Friday, May 6, 2011

Allot Q1 Results - EMEA was 71% with 2 10% Customers

Allot Communications (NASDAQ:ALLT) released earlier this week their 2011 Q1 results (see "Allot Communications Reports Continued Rise in Revenues and Net Profit for First Quarter of 2011" - here). Analysts covering the company say that the DPI vendor announced "better than expected" results, and some increased the price target (here and see that stock performance during the last 5 days below). With booking for the quarter exceeding revenues, growth is expected to continue.

During the conference call, Allot's management said that EMEA provided 71% of Q1 revenues (Americas were 17% and Asia-Pac 12%). There were 2 10% customers in Q1, both from EMEA - one was a new wireless provider and the other a fixed operator that the company discussed during the recent 18 months.

Allot's CEO, Rami Hadar (picture), said that EMEA is expected to provide 50% of revenues, and the quarter was an exception due to the revenue recognition from those two customers.

We may speculate who those customers are from a recent report by Oppenheimer, who imitated coverage of Allot recently (here): "With a broad and growing set of wireless customers, the fastest solutions available and a strong pipeline, Allot's growth outlook appears impressive and its margin outlook is just now starting to show its potential. Oppenheimer sees wins at Vodafone, Virgin Media and Orange as validation and expect Allot to show improving fundamentals through the foreseeable future".

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