Core Viewpoint - Companies with favorable efficiency levels are more likely to attract investors due to their expected impressive returns, which are believed to be positively correlated with price performance [1] Efficiency Ratios - The efficiency ratio is a key indicator of a company's financial health, analyzing how effectively a company utilizes its assets and liabilities [1] - Popular efficiency ratios to consider when selecting stocks include Receivables Turnover, Asset Utilization, Inventory Turnover, and Operating Margin [2][3][4][5] Receivables Turnover - This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection of accounts receivable [2] Asset Utilization - This ratio indicates how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] Inventory Turnover - This ratio assesses a company's ability to manage inventory relative to its cost of goods sold, with high values indicating efficient inventory management [4] Operating Margin - This measure reflects a company's ability to control operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - A favorable Zacks Rank (Zacks Rank 1) is included in the screening process to enhance profitability [6] - The screening criteria narrowed down over 7,906 stocks to eight, focusing on companies with efficiency ratios above industry averages [7] Selected Stocks - The top five stocks identified through the screening process include: - **Allot (ALLT)**: Provider of network intelligence and security solutions, with an average four-quarter positive earnings surprise of 106.7% [8] - **Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)**: Provides public water and sewage services, with an average four-quarter positive earnings surprise of 30.8% [10] - **Lindsay (LNN)**: Offers water management and road infrastructure products, with an average four-quarter positive earnings surprise of 17.9% [11] - **Equity Bancshares (EQBK)**: A bank holding company providing financial services, with an average four-quarter positive earnings surprise of 17.3% [12] - **Griffon (GFF)**: Engaged in manufacturing consumer and professional products, with an average four-quarter positive earnings surprise of 14.7% [13]

Core Viewpoint - Allot Communications (ALLT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Allot Communications is projected to earn $0.06 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 50% [8]. - Over the past three months, the Zacks Consensus Estimate for Allot Communications has risen by 57.1% [8]. Investment Implications - The upgrade to Zacks Rank 1 suggests that Allot Communications is positioned in the top 5% of Zacks-covered stocks, indicating strong potential for price appreciation in the near term [10]. - Rising earnings estimates and the corresponding rating upgrade imply an improvement in the company's underlying business, which could lead to increased investor interest and stock price growth [5][10].

Company Overview - Allot Ltd. is a leading global provider of innovative security-as-a-service (SECaaS) and network intelligence solutions for communication service providers and enterprises [1][3] - The company offers converged cybersecurity solutions, network and application analytics, and traffic control services, deployed by over 500 service providers and more than 1000 enterprises globally [3] Upcoming Event - Allot will participate in the 15th Annual LD Micro Invitational investor conference in New York on April 9th and 10th, 2025 [1] - CEO Eyal Harari will present to investors on April 10 from 12:00 to 12:25 PM in Track 1, with opportunities for one-on-one meetings available throughout the day [2] Investor Engagement - Interested parties can register to watch the presentation virtually through a link on Allot's website [2] - Management is available for one-on-one meetings, and requests can be made via LD Micro representatives or the investor relations team [2]

Group 1 - Allot Ltd. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission [1] - The annual report includes audited financial statements and is accessible on the SEC's website and the company's investor relations website [2] - The company offers to deliver a hard copy of its annual report, including complete audited financial statements, free of charge to shareholders upon request [2] Group 2 - Allot Ltd. is a provider of innovative converged cybersecurity solutions and network intelligence for service providers and enterprises globally [3] - The company's solutions are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises [3] - Allot's network-native security-as-a-service solution is utilized by many millions of subscribers worldwide [3]

Financial Performance - The company reported a net loss of $6 million in 2024 and $63 million in 2023, continuing a trend of losses over the past ten years[39]. - Total revenues for the year ended December 31, 2024, were $92 million, a decrease of 1% compared to the prior year[159]. - The company recorded a credit loss of $23 million in 2023 related to sales to resellers in Africa and a customer in America, which adversely impacted its results of operations and share price[54]. - The company has net operating loss carry forwards for Israeli tax purposes amounting to approximately $136.5 million as of December 31, 2024[132]. - The company experienced an increase in gross margin in 2024 compared to 2023 due to efficiency and cost reduction processes[215]. Revenue Sources - In 2024, 18% of the company's revenues were generated from its Security-as-a-Service (SECaaS) offering, up from 11% in 2023 and 6% in 2022[41]. - Sales of network intelligence solutions accounted for 64% of total revenue in 2024, highlighting the dependency on these products for revenue generation[55]. - In 2024, 36% of revenues were from security solutions, while 64% were from network intelligence solutions[159]. - Approximately 43% of revenues in 2024 were derived from third-party channel partners, indicating reliance on these partners for marketing and sales[72]. - Revenue breakdown by region in 2024: Europe 38% ($35,140 thousand), Asia and Oceania 26% ($24,010 thousand), Middle East and Africa 21% ($18,881 thousand), and Americas 15% ($14,164 thousand)[172]. Market and Competition - The company faces significant competition in the networking technology and security markets, which may hinder its ability to grow revenues and maintain market share[42]. - The company anticipates no additional growth in the enterprise market due to trends such as public cloud adoption and the transition to 5G networks[52]. - The company competes in a rapidly evolving networking technology market, facing significant competition from router and switch infrastructure companies, particularly as 5G networks expand[190]. Strategic Initiatives - The company plans to continue investing heavily in research and development and sales and marketing to drive future growth[39]. - The company aims to expand its global reach and enter new markets to enhance its presence and support customers[47]. - The company is transitioning to a security-first strategy, integrating cybersecurity and network intelligence into a unified business unit[157]. - The company has cultivated a strategic focus on the expansion and advancement of its SECaaS product offerings[151]. Operational Risks - The ongoing geopolitical situation, including the invasion of Ukraine, poses risks to the company's operations and financial condition[38]. - The complexity of solutions for larger service providers is increasing, leading to greater operational risks and potential project failures[60]. - The company relies on a limited number of subcontractors for the integration, assembly, and support of its Service Gateway platform, which poses risks of delays and quality control issues[74]. - Certain hardware and software components are sourced from single or limited suppliers, which could lead to lost sales if these sources fail to meet supply requirements[75][77]. Regulatory and Compliance Issues - The company faces legal and regulatory risks related to international trade, including compliance with economic sanctions and export control laws, which could adversely affect its reputation and result in penalties[79]. - Compliance with data privacy laws, such as the GDPR and CCPA, has increased the company's administrative burden and may lead to significant fines for violations[90][89]. - The company may need to invest significantly in adapting its products to comply with new data protection laws, potentially delaying sales cycles and revenue recognition[93]. Intellectual Property - The company’s ability to protect its intellectual property is critical, as the enforceability of non-compete agreements may be limited in certain jurisdictions[94]. - The company may face claims of intellectual property infringement by third parties, which could result in litigation and substantial expenses[105]. - As of December 31, 2024, the company had a patent portfolio consisting of 25 patent families, including 32 in-force U.S. patents and 29 in-force patents in Canada, Israel, and other jurisdictions[96]. Cybersecurity and IT Risks - The company has experienced cyber-attacks in the past, although they have not materially affected operations or financial condition[100]. - The company relies on its IT systems to manage sensitive data, and any compromise could disrupt operations and lead to loss of sensitive information[101]. - The company cannot guarantee that its current IT systems are fully protected against third-party intrusions, which could lead to significant disruptions[104]. Human Resources and Recruitment - The ongoing increase in salaries for research and development personnel could adversely affect recruitment and the ability to meet market demands[61]. - As of December 31, 2024, the technical staff consisted of 138 employees, including 59 technical support personnel and 68 deployment and professional services engineers[183]. Grants and Funding - In 2023, the company recognized non-royalty-bearing grants totaling $0.6 million, representing 1% of gross research and development expenditures[134]. - In 2024, the company recognized non-royalty-bearing grants totaling $0.5 million, representing 2% of gross research and development expenditures[134]. - The company was eligible to receive grants constituting up to 53% of certain research and development expenses over the past three years[134]. Customer Base and Sales Strategy - The company’s diversified end-customer base includes service providers, enterprises, and government entities, impacting sales cycles and deployment speed[223]. - The sales cycle for large and medium service providers typically lasts between 12 to 24 months for initial network deployment[176]. - The company aims to focus on larger customers with minimum guaranteed revenues to achieve profitability sooner[177].

Core Insights - Allot Ltd. has successfully deployed its Network Protection and Deep Network Intelligence solutions for Rakuten Mobile as part of their transition to a cloud-native platform, Rakuten Symphony [1][3] - The collaboration between Allot and Rakuten Mobile has been highlighted as a smooth migration process, showcasing Allot's capabilities in network protection and management [2][3] Group 1: Deployment and Technology - Allot's solutions are now fully containerized and operational within the commercial Rakuten network, marking a significant step in the migration from a Network Functions Virtualization (NFV) architecture [1][3] - The Allot Smart NetProtect solution utilizes machine learning and artificial intelligence to detect and mitigate network anomalies and attacks, ensuring service quality and protecting the network's reputation [3] Group 2: Partnership and Support - Rakuten Mobile expressed appreciation for Allot's efforts in facilitating a seamless migration, emphasizing the importance of Allot's comprehensive solutions in supporting their cloud-native platform [2] - Allot's role as a close technology partner during the migration process has been acknowledged, demonstrating its capability to support top-tier communications service providers [3] Group 3: Company Overview - Allot Ltd. is recognized as a leading provider of innovative cybersecurity solutions and network intelligence, serving over 500 service providers and more than 1000 enterprises globally [4] - The company's solutions enhance value for customers through network-native cybersecurity services, analytics, and traffic management [4]

Hod Hasharon, Israel, March 06, 2025 (GLOBE NEWSWIRE) -- 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 that its management will be meeting with investors and presenting at the 37th Annual Roth Conference taking place between March 16 and 18, 2025. Allot’s CEO, Eyal Harari will be attending and meeting one-on-one with investors on Monday March 17. For more information ...

Group 1 - The core viewpoint of the article highlights Allot's strong Q4 performance, indicating a successful turnaround of the business [1] - Allot reported a quarterly EPS of $0.05, demonstrating profitability in the latest quarter [1] - The company achieved positive free cash flow of $4 million, reflecting improved financial health [1] - SECaaS revenue growth reached approximately 50%, showcasing significant expansion in this segment [1]

Core Viewpoint - Allot Communications (ALLT) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Allot Communications indicates expected earnings of $0.06 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 50% [9]. - Over the past three months, the Zacks Consensus Estimate for Allot Communications has risen by 57.1%, showcasing a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, which is tracked through the consensus of EPS estimates from sell-side analysts [2]. - The Zacks Rank system categorizes stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions, which positions Allot Communications favorably for potential market-beating returns [10][11].

Allot Ltd. (NASDAQ:ALLT) Q4 2024 Earnings Conference Call February 25, 2025 9:00 AM ET Company Participants Kenny Green - EK Investor Relations Eyal Harari - Chief Executive Officer Liat Nahum - Chief Financial Officer Conference Call Participants Nehal Chokshi - Northland Capital Markets David Kaynan - Kaynan Wealth Management Operator Ladies and gentlemen, thank you for standing by. Welcome to Allot Ltd. Fourth Quarter 2024 Results Conference Call. All participants are present in listen-only mode. Followi ...