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].

Financial Data and Key Metrics Changes - In Q4 2024, Allot Ltd. reported revenues of $24.9 million, a 2% increase year over year, while full-year revenues were $92.2 million, just 1% below 2023 levels [34][10] - The company achieved a non-GAAP net income of $5.6 million for the year, a significant recovery from a loss of $53 million in the previous year [12][37] - Non-GAAP gross margin improved to 69.7% in Q4 2024, up from 51.7% in the same quarter last year, and full-year gross margin was 70.6%, compared to 59.6% in 2023 [35][36] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment generated $4.8 million in revenue for Q4 2024, representing a 49% year-over-year increase and comprising 19% of total revenue for the quarter [34][11] - CCaaS annual recurring revenues (ARR) reached $18.2 million as of December 2024, reflecting a 43% year-over-year growth [11][34] Market Data and Key Metrics Changes - Allot Ltd. secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence and customer base [14][22] - The company reported a strong adoption of its cybersecurity solutions among service providers, indicating a growing demand for integrated security offerings [15][19] Company Strategy and Development Direction - Allot Ltd. is focusing on a security-first strategy, integrating cybersecurity and network intelligence to create a unified business structure [25][31] - The company aims to broaden its security offerings to provide comprehensive protection for customers, both on and off their networks [27][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's turnaround, highlighting a return to profitability and positive cash flow generation for the first time in several years [12][30] - The outlook for 2025 includes expectations for continued double-digit growth in CCaaS revenue and ARR, driven by new customer acquisitions and service launches [18][31] Other Important Information - Allot Ltd. reported a year-end cash position of $59 million, indicating a positive trend in cash flow management [12] - The company reduced operating expenses significantly, with non-GAAP OpEx at $15.6 million in Q4 2024, down 47% from the previous year [36] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS expansion and new service launches with existing customers [40][41] Question: What caused the increase in support and maintenance revenue? - The increase was primarily due to strong results from the smart product line and catch-up on support agreements at year-end [44][45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuations are common and depend on specific deals in each quarter, with CCaaS revenue increasing as a percentage of total revenue [49][52] Question: What is the expected growth rate for CCaaS in 2025? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [57][59] Question: How is Allot Ltd. addressing off-network security protection? - The company is investing in R&D to extend security offerings beyond the network, enhancing customer retention and satisfaction [90][91] Question: What is the outlook for the DPI legacy business? - Management expects similar revenue levels for the DPI business in 2025, with potential upside depending on new project wins [101][103] Question: What is the status of the CCaaS pipeline? - The company has a strong pipeline of opportunities for both new and existing customers, positioning itself well for growth [105][106]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $24.9 million, up 2% year over year, and full year revenues of $92.2 million, just 1% below those of 2023 [34][10] - Non-GAAP net income for the year was $5.6 million, a significant recovery from a loss of $53 million last year, with positive cash flow generation of $4.8 million for 2024 [12][37] - Gross margins improved to approximately 70%, recovering from around 57% in 2023 [11][35] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment contributed revenues of $16.5 million for the full year, up 56% year over year, with annual recurring revenues (ARR) of $18.2 million, up 43% year over year [11][34] - Product revenue was reported at $4.8 million for the December quarter, down 55% year over year, attributed to fluctuations in specific deals [34][52] Market Data and Key Metrics Changes - The company secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence [14][22] - Verizon Business reported over 30 million subscribers, representing a substantial addressable market for the company's cybersecurity solutions [21] Company Strategy and Development Direction - The company is focused on a security-first strategy, integrating cybersecurity and network intelligence to create a differentiated offering [25][31] - The organizational structure has been revamped to better support customer demands, with a regional focus on sales and customer success [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for long-term growth and profitability, citing a strong pipeline of opportunities and ongoing traction in the CCaaS segment [15][31] - The company anticipates another year of strong double-digit growth in CCaaS revenue and ARR for 2025 [18][31] Other Important Information - The company reduced operating expenses significantly, with non-GAAP operating expenses at $15.6 million, down 47% year over year [36] - The company had 504 full-time employees as of December 2024 [37] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS growth and new service launches with existing customers [41] Question: What was the driver of the increase in support and maintenance revenue? - The increase was mainly due to the smart product line and catch-up on support agreements at year-end [45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuates based on specific deals and seasonality, with CCaaS revenue increasing as a percentage of total revenue [52][53] Question: What are the expected growth rates for CCaaS? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [58] Question: How is the company planning to broaden its security offering? - The company is investing in R&D to extend security protection to customers even when they are off the network [90] Question: What is the expected performance of the DPI legacy business in 2025? - Management expects similar levels of performance but sees potential for upside based on new project wins [102] Question: Can you elaborate on the strong pipeline for CCaaS customers? - The pipeline includes both new services for existing customers and potential new customers, positioning the company well for growth [106]

Allot (ALLT) Q4 2024 Earnings Call February 25, 2025 09:00 AM ET Company Participants Kenny Green - Investor RelationEyal Harari - Chief Executive OfficerLiat Nahum - Chief Financial OfficerNehal Chokshi - Managing DirectorDavid Kanen - President Operator Ladies and gentlemen, thank you for standing by. Welcome to our fourth quarter twenty twenty four results conference call. All participants are present in listen only mode. Following management's formal presentation, instructions will be given for the ques ...

Strong Double-Digit SECaaS Growth and Significant Improvement in ProfitabilityHOD HASHARON, Israel, Feb. 25, 2025 /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 fourth quarter and full year of 2024.Financial Highlights for the Fourth Quarter Revenues of $24.9 million increased 2% year over year and 7% sequentiall ...

Core Insights - Allot Ltd. announced that its NetworkSecure offering is enhancing Verizon Business' cybersecurity capabilities to protect customers from mobile cyber threats [1][2] Company Overview - Allot Ltd. is a global provider of security-as-a-service (SECaaS) and network intelligence solutions for communication service providers and enterprises [1][3] - The company has over 500 mobile, fixed, and cloud service providers and more than 1000 enterprises using its solutions globally [3] Product Details - NetworkSecure is a monetizable, network-based solution that operates without requiring application installation by end customers [2] - It provides protection against various cyber threats, including viruses, malware, phishing, and ransomware attacks [2] - The solution features a user-friendly branded interface that offers alerts and reporting, enhancing brand loyalty [2] Strategic Collaboration - The collaboration with Verizon Business aims to enhance mobile security offerings for businesses, particularly targeting the mass market [2]