UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2021
Commission File Number: 001-33129

ALLOT LTD.
 (Translation of registrant’s name into English)

22 Hanagar Street
Neve Ne'eman Industrial Zone B
Hod-Hasharon 45240
Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________



EXPLANATORY NOTE

On May 11th, 2021, Allot Ltd. issued a press release announcing the First Quarter 2021 Financial Results.

A copy of the press release entitled “Allot Announces First Quarter 2021 Financial Results” is attached to this Form 6-K as Exhibit 99.1.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
Allot Ltd.
 
       
 
By:
/s/ Ziv Leitman
 
 

Ziv Leitman
 
 

Chief Financial Officer
 

Date: May 11th, 2021


EXHIBIT INDEX

The following exhibit has been filed as part of this Form 6-K:

Exhibit Number
Description
   




Exhibit 99.1


Allot Announces First Quarter 2021 Financial Results

Allot achieves its first major win in US market with DISH Network

Hod Hasharon, Israel – May 11, 2021 - Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited first quarter 2021 financial results.

First Quarter 2021 Highlights


Continued growth: revenues of $31.2 million, up 6% year-over-year;


End of quarter cash and investments of $103 million;


Allot’s first major penetration into US market: DISH Network Selected Allot to Protect the United States’ First Cloud-native, OpenRAN-based 5G Network and its Customers from Cybersecurity Threats;

Financial Outlook


Management continues to expect 2021 revenues to grow to between $145-150 million;


Management continues to expect to close recurring security deals in 2021 with an MAR* expected to exceed $180 million;


Management continues to expect recurring security revenues in 2021 to be at least $6 million, and around $25 million in 2022;

Management Comment

Erez Antebi, President & CEO of Allot, commented: “We are pleased with our start to 2021 with continued year-over-year revenue growth. From the strategic perspective, we are very happy with our first major penetration into the US market and are thrilled that DISH chose to partner with us to help secure their innovative 5G network, which will be one of the most advanced in the US market.  This deal, together with Dish’s stated intent to sign an additional deal with Allot to launch network based security services to their customers, is a major indication on the importance of security to 5G networks and customers worldwide.”

Continued Mr. Antebi, “We see 2021 as a transformation year for Allot. We expect that as our SECaaS partners begin to launch their services over the coming months, we will see the initial ramp of these recurring revenues.  We are very encouraged by the traction we have been gaining and look forward to continue signing additional recurring security revenue deals, ensuring further long-term sustainable growth.”



Q1 2021 Financial Results Summary

Total revenues for the first quarter of 2021 were $31.2 million, an increase of 6% compared to $29.3 million in the first quarter of 2020.

Gross profit on a GAAP basis for the first quarter of 2021 was $21.6 million (gross margin of 69.2%), with no material change when compared with $21.7 million (gross margin of 74%) in the first quarter of 2020.

Gross profit on a non-GAAP basis for the first quarter of 2021 was $21.9 million (gross margin of 70.1%), similar when compared with $21.9 million (gross margin of 74.8%) in the first quarter of 2020.

Net loss on a GAAP basis for the first quarter of 2021 was $4 million, or $0.11 loss per basic share, compared with a net loss of $1.7 million, or $0.05 loss per basic share, in the first quarter of 2020.

Net loss on a non-GAAP basis for the first quarter of 2021 was $2.2 million, or $0.06 loss per basic share compared with a non-GAAP net loss of $0.4 million, or $0.01 loss per basic share, in the first quarter of 2020.

Cash and investments as of March 31, 2021 totaled $103.2 million, compared with $99.4 million, as of December 31, 2020.

# # #

Analyst & Investor Event

Allot will host a virtual Analyst & Investor event later today, May 11, 2021 at 9am ET. The event will provide more color on the growth potential of the Company and on the Revolution of Consumer Cybersecurity. It will feature presentations delivered by various members of the Allot management team as well as talks by some of the Company’s cybersecurity customers.

The Analyst & Investor event will be hosted via a Zoom Webinar. To register for the event, please use the following link: https://www.allot.com/210511-investor-day-lp/

A recording of the event, including the presentations, will be archived and available for viewing on the Allot website a few days following the event.

For further details about the agenda and participating in the virtual Investor Day event and the earnings results call, please refer to the Allot investor relations website at https://investors.allot.com.



About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1,000 enterprises. Our industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe. Allot. See. Control. Secure.

For more information, visit www.allot.com

*MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer’s subscribers, as estimated by Allot, signed up for the service.

GAAP to Non-GAAP Reconciliation

Non-GAAP net income is defined as GAAP net income after excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, tax related items, exchange rate differences related to revaluation of assets and liabilities denominated in non-dollar currencies and other acquisition-related expenses.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.

Safe Harbor Statement

This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; court approval of the Company’s proposed share buy-back program; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
GK Investor Relations
Ehud Helft
+1 646 201 9246
allot@gkir.com
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com
 


TABLE  - 1
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)

 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2021
   
2020
 
 
 
(Unaudited)
   
(Unaudited)
 
 
           
Revenues
 
$
31,183
   
$
29,289
 
Cost of revenues
   
9,591
     
7,610
 
                 
Gross profit
   
21,592
     
21,679
 
 
               
Operating expenses:
               
Research and development costs, net
   
10,567
     
8,699
 
Sales and marketing
   
11,593
     
11,522
 
General and administrative
   
3,200
     
3,041
 
Total operating expenses
   
25,360
     
23,262
 
Operating loss
   
(3,768
)
   
(1,583
)
Financial and other income, net
   
115
     
151
 
Loss before income tax expenses
   
(3,653
)
   
(1,432
)
                 
Tax expenses
   
305
     
228
 
Net Loss
   
(3,958
)
   
(1,660
)
 
               
 Basic net loss per share
 
$
(0.11
)
 
$
(0.05
)
 
         

-
 
 Diluted net loss per share
 
$
(0.11
)
 
$
(0.05
)
 
               
Weighted average number of shares used in computing basic net loss per share
   
35,535,493
     
34,625,632
 

               
Weighted average number of shares used in computing diluted net loss per share
   
35,535,493
     
34,625,632
 


 
TABLE  - 2
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)

           
   
Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
   
(Unaudited)
 
GAAP cost of revenues
 
$
9,591
   
$
7,610
 
 Share-based compensation (1)
   
(119
)
   
(67
)
 Amortization of intangible assets (2)
   
(152
)
   
(152
)
Non-GAAP cost of revenues
 
$
9,320
   
$
7,391
 
                 
 GAAP gross profit
 
$
21,592
   
$
21,679
 
 Gross profit adjustments
   
271
     
219
 
 Non-GAAP gross profit
 
$
21,863
   
$
21,898
 
                 
 GAAP operating expenses
 
$
25,360
   
$
23,262
 
 Share-based compensation (1)
   
(1,325
)
   
(857
)
 Income related to M&A activities (3)
   
-
     
103
 
 Non-GAAP operating expenses
 
$
24,035
   
$
22,508
 
                 
 GAAP financial and other income
 
$
115
   
$
151
 
 Exchange rate differences*
   
76
     
218
 
 Non-GAAP Financial and other income
 
$
191
   
$
369
 
                 
 GAAP taxes on income
 
$
305
   
$
228
 
 Tax expenses in respect of net deferred tax asset recorded
   
(67
)
   
(60
)
 Non-GAAP taxes on income
 
$
238
   
$
168
 
                 
 GAAP Net Loss
 
$
(3,958
)
 
$
(1,660
)
 Share-based compensation (1)
   
1,444
     
924
 
 Amortization of intangible assets (2)
   
152
     
152
 
 Income related to M&A activities (3)
   
-
     
(103
)
 Exchange rate differences*
   
76
     
218
 
 Tax expenses in respect of net deferred tax asset recorded
   
67
     
60
 
 Non-GAAP Net loss
 
$
(2,219
)
 
$
(409
)
                 
 GAAP Loss per share (diluted)
 
$
(0.11
)
 
$
(0.05
)
 Share-based compensation
   
0.04
     
0.03
 
 Amortization of intangible assets
   
0.01
     
0.00
 
 Income related to M&A activities
   
0.00
     
(0.00
)
 Exchange rate differences*
   
0.00
     
0.01
 
 Tax expense in respect of net deferred tax asset recorded
   
0.00
     
0.00
 
 Non-GAAP Net loss per share (diluted)
 
$
(0.06
)
 
$
(0.01
)
                 
Weighted average number of shares used in
               
computing GAAP diluted net loss per share
   
35,535,493
     
34,625,632
 
                 
Weighted average number of shares used in
               
computing non-GAAP diluted net loss per share
   
35,535,493
     
34,625,632
 

* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.
 

TABLE  - 2 cont.
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(U.S. dollars in thousands, except per share data)

   
Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
   
(Unaudited)
 
             
(1) Share-based compensation:
           
Cost of revenues
 
$
119
   
$
67
 
Research and development costs, net
   
395
     
242
 
Sales and marketing
   
582
     
378
 
General and administrative
   
348
     
237
 
   
$
1,444
   
$
924
 
                 
 (2) Amortization of intangible assets
               
Cost of revenues
 
$
152
   
$
152
 
   
$
152
   
$
152
 
                 
 (3) Income related to M&A activities
               
Research and development costs, net
 
$
-
   
$
(103
)
   
$
-
   
$
(103
)


 
TABLE  - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED  BALANCE  SHEETS
(U.S. dollars in thousands)

 
 
March 31,
   
December 31,
 
 
 
2021
   
2020
 
 
 
(Unaudited)
   
(Audited)
 
 
     
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
7,148
   
$
23,599
 
Short-term bank deposits
   
71,525
     
47,225
 
Restricted deposits
   
1,634
     
1,200
 
Available-for-sale marketable securities
   
22,643
     
27,178
 
Trade receivables, net
   
27,828
     
20,685
 
Other receivables and prepaid expenses
   
11,455
     
14,205
 
Inventories
   
13,543
     
12,586
 
Total current assets
   
155,776
     
146,678
 
 
               
LONG-TERM ASSETS:
               
Long-term bank deposits
   
215
     
215
 
Severance pay fund
   
438
     
434
 
Operating lease right-of-use assets
   
3,679
     
4,458
 
Deferred taxes
   
349
     
420
 
Other assets
   
1,475
     
2,975
 
Total long-term assets
   
6,156
     
8,502
 
 
               
PROPERTY AND EQUIPMENT, NET
   
12,600
     
11,993
 
GOODWILL AND INTANGIBLE ASSETS, NET
   
35,842
     
34,427
 
 
               
Total assets
 
$
210,374
   
$
201,600
 
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Trade payables
 
$
1,222
   
$
2,092
 
Deferred revenues
   
30,194
     
26,658
 
Short-term operating lease liabilities
   
2,602
     
2,813
 
Other payables and accrued expenses
   
25,199
     
27,299
 
Total current liabilities
   
59,217
     
58,862
 
 
               
LONG-TERM LIABILITIES:
               
Deferred revenues
   
21,218
     
9,782
 
Long-term operating lease liabilities
   
1,035
     
1,835
 
Accrued severance pay
   
901
     
969
 
Total long-term liabilities
   
23,154
     
12,586
 
 
               
SHAREHOLDERS' EQUITY
   
128,003
     
130,152
 
 
               
Total liabilities and shareholders' equity
 
$
210,374
   
$
201,600
 


TABLE  - 4
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2021
   
2020
 
 
 
(Unaudited)
   
(Unaudited)
 
 
           
Cash flows from operating activities:
           
Net Loss
 
$
(3,958
)
 
$
(1,660
)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
         
Depreciation
    1,088
      788
 
Stock-based compensation
   
1,444
     
924
 
Amortization of intangible assets
   
237
     
152
 
Increase (Decrease) in accrued severance pay, net
   
(72
)
   
1
 
Decrease in other assets
   
1,499
     
160
 
Decrease in accrued interest and  amortization of premium on marketable securities
   
75
     
171
 
Changes in operating leases, net
   
(232
)
   
(711
)
Decrease (Increase) in trade receivables
   
(7,143
)
   
5,868
 
Decrease (Increase) in other receivables and prepaid expenses
   
2,080
     
(401
)
Increase in inventories
   
(957
)
   
(4,485
)
Decrease in long-term deferred taxes, net
   
72
     
84
 
Increase (Decrease) in trade payables
   
(870
)
   
2,268
 
Decrease in employees and payroll accruals
   
(1,909
)
   
(1,325
)
Increase (Decrease) in deferred revenues
   
14,972
     
(5,626
)
Decrease in other payables, accrued expenses and other long term liabilities
   
(603
)
   
(1,718
)
Net cash provided by (used in) operating activities
   
5,723
     
(5,510
)
 
               
Cash flows from investing activities:
               
Decrease (Increase) in restricted deposit
   
(434
)
   
1,500
 
Redemption of (Investment in) short-term deposits
   
(24,300
)
   
4,757
 
Purchase of property and equipment
   
(1,695
)
   
(1,351
)
Purchase of intangible assets
   
(1,652
)
   
-
 
Investment in available-for sale marketable securities
   
-
     
(375
)
Proceeds from sales and maturity of available-for sale marketable securities
   
4,348
     
12,923
 
Net cash provided by (used in) investing activities
   
(23,733
)
   
17,454
 
 
               
Cash flows from financing activities:
               
Proceeds from exercise of stock options
   
1,559
     
620
 
Net cash provided by financing activities
   
1,559
     
620
 
 
               
Increase (Decrease) in cash and cash equivalents
   
(16,451
)
   
12,564
 
Cash and cash equivalents at the beginning of the period
   
23,599
     
16,930
 
Cash and cash equivalents at the end of the period
 
$
7,148
   
$
29,494
 


 
Other financial metrics
 
 
 
 
 
U.S dollars in millions, except number of full time employees, % of top-10 end-customers out of revenues and number of shares

Revenues geographic breakdown
 
Q1-2021
   
FY 2020
 
Americas
   
5.1
     
16
%
   
8.1
     
6
%
EMEA
   
20.2
     
65
%
   
104.3
     
77
%
Asia Pacific
   
5.9
     
19
%
   
23.5
     
17
%
 
   
31.2
     
100
%
   
135.9
     
100
%
 
                               
Breakdown between products & services revenues
 
Q1-2021
   
FY 2020
 
Products
   
17.8
     
57
%
   
92.5
     
68
%
Professional Services
   
4.1
     
13
%
   
13.3
     
10
%
Support & Maintenance
   
9.3
     
30
%
   
30.1
     
22
%
 
   
31.2
     
100
%
   
135.9
     
100
%
 
                               
Revenues per customer type
 
Q1-2021
   
FY 2020
 
CSP
   
22.8
     
73
%
   
114.8
     
84
%
Enterprise
   
8.4
     
27
%
   
21.1
     
16
%
 
   
31.2
     
100
%
   
135.9
     
100
%

 
 
Q1-2021
   
FY 2020
 
% of top-10 end-customers out of revenues
   
60
%
   
71
%
 
               
Total number of full time employees
   
671
     
676
 
 
               
Number of basic shares (in millions)
   
35.5
     
35.0
 
 
               
Non-GAAP weighted average number of fully diluted shares  (in millions)
   
37.8
     
37.2