Core Viewpoint - Allot Ltd. announced a proposed public offering of its ordinary shares, with all shares being sold by the Company [1]. Group 1: Use of Proceeds - The net proceeds from the public offering are expected to be used to repay $31.41 million of principal outstanding under the Lynrock Note, which has a face value of $40 million, and the remaining balance will be allocated for general corporate purposes [2]. - Lynrock has agreed to convert the remaining $8.59 million of principal outstanding under the Lynrock Note into ordinary shares, and will enter into a lock-up agreement for 75 days following the final prospectus supplement [3]. Group 2: Offering Details - The Company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the ordinary shares sold in the public offering at the public offering price, less underwriting discounts and commissions [4]. - The public offering is being made under an effective shelf registration statement on Form F-3 filed with the SEC, declared effective on April 3, 2025 [5]. Group 3: Company Overview - Allot Ltd. is recognized as a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide [7].

[ALLOT LTD. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=1&type=section&id=ALLOT%20LTD.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Allot Ltd.'s total assets marginally increased to **$140.3 million** by March 31, 2025, with liabilities decreasing and equity rising Consolidated Balance Sheet Summary (in thousands USD) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $94,127 | $90,176 | +$3,951 | | Cash and cash equivalents | $10,061 | $16,142 | -$6,081 | | Available-for-sale marketable securities | $33,372 | $26,470 | +$6,902 | | Trade receivables, net | $19,234 | $16,482 | +$2,752 | | **Total Non-Current Assets** | $46,218 | $49,465 | -$3,247 | | **Total Assets** | **$140,345** | **$139,641** | **+$704** | | **Total Current Liabilities** | $37,877 | $35,970 | +$1,907 | | Deferred revenues (Current) | $20,013 | $17,054 | +$2,959 | | **Total Long-Term Liabilities** | $52,467 | $53,862 | -$1,395 | | Convertible debt | $40,000 | $39,973 | +$27 | | **Total Liabilities** | **$90,344** | **$89,832** | **+$512** | | **Total Shareholders' Equity** | **$50,001** | **$49,809** | **+$192** | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Allot Ltd. significantly improved Q1 2025 financial performance, with revenues up **5.8%** and net loss narrowing to **$0.33 million** Statement of Comprehensive Loss (in thousands USD, except per share data) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$23,150** | **$21,890** | **+5.8%** | | - Products | $6,465 | $7,400 | -12.6% | | - Services | $16,685 | $14,490 | +15.1% | | **Gross Profit** | **$16,047** | **$15,098** | **+6.3%** | | **Total Operating Expenses** | **$16,756** | **$17,841** | **-6.1%** | | - Research and development | $5,991 | $7,149 | -16.2% | | - Sales and marketing | $7,338 | $7,790 | -5.8% | | **Operating Loss** | **($709)** | **($2,743)** | **+74.2%** | | **Net Loss** | **($332)** | **($2,510)** | **+86.8%** | | **Net Loss Per Share (Basic & Diluted)** | **($0.01)** | **($0.07)** | **+85.7%** | | **Total Comprehensive Loss** | **($1,027)** | **($2,879)** | **+64.3%** | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased by **$0.2 million** in Q1 2025 to **$50.0 million**, primarily due to share-based compensation and option exercises Reconciliation of Shareholders' Equity for Q1 2025 (in thousands USD) | Description | Amount | | :--- | :--- | | **Balance as of January 1, 2025** | **$49,809** | | Exercise of share options and RSUs | $238 | | Share-based compensation | $981 | | Other comprehensive loss | ($695) | | Net loss | ($332) | | **Balance as of March 31, 2025** | **$50,001** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Allot generated **$1.7 million** in operating cash flow in Q1 2025, a significant turnaround, resulting in a **$6.1 million** decrease in cash and equivalents Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,685 | ($2,309) | | Net cash provided by (used in) investing activities | ($8,004) | $10,835 | | Net cash provided by financing activities | $238 | $0 | | **Increase (decrease) in cash and cash equivalents** | **($6,081)** | **$8,526** | | **Cash and cash equivalents at end of period** | **$10,061** | **$22,718** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain Allot's accounting policies, financial instruments, and key financial figures, including a **$40 million** convertible note [Note 1: Organization and Business Description](index=9&type=section&id=NOTE%201%3A%20-%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) Allot Ltd. specializes in developing and marketing network intelligence and security solutions for service providers and enterprises globally - The company's core business is providing innovative **network intelligence and security solutions** for mobile/fixed service providers and enterprises[15](index=15&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=9&type=section&id=NOTE%202%3A%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The company recognized **$7.125 million** in deferred revenue in Q1 2025 and has **$64.84 million** in remaining performance obligations - In Q1 2025, the company recognized **$7.125 million** in revenue that was included in the deferred revenue balance at the beginning of the period[20](index=20&type=chunk) - As of March 31, 2025, the company has **$64.84 million** in remaining performance obligations, with approximately **$48.56 million** expected to be recognized as revenue within the next 12 months[21](index=21&type=chunk) - The company is currently evaluating the impact of new accounting standards **ASU 2024-03 (Expense Disaggregation)** and **ASU 2023-09 (Income Tax Disclosures)**[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 5: Derivative Instruments](index=12&type=section&id=NOTE%205%3A%20-%20DERIVATIVE%20INSTRUMENTS) Allot uses derivative instruments, primarily forward contracts and options, to hedge foreign currency risks for up to two years - The company hedges future foreign currency exposures (primarily salaries and related expenses) for up to **two years** using forward contracts and options[30](index=30&type=chunk)[31](index=31&type=chunk) - As of March 31, 2025, the company had outstanding hedge transactions with a net notional amount of **$28.5 million**[33](index=33&type=chunk) - The company also uses non-designated forward contracts to mitigate currency variability on monetary assets and liabilities, with **$11.4 million** in outstanding transactions as of March 31, 2025[38](index=38&type=chunk)[39](index=39&type=chunk) [Note 9: Commitments and Contingent Liabilities](index=17&type=section&id=NOTE%209%3A%20-%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) Allot has provided **$880,000** in bank guarantees and is involved in an ongoing legal proceeding with former Netonomy Ltd. employees - The company has provided bank guarantees of approximately **$463,000** for customer performance obligations and **$417,000** for lease agreements[44](index=44&type=chunk) - A civil claim from former employees of Netonomy Ltd. is ongoing, and the potential outcome cannot be estimated[44](index=44&type=chunk)[45](index=45&type=chunk) [Note 10: Shareholders' Equity](index=17&type=section&id=NOTE%2010%3A%20-%20SHAREHOLDERS'%20EQUITY) Shareholders' equity details include RSU and option plans, with **$10.05 million** in unrecognized RSU compensation cost RSU Activity for Q1 2025 | RSU Activity | Number of Shares | | :--- | :--- | | Outstanding at beginning of year | 3,047,441 | | Granted | 922,688 | | Vested | (173,398) | | Forfeited | (92,670) | | **Unvested at end of year** | **3,704,061** | - As of March 31, 2025, unrecognized compensation cost related to RSUs is **$10.05 million**, to be recognized over a weighted average of **2.09 years**[52](index=52&type=chunk) - In Q1 2025, **40,000** share options were exercised, reducing the outstanding options to **20,000**[48](index=48&type=chunk) [Note 12: Geographic and Segment Information](index=19&type=section&id=NOTE%2012%3A%20-%20GEOGRAPHIC%20AND%20SEGMENT%20INFORMATION) Allot operates as a single segment, with Europe as its largest market (**52.7%** of Q1 2025 revenues), and two customers contributing **25%** of total revenues Revenues by Geographic Region (in thousands USD) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Europe | $12,213 | $10,206 | | Asia and Oceania | $3,740 | $5,128 | | Americas | $2,639 | $4,286 | | Middle East and Africa | $4,558 | $2,270 | | **Total** | **$23,150** | **$21,890** | - In Q1 2025, two customers accounted for **14%** and **11%** of total revenues, respectively[58](index=58&type=chunk) - For Q1 2025, revenues were split between **network intelligence solutions (60%)** and **security solutions (40%)**[58](index=58&type=chunk) [Note 14: Convertible Notes](index=21&type=section&id=NOTE%2014%3A%20-%20CONVERTIBLE%20NOTES) The company has a **$40 million** senior unsecured convertible note with Lynrock Lake Master Fund LP, extended to February 2026 - On February 14, 2022, the company issued a **$40,000 thousand** convertible note to Lynrock Lake Master Fund LP[62](index=62&type=chunk) - The note has an initial conversion price of **$10.30 per share**, and its maturity was extended to **February 14, 2026**[62](index=62&type=chunk) - Amortization expenses related to the note's issuance costs were **$27 thousand** for Q1 2025, compared to **$50 thousand** for Q1 2024[65](index=65&type=chunk)

Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to successful investments if supported by strong fundamentals and positive earnings revisions [1][2]. Group 1: Stock Performance - Allot Communications (ALLT) has shown a significant price increase of 54% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 2.6% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, ALLT is trading at 90% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - ALLT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with strong fundamentals that can maintain their upward momentum [3]. - The article suggests that investors should consider other stocks that pass through this screening process for potential investment opportunities [8].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum [1][2]. Group 1: Stock Performance - Allot Communications (ALLT) has shown a solid price increase of 34.5% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 32.5% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, ALLT is trading at 80.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - ALLT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like ALLT that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are several other stocks passing through this screen, providing additional investment opportunities [8].

Group 1: Company Overview - Allot Communications (ALLT) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Group 2: Price Performance - Over the past week, ALLT shares have increased by 30.28%, significantly outperforming the Zacks Technology Services industry, which rose by 2.61% [6] - In a longer time frame, ALLT shares have risen by 20.41% over the past quarter and an impressive 247.49% over the last year, while the S&P 500 has moved -2.56% and 11.12% respectively [7] Group 3: Trading Volume - The average 20-day trading volume for ALLT is 414,815 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, one earnings estimate for ALLT has increased, raising the consensus estimate from $0.06 to $0.11 for the full year, with no downward revisions [10] - For the next fiscal year, one estimate has also moved upwards, indicating positive sentiment regarding future earnings [10] Group 5: Conclusion - Considering the strong price performance, positive earnings outlook, and high momentum score, ALLT is positioned as a promising investment opportunity [12]

Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [19] - Non-GAAP net income was $800,000, compared to a net loss of $900,000 in the same quarter last year [21] - Positive operating cash flow of $1.7 million was achieved, with cash and short-term investments totaling $60.7 million at the end of the quarter [21] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [19] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [6][19] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [20] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in Q1, with significant growth expected from their new mobile service [30] - The company is experiencing strong traction in partnerships with major telecom operators like Vodafone and Verizon, which are expected to drive future growth [11][52] Company Strategy and Development Direction - The company is focused on a "Security First" strategy, aiming to enhance cybersecurity offerings and expand partnerships with telecom providers [5][8] - There is a strong emphasis on converting a growing pipeline of opportunities into new partnerships and agreements, particularly in the CCaaS and smart product segments [9][15] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity services [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to increase by around 50% or more year-over-year [18] - The rise of AI and increasing demand for cybersecurity solutions are seen as key drivers for future growth [17] - Management acknowledged the competitive nature of the market but remains confident in the company's ability to capitalize on emerging opportunities [41] Other Important Information - The company has made significant progress in expanding its partnership with Verizon Business, which now includes a broader customer base [9][10] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a robust pipeline of opportunities [14][15] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, so minimal contribution was expected in Q1, with significant growth anticipated in Q2 [25][26] Question: What was the big driver for CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly with Vodafone and other carriers [27][28] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, various factors could influence the final outcome [29] Question: Did Verizon become the largest contributor to CCaaS revenue? - Yes, Verizon's initial launch of mobile services and traction from fixed wireless access made it the top contributor [30] Question: Are there opportunities to cross-sell CCaaS solutions to smart business customers? - Management confirmed that synergies exist between the two business units, allowing for potential cross-selling opportunities [34] Question: Are there large deals in the pipeline? - Management noted several 8-figure deals in the pipeline, driven by both existing and new projects [45][48] Question: How is the partnership with Vodafone progressing? - Some revenues have already been recognized, with expectations for continued growth from the partnership [52][53]

Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [21] - Non-GAAP net income was $800,000, compared to a loss of $900,000 in the first quarter of the previous year [23] - Positive operating cash flow of $1.7 million was reported, with cash and short-term investments totaling $60.7 million at the end of the quarter [23] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [21] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [7][21] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [22] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in the first quarter, driven by the launch of their mobile service and existing fixed wireless access customers [11][32] - The company is experiencing strong traction in partnerships with major telecom operators, including Vodafone and Verizon, which are expected to drive future growth [11][19] Company Strategy and Development Direction - The company is focused on a "security first" strategy, aiming to enhance growth and profitability through its Security as a Service solutions [6][18] - There is a strong emphasis on expanding partnerships and converting a robust pipeline of opportunities into new agreements [9][19] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity offerings [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to increase by around 50% or more year-over-year [19] - The company is confident in its ability to capitalize on the growing demand for cybersecurity solutions, particularly in the consumer and SMB segments [18] - Management acknowledged the competitive nature of the market but highlighted the company's strong position and innovative offerings [41] Other Important Information - The company has made significant progress in expanding its pipeline for both CCaaS and smart products, with several multimillion-dollar agreements signed [14][52] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a strong pipeline of opportunities [14][52] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, resulting in minimal contribution for Q1, with expectations for significant growth in Q2 [27][28] Question: What was the driver for the significant CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly related to Vodafone and other previous announcements [29] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, there are uncertainties due to reliance on service providers' marketing efforts [30][31] Question: Is there potential for cross-selling CCaaS solutions to smart business customers? - Management confirmed that there are synergies and potential for cross-selling between smart products and CCaaS solutions [37] Question: Are there large deals in the pipeline for the smart product line? - Management confirmed the presence of several 8-figure deals in the pipeline, driven by both existing and new projects [50][52] Question: How is the partnership with Vodafone progressing? - Management noted that some revenues have already been recognized from the Vodafone agreements, with expectations for continued growth [56][57]

Financial Data and Key Metrics Changes - The company reported a revenue of $23.2 million for Q1 2025, representing a 6% year-over-year increase [22] - Non-GAAP net income was $800,000, compared to a net loss of $900,000 in Q1 2024 [24] - Positive operating cash flow of $1.7 million was reported for the quarter, with cash and short-term deposits totaling $60.7 million at the end of Q1 2025 [24] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [22] - CCaaS annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [7][22] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [23] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in Q1 2025, driven by the launch of their mobile service and existing fixed wireless access customers [12][32] - The company is experiencing strong traction in partnerships with major telecom operators, including Vodafone and Verizon, which are expected to drive future growth [10][12] Company Strategy and Development Direction - The company is focused on a "Security First" strategy, aiming to enhance cybersecurity offerings and expand partnerships with telecom operators [6][19] - There is a strong emphasis on converting a growing pipeline of opportunities into new partnerships and agreements, particularly in the CCaaS and smart product segments [10][16] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity services [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to grow by around 50% or more year-over-year [20] - The company is confident in its ability to capitalize on the increasing demand for cybersecurity solutions, particularly in the consumer and SMB segments [19] - Management highlighted the importance of execution in translating the growing pipeline into actual business [50] Other Important Information - The company has made significant progress in expanding its partnership with Verizon Business, which now includes a broader customer base for its cybersecurity solutions [10][12] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a robust pipeline of opportunities [15][16] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, resulting in minimal contribution for Q1, with expectations for significant growth in Q2 [27][28] Question: What was the driver for the significant CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly with Vodafone and other carriers, which are starting to contribute to revenue [29] Question: Is there a possibility that CCaaS ARR growth could be less than 50%? - Management acknowledged potential variability due to reliance on service providers' marketing efforts but expressed confidence in achieving around 50% growth [30][31] Question: Did Verizon become the largest contributor to CCaaS revenue? - Yes, Verizon's initial launch of mobile services and traction from fixed wireless access made it the number one account for CCaaS revenue [32] Question: Are there opportunities to cross-sell CCaaS solutions to smart business customers? - Management confirmed that there are synergies and potential for cross-selling between smart products and CCaaS solutions [36] Question: Will Verizon's bundling of security services influence other operators? - Management believes that Verizon's success will likely prompt competitors to consider similar bundling strategies [43][44] Question: Can you provide updates on the partnership with Vodafone? - Management confirmed that revenues from Vodafone agreements are already contributing, with expectations for further growth as the agreements are fully realized [54][55]

Core Viewpoint - Allot Ltd. reported solid financial results for Q1 2025, highlighting a 54% year-over-year increase in SECaaS Annual Recurring Revenue (ARR) and a positive outlook for continued growth in the cybersecurity sector [1][3]. Financial Highlights - Total revenues for Q1 2025 were $23.2 million, a 6% increase from $21.9 million in Q1 2024 [4][8]. - Gross profit on a GAAP basis was $16.0 million, with a gross margin of 69.3%, up from $15.1 million and a gross margin of 69% in the same quarter last year [4]. - Non-GAAP gross profit was $16.3 million, maintaining a gross margin of 70.4%, compared to $15.4 million in Q1 2024 [5]. - The operating loss on a GAAP basis was reduced to $0.7 million from $2.7 million in Q1 2024 [5][6]. - Net loss on a GAAP basis was $0.3 million, or $0.01 per share, an improvement from a net loss of $2.5 million, or $0.07 per share, in Q1 2024 [6]. SECaaS Performance - SECaaS revenues grew by 49% year-over-year to $5.1 million [8]. - The SECaaS ARR as of March 2025 reached $21.2 million, reflecting a 54% increase year-over-year [8][25]. - The company anticipates SECaaS revenue and ARR to achieve strong year-over-year increases of around 50% or more for the full year 2025 [3]. Cash Flow and Financial Position - Operating cash flow for the quarter was positive at $1.7 million [7]. - Cash and cash equivalents, along with short-term deposits, totaled $60.7 million as of March 31, 2025, an increase of $2 million from $58.8 million at the end of 2024 [9]. Customer and Market Insights - The company signed several multi-million dollar agreements with new customers for its Smart product and noted strong interest in its Tera III product from tier-1 customers [3]. - Verizon Business launched a new mobile plan that includes Allot's SECaaS service, indicating the growing importance of cybersecurity solutions in the telecommunications sector [3].

Core Viewpoint - Allot Ltd. is expected to report its first-quarter 2025 results on May 12, but faces potential challenges that may impact revenue and earnings due to timing issues related to deal closures and revenue recognition [1][2]. Group 1: Q1 Expectations - Allot's product revenues experienced a significant 55% year-over-year decline in Q4 2024, primarily due to delays in deal closures [2]. - The Zacks Consensus Estimate for Allot's Q1 2025 revenues is $20.2 million, indicating a 7.7% year-over-year decline, with a projected loss per share of 5 cents compared to a loss of 3 cents per share in the previous year [3]. Group 2: Earnings Prediction Model - The current model does not predict an earnings beat for Allot, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), which does not favor an earnings surprise [4]. Group 3: Recent Earnings of Competitors - Equifax Inc. reported adjusted earnings of $1.53 per share, exceeding estimates by 9.3% and showing a 2% increase year-over-year, with total revenues of $1.4 billion, surpassing estimates by 1.9% [5]. - Fiserv, Inc. reported mixed results with adjusted earnings per share of $2.14, beating estimates by 2.9% and increasing 13.8% year-over-year, while adjusted revenues of $4.8 billion missed estimates by 1.6% but grew 5.5% year-over-year [6].