• | Second quarter revenues were $32.8 million compared with $35.3 million in the second quarter of last year; |
• | Gross margin on a non-GAAP basis was 70%; |
• | GAAP operating loss was $6.5 million and non-GAAP operating loss was $4.2 million; |
• | GAAP net loss was $6.2 million and non-GAAP net loss was $4.2 million. |
• | Revenues to be between $125 - 130 million; (the third quarter of 2022 is expected to be approximately $25 million); |
• | Additional recurring security deals to be executed, providing incremental MAR** of more than $180 million for the full year 2022; |
• | December 2022 total ARR* including SECaas ARR* and Support & Maintenance ARR* to be between $50-52 million, representing approximately 15% year-over-year growth versus 2021 at the midpoint; |
• | December 2022 SECaas ARR* to be approximately $9 million; |
• | Recurring security revenue to be approximately $7 million. |
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 |
Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
(Unaudited) |
(Unaudited) | |||||||||||||||
Revenues |
$ |
32,772 |
$ |
35,288 |
$ |
64,668 |
$ |
66,471 | ||||||||
Cost of revenues |
10,242 |
10,822 |
20,034 |
20,413 | ||||||||||||
Gross profit |
22,530 |
24,466 |
44,634 |
46,058 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development costs, net |
12,480 |
11,373 |
24,510 |
21,940 | ||||||||||||
Sales and marketing |
12,220 |
12,818 |
23,909 |
24,411 | ||||||||||||
General and administrative |
4,303 |
4,080 |
8,340 |
7,280 | ||||||||||||
Total operating expenses |
29,003 |
28,271 |
56,759 |
53,631 | ||||||||||||
Operating loss |
(6,473 |
) |
(3,805 |
) |
(12,125 |
) |
(7,573 |
) | ||||||||
Financial and other income, net |
620 |
194 |
867 |
309 | ||||||||||||
Loss before income tax expenses |
(5,853 |
) |
(3,611 |
) |
(11,258 |
) |
(7,264 |
) | ||||||||
Tax expenses |
380 |
368 |
1,102 |
673 | ||||||||||||
Net Loss |
(6,233 |
) |
(3,979 |
) |
(12,360 |
) |
(7,937 |
) | ||||||||
Basic net loss per share |
$ |
(0.17 |
) |
$ |
(0.11 |
) |
$ |
(0.34 |
) |
$ |
(0.22 |
) | ||||
Diluted net loss per share |
$ |
(0.17 |
) |
$ |
(0.11 |
) |
$ |
(0.34 |
) |
$ |
(0.22 |
) | ||||
Weighted average number of shares used in | ||||||||||||||||
computing basic net loss per share |
36,827,197 |
35,941,378 |
36,684,017 |
35,739,556 | ||||||||||||
Weighted average number of shares used in | ||||||||||||||||
computing diluted net loss per share |
36,827,197 |
35,941,378 |
36,684,017 |
35,739,556 |
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 |
Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
(Unaudited) |
(Unaudited) | |||||||||||||||
GAAP cost of revenues |
$ |
10,242 |
$ |
10,822 |
$ |
20,034 |
$ |
20,413 | ||||||||
Share-based compensation (1) |
(338 |
) |
(164 |
) |
(519 |
) |
(283 |
) | ||||||||
Amortization of intangible assets (2) |
(152 |
) |
(152 |
) |
(304 |
) |
(304 |
) | ||||||||
Non-GAAP cost of revenues |
$ |
9,752 |
$ |
10,506 |
$ |
19,211 |
$ |
19,826 | ||||||||
GAAP gross profit |
$ |
22,530 |
$ |
24,466 |
$ |
44,634 |
$ |
46,058 | ||||||||
Gross profit adjustments |
490 |
316 |
823 |
587 | ||||||||||||
Non-GAAP gross profit |
$ |
23,020 |
$ |
24,782 |
$ |
45,457 |
$ |
46,645 | ||||||||
GAAP operating expenses |
$ |
29,003 |
$ |
28,271 |
$ |
56,759 |
$ |
53,631 | ||||||||
Share-based compensation (1) |
(1,831 |
) |
(2,097 |
) |
(4,187 |
) |
(3,422 |
) | ||||||||
Non-GAAP operating expenses |
$ |
27,172 |
$ |
26,174 |
$ |
52,572 |
$ |
50,209 | ||||||||
GAAP financial and other income |
$ |
620 |
$ |
194 |
$ |
867 |
$ |
309 | ||||||||
Exchange rate differences* |
(316 |
) |
14 |
(389 |
) |
90 | ||||||||||
Non-GAAP Financial and other income |
$ |
304 |
$ |
208 |
$ |
478 |
$ |
399 | ||||||||
GAAP taxes on income |
$ |
380 |
$ |
368 |
$ |
1,102 |
$ |
673 | ||||||||
Tax expenses in respect of net deferred tax asset recorded |
- |
(102 |
) |
- |
(169 |
) | ||||||||||
Changes in tax related items |
(50 |
) |
- |
(50 |
) |
- | ||||||||||
Non-GAAP taxes on income |
$ |
330 |
$ |
266 |
$ |
1,052 |
$ |
504 | ||||||||
GAAP Net Loss |
$ |
(6,233 |
) |
$ |
(3,979 |
) |
$ |
(12,360 |
) |
$ |
(7,937 |
) | ||||
Share-based compensation (1) |
2,169 |
2,261 |
4,706 |
3,705 | ||||||||||||
Amortization of intangible assets (2) |
152 |
152 |
304 |
304 | ||||||||||||
Exchange rate differences* |
(316 |
) |
14 |
(389 |
) |
90 | ||||||||||
Tax expenses in respect of net deferred tax asset recorded |
- |
102 |
- |
169 | ||||||||||||
Changes in tax related items |
50 |
- |
50 |
- | ||||||||||||
Non-GAAP Net income (loss) |
$ |
(4,178 |
) |
$ |
(1,450 |
) |
$ |
(7,689 |
) |
$ |
(3,669 |
) | ||||
GAAP Loss per share (diluted) |
$ |
(0.17 |
) |
$ |
(0.11 |
) |
$ |
(0.34 |
) |
$ |
(0.22 |
) | ||||
Share-based compensation |
0.06 |
0.06 |
0.13 |
0.10 | ||||||||||||
Amortization of intangible assets |
0.0 |
0.01 |
0.00 |
0.02 | ||||||||||||
Exchange rate differences* |
(0.0 |
) |
0.00 |
(0.00 |
) |
- | ||||||||||
Tax expense in respect of net deferred tax asset recorded |
- |
0.00 |
- |
- | ||||||||||||
Non-GAAP Net income (loss) per share (diluted) |
$ |
(0.11 |
) |
$ |
(0.04 |
) |
$ |
(0.21 |
) |
$ |
(0.10 |
) | ||||
Weighted average number of shares used in | ||||||||||||||||
computing GAAP diluted net loss per share |
36,827,197 |
35,941,378 |
36,684,017 |
35,739,556 | ||||||||||||
Weighted average number of shares used in | ||||||||||||||||
computing non-GAAP diluted net loss per share |
36,827,197 |
35,941,378 |
36,684,017 |
35,739,556 |
* 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 |
Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
(Unaudited) |
(Unaudited) | |||||||||||||||
(1) Share-based compensation: | ||||||||||||||||
Cost of revenues |
$ |
338 |
$ |
164 |
$ |
519 |
$ |
283 | ||||||||
Research and development costs, net |
844 |
699 |
1,689 |
1,094 | ||||||||||||
Sales and marketing |
619 |
930 |
1,532 |
1,512 | ||||||||||||
General and administrative |
368 |
468 |
966 |
816 | ||||||||||||
$ |
2,169 |
$ |
2,261 |
$ |
4,706 |
$ |
3,705 | |||||||||
(2) Amortization of intangible assets | ||||||||||||||||
Cost of revenues |
$ |
152 |
$ |
152 |
$ |
304 |
$ |
304 | ||||||||
$ |
152 |
$ |
152 |
$ |
304 |
$ |
304 |
TABLE - 3 |
ALLOT LTD. |
AND ITS SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands) |
June 30, |
December 31, | |||||||
2022 |
2021 | |||||||
(Unaudited) |
(Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents |
$ |
15,461 |
$ |
11,717 | ||||
Short-term bank deposits |
85,900 |
60,720 | ||||||
Restricted deposits |
1,100 |
1,480 | ||||||
Available-for-sale marketable securities |
5,319 |
11,531 | ||||||
Trade receivables, net |
36,288 |
30,829 | ||||||
Other receivables and prepaid expenses |
8,629 |
8,490 | ||||||
Inventories |
12,256 |
11,092 | ||||||
Total current assets |
164,953 |
135,859 | ||||||
LONG-TERM ASSETS: | ||||||||
Long-term bank deposits |
215 |
215 | ||||||
Severance pay fund |
369 |
407 | ||||||
Operating lease right-of-use assets |
7,134 |
8,513 | ||||||
Trade receivables, net |
5,991 |
6,643 | ||||||
Other assets |
1,203 |
1,639 | ||||||
Total long-term assets |
14,912 |
17,417 | ||||||
PROPERTY AND EQUIPMENT, NET |
14,809 |
15,000 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET |
34,668 |
35,138 | ||||||
Total assets |
$ |
229,342 |
$ |
203,414 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables |
$ |
3,003 |
$ |
3,940 | ||||
Deferred revenues |
26,765 |
22,138 | ||||||
Short-term operating lease liabilities |
2,722 |
2,785 | ||||||
Other payables and accrued expenses |
26,073 |
26,250 | ||||||
Total current liabilities |
58,563 |
55,113 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues |
12,444 |
15,942 | ||||||
Long-term operating lease liabilities |
3,588 |
5,467 | ||||||
Accrued severance pay |
866 |
884 | ||||||
Convertible debt |
39,475 |
- | ||||||
Total long-term liabilities |
56,373 |
22,293 | ||||||
SHAREHOLDERS' EQUITY |
114,406 |
126,008 | ||||||
Total liabilities and shareholders' equity |
$ |
229,342 |
$ |
203,414 |
TABLE - 4 |
ALLOT LTD. |
AND ITS SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(U.S. dollars in thousands) |
Three Months Ended |
Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
(Unaudited) |
(Unaudited) | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net Loss |
$ |
(6,233 |
) |
$ |
(3,979 |
) |
$ |
(12,360 |
) |
$ |
(7,937 |
) | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Depreciation |
1,332 |
1,141 |
2,746 |
2,229 | ||||||||||||
Stock-based compensation |
2,169 |
2,261 |
4,706 |
3,705 | ||||||||||||
Amortization of intangible assets |
235 |
234 |
470 |
471 | ||||||||||||
Increase (Decrease) in accrued severance pay, net |
26 |
12 |
20 |
(60 |
) | |||||||||||
Decrease (Increase) in other assets |
19 |
(458 |
) |
436 |
1,041 | |||||||||||
Decrease in accrued interest and amortization of premium on marketable securities |
16 |
32 |
48 |
107 | ||||||||||||
Changes in operating leases, net |
(191 |
) |
(479 |
) |
(563 |
) |
(711 |
) | ||||||||
Increase in trade receivables |
(4,082 |
) |
(3,113 |
) |
(4,807 |
) |
(10,256 |
) | ||||||||
Decrease (Increase) in other receivables and prepaid expenses |
141 |
3,094 |
(893 |
) |
3,522 | |||||||||||
Decrease (Increase) in inventories |
591 |
4,246 |
(1,164 |
) |
3,289 | |||||||||||
Decrease in long-term deferred taxes, net |
- |
103 |
- |
175 | ||||||||||||
Increase (Decrease) in trade payables |
(1,433 |
) |
334 |
(937 |
) |
(536 |
) | |||||||||
Increase (Decrease) in employees and payroll accruals |
523 |
1,286 |
(1,963 |
) |
(623 |
) | ||||||||||
Increase in deferred revenues |
287 |
1,640 |
1,129 |
16,612 | ||||||||||||
Decrease in other payables, accrued expenses and other long term liabilities |
(1,252 |
) |
(2,761 |
) |
(1,523 |
) |
(3,364 |
) | ||||||||
Amortization of issuance costs of Convertible debt |
49 |
- |
71 |
- | ||||||||||||
Net cash provided by (used in) operating activities |
(7,803 |
) |
3,593 |
(14,584 |
) |
7,664 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Decrease (Increase) in restricted deposit |
260 |
(2,440 |
) |
380 |
(2,874 |
) | ||||||||||
Redemption of (Investment in) short-term deposits |
520 |
100 |
(25,180 |
) |
(24,200 |
) | ||||||||||
Purchase of property and equipment |
(1,281 |
) |
(1,934 |
) |
(2,556 |
) |
(3,629 |
) | ||||||||
Proceeds from redemption or sale of available-for sale marketable securities |
2,872 |
3,231 |
6,030 |
7,579 | ||||||||||||
Net cash provided by (used in) investing activities |
2,371 |
(1,043 |
) |
(21,326 |
) |
(23,124 |
) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from exercise of stock options |
15 |
908 |
250 |
2,467 | ||||||||||||
Issuance of convertible debt |
- |
- |
39,404 |
- | ||||||||||||
Net cash provided by financing activities |
15 |
908 |
39,654 |
2,467 | ||||||||||||
Increase (Decrease) in cash and cash equivalents |
(5,417 |
) |
3,458 |
3,744 |
(12,993 |
) | ||||||||||
Cash and cash equivalents at the beginning of the period |
20,878 |
7,148 |
11,717 |
23,599 | ||||||||||||
Cash and cash equivalents at the end of the period |
$ |
15,461 |
$ |
10,606 |
$ |
15,461 |
$ |
10,606 |
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
| ||||||||||||||||||||||||
Q2-2022
|
YTD 2022
|
FY 2021
| ||||||||||||||||||||||
Revenues geographic breakdown | ||||||||||||||||||||||||
Americas
|
9.4
|
29
|
%
|
13.1
|
20
|
%
|
19.4
|
14
|
%
| |||||||||||||||
EMEA
|
16.0
|
49
|
%
|
34.7
|
54
|
%
|
82.0
|
56
|
%
| |||||||||||||||
Asia Pacific
|
7.4
|
22
|
%
|
16.9
|
26
|
%
|
44.2
|
30
|
%
| |||||||||||||||
32.8
|
100
|
%
|
64.7
|
100
|
%
|
145.6
|
100
|
%
| ||||||||||||||||
Revenue breakdown by type | ||||||||||||||||||||||||
Products
|
17.0
|
52
|
%
|
34.2
|
53
|
%
|
88.1
|
60
|
%
| |||||||||||||||
Professional Services
|
3.1
|
10
|
%
|
5.7
|
9
|
%
|
15.2
|
11
|
%
| |||||||||||||||
SECaaS (Security as a Service)
|
1.7
|
5
|
%
|
3.2
|
5
|
%
|
4.1
|
3
|
%
| |||||||||||||||
Support & Maintenance
|
11.0
|
33
|
%
|
21.6
|
33
|
%
|
38.2
|
26
|
%
| |||||||||||||||
32.8
|
100
|
%
|
64.7
|
100
|
%
|
145.6
|
100
|
%
| ||||||||||||||||
Revenues per customer type | ||||||||||||||||||||||||
CSP
|
26.1
|
79
|
%
|
51.9
|
80
|
%
|
116.9
|
80
|
%
| |||||||||||||||
Enterprise
|
6.7
|
21
|
%
|
12.8
|
20
|
%
|
28.7
|
20
|
%
| |||||||||||||||
32.8
|
100
|
%
|
64.7
|
100
|
%
|
145.6
|
100
|
%
| ||||||||||||||||
% of top-10 end-customers out of revenues
|
59
|
%
|
54
|
%
|
51
|
%
| ||||||||||||||||||
Total number of full time employees
|
749
|
749
|
741
| |||||||||||||||||||||
(end of period)
| ||||||||||||||||||||||||
Non-GAAP Weighted average number of basic shares (in millions)
|
36.8
|
36.7
|
36.1
| |||||||||||||||||||||
Non-GAAP weighted average number of fully diluted shares (in millions)
|
38.9
|
39.2
|
38.4
|
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
| |||||||||
Q2-2022:
|
1.7
| ||||||||
Q1-2022:
|
1.5
| ||||||||
Q4-2021:
|
1.3
| ||||||||
Q3-2021:
|
1.2
| ||||||||
SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited)
| |||||||||
Jun. 2022:
|
6.9
| ||||||||
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 target
|
2021 vs. 2020
|
2022 (target) vs. 2021
| ||||||||||||||||
Support & maintenance ARR *
|
31.2
|
42.0
|
41-43
|
35
|
%
|
(2%)-2%
| ||||||||||||||
SECaaS ARR **
|
2.7
|
5.2
| 9 |
93
|
%
|
73%
| ||||||||||||||
Total ARR
|
33.9
|
47.2
|
50-52
|
39
|
%
|
6%-10%
|
* 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.
|
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Disclaimer
Allot Ltd. published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 11:03:05 UTC.