Wednesday, October 30, 2013

Allot: Record $12M Order will be Recognized in Q4 and 2014; DDoS a big Part of VAS

Allot Communications published its Q3 results (revenues of $24.1M - here) and announced a record order of $12M from an APAC-based Fixed tier1 operator (here).

Some quotes from the company's earning call, made by the CEO, Rami Hadar [pictured]:
  • This is an interesting quarter where we're kind of seeing some of the comeback on the fixed side. I can't say it's a trend. So too early to look at strategies or themes out here. But as we noted in the past, traffic on fixed network is growing as well, maybe not as fast as a mobile, but I do believe it's in the 20% or 30% year-over-year, driven by, of course, video application
  • Value-Added Services represented 28% of our bookings and 30.6% year-to-date. Up-selling Value-Added Services solutions was also the main contributor to the increase of our gross margin numbers to 77% .. if we have roughly maybe 100 mobile service providers may be 20%, 20% of them have adopted our DDoS solution as an add-on .. In the past 2 years, we've seen a nice uptick in selling DDoS. I believe that this quarter, DDoS was a big part of the VAS offering.
  • So the $12 million order that we got during the first [third?] quarter, we didn't recognize any revenues out of it during the third quarter, and it's definitely on our fourth quarter in next year in 2014 revenues.
  • [on the US mobile market] Just 4 years, we've been going out to this market, net neutrality has slowed us down. We changed strategy instead of going after a policy control and charging use cases, we started positioning our Value-Added Services. We got 2 of the top 5 mobile operators as customers.

See "Allot Communications Management Discusses Q3 2013 Results - Earnings Call Transcript", by SeekingAlpha - here.

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