Business
Allot Announces Q2 2023 Financial Results and Cost Reduction Plan
HOD HASHARON, Israel , Aug. 31, 2023 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and
About this update from Allot Ltd.
[{"type":"text","content":"HOD HASHARON, Israel , Aug. 31, 2023 /PRNewswire/ -- 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 financial results for the second quarter ended June 30, 2023.\nQ2 Financial Highlights\nSecond quarter revenues were $25.0 million;SECaaS revenues were $2.4 million; June 2023 SECaaS ARR* was $9.7 million;Second quarter GAAP operating loss was $21.5 million, and non-GAAP operating loss was $18.9 million, including a provision of $14.1 million for credit losses from two customers in Africa; Q2 GAAP net loss was $20.7 million, and non-GAAP net loss was $18.3 million; As we pre-announced on July 17, 2023, during the quarter, the company booked an allowance for credit losses related to past due receivables previously disclosed by the company arising from sales in two African countries and certain additional sales that occurred in the fourth quarter of 2022 in another African country. Allot has been assessing the collectability of its accounts receivable on a quarterly basis. In connection with its most recent assessment, the company determined that certain accounts previously disclosed as outstanding will not, with reasonable certainty, be collected, based on recent communications from the contractual counterparties and other factors including the passage of time.\nFinancial Outlook\nLooking ahead, management updates its financial expectations as follows:\nFull-year 2023 revenues of $95 million to $110 million (of which SECaaS revenues are expected to be approximately $11 million);Full year 2023 operating loss of between $38 million and $44 million (includes a $14.1 million provision for credit losses from two customers in Africa); Full year 2023 negative cash flow of between $24 million and $44 million;December 2023 total ARR*, including SECaaS ARR* and Support & Maintenance ARR*, is expected to be between $51 million and $55 million;Reiterates expectations to be profitable in 2024; Management Comment\nErez Antebi, President & CEO of Allot, commented, \"We believe that our strategy of transforming our business towards a recurring SECaaS revenue model will drive sustainable profitable growth and long-term shareholder value. However, the conversion of won SECaaS deals to paying subs...