Technology company Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT), until recently a company in crisis, is expanding its activity and plans to hire dozens of employees in Israel by the end of the year, sources inform "Globes." In late 2018, the company had 300 employees in Israel out of 520 worldwide. It has since enlarged its staff to 550.
The increase in staff is part of the company's investment in its HomeSecure system, which provides network-based protection on the home router. Allot plans to hire staff for research and development, customer support, sales, and project management.
Allot, managed by CEO Erez Antebi, changed its business focus in recent years. It now provides solutions for communications activity, including security solutions. Most of Antebi's activity previously involved streamlining the use of communications equipment in the core network, a sector that has experienced substantial decline. The company laid off 6% of its workforce (30 employees) three years ago as a result.
It was predicted at the time that Allot would be sold, and its market cap fell to not much more than its stock of cash. In 2018, following three years of decline in revenue, Allot resumed its growth. Improvement in its results was followed by a rise in its share price, which is now at $7, 63% higher than the low point it reached in 2016, albeit still far short of its $28 peak in 2012. Allot's current market cap is $238 million.
Allot's revenue totaled $95.8 million in 2018, 16.9% more than in 2017. The company's GAAP net loss was cut by 42% to $10.4 million, while its 2018 non-GAAP net loss was $5.1 million, 41% less than in the preceding year.
Published by Globes, Israel business news - en.globes.co.il - on June 17, 2019
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