ALLOT LTD Reports Earnings Results For First Quarter of Fiscal Year 2023
June 24, 2023
🌥️Earnings Overview
On May 16, 2023, ALLOT LTD ($NASDAQ:ALLT) released their financial results for the first quarter of fiscal year 2023, which ended on March 31, 2023. Total revenue for the quarter came to USD 21.1 million, a decline of 33.8% from the same period in the previous fiscal year. Net income was -11.4 million, compared to -6.1 million in the prior year.
Market Price
Overall, the company’s stock opened at $2.7 and closed at the same price, representing a 4.3% decline from its previous closing price of $2.8. While the results were above market expectations, investors reacted negatively due to the company’s weak guidance for the coming quarter. The disappointing earnings results and weak guidance for the coming quarter caused investors to sell off Allot LTD stock on Tuesday, sending it down by 4.3% from the previous closing price of $2.8. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allot Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 111.97 | -37.27 | -33.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allot Ltd. More…
| Operations | Investing | Financing |
| -34.57 | 28.3 | -0.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allot Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 200.39 | 106.36 | 2.73 |
Key Ratios Snapshot
Some of the financial key ratios for Allot Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.6% | – | -32.4% |
| FCF Margin | ROE | ROA |
| -35.0% | -22.3% | -11.3% |
Analysis
As a financial analysis firm, GoodWhale has conducted an extensive analysis of ALLOT LTD’s financials. Through the use of our Star Chart, we have determined that ALLOT LTD is strong in assets, but weak in dividend, growth, and profitability. Based on this performance, we have classified ALLOT LTD as an “elephant” – a company that is rich in assets after deducting off liabilities. Given this analysis, investors who are looking to invest in a company with strong assets could be interested in ALLOT LTD. However, it is important to note that ALLOT LTD has an intermediate health score of 4/10, considering its cashflows and debt. This signals that it may not be the most reliable company in times of trouble or crisis. More…
Peers
In the cyber security market, Allot Ltd competes with Corero Network Security PLC, Hillstone Networks Co Ltd, and Nsfocus Technologies Group Co Ltd. Allot Ltd provides software-based solutions that enable service providers and enterprises to protect and personalize the Internet experience. The company’s solutions are used by over 1,700 customers in more than 80 countries.
– Corero Network Security PLC ($LSE:CNS)
Corero Network Security PLC is a network security company that provides DDoS protection solutions. The company has a market cap of 54.55M as of 2022 and a Return on Equity of 10.96%. Corero Network Security PLC’s DDoS protection solutions help organizations to defend against DDoS attacks and minimize the impact of these attacks.
– Hillstone Networks Co Ltd ($SHSE:688030)
The company’s market cap has grown significantly over the past few years, reaching $3.77 billion by 2022. This is due in part to the company’s strong financial performance, with a return on equity of 3.64%.
Stone Networks is a leading provider of network security solutions. The company’s products are used by some of the largest organizations in the world, including banks, governments, and military organizations.
– Nsfocus Technologies Group Co Ltd ($SZSE:300369)
Nsfocus Technologies Group Co Ltd is a Chinese multinational cybersecurity and anti-virus provider. The company has a market cap of 7.9B as of 2022 and a Return on Equity of 3.03%. Nsfocus provides cybersecurity solutions for enterprise, government, and SMB customers. The company’s products and services include network security, application security, and endpoint security. Nsfocus was founded in 2003 and is headquartered in Beijing, China.
Summary
Investors were disappointed by ALLOT LTD‘s first quarter earnings report for the fiscal year 2023, ending on March 31, 2023. Total revenue for the quarter was USD 21.1 million, representing a decline of 33.8% from the prior year. Net income was -11.4 million, compared to -6.1 million in the same period a year ago. In response, the stock price dropped immediately after the report was released.
This is a clear indication that investors are worried about the current direction of the company. Going forward, it will be important for ALLOT LTD to turn around their performance in order to regain investor confidence.
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