Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT) is laying off 30 employees, representing 6% of its workforce. At the end of 2015, the Israeli communications equipment manufacturer has 517 employees, 330 of them in Israel.
Led by CEO Andrei Elefant, the company's share price has fallen 16.3% since the start of 2016, giving a market cap of $164 million. At the end of the first quarter, Allot had $121 million cash in the company's coffers, thus the market gives the Israeli company an extremely modest value of $43 million. Allot held its IPO on Nasdaq a decade ago at a company value of $250 million, and at its peak four years ago it had a market cap of $875 million.
Allot provides solutions for more efficient use of communications equipment in core networks. The company's core product - DPI broadband solutions has seen a market slowdown in recent times and Allot is struggling to recover. The company finished 2015 with lower revenue and a net loss but expects to return to revenue growth and balanced books in 2016. However, meanwhile the first quarter saw a non-GAAP net loss of $4.3 million.
Allot is striving to switch its focus to security and value-added solutions, and the company does not rule out the option of being acquired. There were recently reports of initial talks to be sold to Radware Ltd. (Nasdaq: RDWR), which did not develop into official negotiations.
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2016
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