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TICKERS: ALLT

Shares of Network Security Firm Allot Rise 25% on Annual Earnings

Source:

Network intelligence and security company Allot Ltd.'s shares traded higher after reporting fourth quarter and full-year 2019 earnings.

Israel-based global enterprise network intelligence and security solutions provider Allot Ltd. (ALLT:NASDAQ), today announced its unaudited Q4/19 and FY/19 financial results.

The company highlighted in the report that Q4/19 revenues were $30.6 million, a 14% increase compared to Q4/18, and full-year 2019 revenues were up 15% y-o-y to $110.1 million. The firm stated that its order backlog increased by $69 million to $138 million at year-end 2019, compared with $69 million at year-end 2018.

The firm advised that it expects to close additional recurring security revenue deals in 2020 and that it estimates that full-year 2020 revenues will grow to between $135 and $140 million.

The company's President & CEO Erez Antebi commented, "We are very pleased with our performance in 2019. Our Visibility & Control business continued to perform well due to ongoing solid execution. We are also happy with our performance in the security space and we had a successful year bringing on several new operators to our security offerings, some of them in a revenue share arrangement. We believe that the recurring revenue and growth we gain from these deals will have a significantly positive long-term impact on our future. We expect to win further such deals in the coming year."

The company reported that total revenues for Q4/19 increased by 14% to $30.6 million, compared to $26.9 million in Q4/18. The firm posted a GAAP net loss of $1.7 million, or $0.05 per basic share in Q4/19, compared with a net loss of $1.8 million, or $0.05 per basic share, in Q4/18.

Total revenues increased 15% in FY/19 to $110.1 million, compared to $95.8 million in FY/18. For FY/19, the company reported an improved GAAP net loss of $8.7 million, or $0.25 per basic share, compared with a net loss of $10.4 million, or $0.31 per basic share in FY/18.

CEO Antebi added, "Looking out to 2020, we expect accelerated top-line growth. While we continue to invest in our offerings and in sales and marketing, our expenses should grow at a slower rate than our revenue and subsequently we expect to reach profitability in the last quarter of 2020. We look forward to continued growth as we successfully execute on our strategy."

Allot is a network intelligence and security company headquartered in Hod Hasharon, Israel. The firm offers network intelligence and security solutions for service providers and enterprises worldwide. The company provides solutions for network and application analytics, traffic control and shaping, network-based security services worldwide. The firm indicated that its multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises.

Allot began the day with a market capitalization of approximately $333.6 million with around 34.35 million shares outstanding. ALLT shares opened 20% higher today at $11.65 (+$1.94, +19.98%) over yesterday's $9.71 closing price and recorded a new 52-week high price this afternoon of $12.75. The stock has traded today between $11.43 and $12.75 per share and is currently trading at $12.39 (+$2.68, +27.60%).

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