Form 6-K Allot Ltd. For: May 17

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2022

Commission File Number: 001-33129

ALLOT LTD.

 (Translation of registrant’s name into English)

22 Hanagar Street

Neve Ne'eman Industrial Zone B

Hod-Hasharon 45240

Israel

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ⌧             Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   ☐          No   ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

EXPLANATORY NOTE

On May 17, 2022, Allot Ltd. issued a press release announcing the First Quarter 2022 Financial Results.

A copy of the press release entitled “Allot Announces First Quarter 2022 Financial Results” is attached to this Form 6-K as Exhibit 99.1.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Allot Ltd. By: /s/ Ziv Leitman           Ziv Leitman Chief Financial Officer

Date: May 17^th, 2022

EXHIBIT INDEX

The following exhibit has been filed as part of this Form 6-K:

Exhibit Number

Description

---

 

Allot Announces First Quarter 2022 Financial Results

Hod Hasharon, Israel – May 17, 2022 - 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 first quarter 2022 financial results.

 

 First Quarter 2022 Financial Highlights

 

 

 

 

 

 

For 2022, management expects:

 

 

 

 

 

 

 

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.”

 

 

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:

 

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1,000 enterprises. Our industry leading network-based security as a service solution is already used by over 20 million subscribers in Europe. Allot. See. Control. Secure.

 

For more information, visit www.allot.com

 

* Total ARR - Support & Maintenance ARR (measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4) and SECaaS ARR (measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected revenues in the current month of December and multiplied by 12).

 

** MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the applicable customer segments only subscribers, as estimated by Allot, signed up for the service.

 

GAAP to Non-GAAP Reconciliation:

 

The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes related items.

 

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.

 

Safe Harbor Statement

 

This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; court approval of the Company’s proposed share buy-back program; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

		Three Months Ended March 31,
		2022				2021
		(Unaudited)
Revenues		$	31,896			$	31,183
Cost of revenues			9,792				9,591
Gross profit			22,104				21,592
Operating expenses:
Research and development costs, net			12,030				10,567
Sales and marketing			11,689				11,593
General and administrative			4,037				3,200
Total operating expenses			27,756				25,360
Operating loss			(5,652	)			(3,768	)
Financial and other income, net			247				115
Loss before income tax expenses			(5,405	)			(3,653	)
Tax expenses			722				305
Net Loss			(6,127	)			(3,958	)
Basic net loss per share		$	(0.17	)		$	(0.11	)
Diluted net loss per share		$	(0.17	)		$	(0.11	)
Weighted average number of shares used in
computing basic net loss per share			36,539,247				35,535,493
Weighted average number of shares used in
computing diluted net loss per share			36,539,247				35,535,493

 

		Three Months Ended
		March 31,
		2022				2021
		(Unaudited)
GAAP cost of revenues		$	9,792			$	9,591
Share-based compensation (1)			(181	)			(119	)
Amortization of intangible assets (2)			(152	)			(152	)
Non-GAAP cost of revenues		$	9,459			$	9,320
GAAP gross profit		$	22,104			$	21,592
Gross profit adjustments			333				271
Non-GAAP gross profit		$	22,437			$	21,863
GAAP operating expenses		$	27,756			$	25,360
Share-based compensation (1)			(2,356	)			(1,325	)
Non-GAAP operating expenses		$	25,400			$	24,035
GAAP financial and other income		$	247			$	115
Exchange rate differences*			(73	)			76
Non-GAAP Financial and other income		$	174			$	191
GAAP taxes on income		$	722			$	305
Tax expenses in respect of net deferred tax asset recorded			-				(67	)
Non-GAAP taxes on income		$	722			$	238
GAAP Net Loss		$	(6,127	)		$	(3,958	)
Share-based compensation (1)			2,537				1,444
Amortization of intangible assets (2)			152				152
Exchange rate differences*			(73	)			76
Tax expenses in respect of net deferred tax asset recorded			-				67
Non-GAAP Net income (loss)		$	(3,511	)		$	(2,219	)
GAAP Loss per share (diluted)		$	(0.17	)		$	(0.11	)
Share-based compensation			0.07				0.04
Amortization of intangible assets			0.00				0.01
Exchange rate differences*			0.00				0.00
Tax expense in respect of net deferred tax asset recorded			-				0.00
Non-GAAP Net income (loss) per share (diluted)		$	(0.10	)		$	(0.06	)
Weighted average number of shares used in
computing GAAP diluted net loss per share			36,539,247				35,535,493
Weighted average number of shares used in
computing non-GAAP diluted net loss per share			36,539,247				35,535,493