HOD HASHARON, Israel ,
Aug. 31,
2023 /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 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
|
684
|
|
684
|
|
749
|
|
|
(end of
period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
View original
content:https://www.prnewswire.com/news-releases/allot-announces-q2-2023-financial-results-and-cost-reduction-plan-301914642.html
SOURCE Allot Ltd.
