Allot Communications Ltd. (NASDAQ:ALLT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.9%.
Allot Communications Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.15 in the year-earlier quarter.
Revenue: Decreased 19.73% to $21.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Allot Communications Ltd. reported adjusted EPS loss of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.06. It missed the average revenue estimate of $26.34 million.
Quoting Management: “Our second quarter revenue came in 11% below first quarter’s level,” commented Rami Hadar, Allot Communications’ President and Chief Executive Officer. “The sequential revenues’ decline was mostly the result of unfulfilled revenue recognition terms of a $5 million deal with an EMEA Tier 1 operator. We expect this deal to materialize during the second half of the year. We are encouraged by the surge in demand for our DPI solution, as well as for our VAS, as demonstrated by the all-time, record booking level achieved during the quarter. In the second quarter we made good progress with our Tier 1 mobile U.S. operator, increasing the announced follow-on order to more than $10 million. We expect that the booking results of the last two quarters will set a good foundation to resumed growth in the following quarters.”
Key Stats (on next page)…
Revenue decreased 12.07% from $24.11 million in the previous quarter. EPS decreased to $-0.03 in the quarter versus EPS of $0.02 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.35 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)