0001365767false--12-31Q22023-06-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023
Commission File Number: 001-33129

 ALLOT LTD.
(Translation of registrant’s name into English)
 
22 Hanagar Street
Neve Ne'eman Industrial Zone B
Hod-Hasharon 45240
Israel
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ☒ Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes ☐ No ☒
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
 
EXPLANATORY NOTE
 
On August 31, 2023, Allot Ltd. issued a press release announcing the Second Quarter 2023 Financial Results and Cost Reduction Plan.
 
A copy of the press release entitled “Allot Announces Second Quarter 2023 Financial Results and Cost Reduction Plan” is attached to this Form 6-K as Exhibit 99.1.
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Allot Ltd.
  
       
 
By:
/s/ Ziv Leitman
  
   
Ziv Leitman
  
   
Chief Financial Officer
  
 
Date: August 31, 2023
 
 
EXHIBIT INDEX
 
The following exhibit has been filed as part of this Form 6-K:
 
Exhibit Number
  
Description
     
 
 
0001365767 2023-01-01 2023-06-30 0001365767 2023-06-30 0001365767 2022-12-31 0001365767 2023-04-01 2023-06-30 0001365767 2022-04-01 2022-06-30 0001365767 2022-01-01 2022-06-30 0001365767 2023-03-31 0001365767 2022-03-31 0001365767 2021-12-31 0001365767 2022-06-30 xbrli:shares iso4217:USD iso4217:USDxbrli:shares
Exhibit 99.1
 
image0.jpg
 
Allot Announces Q2 2023 Financial Results and Cost Reduction Plan
 
Hod Hasharon, Israel – August 31, 2023 - 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 financial results for the second quarter ended June 30, 2023.
 
Q2 Financial Highlights
 
 •
Second quarter revenues were $25.0 million;
 
 •
SECaaS revenues were $2.4 million; June 2023 SECaaS ARR* was $9.7 million;
 
 •
Second quarter GAAP operating loss was $21.5 million, and non-GAAP operating loss was $18.9 million, including a provision of $14.1 million for credit losses from two customers in Africa;
 
 •
Q2 GAAP net loss was $20.7 million, and non-GAAP net loss was $18.3 million;
 
As we pre-announced on July 17, 2023, during the quarter, the company booked an allowance for credit losses related to past due receivables previously disclosed by the company arising from sales in two African countries and certain additional sales that occurred in the fourth quarter of 2022 in another African country. Allot has been assessing the collectability of its accounts receivable on a quarterly basis. In connection with its most recent assessment, the company determined that certain accounts previously disclosed as outstanding will not, with reasonable certainty, be collected, based on recent communications from the contractual counterparties and other factors including the passage of time.
 
Financial Outlook
 
Looking ahead, management updates its financial expectations as follows:
 
 •
Full-year 2023 revenues of $95 million to $110 million (of which SECaaS revenues are expected to be approximately $11 million);
 
 •
Full year 2023 operating loss of between $38 million and $44 million (includes a $14.1 million provision for credit losses from two customers in Africa);
 
 •
Full year 2023 negative cash flow of between $24 million and $44 million;
 
 •
December 2023 total ARR*, including SECaaS ARR* and Support & Maintenance ARR*, is expected to be between $51 million and $55 million;
 
 •
Reiterates expectations to be profitable in 2024;
 
 
Management Comment
 
Erez Antebi, President & CEO of Allot, commented, “We believe that our strategy of transforming our business towards a recurring SECaaS revenue model will drive sustainable profitable growth and long-term shareholder value. However, the conversion of won SECaaS deals to paying subscribers continues to take longer than expected, and SMART is experiencing lower revenues in light of continued challenging economic conditions. We are committed to our target of reaching profitability in 2024 through the growth of the SECaaS business, combined with tight expense control. As we strive toward our goal of driving profitable growth, we are implementing a cost reduction plan which we expect will reduce our yearly expenses by approximately $15 million. "
 
Q2 2023 Financial Results Summary
 
Total revenues for the second quarter of 2023 were $25.0 million, a decrease of 24% compared to $32.8 million in the second quarter of 2022.
 
Gross profit on a GAAP basis for the second quarter of 2023 was $17.3 million (gross margin of 69.2%), a 23% decline compared with $22.5 million (gross margin of 68.7%) in the second quarter of 2022.
 
Gross profit on a non-GAAP basis for the second quarter of 2023 was $17.9 million (gross margin of 71.4%), a 22% decline compared with $23 million (gross margin of 70.2%) in the second quarter of 2022. The gross margin level in the current quarter was impacted by a one-time favorable product mix.
 
Net loss on a GAAP basis for the second quarter of 2023 was $20.7 million, or $0.55 per basic share, compared with a net loss of $6.2 million, or $0.17 per basic share, in the second quarter of 2022. The increase in net loss this quarter is due to the credit loss expense described above.
 
Net loss on a non-GAAP for the second quarter of 2023 was $18.3 million, or $0.49 per basic share compared with a non-GAAP net loss of $4.2 million, or $0.11 per basic share, in the second quarter of 2022. The increase in net loss this quarter is due to the credit loss expense described above.
 
Cash, short-term bank deposits and investments as of June 30, 2023, totaled $65.9 million, compared to $86.4 million as of December 31, 2022.
 
 
ARR - U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
Dec. 2021
 
Dec. 2022
 
Dec. 2023 target
 
2022 vs. 2021
 
2023 (target) vs. 2022
 
Support & maintenance ARR *
42.0
 
42.5
 
39-41
 
1%
 
(8%)-(4%)
 
 
 
 
 
 
 
 
 
 
 
 
SECaaS ARR **
5.2
 
9.2
 
12-14
 
77%
 
30%-52%
 
 
 
 
 
 
 
 
 
 
 
 
Total ARR
47.2
 
51.7
 
51-55
 
10%
 
(1%)-6%
 
           

* 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 month of December and multiplied by 12.

 
# # #
 
Conference Call & Webcast:
 
The Allot management team will host a conference call to discuss its second quarter 2023 earnings results today, August 31, 2023 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 revenues for the second quarter of 2023 and multiplied by 4) and SECaaS ARR (measures the current annual run rate of the SECaaS revenues), which is calculated based on the revenues in the month of June 2023 and multiplied by 12.
 
GAAP to Non-GAAP Reconciliation:
 
Non-GAAP net income is defined as GAAP net income after excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, exchange rate differences related to revaluation of assets and liabilities denominated in non-dollar currencies, other acquisition-related expenses 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
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
 
  
2023
    
2022
    
2023
    
2022
  
 
  
(Unaudited)
    
(Unaudited)
  
 
                        
Revenues
  
$
25,047
    
$
32,772
    
$
46,173
    
$
64,668
  
Cost of revenues
    
7,707
      
10,242
      
15,358
      
20,034
  
Gross profit
    
17,340
      
22,530
      
30,815
      
44,634
  
 
                                
Operating expenses:
                                
Research and development costs, net
    
10,752
      
12,480
      
21,246
      
24,510
  
Sales and marketing
    
10,522
      
12,220
      
21,409
      
23,909
  
General and administrative
    
17,558
      
4,303
      
21,518
      
8,340
  
Total operating expenses
    
38,832
      
29,003
      
64,173
      
56,759
  
Operating loss
    
(21,492
)
    
(6,473
)
    
(33,358
)
    
(12,125
)
Financial and other income, net
    
985
      
620
      
1,779
      
867
  
Loss before income tax expenses
    
(20,507
)
    
(5,853
)
    
(31,579
)
    
(11,258
)
                                 
Tax expenses
    
225
      
380
      
515
      
1,102
  
Net Loss
    
(20,732
)
    
(6,233
)
    
(32,094
)
    
(12,360
)
 
                                
 Basic net loss per share
  
$
(0.55
)
  
$
(0.17
)
  
$
(0.85
)
  
$
(0.34
)
 
          

 
 
                  
 Diluted net loss per share
  
$
(0.55
)
  
$
(0.17
)
  
$
(0.85
)
  
$
(0.34
)
 
                                
Weighted average number of shares used in
                                
computing basic net loss per share
    
37,743,328
      
36,827,197
      
37,583,412
      
36,684,017
  
 
                                
Weighted average number of shares used in
                                
computing diluted net loss per share
    
37,743,328
      
36,827,197
      
37,583,412
      
36,684,017
  
 
 
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,
 
 
 
2023
  
2022
  
2023
  
2022
 
 
 
(Unaudited)
  
(Unaudited)
 
GAAP cost of revenues
 
$
7,707
  
$
10,242
  
$
15,358
  
$
20,034
 
 Share-based compensation (1)
  
(348
)
  
(338
)
  
(879
)
  
(519
)
 Amortization of intangible assets (2)
  
(194
)
  
(152
)
  
(387
)
  
(304
)
Non-GAAP cost of revenues
 
$
7,165
  
$
9,752
  
$
14,092
  
$
19,211
 
 
                
 GAAP gross profit
 
$
17,340
  
$
22,530
  
$
30,815
  
$
44,634
 
 Gross profit adjustments
  
542
   
490
   
1,266
   
823
 
 Non-GAAP gross profit
 
$
17,882
  
$
23,020
  
$
32,081
  
$
45,457
 
 
                
 GAAP operating expenses
 
$
38,832
  
$
29,003
  
$
64,173
  
$
56,759
 
 Share-based compensation (1)
  
(2,077
)
  
(1,831
)
  
(5,014
)
  
(4,187
)
 Non-GAAP operating expenses
 
$
36,755
  
$
27,172
  
$
59,159
  
$
52,572
 
 
                
 GAAP financial and other income
 
$
985
  
$
620
  
$
1,779
  
$
867
 
 Exchange rate differences*
  
(238
)
  
(316
)  
(281
)
  
(389
)
 Expenses related to M&A activities (3)
  
14
   
-
 
  
28
   
-
 
 Non-GAAP Financial and other income
 
$
761
  
$
304
  
$
1,526
  
$
478
 
 
                
 GAAP taxes on income
 
$
225
  
$
380
  
$
515
  
$
1,102
 
 Changes in tax related items
  
(25
)
  
(50
)
  
(50
)
  
(50
)
 Non-GAAP taxes on income
 
$
200
  
$
330
  
$
465
  
$
1,052
 
 
                
 GAAP Net Loss
 
$
(20,732
)
 
$
(6,233
)
 
$
(32,094
)
 
$
(12,360
)
 Share-based compensation (1)
  
2,425
   
2,169
   
5,893
   
4,706
 
 Amortization of intangible assets (2)
  
194
   
152
   
387
   
304
 
 Expenses related to M&A activities (3)
  
14
   
-
   
28
   
-
 
 Exchange rate differences*
  
(238
)
  
(316
)
  
(281
)
  
(389
)
 Changes in tax related items
  
25
   
50
   
50
   
50
 
 Non-GAAP Net income (loss)
 
$
(18,312
)
 
$
(4,178
)
 
$
(26,017
)
 
$
(7,689
)
 
                
 GAAP Loss per share (diluted)
 
$
(0.55
)
 
$
(0.17
)
 
$
(0.85
)
 
$
(0.34
)
 Share-based compensation
  
0.06
   
0.06
   
0.16
   
0.13
 
 Amortization of intangible assets
  
0.01
   
0.00
   
0.01
   
0.00
 
 Expenses related to M&A activities
  
0.00
   
-
   
0.00
   
-
 
 Changes in taxes and headcount related items
  
-
   
-
   
-
   
0.00
 
 Exchange rate differences*
  
(0.01
)
  
(0.00
)
  
(0.01
)
  
(0.00
)
 Non-GAAP Net income (loss) per share (diluted)
 
$
(0.49
)
 
$
(0.11
)
 
$
(0.69
)
 
$
(0.21
)
 
                
Weighted average number of shares used in
                
computing GAAP diluted net loss per share
  
37,743,328
   
36,827,197
   
37,583,412
   
36,684,017
 
 
                
Weighted average number of shares used in
                
computing non-GAAP diluted net loss per share
  
37,743,328
   
36,827,197
   
37,583,412
   
36,684,017
 
 
* 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,
 
 
 
2023
  
2022
  
2023
  
2022
 
 
 
(Unaudited)
  
(Unaudited)
 
 
            
(1) Share-based compensation:
            
Cost of revenues
 
$
348
  
$
338
  
$
879
  
$
519
 
Research and development costs, net
  
754
   
844
   
1,956
   
1,689
 
Sales and marketing
  
733
   
619
   
1,770
   
1,532
 
General and administrative
  
590
   
368
   
1,288
   
966
 
 
 
$
2,425
  
$
2,169
  
$
5,893
  
$
4,706
 
 
                
(2) Amortization of intangible assets
                
Cost of revenues
 
$
194
  
$
152
  
$
387
  
$
304
 
 
 
$
194
  
$
152
  
$
387
  
$
304
 
 
                
(3) Expenses related to M&A activities
                
Financial income
 
$
14
  
$
-
  
$
28
  
$
-
 
 
 
$
14
  
$
-
  
$
28
  
$
-
 
 
 
TABLE - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
 
 
  
June 30,
    
December 31,
  
 
  
2023
    
2022
  
 
  
(Unaudited)
    
(Audited)
  
 
      
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
15,473
    
$
12,295
  
Short-term bank deposits
    
30,065
      
68,765
  
Restricted deposits
    
1,274
      
1,050
  
Available-for-sale marketable securities
    
19,061
      
4,293
  
Trade receivables, net (net of allowance for credit losses of $17,365 and $2,908 on June 30, 2023 and December 31, 2022, respectively)
    
29,445
      
44,167
  
Other receivables and prepaid expenses
    
7,023
      
7,985
  
Inventories
    
18,360
      
13,262
  
Total current assets
    
120,701
      
151,817
  
 
                
LONG-TERM ASSETS:
                
Severance pay fund
    
361
      
371
  
Operating lease right-of-use assets
    
3,937
      
5,387
  
Trade receivables, net
    
4,767
      
4,934
  
Other assets
    
1,058
      
864
  
Total long-term assets
    
10,123
      
11,556
  
 
                
PROPERTY AND EQUIPMENT, NET
    
12,149
      
14,236
  
GOODWILL AND INTANGIBLE ASSETS, NET
    
34,791
      
35,344
  
 
                
Total assets
  
$
177,764
    
$
212,953
  
 
                
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Trade payables
  
$
9,460
    
$
11,661
  
Deferred revenues
    
20,427
      
20,825
  
Short-term operating lease liabilities
    
2,103
      
2,542
  
Other payables and accrued expenses
    
21,173
      
25,573
  
Total current liabilities
    
53,163
      
60,601
  
 
                
LONG-TERM LIABILITIES:
                
Deferred revenues
    
6,384
      
7,285
  
Long-term operating lease liabilities
    
1,475
      
2,579
  
Accrued severance pay
    
1,003
      
940
  
Convertible debt
    
39,673
      
39,575
  
Total long-term liabilities
    
48,535
      
50,379
  
 
                
SHAREHOLDERS' EQUITY
    
76,066
      
101,973
  
 
                
Total liabilities and shareholders' equity
  
$
177,764
    
$
212,953
  
 
 
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,
  
 
  
2023
    
2022
    
2023
    
2022
  
 
  
(Unaudited)
    
(Unaudited)
  
 
                        
Cash flows from operating activities:
                        
Net Loss
  
$
(20,732
)
  
$
(6,233
)
  
$
(32,094
)
  
$
(12,360
)
Adjustments to reconcile net income to net cash used in operating activities:
                                
Depreciation
    
1,327
      
1,332
      
2,647
      
2,746
  
Stock-based compensation
    
2,425
      
2,169
      
5,893
      
4,706
  
Amortization of intangible assets
    
277
      
235
      
553
      
470
  
Increase in accrued severance pay, net
    
13
      
26
      
73
      
20
  
Decrease (Increase) in other assets
    
168
      
19
      
(194
)
    
436
  
Decrease (Increase) in accrued interest and amortization of premium on marketable securities
    
(166
)
    
16
      
(147
)
    
48
  
Changes in operating leases, net
    
290
      
(191
)
    
(93
)
    
(563
)
Decrease (Increase) in trade receivables
    
10,403
      
(4,082
)
    
14,889
      
(4,807
)
Decrease (Increase) in other receivables and prepaid expenses
    
300
      
141
      
1,161
      
(893
)
Decrease (Increase) in inventories
    
(1,645
)
    
591
      
(5,098
)
    
(1,164
)
Decrease in trade payables
    
(2,941
)
    
(1,433
)
    
(2,202
)
    
(937
)
Increase (Decrease) in employees and payroll accruals
    
(1,042
)
    
523
      
(2,494
)
    
(1,963
)
Increase (Decrease) in deferred revenues
    
870
      
287
      
(1,299
)
    
1,129
  
Decrease in other payables, accrued expenses and other long term liabilities
    
(923
)
    
(1,252
)
    
(1,824
)
    
(1,523
)
Amortization of issuance costs of Convertible debt
    
49
      
49
      
98
      
71
  
Net cash used in operating activities
    
(11,327
)
    
(7,803
)
    
(20,131
)
    
(14,584
)
 
                                
Cash flows from investing activities:
                                
Decrease (Increase) in restricted deposit
    
(224
)
    
260
      
(224
)
    
380
  
Redemption of (Investment in) short-term deposits
    
21,700
      
520
      
38,700
      
(25,180
)
Purchase of property and equipment
    
(290
)
    
(1,281
)
    
(560
)
    
(2,556
)
Investment in available-for sale marketable securities
    
(9,584
)
    
-
      
(18,567
)
    
-
  
Proceeds from redemption or sale of available-for sale marketable securities
    
590
      
2,872
      
3,960
      
6,030
  
Net cash provided by (used in) investing activities
    
12,192
      
2,371
      
23,309
      
(21,326
)
 
                                
Cash flows from financing activities:
                                
Proceeds from exercise of stock options
    
-
      
15
      
-
      
250
  
Issuance of convertible debt
    
-
      
-
      
-
      
39,404
  
Net cash provided by financing activities
    
-
      
15
      
-
      
39,654
  
 
                                
Increase (Decrease) in cash and cash equivalents
    
865
      
(5,417
)
    
3,178
      
3,744
  
Cash and cash equivalents at the beginning of the period
    
14,608
      
20,878
      
12,295
      
11,717
  
Cash and cash equivalents at the end of the period
  
$
15,473
    
$
15,461
    
$
15,473
    
$
15,461
  
 
 
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

 
 
 
Q2-2023
  
YTD 2023
  
FY 2022
 
Revenues geographic breakdown
                  
Americas
  
8.0
   
32
%
  
10.4
   
22
%
  
21.8
   
18
%
EMEA
  
12.7
   
51
%
  
26.1
   
57
%
  
71.2
   
58
%
Asia Pacific
  
4.3
   
17
%
  
9.7
   
21
%
  
29.7
   
24
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
Revenue breakdown by type
                        
Products
  
11.0
   
44
%
  
17.8
   
39
%
  
61.1
   
50
%
Professional Services
  
1.7
   
7
%
  
3.6
   
8
%
  
11.6
   
9
%
SECaaS (Security as a Service)
  
2.4
   
10
%
  
4.7
   
10
%
  
7.2
   
6
%
Support & Maintenance
  
9.9
   
39
%
  
20.1
   
43
%
  
42.8
   
35
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
Revenues per customer type
                        
CSP
  
20.4
   
82
%
  
37.5
   
81
%
  
98.3
   
80
%
Enterprise
  
4.6
   
18
%
  
8.7
   
19
%
  
24.4
   
20
%
 
  
25.0
   
100
%
  
46.2
   
100
%
  
122.7
   
100
%
 
                        
% of top-10 end-customers out of revenues
  
54
%
      
49
%
      
44
%
    
 
                        
Total number of full time employees (end of period)
  
684
       
684
       
749
     
 
                        
Non-GAAP Weighted average number of basic shares (in millions)
  
37.7
       
37.7
       
37.0
     
 
                        
Non-GAAP weighted average number of fully diluted shares (in millions)
  
40.1
       
40.1
       
39.5
     
 
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2-2023:
2.4
 
 
 
 
 
 
 
 
Q1-2023:
2.3
 
 
 
 
 
 
 
 
Q4-2022:
2.2
 
 
 
 
 
 
 
 
Q3-2022:
1.7
 
 
 
 
 
 
 
 
Q2-2022:
1.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 2023:
9.7
 
 
 
 
 
 
 
 
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
 
 
 
 
v3.23.2
Document and Entity Information
 6 Months Ended
Jun. 30, 2023
Cover Abstract  
Entity Registrant Name ALLOT LTD.
Entity Central Index Key 0001365767
Document Type 6-K
Document Period End Date Jun. 30, 2023
Amendment Flag false
Document Fiscal Year Focus 2023
Current Fiscal Year End Date --12-31
Document Fiscal Period Focus Q2
Entity Address, Address Line One 22 Hanagar Street
Entity Address, Address Line Two Neve Ne'eman Industrial Zone B
Entity Address, City or Town Hod-Hasharon
Entity Address, Postal Zip Code 45240
Entity Address, Country IL
v3.23.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Revenues $ 25,047 $ 32,772 $ 46,173 $ 64,668
Cost of revenues 7,707 10,242 15,358 20,034
Gross profit 17,340 22,530 30,815 44,634
Operating expenses:        
Research and development costs, net 10,752 12,480 21,246 24,510
Sales and marketing 10,522 12,220 21,409 23,909
General and administrative 17,558 4,303 21,518 8,340
Total operating expenses 38,832 29,003 64,173 56,759
Operating loss (21,492) (6,473) (33,358) (12,125)
Financial and other income, net 985 620 1,779 867
Loss before income tax expenses (20,507) (5,853) (31,579) (11,258)
Tax expenses 225 380 515 1,102
Net Loss $ (20,732) $ (6,233) $ (32,094) $ (12,360)
Basic net loss per share $ (0.55) $ (0.17) $ (0.85) $ (0.34)
Diluted net loss per share $ (0.55) $ (0.17) $ (0.85) $ (0.34)
Weighted average number of shares used in computing basic net loss per share (shares) 37,743,328 36,827,197 37,583,412 36,684,017
Weighted average number of shares used in computing diluted net loss per share (shares) 37,743,328 36,827,197 37,583,412 36,684,017
v3.23.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
CURRENT ASSETS:    
Cash and cash equivalents $ 15,473 $ 12,295
Short-term bank deposits 30,065 68,765
Restricted deposits 1,274 1,050
Available-for-sale marketable securities 19,061 4,293
Trade receivables, net (net of allowance for credit losses of $17,365 and $2,908 on June 30, 2023 and December 31, 2022, respectively) 29,445 44,167
Other receivables and prepaid expenses 7,023 7,985
Inventories 18,360 13,262
Total current assets 120,701 151,817
LONG-TERM ASSETS:    
Severance pay fund 361 371
Operating lease right-of-use assets 3,937 5,387
Trade receivables, net 4,767 4,934
Other assets 1,058 864
Total long-term assets 10,123 11,556
PROPERTY AND EQUIPMENT, NET 12,149 14,236
GOODWILL AND INTANGIBLE ASSETS, NET 34,791 35,344
Total assets 177,764 212,953
CURRENT LIABILITIES:    
Trade payables 9,460 11,661
Deferred revenues 20,427 20,825
Short-term operating lease liabilities 2,103 2,542
Other payables and accrued expenses 21,173 25,573
Total current liabilities 53,163 60,601
LONG-TERM LIABILITIES:    
Deferred revenues 6,384 7,285
Long-term operating lease liabilities 1,475 2,579
Accrued severance pay 1,003 940
Convertible Debt 39,673 39,575
Total long-term liabilities 48,535 50,379
SHAREHOLDERS' EQUITY 76,066 101,973
Total liabilities and shareholders' equity $ 177,764 $ 212,953
v3.23.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 17,365 $ 2,908
v3.23.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:        
Net Loss $ (20,732) $ (6,233) $ (32,094) $ (12,360)
Adjustments to reconcile net income to net cash used in operating activities:        
Depreciation 1,327 1,332 2,647 2,746
Stock-based compensation 2,425 2,169 5,893 4,706
Amortization of intangible assets 277 235 553 470
Increase in accrued severance pay, net 13 26 73 20
Decrease (Increase) in other assets 168 19 (194) 436
Decrease (Increase) in accrued interest and amortization of premium on marketable securities (166) 16 (147) 48
Changes in operating leases, net 290 (191) (93) (563)
Decrease (Increase) in trade receivables 10,403 (4,082) 14,889 (4,807)
Decrease (Increase) in other receivables and prepaid expenses 300 141 1,161 (893)
Decrease (Increase) in inventories (1,645) 591 (5,098) (1,164)
Decrease in trade payables (2,941) (1,433) (2,202) (937)
Increase (Decrease) in employees and payroll accruals (1,042) 523 (2,494) (1,963)
Increase (Decrease) in deferred revenues 870 287 (1,299) 1,129
Decrease in other payables, accrued expenses and other long term liabilities (923) (1,252) (1,824) (1,523)
Amortization of issuance costs of Convertible debt 49 49 98 71
Net cash used in operating activities (11,327) (7,803) (20,131) (14,584)
Cash flows from investing activities:        
Decrease (Increase) in restricted deposit (224) 260 (224) 380
Redemption of (Investment in) short-term deposits 21,700 520 38,700 (25,180)
Purchase of property and equipment (290) (1,281) (560) (2,556)
Investment in available-for sale marketable securities (9,584) 0 (18,567) 0
Proceeds from redemption or sale of available-for sale marketable securities 590 2,872 3,960 6,030
Net cash provided by (used in) investing activities 12,192 2,371 23,309 (21,326)
Cash flows from financing activities:        
Proceeds from exercise of stock options 0 15 0 250
Issuance of convertible debt 0 0 0 39,404
Net cash provided by financing activities 0 15 0 39,654
Increase (Decrease) in cash and cash equivalents 865 (5,417) 3,178 3,744
Cash and cash equivalents at the beginning of the period 14,608 20,878 12,295 11,717
Cash and cash equivalents at the end of the period $ 15,473 $ 15,461 $ 15,473 $ 15,461
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