Oppenheimer Reiterated Perform Rating on Allot Communications (ALLT) Expecting Mobile Security to Drive VAS

Oppenheimer maintained a Perform rating on Allot Communications (NASDAQ: ALLT) as mobile security is expected to become a key driver to the company's value added services (VAS). VAS is now accounting for as much as ~40% of bookings for the company. Analyst Ittai Kidron expects revenue from this area to grow at ~50% YoY for the foreseeable future.

Kidron commented, "In recent years Allot has evolved its core DPI platform into a value added services (VAS) engine with parental control and security as new features. Progress has been solid thus far with VAS now accounting for as much as ~40% of bookings for the company. We believe that mobile security is a key VAS driver and expect revenue from this area to grow at ~50% YoY for the foreseeable future. Tier 1 customers are already at hand and trial activity is heavy. We expect the company to show more progress in this area in 2016-2017 as trial activity moves into deployment and as the company refines its software licensing program (from perpetual to term) to better capture upside. Maintain Perform."

For an analyst ratings summary and ratings history on Allot Communications click here. For more ratings news on Allot Communications click here.

Shares of Allot Communications closed at $5.22 yesterday.

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