Allot Communications set to raise $72m on Nasdaq

Allot will use the net proceeds for acquisitions, investments in companies or products, or rights to complementary technologies.

Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT) plans to raise up to $72 million in a secondary offering, which will be joined by an offer to sale by shareholders. The company also reported higher revenue and profits for the second quarter of 2011, beating the analysts' forecasts.

On the basis of Allot's shelf prospectus filed with the US Securities and Exchange Commission (SEC) in January, the company will issue 4.5 million shares, and shareholders, including some executives, will offer to sell 965,000 shares. Underwriters were given a 30-day option to buy up 819,750 additional shares. Based on the current share price of $16, gross proceeds from the offering will be $72 million, the shareholders' proceeds could reach $15 million, and the over-allotment option could reach $13 million.

Allot will use the net proceeds for general corporate purposes, including acquisitions, investments in companies or products, or to buy use rights to complementary technologies.

Revenue rose 35% to $18.5 million for the second quarter from $13.6 million for the corresponding quarter of 2010, beating the analysts' revenue consensus of $17.6 million.

Allot posted a GAAP-based net profit of $1.6 million ($0.07 per share) for the second quarter, compared with a net loss of $7.4 million for the corresponding quarter. Non-GAAP net profit rose to $2.7 million ($0.11 per share) from $786,000 for the corresponding quarter, beating the analysts' consensus of $0.09 per share.

Cash flow from operations totaled $3 million during the second quarter, bringing the company's cash and cash equivalents to $63.5 million at the end of June.

Allot president and CEO Rami Hadar said the rising demand from Tier-1 mobile and fixed operators contributed to another quarter of solid growth. During the quarter, the company received 18 large orders, including from five new customers, including its first contract in Russia.

Allot's large shareholders including DFJ Tamir Fishman Ventures Ltd. (TASE: TFVC), Allot CEO Rami Hadar, and chairman Shraga Katz. Zohar Zisapel, who owns 11.7% of the company, will not participate in the offer to sell.

Allot's share price has risen 226% in the past 12 months, despite falling 16% from its all-time of $19.05 reached two weeks ago. Allot's share price rose 8% on Nasdaq yesterday to $16, giving a market cap of $383 million, but fell 2.3% by mid-afternoon on the TASE today to NIS 50.83.

Published by Globes [online], Israel business news - - on August 2, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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