - 1     
                        ALLOT COMMUNICATIONS 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,
                     --------------------------   -------------------------
                         2012              2011        2012            2011
                     --------          --------   ---------        --------    
                           (Unaudited)                   (Audited)
                     --------------------------   -------------------------
 
    Revenues         $ 26,362          $ 22,028   $ 104,752        $ 77,753
    Cost of
    revenues            7,918             6,290      31,037          22,175
    Expense
    related to
    settlement of
    OCS grants         15,886                 -      15,886               -
                     --------          --------   ---------        --------
    Gross profit        2,558            15,738      57,829          55,578
                     --------          --------   ---------        --------
 
    Operating
    expenses:
    Research and
    development
    costs, net          6,648             3,692      22,060          13,222
    Sales and
    marketing           9,707             7,268      34,127          26,543
    General and
    administrative      2,560             1,689      10,664           7,474
                     --------          --------   ---------        --------
    Total
    operating
    expenses           18,915            12,649      66,851          47,239
    Operating
    profit (loss)    (16,357)             3,089     (9,022)           8,339
    Financial and
    other income,
    net                   327               238       1,358             415
                     --------          --------   ---------        --------
    Profit (loss)
    before income
    tax benefit      (16,030)             3,327     (7,664)           8,754
 
    Tax benefit         (969)             (170)       (926)            (55)
                     --------          --------   ---------        --------
    Net profit
    (loss)           (15,061)             3,497     (6,738)           8,809
                     --------          --------   ---------        --------
                     --------          --------   ---------        --------
 
    Basic net
    profit (loss)
    per share        $ (0.46)            $ 0.13    $ (0.21)          $ 0.35
                     --------          --------   ---------        --------
                     --------          --------   ---------        --------
 
    Diluted net
    profit (loss)
    per share        $ (0.46)            $ 0.12    $ (0.21)          $ 0.33                     
                     --------          --------   ---------        --------
                     --------          --------   ---------        --------

 
    Weighted
    average number
    of shares
    used in
    computing
    basic net
    earnings per
    share          32,471,655        27,709,271  31,959,921      25,047,771
                   ----------        ----------  ----------      ----------
                   ----------        ----------  ----------      ----------

 
    Weighted
    average number
    of shares
    used in
    computing
    diluted net
    earnings per
    share          32,471,655        29,556,655  31,959,921      27,071,872
                   ----------        ----------  ----------      ----------
                   ----------        ----------  ----------      ----------

   
                                      TABLE  - 2     
                                ALLOT COMMUNICATIONS LTD.     
                                  AND ITS SUBSIDIARIES     
           RECONCILATION 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,
                               ---------------------   -------------------

                                     2012       2011         2012      2011
                                 --------   --------   ---------   --------
                                     (Unaudited)             (Audited)
                               ----------------------  -------------------- 
    GAAP net
    profit
    (loss) as
    reported                    $ (15,061)    $ 3,497  $ (6,738)   $ 8,809
    ----------------------------------------------------------------------
 
    Non-GAAP adjustments:
    Fair value
    adjustment
    for acquired
    deferred
    revenues
    write down (
    Revenues)                        2,109          -      2,367         -
    Expense
    related to
    settlement
    of OCS
    grants (Cost
    of revenues)                    15,886          -     15,886         -
    Expenses
    recorded for
    stock-based
    compensation
                 Cost of
                 revenues               68         35        222       103
                 Research and
                 development
                 costs, net            429        155      1,185       442
                 Sales and
                 marketing             709        317      2,060     1,001
                 General and
                 administrative        553        179      1,349       710
    Expenses
    related to
    M&A
    activities
    and
    compliance
    with
    regulatory
    matters (*)
                 General and
                 administrative
                 (G&A)                (73)          -      1,992     1,336
                 Research and
                 development
                 costs, net             92          -        435         -
                 Sales and
                 marketing              62          -        210         -
    Adjustment
    of
    contingent
    earnout
    (G&A)                            (261)          -      (261)         -
    Intangible
    assets
    amortization
    :                                                                   
                 Cost of
                 revenues              969         30      1,903       121
                 S&M                    26          -         43         -
    Tax benefit
    (in respect
    of net
    deferred tax
    asset
    recorded)                        (877)          -      (877)         -
                                  --------   --------   --------  --------
    Total
    adjustments                     19,692        716     26,514     3,713
                                  --------   --------   --------  --------
 
    Non-GAAP net profit            $ 4,631    $ 4,213   $ 19,776  $ 12,522
                                  --------   --------   --------  --------
                                  --------   --------   --------  --------
 
    Non- GAAP
    basic net
    profit per
    share                           $ 0.14     $ 0.15     $ 0.62    $ 0.50
                                  --------   --------   --------  --------
                                  --------   --------   --------  --------
 
    Non- GAAP
    diluted net
    profit per
    share                           $ 0.14     $ 0.14     $ 0.59    $ 0.46
                                  --------   --------   --------  --------
                                  --------   --------   --------  --------
 
    Weighted
    average
    number of
    shares
    used in
    computing
    basic net
    earnings per
    share                       32,471,655 27,709,271 31,959,921 25,047,771
                                ---------- ---------- ---------- ----------
                                ---------- ---------- ---------- ----------
 
    Weighted
    average
    number of
    shares
    used in
    computing
    diluted net
    earnings per
    share                       33,840,004 29,668,381 33,641,115 27,183,472
                                ---------- ---------- ---------- ----------
                                ---------- ---------- ---------- ----------


   
                                TABLE  - 3     
                      ALLOT COMMUNICATIONS LTD.     
                         AND ITS SUBSIDIARIES     
           RECONCILATION OF GAAP TO NON-GAAP  CONSOLIDATED  REVENUES     
         (U.S. dollars in thousands, except share and per share data)     
                   Three Months Ended      Year Ended
                      December 31,        December 31,
                   ------------------  ------------------
                     2012      2011      2012      2011
                   --------  --------  --------- --------
                       (Unaudited)         (Audited)
                   ------------------  ------------------
 
    GAAP Revenues  $ 26,362  $ 22,028  $ 104,752 $ 77,753
 
    Fair value
    adjustment for
    acquired
    deferred
    revenues write
    down           $ 2,109          -    $ 2,367        -
 
    Non-GAAP
    Revenues       $ 28,471  $ 22,028  $ 107,119 $ 77,753
                   --------  --------  --------- --------
                   --------  --------  --------- --------

   
                                       TABLE  - 4    
                                ALLOT COMMUNICATIONS LTD.    
                                   AND ITS SUBSIDIARIES    
                             CONSOLIDATED  BALANCE  SHEETS    
                                (U.S. dollars in thousands)    
                                    December 31,     December 31,
                                    ------------     ------------
                                       2012             2011
                                    ------------     ------------
                                    (Audited)        (Audited)
                                    ------------     ------------
 
              ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents        $ 50,026        $ 116,682
    Short term deposits                78,042           24,000
    Marketable securities and
    restricted cash                    14,988           18,718
    Trade receivables, net             20,236           11,926
    Other receivables and
    prepaid expenses                    6,815            5,950
    Inventories                         9,963           10,501
                                   ----------       ----------

    Total current assets              180,070          187,777
                                   ----------       ----------
 
    LONG-TERM ASSETS:
    Severance pay fund                    213              178
    Deferred Taxes                      1,525              210
    Other assets                          239              146
                                   ----------       ----------
    Total long-term assets              1,977              534
                                   ----------       ----------
                                   ----------       ----------
 
    PROPERTY AND EQUIPMENT,
    NET                                 6,609            5,352
                                   ----------       ----------
    GOODWILL AND INTANGIBLE
    ASSETS, NET                        33,136            3,395
                                   ----------       ----------
 
    Total assets                    $ 221,792        $ 197,058
                                   ----------       ----------
                                   ----------       ----------
 
         LIABILITIES AND
       SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Trade payables                    $ 4,809          $ 2,684
    Deferred revenues                  13,829           16,694
    Other payables and accrued
    expenses                           13,947            9,462
    Liability related to
    settlement of OCS grants           15,886                -
                                   ----------       ----------
    Total current liabilities          48,471           28,840
                                   ----------       ----------
 
    LONG-TERM LIABILITIES:
    Deferred revenues                   3,945            5,430
    Accrued severance pay                 254              219
                                   ----------       ----------
    Total long-term
    liabilities                         4,199            5,649
                                   ----------       ----------
 
    SHAREHOLDERS' EQUITY              169,122          162,569
                                   ----------       ----------
 
    Total liabilities and
    shareholders' equity            $ 221,792        $ 197,058
                                   ----------       ----------
                                   ----------       ----------

   
                                       TABLE  - 5  
                              ALLOT COMMUNICATIONS LTD.  
                                AND ITS SUBSIDIARIES  
                      CONSOLIDATED STATEMENTS OF CASH FLOWS   
                              (U.S. dollars in thousands)  
                         Three Months Ended         Year Ended
                            December 31,           December 31,
                         -------------------   -------------------
                          2012          2011      2012        2011
                         -------------------   -------------------
                             (Unaudited)            (Audited)
 
    Cash flows from
    operating
    activities:
 
    Net income (Loss)  $ (15,061)     $ 3,497  $ (6,738)   $ 8,809
    Adjustments to
    reconcile net
    income to net
    cash provided by
    operating
    activities:
    Depreciation            1,007         706      3,120     2,754
    Stock-based
    compensation
    related to
    options granted
    to employees            1,759         686      4,817     2,256
    Amortization of
    intangible assets         996          30      1,947       121
    Capital loss                6           1         20        10
    Decrease
    (Increase) in
    accrued severance
    pay, net                  (6)           7          -        12
    Decrease
    (Increase) in
    other assets             (50)           4          6        98
    Decease in
    accrued interest
    and amortization
    of premium on
    marketable
    securities                 68          85        212       151
    Increase
    (Decrease) in
    trade receivables       1,503         873    (8,139)   (1,187)
    Decrease
    (Increase) in
    other receivables
    and prepaid
    expenses                (393)     (1,876)      1,134   (1,083)
    Decrease
    (Increase) in
    inventories             1,096     (1,453)      3,233       329
    Increase in
    long-term
    deferred taxes,
    net                     (906)       (114)      (906)     (114)
    Decrease in trade
    payables              (2,794)     (1,146)    (1,287)   (2,456)
    Increase
    (Decrease) in
    employees and
    payroll accruals          225       (233)      2,392     (748)
    Increase
    (Decrease) in
    deferred revenues     (2,794)       7,742    (7,089)     7,423
    Increase
    (Decrease) in
    other payables
    and accrued
    expenses              (1,157)       (851)         84   (1,178)
    Increase in
    Liability related
    to settlement of
    OCS grants             15,886           -     15,886         -
                          -------------------   ------------------
    Net cash provided
    by (used in)
    operating
    activities              (615)       7,958      8,692    15,197
                          -------------------   ------------------
 
    Cash flows from
    investing
    activities:
 
    Increase in
    restricted
    deposit                 1,039        409         913      (78)
    Redemption of
    short-term
    deposits                    -     (6,000)   (54,042)  (24,000)
    Investment in
    short-term
    deposit                15,958           -          -         -
    Purchase of
    property and
    equipment               (823)       (915)    (3,820)   (2,953)
    Proceeds from
    sale of property
    and equipment               -           -          -        30
    Investment in
    marketable
    securities              (500)       (504)     (8,194)   (4,735)
    Proceeds from
    redemption or
    sale of
    marketable
    securities              8,736         200      10,736     2,603
    Acquisitions                -           -    (23,892)         -
    Loan to purchased
    Subsidiary                  -           -     (1,000)         -
                          -------------------   --------------------
    Net cash provided
    by (used in)
    investing
    activities             24,410      (6,810)   (79,299)   (29,133)
                          -------------------   --------------------
 
    Cash flows from
    financing
    activities:
 
    Issuance of share
    capital related
    to secondary
    offering                    -      84,922          -     84,922
    Exercise of
    employee stock
    options                   563         818      5,903      2,838
    Redemption of
    bank loan                   -           -    (1,952)          -

                          -------------------   -------------------- 
    Net cash provided
    by financing
    activities                563      85,740      3,951     87,760
                          -------------------   --------------------

 
    Increase in cash
    and cash
    equivalents            24,358      86,888   (66,656)     73,824
    Cash and cash
    equivalents at
    the beginning of
    the year               25,668      29,794    116,682     42,858
                          -------------------   ------------------- 
    Cash and cash
    equivalents at
    the end of the
    year                 $ 50,026   $ 116,682   $ 50,026  $ 116,682
                          -------------------   ------------------- 
                          -------------------   ------------------- 

 

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