Allot: US Sales Waits for Net Neutrality

Last week Allot Communications and Procera Networks published their Q3 results. As Procera's results were known already (see "Procera: Q3 Revenues Decline by 25% Y/Y" - here)  Allot's had very good results (see "Allot Communications Reports Non-GAAP 25% Revenue Growth for Q3 2014" - here), getting very close to Sandvine for the forst 3 quarters of 2014 ($86.6M vs. $89.1M).



During the Q3 earning call, Allot provided the following information:

• Our booking during the third quarter were at record level, further supported by our largest ever $15 million order recorded during the quarter (here) .. sales in America accounted 16%, EMEA 33%, and Asia Pacific 51% .. During the quarter, we had two 10% customers .. Valued added services during the quarter represented 34% of our booking
   
• We had better years in the Americas, and year-to-date the performance there is not in the level that we expected it to be. However, we continue to work with the Tier-1 operators there. We believe that once the FCC will get to a final resolution about [Net] neutrality it will open doors for large scale projects with our type of technology. We’re starting to see over the last few months, more interest coming from them. We are in direct touch with them, doing trials, but nothing yet that has materialized to a project.
   
• [VAS]- What we are experiencing is that in most cases, the operators will buy into one or two value added services in the first phase, or in the first project. Then, they will add on top of that additional services. The services where we see more success over the last nine months are services related to revenue generating services, that have operated to create and generate more revenue for the customers, and we see more interest in services around the security space. So, as I mentioned in the last quarter, the Service Protector, which is our [inaudible] service protection product line, and the WebSafe product line, which is the parental control and [inaudible] filtering. These were two of the top three selling services, and these are around the security state

See "Allot Communications' (ALLT) CEO Andrei Elefant on Q3 2014 Results - Earnings Call Transcript", by SeekingAlpha, here.