Allot (News - Alert), an innovator of IP service optimization solutions based on deep packet inspection (DPI) technology, today announced financial results for the second quarter ended June 30, 2008.
The company reported that revenues for the second quarter of 2008 totaled $9.5 million, representing a 14.5 percent increase over the $8.3 million in revenues reported for the first quarter of 2008 and a 10.5 percent increase from the $8.6 million of revenues reported for the second quarter of 2007. On a GAAP basis, the net loss for the second quarter of 2008 was $3.7 million, or $0.17 per share (basic and diluted), as compared with a net loss of $4.8 million, or $0.22 per share (basic and diluted), for the first quarter of 2008 and a net loss of $0.6 million, or $0.03 per share (basic and diluted), for the second quarter of 2007.
On a non-GAAP basis, excluding the impact of share-based compensation, ARS devaluation, amortization of acquired core technology and litigation expenses, non-GAAP net loss for the second quarter of 2008 totaled $1.9 million, or $0.09 per share, the same as the net loss for the first quarter of 2008 and compared to a non-GAAP net loss of $0.3 million, or $0.01 per share, for the second quarter of 2007.
"Our growth during the quarter was driven by several factors," commented Rami Hadar (News - Alert), Allot Communications' president and chief executive officer. "Larger orders, which included both wireline and mobile operators, accounted for more than 40 percent of orders received during the second quarter. While we succeeded in adding new large operators as customers during the quarter, the results also demonstrate that we are deepening penetration within our existing customer base.”
Hadar continued,"As we anticipated, orders for the Service Gateway (News - Alert) increased in the second quarter. This platform, which was recently recognized by Isocore as the DPI industry's first full-fledged revenue generating platform, continues to be trialed among a growing number of Tier 1 and Tier 2 operators worldwide. We believe that our customers are increasingly recognizing that this true 10G, open platform will enable them to both optimize and monetize their IP networks.”
As of June 30, 2008, the Allot’s cash and cash equivalents, including short and long-term deposits and investments in marketable securities, totaled $62 million, of which $32 million were auction rate securities (ARS).
Allott believes that based on its current cash, cash equivalents, deposits and marketable securities balances at June 30, 2008 and expected operating cash flows, the current lack of liquidity of these securities will not have a material impact on the Company's liquidity, cash flow or its ability to fund its operations.
During the second quarter, key highlights included the addition of one new Tier 1 customer; Continued penetration of Service Gateway-Omega with Tier 1 and Tier 2 operators; Continued leadership in the growing mobile market and the addition of partners for the Service Gateway, thereby enlarging the ecosystem of services that may be supported on the platform.
The Allot management team will host a conference call to discuss its second quarter 2008 results on Tuesday, August 12, 2008, at 8:30 am EDT, 3:30 PM Israel time. The quarterly results will be published after the conference call.
To access the conference call, please dial one of the following numbers: US: 1-866-966-5335, International: +44-20-3003-2666, Israel: 1-809-216-213.
A replay of the conference call will be available from 12:01 am EDT on August 13, 2008 through September 12, 2008 at 11:59 pm EDT. To access the replay, please dial: +44-20-8196-1998, access code: 650204#.
A live Webcast of the conference call can be accessed on the Allot Communications Web site at http://www.allot.com. The Webcast will also be archived on the Website after the conference call.
Allot Communications a provider of intelligent IP service optimization solutions. Designed for carriers, service providers and enterprises, Allot solutions apply deep packet inspection (DPI) technology to transform broadband pipes into smart networks. This creates the visibility and control vital to manage applications, services and subscribers, guarantee quality of service (QoS), contain operating costs and maximize revenue. Allot believes in listening to customers and provides them access to its global network of visionaries, innovators and support engineers.