Broadband service optimization solutions developer Allot Communications Ltd. (Nasdaq:ALLT) reported a heavy GAAP-based loss for the second quarter of 2010, despite higher revenue, due to the sale at a loss of its auction rate securities (ARS) during the quarter.
Allot posted $13.6 million revenue for the second quarter, 36% more that the $10 million for the corresponding quarter and 9% more than the $12.5 million for the preceding quarter.
GAAP-based net loss rose seven-fold to $7.4 million ($0.33 per share) from $1 million for the corresponding quarter. The company attributed the higher loss to the sale of its ARS portfolio for $12.25 million on which it recorded a loss of $7.7 million.
Non-GAAP net profit was $786,000 ($0.03 per share) compared with a non-GAAP net loss of $359,000 for the corresponding quarter, and non-GAAP net profit of $177,000 for the preceding quarter.
Allot received a $4.5 million order from a tier-1 telephony company in the second quarter, and signed nine contracts with service provides, including four new customer.
Allot had $55.4 million in cash and cash equivalents at the end of June.
Allot president and CEO Rami Hadar predicts further growth as it increases sales to tier-1 telecommunications providers.
Allot's share closed at $5.05 on Nasdaq yesterday, giving a market cap of $113 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010
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