Allot Announces Preliminary FY 2023 Financial Results
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Insights
The preliminary financial results announced by Allot Ltd. are a key indicator of the company's performance, especially since they align with the guidance range provided previously. The reported revenue consistency and cash reserves suggest a stable financial position, which is critical for investor confidence. However, the increase in allowance for credit losses due to receivables from DISH Purchasing Corporation introduces an element of risk. This could potentially signal issues with accounts receivable management and customer dependency, which investors should monitor closely as it may affect future cash flows and earnings quality.
Furthermore, the legal dispute with DISH raises concerns over contractual obligations and product quality, which could lead to litigation costs and impact the company's reputation. Investors should consider the potential financial implications of this dispute, including any provisions for legal expenses or revenue adjustments that may be necessary. The resolution of this matter will be pivotal in understanding Allot's risk management and operational resilience.
Allot's position in the network intelligence and security solutions market is underscored by its ability to meet initial revenue expectations. However, the dispute with DISH highlights the importance of customer satisfaction and product compliance within the tech industry. As Allot asserts that its software met contract specifications, the company's reputation for delivering compliant products will be scrutinized by the market. The outcome of this dispute could influence customer perception and impact future sales and partnerships.
Additionally, the SECaaS (Security-as-a-Service) revenue stream and Total ARR (Annual Recurring Revenue) are critical metrics for assessing the company's growth trajectory and market adoption of its services. As the industry shifts towards subscription-based models, Allot's ARR will be a significant measure of its long-term sustainability and competitive positioning.
The legal contention between Allot and DISH Purchasing Corporation is a matter that requires careful examination of contract law and software compliance standards. If Allot's software indeed meets the agreed-upon specifications, the company's legal team must provide robust evidence to refute DISH's claims. The ability to enforce contracts and protect intellectual property rights is fundamental in the tech sector. The outcome of such disputes can set precedents affecting future contractual negotiations and risk assessments.
It is also essential to consider the financial reporting implications of the increased allowance for credit losses. This move indicates that Allot is proactively managing potential bad debts, which is a prudent accounting practice. However, investors should be aware of the underlying details of the receivables in question and the likelihood of recovery, as this can materially affect the company's financial health.
HOD HASHARON, Israel , Jan. 11, 2024 /PRNewswire/ -- 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 preliminary unaudited financial results for the year ended December 31, 2023.
Allot expects revenues, SECaaS revenues, and Total ARR to be within the guidance range the company provided on November 16, 2023.
As of December 31, 2023, cash, bank deposits, and marketable securities totaled approximately
Allot expects to recognize an increase of approximately
Allot believes that DISH, who is currently delinquent in making certain due payments to Allot, raises allegations that are without merit and that there is no basis for DISH's demands as Allot believes it provided compliant software and related support services to DISH in a timely manner. Importantly, the software and related support services were duly accepted by DISH in writing as required under the contract. Allot will vigorously pursue its rights to obtain full payment of all amounts due in accordance with the contract.
The Company's expectations as to its results of operation are preliminary and subject to the completion of the Company's financial close process and the completion of its annual audit.
The company plans to publish its fourth quarter and full year 2023 unaudited results on Thursday, February 15, 2024, and host a conference call to discuss those results on that day at 8:30 AM ET (1:30 PM
To access the conference call, please dial one of the following numbers: US: 1-888-642-5032,
About Allot
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 many millions of subscribers globally. Allot. See. Control. Secure.
For more information, visit www.allot.com.
Performance Metrics
* Total ARR - Support & Maintenance ARR (measures the current annual run rate of support & maintenance revenues, which is calculated based on the expected revenues for the fourth quarter of 2023, excluding one-time items, and multiplied by 4) and SECaaS ARR (measures the current annual run rate of SECaaS revenues, which is calculated based on estimated revenues for the month of Dec. 2023 and multiplied by 12).
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 accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; 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; 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.
Investor Relations contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com
Public Relations contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com
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SOURCE Allot Ltd.
FAQ
What did Allot Ltd. (ALLT) announce regarding its financial results for 2023?
What is the total cash, bank deposits, and marketable securities as of December 31, 2023 for Allot Ltd. (ALLT)?
What is the increase in allowance for credit losses expected by Allot Ltd. (ALLT)?
What allegations have been raised by DISH Purchasing Corporation (DISH) against Allot Ltd. (ALLT)?
When does Allot Ltd. (ALLT) plan to publish its fourth quarter and full year 2023 unaudited results?
