One company doing well despite the weakening economy is Allot Communications, which today announced its third quarter revenues increased to a record $9.8 million-representing a three percent increase over the second quarter of 2008.
Allot (News - Alert) Communications is a provider of IP service optimization solutions based on deep packet inspection (DPI) technology. In comparison to last year’s financial results released for the third quarter, the company saw a 40 percent increase in revenues this year for the same period.
The net loss for this quarter—which ended September 30—was $9.0 million on a GAAP basis. In the second quarter of 2008, this net loss was $3.7 million, and the company reported a net loss of $2.2 million for the third quarter in 2007.
In this third quarter of 2008, Allot revealed its net loss on a GAAP basis was primarily affected by an impairment charge for auction rate securities (ARS) in its portfolio.
On a non-GAAP basis, the net loss for the third quarter of 2008 totaled $1.6 million, while last year for this same period, the company reported a non-GAAP net loss of $1.7 million. Earlier for the second quarter 2008, Allot announced a non-GAAP net loss of $1.9 million.
Rami Hadar (News - Alert), president and CEO at Allot, attributed record revenues to the company’s improved execution during the third quarter. Allot continued to succeed in penetrating major wireless operators, which it sees as a significant growth driver going forward.
In this quarter, Allot announced that it has completed eleven large deals with service providers. Five of these represent new customers and six are expansion deals.
“As mobile data traffic continues to increase, our customers are seeking ways to optimize and monetize their costly infrastructure, and Allot's solutions are ideally designed to enable them to meet these goals,” Hadar explained.
During this third quarter, the company added a new Tier 1 mobile operator, and also made its first commercial deployments which included video caching as a value-added service.
For the company, the cash, cash equivalents, deposits and investments in marketable securities totaled $54.4 million as of September 30, 2008. In addition, during this third quarter, the company increased its cash and cash equivalents by $5.0 million.
According to Allot, this increase in cash and cash equivalents is due to the monetization of certain ARS at par value. The company also has monetized an additional $6.6 million of its ARS portfolio at par value during the fourth quarter.
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Edited by Michelle Robart