Allot Ltd. · NASDAQ:ALLT
Allot — Allot Communications — Investor Presentation (August 2016)
37 slides from Allot's investor presentation, August 2016
Slide 1: Allot Communications Investors' Presentation
Allot Communications Investors’ Presentation By: Shmuel Arvatz - CFO Aug 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 t
Slide 3: Allot Communications at a Glance
Public Company • NASDAQ 2006 • TASE 2010 Value Proposition Allot To help service providers drive the digital experience for people and things in order to elevate their Communications business and monetize their assets. at a Glance Allot DNA Network Intelligence & Security Tech Leader Trusted Par
Slide 4: Diverse Customer Base
Diverse Customer Base Communication Service Providers Enterprise/Cloud 7
Slide 5: About Allot: What Others are Saying
About Allot: What Others are Saying “Our Secure Net service “Marketers are growing more powerful within operator organizations – powered by Allot they need tools, capabilities and insight such as Allot is offering here to allows customers to use make their jobs easier” the mobile Internet safely and
Slide 6: Market Trends & Challenges
DAG Market Trends & Challenges
Slide 7: Allot and the Mobile CSP Evolution
Allot and the Mobile CSP Evolution MONETIZATION & SECURITY CUSTOMER EXPERIENCE • Customer Engagement • Anti-Malware OPTIMIZATION • Analytics • DDoS Protection • Policy Control • Parental Control • Video Optimization • Personalized service per • Bandwidth Management tenant • TCP Optimization • Report
Slide 8: Global Security Trends
Global Security Trends Off-premise (Cloud) Awareness among SMB security security widely adopted mobile users growing driven by mobile/BYOD Cloud security services to 71% of consumers Security 2nd most pressing surpass CPE-based security concerned that personal technology challenge for services by 20
Slide 9: Service Provider Challenges
Revenue & Securing the market position digital experience erosion anytime, anywhere Service Provider Challenges Differentiation Shorter time- through service to-revenue for innovation new services 12
Slide 10: Allot Solutions
® Allot Solutions
Slide 11: Allot Solutions for Monetization
Allot Solutions for Monetization 14
Slide 12: Security
SECURITY 15
Slide 13: Protecting Network Customers and Assets
Protecting Network Customers and Assets Operator Network Web Security-as-a-Service Network Security • Anti-malware • DDoS mitigation • Anti-phishing • Anti-spam out • Anti-spam • Outgoing cyber threat protection • Ads blocking • On-premise and in the cloud • Parental Controls, Quiet Time network pro
Slide 14: Security as a Revenue Generating Service
Security as a Revenue Generating Service THE CHALLENGE • Provide a simple, accessible and effective security “By keeping DDoS BENEFITS traffic off the network service for all customers regardless of their device and managing CMTS • Service • Internet threats protection congestion precisely different
Slide 15: Vodafone Secure Net
Vodafone Secure Net https://securenet.vodafone.com/ “Privacy and security can pose risks to our customers and our business, but we also see potential to differentiate our brand not just by managing these risks but by offering products and services designed to support customers in improving their pri
Slide 16: Personalization
21 | PERSONALIZATION communications
Slide 17: Get Closer to Customers through Personalization
Get Closer to Customers through Personalization Smart Engagement Smart Service Plans • Personalized on-boarding • Accurate Application-Based Charging • In-App engagement • Differentiated data plans • In-Service engagement • Multi-tenant personal service 22
Slide 18: Increasing ARPU with Application Based Charging
Increasing ARPU with Application Based Charging THE CHALLENGE • Pre-paid customer acquisition in price sensitive “By keeping DDoS BENEFITS traffic off the network market and managing CMTS • Service • Increase ARPU from pre-paid customers congestion precisely differentiation where it occurs, we TIGO
Slide 19: Intelligence
INTELLIGENCE 24
Slide 20: Allot transforms network data into actionable intelligence
Allot transforms network data assets into actionable intelligence enabling monetization & security use cases • Streaming Data Records • ClearSee Network Metrics • Custom Data Exports • Smart Data Source • ClearSee Network Analytics • Data Curation • ClearSee Real-Time View • Custom Analytical Report
Slide 21: Analytics Driven Customer Retention
Analytics Driven Customer Retention THE CHALLENGE “By keeping DDoS • Identify potential churners before they leave traffic off the network • Formulate an effective retention plan and managing CMTS congestion precisely where it occurs, we VOO have been able to delay infrastructure BELGIUM SERVICE exp
Slide 22: Allot Service Delivery Framework
ALLOT SERVICE DELIVERY FRAMEWORK A NEW WAY OF THINKING 27
Slide 23: The Allot Service Gateway
The Allot Service Gateway Comprehensive Platform Visibility & Control Service Delivery • High performance • Real time traffic management • Deployment and management • Pay-as-you-grow scalability overcoming encryption across any access • Interoperable with data- • Application visibility • Pre-integra
Slide 24: SG-9500 – Unique Value Proposition
SG-9500 – Unique Value Proposition • Expanding addressable market - Service Gateway for ANY network • Out-of-the-box value-add security solutions • Seamless and rapid deployment, on premise and in the Cloud • Carrier grade with future-proof scalability • Accurate traffic visibility and control 29
Slide 25: Allot Solutions – Built for CSPs
Allot Solutions – Built for CSPs Innovative Scalable Fast Time to Market Blend customer intelligence, Service millions of users with Easy integration and personalization and security to Allot’s multi-tenant service streamlined deployment differentiate your offering and delivery framework reduce chur
Slide 26: Recent Developments
Recent Developments Signed a strategic partnership with Intel McAfee providing a joint network and end- point solution A reorganization was announced in July; expenses reduced in low profit regions and activities; ongoing opex reduced to $15-16m per quarter Launched new product SG9500 running on an
Slide 27: Intel & Allot Joint Value Proposition
Intel & Allot Joint Value Proposition By combing Allot’s network protection and Intel Security endpoint, Service Providers realize the maximum protection for their users High + Level of protection Secure Home GW Network Security Low Low High Ease of deployment to base 3 2
Slide 28: McAfee Unified Security Powered By Allot
McAfee Unified Security Powered By Allot Service Activation Service Mobile Awareness Protection Service Parental Operation Control 33
Slide 29: Financials
((y Financials
Slide 30: Yearly P&L (Non-GAAP)
Yearly P&L (Non-GAAP) 2012 2013 2014 2015 Revenues $107.1 $97.1 $117.2 $100.3 % Revenues Growth 38% (9%) 21% (14%) Gross Profit $78.2 $73.6 $87.3 $75.2 Gross Margin 73% 76% 74% 75% Operating Profit $18.4 $3.4 $9.9 $1.0 Operating Margin 17% 3% 8% 1% Net Income $19.8 $4.0 $10.5 ($0.1) Net Margin 18% 4
Slide 31: Financial Summary Q2 2016 (Non-GAAP)
Financial Summary Q2 2016 (Non- GAAP) Revenues $23.0M Net Income $ 0.4M 6% Revenue Increase YoY B2B<1 14 Large Orders >$250K Gross Margin 73% • 8 Mobile • 5 Fixed Operating Margin 3% • 1 Enterprise / Cloud Net Cash from Operations Operating Expense - $1.2M $16.0M 36
Slide 32: Security-Driven Product Booking
Security-Driven Product Booking Total 2015 H2 2016 30% 39% 61% 70% Security driven product sales Non Security driven product sales 37
Slide 33: Booking by Verticals
Booking by Verticals Thousands of USD Mobile 25% 41% Fixed Q2 2016 Cloud\ Enterprise 34% 16% 23% 18% 16% 16% 24% 31% 42% 43% 29% 60% 42% 53% 48% 35% 40% 41% 24% 2011 2012 2013 2014 2015 YTD2016 38
Slide 34: Booking % by Region
Booking % by Region EMEA 25% APAC Q2 2016 54% Americas 21% 21% 15% 19% 17% 32% 25% 16% 19% 33% 26% 37% 20% 63% 64% 48% 49% 52% 44% 39 2011 2012 2013 2014 2015 Y TD 2 0 1 6
Slide 35: Strong Balance Sheet
Strong Balance Sheet USD Millions Dec. 31 2014 Dec. 31 2015 Jun. 30 2016 Cash and Investments 132.4 123.3 116.6 Total Assets 212.9 208.2 199.2 Differed Revenues 16.9 19.0 18.9 Total Debt 0.0 4.2 4.3 Shareholders’ Equity 175.0 163.4 158.4 40
Slide 36: Investment Summary
Investment Summary • Allot is a trusted partner for many tier-1 CSPs with a large existing install base • Increased focus on security services (SECaaS): represents a large growth opportunity • Reorganization steps taken already significantly reducing opex and will improve profitability • Strong bala
Slide 37: Thank You
THANK U Email info@allot.com www.allot.com 42
Allot Communications — Investor Presentation (August 2016) on 6ix