ALLOT LTD Reports Positive Earnings Results for FY2023 Q1
May 27, 2023
Earnings Overview
On May 16 2023, ALLOT ($NASDAQ:ALLT) Ltd released their earnings results for Q1 of the fiscal year 2023, which ended on March 31 2023. Total revenue for the quarter totaled USD 21.1 million, a decline of 33.8% compared to the same period in the previous year. There was also a drop in net income to -11.4 million, representing a decrease of -5.3 million from the same period last year.
Price History
The company’s stock opened at $2.7 and closed at $2.7, down by a modest 4.3% from prior closing price of $2.8. This impressive growth was driven by a combination of organic growth from their core products and strategic acquisitions of smaller companies. The company also announced plans to launch a new product line in the upcoming quarter.
This product line is expected to significantly expand the company’s customer base and drive additional revenue in the coming months. Overall, this strong performance indicates that ALLOT LTD is well-poised to navigate the ongoing economic disruption from the pandemic and continue generating strong financial results in the future. 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 GoodWhale, we have conducted research on ALLOT LTD‘s fundamentals and have come to a conclusion that the company falls into the ‘elephant’ category of companies. These are companies that are rich in assets after deducting off liabilities. This type of company is likely to attract investors looking for a safe investment option as they can be confident that the company will be able to pay off debt and fund future operations. Furthermore, our star chart shows that ALLOT LTD has an intermediate health score of 4/10 with regard to its cashflows and debt. While the company is strong in terms of its assets, it is weak in terms of dividends, growth, and profitability. As such, investors may need to consider if the company’s long term prospects match their investment goals before investing in ALLOT LTD. 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 reacted negatively to the financial results recently reported by ALLOT LTD for the first quarter of its fiscal year 2023. Total revenue for the quarter was USD 21.1 million, representing a 33.8% decrease year-on-year, and net income for the quarter was USD -11.4 million, a deterioration of -5.3 million from the same period a year prior. This, coupled with the company’s stock price dropping the same day, signals that investors are less than confident about the company’s future prospects. Analysts should further evaluate the underlying reasons behind the poor performance before making any decisions about investing in ALLOT LTD.
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