ALLOT LTD Reports Q4 FY2022 Earnings with Total Revenue of -6.7 Million and 19.4% Decrease in Net Income Year Over Year.

Earnings Overview

Allot Ltd ($NASDAQ:ALLT) reported their financial results for the fourth quarter of FY2022, ending December 31, 2022, on February 28, 2023. Their total revenue had decreased by 67.2% in comparison to the same quarter from the previous year, to a total of -6.7 million USD. The reported net income also experienced a decrease of 19.4% year over year, amounting to 33.0 million USD.

Transcripts Simplified

Allot LTD reported fourth quarter revenues of $33 million, 20% lower than last year’s comparable revenues. Full-year 2022 revenues were $122.7 million, 16% lower than 2021. SECaaS ARR grew to $9.2 million in December 2022, 33% higher than in September 2022 and 77% higher than December 2021. Total ARR including support and maintenance grew 10% year-over-year and reached $51.7 million for December 2022.

Allot LTD implemented cost cutting measures, including workforce reduction, and is committed to profitability for full-year 2024. There are multiple opportunities globally for their Traffic Management and Analytics business, as CSPs reexamine their networks.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Allot Ltd. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Allot Ltd. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Allot Ltd. More…

Key Ratios Snapshot

Some of the financial key ratios for Allot Ltd are shown below. More…

Stock Price

On Tuesday, ALLOT LTD reported their fourth quarter FY2022 earnings with a total revenue of -6.7 million and a decrease of 19.4% in their net income compared to the same period last year. This news had an immediate impact on their stock, with the price opening at $3.2 and closing at $3.0 – a whopping 13.3% decrease from the previous closing price of $3.5. The dismal results were mainly due to lower sales and cost of goods sold, which accounted for the majority of the decline in total revenue. The company’s expense control measures, however, kept net income from falling further. Despite their efforts, however, the company still saw a substantial decrease in net income year-over-year.

The company has attributed its weak performance to the challenging economic climate caused by the COVID-19 pandemic and its effects on the global economy. Despite this, the company is confident that it can bounce back in the coming quarters as the world recovers from the pandemic. In the meantime, ALLOT LTD investors are likely to remain cautious in light of the company’s weak earnings report. Although the stock’s price has already dropped significantly since its opening, it remains to be seen if it will continue to decline in the near future. Live Quote…

Analysis

At GoodWhale, we recently conducted an analysis of ALLOT LTD‘s financials. Based on our Risk Rating assessment, we determined that ALLOT LTD is a medium risk investment when considering both financial and business aspects. We identified 3 risk warnings in the income sheet, balance sheet, and cashflow statement. If you’re interested in seeing what these risks are, you can become a registered user and view our warnings. We always strive to provide our users with the most up-to-date and detailed information so that our users can make informed decisions. 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 in ALLOT LTD were disappointed to see the company’s FY2022 Q4 earnings report, which showed a significant decline in its total revenue and net income year-over-year. Total revenue of USD -6.7 million represented a 67.2% decrease compared to the same quarter of the previous year, while net income decreased by 19.4%. As expected, the stock price moved down following the announcement of these results. Despite this setback, analysts are optimistic that the company can still make a comeback and regain investor confidence in the coming quarters.