In the news release, Allot Announces Fourth Quarter & Full Year 2020 Financial Results, issued 09-Feb-2021 by Allot Ltd. over PR Newswire, we are advised by the company that the US conference call number should read "1-888-642-5032" rather than "1-888-668-5032" as originally issued inadvertently. The complete, corrected release follows:

Allot Announces Fourth Quarter & Full Year 2020 Financial Results 2020 revenue grew by 23% year-over-year New security recurring revenue deals executed in 2020 reached total of $192M MAR

HOD HASHARON, Israel, Feb. 9, 2021 /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 fourth quarter and full year 2020 financial results.

Allot Logo (PRNewsfoto/Allot Communications Ltd.)

 Financial Highlights

  • Fourth quarter revenues were $39.1 million, up 28% year-over-year;
  • Full year revenues were $135.9 million, up 23% year-over-year;
  • Gross margin on a non-GAAP basis increased in 2020 to 71% compared to 70% in 2019;
  • MAR *(maximum annual revenue potential of concluded transactions) reported for 2020 reached $192 million;
  • GAAP operating loss for Q4 2020 was $1.2 million compared to $1.9 in Q4 2019;
  • Non-GAAP operating profit for Q4 2020 was $0.5 million compared to a loss of $1.8 million in Q4 2019;

Financial Outlook

  • Management expects 2021 revenues to grow to between $145-150 million;
  • Management expects to close additional recurring security deals to be executed in 2021 with MAR* expected to exceed $180 million;
  • Management expects recurring security revenues in 2021 to be between $6 -$8 million, and expected to exceed $25 million in 2022;

Management Comment

Erez Antebi, President & CEO of Allot, commented: "We are very happy with our achievements in 2020, showing strong continued revenue growth and solid performance throughout the year. Threats on the internet are on the rise and growing numbers of consumers and operators see the need for Network based protection. Despite travel restrictions and delays as result of COVID, we signed recurring security revenue deals with a total MAR of $192M – significantly above our target for the year. We see this as a testament for the strong need for easy to use network based cybersecurity services."

Continued Mr. Antebi, "We see 2021 as a transformation year for the market as our recurring security partners begin to launch their services and we will see the early ramp of revenues. We continue to invest in our offerings and in sales and marketing, to capitalize on the opportunities ahead of us. We are very encouraged by the traction we are gaining and expect to continue signing additional recurring security revenue deals during 2021 with an MAR of $180 million, ensuring our long-term sustainable growth. We look forward to reaping the rewards in the coming years."

Q4 2020 Financial Results Summary

Total revenues for the fourth quarter of 2020 were $39.1 million, an increase of 28% compared to $30.6 million in the fourth quarter of 2019.

Gross profit on a GAAP basis for the fourth quarter of 2020 was $27.5 million (gross margin of 70.3%), a 32% improvement compared with $20.8 million (gross margin of 68.0%) in the fourth quarter of 2019.

Gross profit on a non-GAAP basis for the fourth quarter of 2020 was $27.7 million (gross margin of 70.9%), a 32% improvement compared with $21.0 million (gross margin of 68.7%) in the fourth quarter of 2019.

Net loss on a GAAP basis for the fourth quarter of 2020 was $1.7 million, or $0.05 per basic share, compared with a net loss of $1.7 million, or $0.05 per basic share, in the fourth quarter of 2019.

Net income on a non-GAAP for the fourth quarter of 2020 was $0.4 million, or $0.01 earnings per basic share compared with a non-GAAP net loss of $1.7 million, or $0.05 loss per basic share, in the fourth quarter of 2019.

2020 Financial Results Summary

Total revenues for 2020 were $135.9 million, an increase of 23% compared to $110.1 million in 2019.

Gross profit on a GAAP basis for 2020 was $95.8 million (gross margin of 70.5%), a 26% improvement compared with $76.3 million (gross margin of 69.3%) in 2019.

Gross profit on a non-GAAP basis for 2020 was $96.8 million (gross margin of 71.2%), a 25% improvement compared with $77.3 million (gross margin of 70.2%) in 2019.

Net loss on a GAAP basis for 2020 was $9.3 million, or $0.27 per basic share, compared with a net loss of $8.7 million, or $0.25 per basic share, in 2019.

Net loss on a non-GAAP for 2020 was $3.6 million, or $0.10 per basic share, a decrease compared with a non-GAAP net loss of $7.5 million, or $0.22 per basic share, in 2019.

Cash and investments as of December 31, 2020 totaled $99.4 million, compared to $107.2 million as of September 30, 2020 and $117.6 million as of December 31, 2019.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss fourth quarter and full year 2020 earnings results today, February 9, 2021 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-642-5032, 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 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 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

*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

+1 646 201 9246

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,


2020


2019



2020


2019


(Unaudited)


(Unaudited)



(Unaudited)


(Audited)










Revenues

$       39,091


$       30,567



$     135,922


$     110,100

Cost of revenues

11,627


9,784



40,082


33,834


Gross profit  

27,464


20,783



95,840


76,266










Operating expenses:









Research and development costs, net

12,611


8,563



43,447


31,461

Sales and marketing

12,787


12,186



47,528


47,105

General and administrative

3,223


1,954



13,894


6,678

Total operating expenses

28,621


22,703



104,869


85,244

Operating loss

(1,157)


(1,920)



(9,029)


(8,978)

Financial and other income, net

343


600



1,857


1,960

Loss before income tax expenses

(814)


(1,320)



(7,172)


(7,018)










Tax expenses

867


362



2,176


1,641

Net Loss

(1,681)


(1,682)



(9,348)


(8,659)










 Basic net loss per share

$          (0.05)


$          (0.05)



$          (0.27)


$          (0.25)



















 Diluted net loss per share

$          (0.05)


$          (0.05)



$          (0.27)


$          (0.25)










Weighted average number of shares used in 









computing basic net loss per share

35,317,213


34,450,317



35,007,201


34,250,582










Weighted average number of shares used in 









computing diluted net loss per share

35,317,213


34,450,317



35,007,201


34,250,582

 

 

 

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,



2020


2019


2020


2019



(Unaudited)


(Unaudited)

GAAP cost of revenues

$     11,627


$        9,784


$     40,082


$     33,834

 Share-based compensation (1) 

(113)


(76)


(355)


(264)

 Amortization of intangible assets (2) 

(152)


(152)


(608)


(853)

 Changes in taxes and headcount related items (4)

-


-


-


75

Non-GAAP cost of revenues

$     11,362


$        9,556


$     39,119


$     32,792










 GAAP gross profit 

$     27,464


$     20,783


$     95,840


$     76,266

 Gross profit adjustments 

265


228


963


1,042

 Non-GAAP gross profit 

$     27,729


$     21,011


$     96,803


$     77,308










 GAAP operating expenses 

$     28,621


$     22,703


$   104,869


$     85,244

 Share-based compensation (1) 

(1,663)


(942)


(4,843)


(3,156)

 Amortization of intangible assets (2) 

-


(189)


-


(754)

 Income (Expenses) related to M&A activities (3) 

-


1,246


(82)


3,980

 Changes in taxes and headcount related items (4)

296


-


296


(31)

 Non-GAAP operating expenses 

$     27,254


$     22,818


$   100,240


$     85,283










 GAAP financial and other income 

$           343


$           600


$        1,857


$        1,960

 Exchange rate differences* 

(84)


(119)


(552)


83

 Non-GAAP Financial and other income 

$           259


$           481


$        1,305


$        2,043










 GAAP taxes on income 

$           867


$           362


$        2,176


$        1,641

 Tax expenses in respect of net deferred tax asset recorded 

(15)


(25)


(202)


(74)

 Changes in tax related items 

(500)


-


(500)


-

 Non-GAAP taxes on income 

$           352


$           337


$        1,474


$        1,567










 GAAP Net Loss 

$      (1,681)


$      (1,682)


$      (9,348)


$      (8,659)

 Share-based compensation (1) 

1,776


1,018


5,198


3,420

 Amortization of intangible assets (2) 

152


341


608


1,607

 Expenses (Income) related to M&A activities (3) 

-


(1,246)


82


(3,980)

 Changes in taxes and headcount related items (4)

(296)


-


(296)


(44)

 Exchange rate differences* 

(84)


(119)


(552)


83

 Tax expenses in respect of net deferred tax asset recorded 

15


25


202


74

 Changes in tax related items 


500


-


500


-

 Non-GAAP Net income (loss) 

$           382


$      (1,663)


$      (3,606)


$      (7,499)










 GAAP Loss per share (diluted) 

$        (0.05)


$        (0.05)


$        (0.27)


$        (0.25)

 Share-based compensation 

0.05


0.03


0.15


0.10

 Amortization of intangible assets 

0.01


0.01


0.02


0.05

 Expenses (Income) related to M&A activities 

-


(0.04)


0.01


(0.12)

Changes in taxes and headcount related items (4)


(0.01)


-


(0.01)


(0.00)

 Exchange rate differences* 

(0.00)


(0.00)


(0.01)


0.00

 Changes in tax related items 


0.01


-


0.01


-

 Non-GAAP Net income (loss) per share (diluted) 

$          0.01


$        (0.05)


$        (0.10)


$        (0.22)



















Weighted average number of shares used in 








computing GAAP diluted net loss per share

35,317,213


34,450,317


35,007,201


34,250,582



















Weighted average number of shares used in 








computing non-GAAP diluted net income (loss) per share

37,574,546


34,450,317


35,007,201


34,250,582










* 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,



2020


2019


2020


2019



(Unaudited)


(Unaudited)










(1) Share-based compensation:









Cost of revenues

$           113


$             76


$           355


$           264


Research and development costs, net

412


230


1,368


847


Sales and marketing

683


350


2,145


1,257


General and administrative

568


362


1,330


1,052



$        1,776


$        1,018


$        5,198


$        3,420










 (2) Amortization of intangible assets 









Cost of revenues

$           152


$           152


$           608


$           853


Sales and marketing

-


189


-


754



$           152


$           341


$           608


$        1,607










 (3) Expenses (Income) related to M&A activities 









General and administrative 

$              -


$      (1,374)


$              -


$      (4,882)


Research and development costs, net

-


128


82


902



$              -


$      (1,246)


$             82


$      (3,980)










 (4) Changes in taxes and headcount related items  









Cost of revenues

$              -


$              -


$              -


$           (75)


Sales and marketing

(296)


-


(296)


16


General and administrative

-


-


-


15



$         (296)


$              -


$         (296)


$           (44)

 

 

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)








December 31,


December 31,



2020


2019



(Unaudited)


(Audited)




ASSETS





CURRENT ASSETS:





Cash and cash equivalents


$            23,599


$            16,930

Short-term bank deposits


47,225


5,557

Restricted deposit


1,200


23,183

Available-for-sale marketable securities


27,178


61,012

Trade receivables, net


20,685


29,008

Other receivables and prepaid expenses


14,205


6,528

Inventories


12,586


10,668

Total current assets


146,678


152,886






LONG-TERM ASSETS:





Restricted deposit


-


10,913

Long-term bank deposits


215


-

Severance pay fund


434


387

Operating lease right-of-use assets


4,458


6,368

Deferred taxes


420


517

Other assets 


2,975


926

Total long-term assets


8,502


19,111






PROPERTY AND EQUIPMENT, NET


11,993


8,135

GOODWILL AND INTANGIBLE ASSETS, NET


34,427


35,037






Total assets


$          201,600


$          215,169






LIABILITIES AND SHAREHOLDERS'
EQUITY





CURRENT LIABILITIES:





Trade payables


$               2,092


$            11,676

Deferred revenues


26,658


36,360

Short-term operating lease liabilities


2,813


3,151

Other payables and accrued expenses


27,299


22,255

Total current liabilities


58,862


73,442






LONG-TERM LIABILITIES:





Deferred revenues


9,782


5,262

Long-term operating lease liabilities


1,835


3,820

Accrued severance pay


969


794

Total long-term liabilities


12,586


9,876






SHAREHOLDERS' EQUITY


130,152


131,851






Total liabilities and shareholders' equity


$          201,600


$          215,169

 

 

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,


2020


2019


2020


2019


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)









Cash flows from operating activities:
















Net Loss

$        (1,681)


$     (1,682)


$      (9,348)


$     (8,659)

Adjustments to reconcile net income  to net cash provided by (used in) operating activities:







Depreciation

1,041


837


3,704


2,752

Stock-based compensation related to options granted to employees

1,776


1,018


5,198


3,420

Amortization of intangible assets

152


341


608


1,607

Capital loss 

18


-


18


-

Increase (Decrease) in accrued severance pay, net

92


(21)


128


(54)

Increase in other assets

(2,315)


(160)


(2,048)


(326)

Decrease in accrued interest and  amortization of premium on marketable securities 

11


7


357


343

Changes in operating leases, net

198


456


(413)


603

Decrease (Increase) in trade receivables

(1,740)


(8,034)


8,323


(2,915)

Increase in other receivables and prepaid expenses

(6,126)


(2,479)


(7,272)


(3,168)

Decrease (Increase) in inventories

2,950


(1,502)


(1,918)


(253)

Decrease (Increase) in long-term deferred taxes, net

(76)


33


96


(236)

Increase (Decrease) in trade payables

(8,807)


4,389


(9,584)


3,863

Increase in employees and payroll accruals

2,395


4,048


2,047


4,635

Increase (Decrease) in deferred revenues

4,215


5,760


(5,182)


23,520

Increase (Decrease) in other payables, accrued expenses and other long term liabilities

2,091


464


3,061


(9,040)

Net cash provided by (used in) operating activities

(5,806)


3,475


(12,225)


16,092









Cash flows from investing activities:








Decrease (Increase) in restricted deposit

519


(23,331)


32,896


(33,374)

Redemption of (Investment in) short-term deposits 

7,936


3,000


(41,883)


16,986

Purchase of property and equipment

(2,035)


(918)


(7,582)


(3,708)

Investment in available-for sale marketable securities

(844)


(8,154)


(1,219)


(39,950)

Proceeds from redemption or sale of available-for sale marketable securities

5,483


11,173


34,847


43,555

Net cash provided by (used in) investing activities

11,059


(18,230)


17,059


(16,491)









Cash flows from financing activities:
















Exercise of employee stock options 

155


220


1,835


993

Net cash provided by financing activities

155


220


1,835


993

















Increase (Decrease) in cash and cash equivalents

5,408


(14,535)


6,669


594

Cash and cash equivalents at the beginning of the period

18,191


31,465


16,930


16,336

Cash and cash equivalents at the end of the period

$        23,599


$     16,930


$     23,599


$     16,930

 

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SOURCE Allot Ltd.

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