Tuesday, February 7, 2012

Allot CEO: "We were Surprised by Demand from large Fixed Operators"; Expects a Large US wireless Deal in 2012

Allot Communications published its Q4 and 2011 results today (see "Allot Communications Reports 10% Revenue Rise and Continued Net Profit Growth for Fourth Quarter of 2011" - here).

During the results call, Rami Hadar (pictures), Allot's president and CEO said that:
  • There was one 10% customer for the quarter, and one for the year (15% of 2011 revenues). Q1 is expected to have more than one 10% customer.
  • Allot in proud of its Value-add Services (VAS) offering (12% of Q4 revenues - in previous calls the number was 10%), with service such as Smart Charging, that are all provided in a single platform without the need to add additional servers and load balancing. It also help to sell Allot's Subscriber Management Platform, which balances the lower margin Allot makes on some VAS that are licensed from 3rd parties.
  • Competition - embedded DPI in GGSN-type products are Allot's main competitors in the mobile space. They need to show the advantages of its technology in order to convince customer to add another box.
  • Regions: 
    • North America: Allot expects to recognize a first, multi-million $ deal, with a US wireless operator during 2012. Probably wont be a 2012 10% customer (so anywhere from $3 to 9M, I guess)
    • Europe: Allot does not see slowdown 
    • Asia: Interest by tier1 fixed operators from Asia, mainly driven by video traffic, looking for intelligent charging (data caps or smarter solutions)

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