Zacks_Analysts' Blog : Allot Loss Narrows in FY2009 - Analyst Blog

Allot Communications Ltd (ALLT) reported fourth quarter of 2009 revenue of $11.5 million, a 21% increase from $9.6 million of revenues reported in the fourth quarter of 2008, and a 6% increase from $10.8 million of revenues reported for the third quarter of 2009.

On a GAAP basis, net loss for the fourth quarter of 2009 was $1.5 million, or $0.07 per share. This compares with a net income of $1.0 million, or $0.05 per share in the fourth quarter of 2008, and a net loss of $2.3 million, or $0.10 per share in the third quarter of 2009.

For 2009, revenues reached $41.8 million, representing a 13% increase over $37.1 million of revenues in 2008. On a GAAP basis, net loss in 2009 totaled $7.7 million, or $0.35 per share compared with a net loss of $16.5 million, or $0.75 per share in 2008.

The company successfully undertook the largest deployment in its history with a global Tier 1 mobile operator, with total orders as at the end of the year reaching $17 million. During the quarter, the company concluded 9 large deals with service providers, of which 4 represented new customers and 5 represented expansion deals.

Allot introduced two new platforms during the quarter, the AC-1400 and AC-3000, which address the needs of the Tier 2/3 and large enterprise markets. Service Gateway Sigma now supports 75 Gbps and may be clustered for up to 360 Gbps as verified by the independent Tolly Group.

At the end of 2009, cash, cash equivalents, deposits and investments in marketable securities totaled $53.3 million.

The company also announced that Doron Arazi, the company’s Chief Financial Officer, will be leaving Allot to pursue other interests. Mr. Arazi will continue as Chief Financial Officer through a transition period until early April, after the date on which the company expects to file its annual report on Form 20-F for the 2009 fiscal year. The company has commenced the search for a new Chief Financial Officer.

Allot Communications Ltd. is a leading provider of intelligent IP service optimization solutions for fixed and mobile broadband operators and large enterprises. Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value-added Internet services. Major competitors are Blue Coat Systems Inc (BCSI) and Cisco Systems Inc (CSCO).