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]

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, providing zero-touch, clientless operation [2] - The solution protects against various cyber threats, including viruses, malware, phishing, and ransomware attacks [2] - It features a user-friendly branded interface that offers alerts and reporting, enhancing brand loyalty among customers, particularly small and medium-sized businesses (SMBs) [2] Strategic Collaboration - The collaboration between Allot and Verizon Business aims to enhance mobile security offerings for businesses, addressing a mass market need [2]

Core Viewpoint - Allot Ltd. is set to report its fourth-quarter 2024 results on February 25, with expectations of slight revenue growth and a potential breakeven bottom line compared to a loss in the previous year [1][5]. Revenue Expectations - The Zacks Consensus Estimate for Allot's Q4 2024 revenues is $24.4 million, indicating a slight year-over-year increase [3]. - The growth in Security as a Service (SECaaS) revenues is anticipated due to an expanding customer base and increased adoption of security solutions among subscribers [3][4]. Earnings Performance - Allot has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 28.2% [2]. - The consensus mark for this quarter is breakeven, contrasting with a loss of 43 cents per share reported a year ago [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Allot, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].

Company Overview - Allot is an Israeli company established in 1996, specializing in security solutions for mobile, fixed, and cloud service providers globally [1] - The company is currently transitioning to a Software-as-a-Service (SaaS) model [1] Investment Position - The analyst has a beneficial long position in Allot shares, indicating confidence in the company's future performance [2]

Core Viewpoint - Allot Ltd. will host a conference call to discuss its fourth quarter and full year 2024 results on February 25, 2025, at 9:00 AM ET, with unaudited financial results to be published prior to the call [1][2]. Company Overview - Allot Ltd. is a leading provider of innovative network-native cybersecurity and network intelligence solutions for communication service providers (CSPs) and enterprises [3]. - The company's solutions are deployed globally, enhancing value for customers through services such as network-native cybersecurity, network and application analytics, and traffic control [3]. - Allot's multi-service platforms are utilized by over 500 mobile, fixed, and cloud service providers, as well as over 1000 enterprises, with its security-as-a-service solution serving millions of subscribers worldwide [3].