Allot (ALLT) Reports Q1 Revenue of $31.9M, Net Loss of $3.5M, Sees FY22 Revenue of $135M-$140M

Allot Ltd. (NASDAQ: ALLT) today announced its unaudited first quarter 2022 financial results.

First Quarter 2022 Financial Highlights

• First quarter revenues were $31.9 million, up 2% year-over-year;
• Gross margin on a non-GAAP basis was 70%;
• GAAP operating loss was $5.7 million and non-GAAP operating loss was $3 million;
• GAAP net loss was $6.1 million and non-GAAP net loss was $3.5 million.

Financial Outlook

For 2022, management expects:

• Revenues to be between $135-140 million;
• Additional recurring security deals to be executed, providing incremental MAR** of more than $180 million (note amended MAR definition adopting a more conservative approach referring to applicable customer segments only);
• December 2022 total ARR* including SECaaS ARR* and Support & Maintenance ARR* to be between $53-$55 million, representing approximately 15% year-over-year growth versus 2021 at the midpoint;
• December 2022 SECaaS ARR* to be at least $12 million;
• Recurring security revenue to be at least $7 million.

Management Comment

Erez Antebi, President & CEO of Allot, commented: "While our first quarter results met our expectations, during the last few months, we faced headwinds as a result of delays in SECaaS service launches, the war in Europe and negative foreign exchange rates fluctuation. As a result, we have adjusted our forecast for the year to reflect a delay in adoption. Looking at the number of CSPs interested in SECaaS services and the growing need for such a protection, we plan to continue our investments and remain confident in our strategic direction and our long-term success."

Q1 2022 Financial Results Summary

Total revenues for the first quarter of 2022 were $31.9 million, an increase of 2% compared to $31.2 million in the first quarter of 2021.

Gross profit on a GAAP basis for the first quarter of 2022 was $22.1 million (gross margin of 69.3%), a 2% improvement compared with $21.6 million (gross margin of 69.2%) in the first quarter of 2021.

Gross profit on a non-GAAP basis for the first quarter of 2022 was $22.4 million (gross margin of 70.3%), a 3% improvement compared with $21.9 million (gross margin of 70.1%) in the first quarter of 2021.

Net loss on a GAAP basis for the first quarter of 2022 was $6.1 million, or $0.17 per basic share, compared with a net loss of $4.0 million, or $0.11 per basic share, in the first quarter of 2021.

Net loss on a non-GAAP for the first quarter of 2022 was $3.5 million, or $0.10 per basic share compared with a non-GAAP net loss of $2.2 million, or $0.06 per basic share, in the first quarter of 2021.

Cash and investments as of March 31, 2022 totaled $117.1 million, compared to $85.7 million as of December 31, 2021.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its first quarter 2022 earnings results today, May 17, 2022 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-642-5032, UK: 0-800-917-5108, Israel: +972-3-918-0609

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm

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