Allot Communications (ALLT) Falls After Warning for Q2 and FY15

Allot Communications (NASDAQ: ALLT) is indicated to open sharply lower Monday (-9.6%) after the company announced preliminary second quarter revenue of between $21-$24 million, which was well below the $30.4 million expected on average by Wall Street analysts.

The Company also expects to generate a net operating loss in the quarter. Allot's book to bill ratio in the second quarter was above 1 and cash reserves comprise of cash, cash equivalents, bank deposits and marketable securities as of June 30, 2015 were approximately $120 million.

"We are disappointed by the second quarter preliminary results and attribute this weakness to lower bookings in the first quarter as well as delays in closing certain deals during the second quarter". Said Andrei Elefant, CEO and President of Allot Communications. "During the second quarter, our bookings rebounded and included three wins totaling approximately $8 million from new Tier-1 mobile operators. We expect initial revenue recognition from these wins during the second half of 2015."

The company sees FY 2015 between $100-$105 million, which is below the consensus of $126.34 million.

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