Tuesday, November 1, 2011

Allot's CEO: "Embedded DPI doesn’t compare in functionality and scale to standalone"

Allot Communications announced record high results for Q3: "Total revenues for the third quarter of 2011 reached $20.1 million, a 37% increase from the $14.7 million of revenues reported for the third quarter of 2010, and a 9% increase from the $18.5 million of revenues reported for the second quarter of 2011 .. Added 3 new mobile service providers, located throughout the world, to its growing customer list .. During the quarter, received orders from 9 large service providers, of which 5 represented new customers and 4 represented expansion deals" 
Allot's biggest pure player DPI competitor, Sandvine, also announced record results for the 3rd quarter (August 11) of $25.6M (here).

See "Allot Communications Reports Continued Growth in Revenues and Net Profit for Third Quarter of 2011" - here. During the Q3 results conference call, Allot's CEO, Rami Hadar (pictured), said that: 

  • EMEA generated 60% of revenues
  • Mobile generated 50% of revenues and is the fastest growing category
  • The revenues from large order received in October (here) will be recognized over several quarters
  • The growth in R&D expenses (18% yTy) is driven by the road map as well as new features required by large customers, which require fast execution to meet the customer expectations
  • Headcount is 307  
Market and solutions
  • Customers tell Allot that they are interested in generating revenues with Allot solutions
  • We have dramatically improved our charging capabilities (see recent announcement with Openet - here) - we have one joint deployment with Openet in the EMEA market
  • Competition - no news - same pure players, no new ones in standalone market; embedded DPI - some vendors claim DPI functionality - no one compares in functions and scale
  • We had to scale 10 fold growth in the number of connections supported by the DPI products in 18 months


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