HOD
HASHARON, Israel,
Feb. 15,
2024 /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 2023 financial results.
Financial Highlights
- Fourth quarter revenues were $24.3
million and full-year 2023 revenues were $93.2 million;
- SECaaS revenues were $3.2 million
for Q4 and $10.6 million for FY 2023,
up 41.5% and 48.4% year-over-year respectively.
- December 2023 SECaaS ARR* was
$12.7 million;
- Q4 GAAP net loss was $18.3
million and non-GAAP net loss was $16.4 million, including a credit loss provision
for 2 specific customers of approximately $9
million; the full year 2023 GAAP net loss was $62.8 million and non-GAAP net loss was
$53.3 million, including a credit
loss provision of approximately $23
million;
Financial Outlook
Looking ahead to 2024, management expectations
are as follows:
- Full-year 2024 non-GAAP operating profit and free cash
flow breakeven
- Continued double-digit growth of SECaaS revenues and ARR
Management Comment
Erez Antebi,
President & CEO of Allot, commented, "2023 represented a
year with significant challenges on multiple fronts. While the
macro economic environment and service provider spending remain
challenging, we are controlling what we can control. As we
announced in prior quarters, we have taken aggressive actions to
align our expense footprint with the expected revenue level going
ahead. Our goal is to bring the business back to
profitability while investing in our long-term growth engine,
Security as a Service (SECaaS)."
The Company also announces that Mr. Manuel Echanove is stepping down from the Board
to focus on other opportunities.
Q4 2023 Financial Results Summary
Total revenues for the fourth quarter of
2023 were $24.3 million, a decrease
of 26.3% compared to $33.0 million in
the fourth quarter of 2022.
Gross profit on a GAAP basis for the
fourth quarter of 2023 was $11.4
million (gross margin of 46.8%), a 47.9% decline compared
with $21.9 million (gross margin of
66.3%) in the fourth quarter of 2022.
Gross profit on a non-GAAP basis for the
fourth quarter of 2023 was $12.6
million (gross margin of 51.7%), a 43.7% decline compared
with $22.4 million (gross margin of
67.7%) in the fourth quarter of 2022. The fourth quarter gross
margin level was negatively impacted by a one-time write-off.
Net loss on a GAAP basis for the fourth
quarter of 2023 was $18.3 million, or
$0.48 per basic share, compared with
a net loss of $6.7 million, or
$0.18 per basic share, in the fourth
quarter of 2022.
Net loss on a non-GAAP for the fourth
quarter of 2023 was $16.4 million, or
$0.43 per basic share compared with a
non-GAAP net loss of $4.9 million, or
$0.13 per basic share, in the fourth
quarter of 2022. A credit loss provision for 2 specific customers
of approximately $9 million increased
the fourth quarter expenses.
Full Year 2023 Financial Results
Summary
Total revenues for 2023 were $93.2 million, a 24.1% decrease compared to
$122.7 million in 2022.
Gross profit on a GAAP basis for 2023 was
$52.7 million (gross margin of
56.6%), a 36.5% decline compared with $82.9
million (gross margin of 67.5%) in 2022.
Gross profit on a non-GAAP basis for 2023
was $55.5 million (gross margin of
59.6%), a 34.4% decline compared with $84.7
million (gross margin of 69%) in 2022.
Net loss on a GAAP basis for 2023 was
$62.8 million, or $1.66 per basic share, compared with a net loss
of $32.0 million, or $0.87 per basic share, in 2022.
Net loss on a non-GAAP basis for 2023 was
$53.3 million, or $1.41 per basic share, compared with a net loss
of $23.2 million, or $0.63 per basic share, in 2022. A credit loss
provision of approximately $23
million increased the 2023 expenses.
Cash, short-term bank deposits, and
investments as of December 31,
2023, totaled $54.9 million,
compared to $86.4 million as of
December 31, 2022.
Conference Call & Webcast:
The Allot management team will host a conference
call to discuss its fourth quarter and full year 2023 earnings
results today, February 15, 2024, 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, 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: 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 is
already used by many millions of subscribers globally. Allot. See.
Control. Secure.
For more information, visit www.allot.com
Performance Metrics
* Total ARR - Support & Maintenance ARR
(measures the current annual run rate of support & maintenance
revenues, which is calculated based on the expected revenues for
the fourth quarter of 2023, excluding one-time items, and
multiplied by 4) and SECaaS ARR (measures the current annual run
rate of SECaaS revenues, which is calculated based on estimated
revenues for the month of Dec. 2023
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@ekgir.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,
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
24,342
|
|
$
33,029
|
|
|
$
93,150
|
|
$ 122,737
|
|
Cost of
revenues
|
12,941
|
|
11,134
|
|
|
40,464
|
|
39,831
|
|
Gross
profit
|
11,401
|
|
21,895
|
|
|
52,686
|
|
82,906
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development costs, net
|
7,942
|
|
12,371
|
|
|
39,115
|
|
49,800
|
|
Sales and
marketing
|
12,057
|
|
12,881
|
|
|
43,850
|
|
49,393
|
|
General and
administrative
|
10,316
|
|
3,703
|
|
|
34,656
|
|
15,982
|
|
Total operating
expenses
|
30,315
|
|
28,955
|
|
|
117,621
|
|
115,175
|
|
Operating
loss
|
(18,914)
|
|
(7,060)
|
|
|
(64,935)
|
|
(32,269)
|
|
Financial and other
income, net
|
661
|
|
796
|
|
|
3,215
|
|
2,134
|
|
Loss before income tax
expenses
|
(18,253)
|
|
(6,264)
|
|
|
(61,720)
|
|
(30,135)
|
|
|
|
|
|
|
|
|
|
|
Tax expenses
|
96
|
|
474
|
|
|
1,084
|
|
1,895
|
|
Net Loss
|
(18,349)
|
|
(6,738)
|
|
|
(62,804)
|
|
(32,030)
|
|
|
|
|
|
|
|
|
|
|
Basic net loss
per share
|
$
(0.48)
|
|
$
(0.18)
|
|
|
$
(1.66)
|
|
$
(0.87)
|
|
|
|
|
|
|
|
|
|
|
Diluted net
loss per share
|
$
(0.48)
|
|
$
(0.18)
|
|
|
$
(1.66)
|
|
$
(0.87)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in
|
|
|
|
|
|
|
|
|
|
computing basic net
loss per share
|
38,293,808
|
|
37,325,971
|
|
|
37,911,214
|
|
36,975,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in
|
|
|
|
|
|
|
|
|
|
computing diluted net
loss per share
|
38,293,808
|
|
37,325,971
|
|
|
37,911,214
|
|
36,975,424
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenues
|
$
12,941
|
|
$
11,134
|
|
$
40,464
|
|
$
39,831
|
|
Share-based
compensation (1)
|
(162)
|
|
(323)
|
|
(1,219)
|
|
(1,133)
|
|
Amortization of
intangible assets (2)**
|
(1,024)
|
|
(157)
|
|
(1,606)
|
|
(613)
|
|
Non-GAAP cost of
revenues
|
$
11,755
|
|
$
10,654
|
|
$
37,639
|
|
$
38,085
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
11,401
|
|
$
21,895
|
|
$
52,686
|
|
$
82,906
|
|
Gross profit
adjustments
|
1,186
|
|
480
|
|
2,825
|
|
1,746
|
|
Non-GAAP gross
profit
|
$
12,587
|
|
$
22,375
|
|
$
55,511
|
|
$
84,652
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
30,315
|
|
$
28,955
|
|
$ 117,621
|
|
$
115,175
|
|
Share-based
compensation (1)
|
(1,449)
|
|
(1,966)
|
|
(7,626)
|
|
(8,032)
|
|
Amortization of
intangible assets (2)**
|
-
|
|
-
|
|
-
|
|
-
|
|
Income related to
M&A activities (3)
|
699
|
|
274
|
|
699
|
|
274
|
|
Changes in taxes
and headcount related items (4)
|
-
|
|
325
|
|
-
|
|
325
|
|
Non-GAAP
operating expenses
|
$
29,565
|
|
$
27,588
|
|
$ 110,694
|
|
$
107,742
|
|
|
|
|
|
|
|
|
|
|
GAAP financial
and other income
|
$
661
|
|
$
796
|
|
$
3,215
|
|
$
2,134
|
|
Exchange rate
differences*
|
(50)
|
|
(85)
|
|
(378)
|
|
(442)
|
|
Expenses related
to M&A activities (3)
|
|
-
|
|
4
|
|
43
|
|
4
|
|
Non-GAAP
Financial and other income
|
$
611
|
|
$
715
|
|
$
2,880
|
|
$
1,696
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income
|
$
96
|
|
$
474
|
|
$
1,084
|
|
$
1,895
|
|
Changes in tax
related items
|
(25)
|
|
(25)
|
|
(100)
|
|
(100)
|
|
Non-GAAP taxes on
income
|
$
71
|
|
$
449
|
|
$
984
|
|
$
1,795
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$ (18,349)
|
|
$
(6,738)
|
|
$ (62,804)
|
|
$
(32,030)
|
|
Share-based
compensation (1)
|
1,611
|
|
2,289
|
|
8,845
|
|
9,165
|
|
Amortization of
intangible assets (2)**
|
1,024
|
|
157
|
|
1,606
|
|
613
|
|
Income related to
M&A activities (3)
|
(699)
|
|
(270)
|
|
(656)
|
|
(270)
|
|
Changes in taxes
and headcount related items (4)
|
-
|
|
(325)
|
|
-
|
|
(325)
|
|
Exchange rate
differences*
|
(50)
|
|
(85)
|
|
(378)
|
|
(442)
|
|
Changes in tax
related items
|
|
25
|
|
25
|
|
100
|
|
100
|
|
Non-GAAP Net
income (loss)
|
$ (16,438)
|
|
$
(4,947)
|
|
$ (53,287)
|
|
$
(23,189)
|
|
|
|
|
|
|
|
|
|
|
GAAP Loss per
share (diluted)
|
$
(0.48)
|
|
$
(0.18)
|
|
$
(1.66)
|
|
$
(0.87)
|
|
Share-based
compensation
|
0.04
|
|
0.06
|
|
0.23
|
|
0.25
|
|
Amortization of
intangible assets**
|
0.03
|
|
0.01
|
|
0.05
|
|
0.02
|
|
Income related to
M&A activities
|
(0.02)
|
|
(0.01)
|
|
(0.02)
|
|
(0.01)
|
|
Changes in taxes and
headcount related items
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Exchange rate
differences*
|
(0.00)
|
|
(0.00)
|
|
(0.01)
|
|
(0.01)
|
|
Non-GAAP Net
income (loss) per share (diluted)
|
$
(0.43)
|
|
$
(0.13)
|
|
$
(1.41)
|
|
$
(0.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in
|
|
|
|
|
|
|
|
|
computing GAAP diluted
net loss per share
|
38,293,808
|
|
37,325,971
|
|
37,911,214
|
|
36,975,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in
|
|
|
|
|
|
|
|
|
computing non-GAAP
diluted net loss per share
|
38,293,808
|
|
37,325,971
|
|
37,911,214
|
|
36,975,424
|
|
|
|
|
|
|
|
|
|
|
* Financial income or
expenses related to exchange rate differences in connection with
revaluation of assets and
|
|
|
|
|
|
liabilities in
non-dollar denominated currencies.
|
|
|
|
|
|
|
|
|
** While
amortization of acquired intangible assets is excluded from the
measures, the revenue of the acquired
|
|
|
|
|
|
companies is
reflected in the measures and the acquired assets contribute to
revenue generation.
|
|
|
|
|
|
|
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,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
162
|
|
$
323
|
|
$
1,219
|
|
$
1,133
|
|
Research and
development costs, net
|
597
|
|
775
|
|
3,010
|
|
3,168
|
|
Sales and
marketing
|
473
|
|
684
|
|
2,651
|
|
2,943
|
|
General and
administrative
|
379
|
|
507
|
|
1,965
|
|
1,921
|
|
|
$
1,611
|
|
$
2,289
|
|
$
8,845
|
|
$
9,165
|
|
|
|
|
|
|
|
|
|
|
(2) Amortization
of intangible assets
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
1,024
|
|
$
157
|
|
$
1,606
|
|
$
613
|
|
|
$
1,024
|
|
$
157
|
|
$
1,606
|
|
$
613
|
|
|
|
|
|
|
|
|
|
|
(3) Expenses
(Income) related to M&A activities
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
(699)
|
|
$
-
|
|
$
(699)
|
|
$
-
|
|
Research and
development costs, net
|
-
|
|
(274)
|
|
-
|
|
(274)
|
|
Finanacial expensees
(income)
|
-
|
|
4
|
|
43
|
|
4
|
|
|
$
(699)
|
|
$
(270)
|
|
$
(656)
|
|
$
(270)
|
|
|
|
|
|
|
|
|
|
|
(4) Changes in
taxes and headcount related items
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
$
-
|
|
$
(325)
|
|
$
-
|
|
$
(325)
|
|
|
$
-
|
|
$
(325)
|
|
$
-
|
|
$
(325)
|
|
|
|
|
|
|
|
|
|
|
TABLE -
3
|
|
ALLOT
LTD.
|
|
AND ITS
SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
14,192
|
|
$
12,295
|
|
Short-term bank
deposits
|
|
10,000
|
|
68,765
|
|
Restricted
deposits
|
|
1,728
|
|
1,050
|
|
Available-for-sale
marketable securities
|
|
28,853
|
|
4,293
|
|
Trade receivables, net
(net of allowance for credit losses of
$25,253 and $2,908 on December 31, 2023 and December
31, 2022, respectively)
|
|
14,828
|
|
44,167
|
|
Other receivables and
prepaid expenses
|
|
8,422
|
|
7,985
|
|
Inventories
|
|
11,874
|
|
13,262
|
|
Total current
assets
|
|
89,897
|
|
151,817
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Restricted
deposit
|
|
158
|
|
-
|
|
Severance pay
fund
|
|
395
|
|
371
|
|
Operating lease
right-of-use assets
|
|
3,057
|
|
5,387
|
|
Trade receivables,
net
|
|
-
|
|
4,934
|
|
Other
assets
|
|
562
|
|
864
|
|
Total long-term
assets
|
|
4,172
|
|
11,556
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
11,189
|
|
14,236
|
|
GOODWILL AND INTANGIBLE
ASSETS, NET
|
|
32,748
|
|
35,344
|
|
|
|
|
|
|
Total assets
|
|
$
138,006
|
|
$
212,953
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
969
|
|
$
11,661
|
|
Deferred
revenues
|
|
14,892
|
|
20,825
|
|
Short-term operating
lease liabilities
|
|
1,453
|
|
2,542
|
|
Other payables and
accrued expenses
|
|
21,937
|
|
25,573
|
|
Total current
liabilities
|
|
39,251
|
|
60,601
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred
revenues
|
|
7,437
|
|
7,285
|
|
Long-term operating
lease liabilities
|
|
702
|
|
2,579
|
|
Accrued severance
pay
|
|
1,080
|
|
940
|
|
Convertible
debt
|
|
39,773
|
|
39,575
|
|
Total long-term
liabilities
|
|
48,992
|
|
50,379
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
49,763
|
|
101,973
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
138,006
|
|
$
212,953
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
$ (18,349)
|
|
$ (6,738)
|
|
$ (62,804)
|
|
$
(32,030)
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
1,638
|
|
2,287
|
|
5,536
|
|
6,406
|
|
Stock-based
compensation
|
1,611
|
|
2,288
|
|
8,845
|
|
9,165
|
|
Amortization of
intangible assets
|
1,766
|
|
241
|
|
2,596
|
|
946
|
|
Increase in accrued
severance pay, net
|
37
|
|
57
|
|
116
|
|
92
|
|
Decrease in other
assets
|
636
|
|
196
|
|
302
|
|
775
|
|
Decrease (Increase) in
accrued interest and amortization of premium on marketable
securities
|
(305)
|
|
(13)
|
|
(712)
|
|
71
|
|
Changes in operating
leases, net
|
(164)
|
|
979
|
|
(636)
|
|
(5)
|
|
Decrease (Increase) in
trade receivables
|
9,784
|
|
(7,189)
|
|
34,273
|
|
(11,629)
|
|
Decrease (Increase) in
other receivables and prepaid expenses
|
(698)
|
|
(338)
|
|
476
|
|
(55)
|
|
Decrease (Increase) in
inventories
|
2,165
|
|
(586)
|
|
1,388
|
|
(2,170)
|
|
Increase (Decrease) in
trade payables
|
(2,857)
|
|
5,608
|
|
(10,692)
|
|
7,721
|
|
Increase (Decrease) in
employees and payroll accruals
|
1,115
|
|
1,873
|
|
(4,130)
|
|
(385)
|
|
Decrease in deferred
revenues
|
(2,806)
|
|
(6,815)
|
|
(5,781)
|
|
(9,970)
|
|
Increase (Decrease) in
other payables, accrued expenses and other long term
liabilities
|
1,200
|
|
(1,586)
|
|
1,289
|
|
(1,668)
|
|
Amortization of
issuance costs of Convertible debt
|
50
|
|
50
|
|
198
|
|
171
|
|
Net cash used in
operating activities
|
(5,177)
|
|
(9,686)
|
|
(29,736)
|
|
(32,565)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (Increase) in
restricted deposit
|
(804)
|
|
50
|
|
(836)
|
|
430
|
|
Redemption of
(Investment in) short-term deposits
|
3,600
|
|
15,350
|
|
58,765
|
|
(7,830)
|
|
Purchase of property
and equipment
|
(621)
|
|
(1,507)
|
|
(2,489)
|
|
(5,642)
|
|
Acquisitions, net of
Cash acquired, and other
|
-
|
|
(500)
|
|
-
|
|
(500)
|
|
Investment in
available-for sale marketable securities
|
(12,064)
|
|
-
|
|
(46,742)
|
|
-
|
|
Proceeds from
redemption or sale of available-for sale marketable
securities
|
7,750
|
|
-
|
|
22,935
|
|
7,030
|
|
Net cash provided by
(used in) investing activities
|
(2,139)
|
|
13,393
|
|
31,633
|
|
(6,512)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
(1)
|
|
1
|
|
-
|
|
251
|
|
Issuance of convertible
debt
|
-
|
|
-
|
|
-
|
|
39,404
|
|
Net cash provided by
(used in) financing activities
|
(1)
|
|
1
|
|
-
|
|
39,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in
cash and cash equivalents
|
(7,317)
|
|
3,708
|
|
1,897
|
|
578
|
|
Cash and cash
equivalents at the beginning of the period
|
21,509
|
|
8,587
|
|
12,295
|
|
11,717
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
$
14,192
|
|
$ 12,295
|
|
$
14,192
|
|
$
12,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
Q4-2023
|
|
FY 2023
|
|
FY 2022
|
|
|
Revenues geographic
breakdown
|
|
|
|
|
|
|
|
Americas
|
|
3.8
|
16 %
|
16.6
|
18 %
|
21.8
|
18 %
|
|
EMEA
|
|
14.4
|
59 %
|
56.1
|
60 %
|
71.2
|
58 %
|
|
Asia Pacific
|
|
6.1
|
25 %
|
20.5
|
22 %
|
29.7
|
24 %
|
|
|
|
24.3
|
100 %
|
93.2
|
100 %
|
122.7
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Revenue breakdown by type
|
|
|
|
|
|
|
|
Products
|
|
10.7
|
44 %
|
37.6
|
40 %
|
61.1
|
50 %
|
|
Professional
Services
|
1.1
|
5 %
|
6.1
|
7 %
|
11.6
|
9 %
|
|
SECaaS (Security as a
Service)
|
3.2
|
13 %
|
10.6
|
11 %
|
7.2
|
6 %
|
|
Support &
Maintenance
|
9.3
|
38 %
|
38.9
|
42 %
|
42.8
|
35 %
|
|
|
|
24.3
|
100 %
|
93.2
|
100 %
|
122.7
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Revenues per customer type
|
|
|
|
|
|
|
|
CSP
|
|
19.7
|
81 %
|
75.1
|
81 %
|
98.3
|
80 %
|
|
Enterprise
|
|
4.6
|
19 %
|
18.1
|
19 %
|
24.4
|
20 %
|
|
|
|
24.3
|
100 %
|
93.2
|
100 %
|
122.7
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Security
revenues
|
|
|
|
21.7
|
|
28.5
|
|
|
|
|
|
|
|
|
|
|
|
Backlog (end of
period)
|
|
|
|
58.8
|
|
87.7
|
|
|
|
|
|
|
|
|
|
|
|
% of top-10
end-customers out of revenues
|
63 %
|
|
47 %
|
|
44 %
|
|
|
|
|
|
|
|
|
|
|
|
Total number of full
time employees
|
559
|
|
559
|
|
749
|
|
|
(end of
period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Weighted
average number of basic shares (in
millions)
|
38.3
|
|
37.9
|
|
37.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted
average number of fully diluted
shares (in millions)
|
40.5
|
|
40.3
|
|
39.5
|
|
|
|
|
SECaaS (Security as a Service)
revenues- U.S. dollars in
millions (Unaudited)
|
|
|
Q4-2023:
|
3.2
|
|
Q3-2023:
|
2.8
|
|
|
|
|
|
Q2-2023:
|
2.4
|
|
|
|
|
|
Q1-2023:
|
2.3
|
|
|
|
|
|
Q4-2022:
|
2.2
|
|
|
|
|
|
|
SECaaS ARR* (annualized recurring revenues)-
U.S. dollars in millions (Unaudited)
|
|
|
Dec. 2023:
|
12.7
|
|
|
|
|
|
Dec. 2022:
|
9.2
|
|
|
|
|
|
Dec. 2021:
|
5.2
|
|
|
|
|
|
Dec. 2020:
|
2.7
|
|
|
|
|
|
|
*ARR: annualized
recurring SECaaS revenues, calculated based on the monthly revenues
multiplied by 12
|
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SOURCE Allot Ltd.
