- First quarter non-GAAP net profit of $5.0 million; non-GAAP EPS increases to $0.15 from $0.14 in the fourth quarter of 2011, despite dilution effect due to public offering

- Cash, cash equivalents and marketable securities totaled $165.4 million; generated approximately $4.4 million in cash from operations during the quarter

Allot Communications Ltd. (NASDAQ: [ ALLT ]), a leading supplier of service optimization and revenue generation solutions for fixed and mobile data worldwide, today announced continued growth in sales and profitability during the first quarter of 2012.

Total revenues for the first quarter of 2012 reached $24.2 million, a 41% increase from the $17.2 million of revenues reported for the first quarter of 2011, and a 10% increase from the $22.0 million of revenues reported for the fourth quarter of 2011. On a GAAP basis, net profit for the first quarter of 2012 was $3.2 million, or $0.10 per basic and diluted share. This compares with net profit of $1.6 million, or $0.07 per basic share and $0.06 per diluted share, in the first quarter of 2011, and net profit of $3.5 million, or $0.13 per basic share and $0.12 per diluted share, in the fourth quarter of 2011.

The weighted average number of diluted shares increased in the first quarter of 2012 mainly reflecting the issuance of new shares as part of the Company's public offering which closed on November 15, 2011. The share count now fully reflects all shares issued in the public offering.

On a non-GAAP basis, excluding the impact of share-based compensation, amortization of certain intangibles and certain one-time charges incurred related to M&A activities and compliance with regulatory matters, non-GAAP net profit for the first quarter of 2012 totaled $5.0 million, or $0.16 per basic share and $0.15 per diluted share, compared with non-GAAP net profit of $2.2 million, or $0.09 per basic share and $0.08 per diluted share, for the first quarter of 2011, and non-GAAP net profit $4.2 million or $0.15 per basic share and $0.14 per diluted share, for the fourth quarter of 2011.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are provided in the accompanying Tables 2 and 3. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

"Revenues continued to grow during the quarter as we continue to see a healthy inflow of both new and expansion orders," commented Rami Hadar, Allot Communications' President and Chief Executive Officer. "As we predicted, over-the-top (OTT) applications are not only overwhelming networks, but are now actually impacting service providers' revenues by offering free and low-cost alternatives to their offerings. Our solutions not only provide a way to manage bandwidth consumption for these services, but offer our customers the ability to monetize their networks by introducing creative data plans and to actually share revenues with OTT content providers."

Recently, the Company achieved the following significant goals:

During the quarter, received orders from 17 large service providers, 5 of which represented new customers;
Announced it had received a follow-on order from an Asian Tier 1 mobile operator to support an LTE network rollout;
Announced it had received an initial order worth approximately US$4 million from a Tier 1 Latin American fixed/mobile operator; and
Announced signing a definitive agreement to purchase Ortiva Wireless, which provides Allot with a best-of-breed video optimization solution.

As of March 31, 2012, cash, cash equivalents, short term deposits and marketable securities totaled $165.4 million, with no debt.

Conference Call & Webcast

The Allot management team will host a conference call to discuss its first quarter 2012 earnings results on Tuesday, May 1, 2012, at 8:30 AM ET, 3:30 PM Israel time. The quarterly financial results will be published prior to the conference call.

To access the conference call, please dial one of the following numbers: US: +1-646-254-3361, UK: +44(0)20-3364-5381, Israel: +972-3763-0146, participant code 4105861.

A replay of the conference call will be available from 12:01 am ET on May 4, 2011 through May 31, 2012 at 11:59 pm UK time. To access the replay, please dial: US: +1-347-366-9565, UK: +44(0)20-7111-1244, access code: 4105861#.

A live webcast of the conference call can be accessed on the Allot Communications website at [ http://www.allot.com ]. The webcast will also be archived on the website following the conference call.

About Allot Communications

Allot Communications Ltd. (NASDAQ: [ ALLT ]) is a leading provider of intelligent data traffic optimization and monetization solutions for fixed and mobile broadband operators and large enterprises worldwide. Allot's scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing fixed and mobile data, enhancing user experience, containing operating costs, and enabling service providers to generate revenues from their broadband networks. Allot's rich portfolio of solutions leverages dynamic actionable recognition technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value added Internet services. For more information, please visit [ http://www.allot.com ].

Safe Harbor Statement

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to: our ability to increase the breadth and functionality of the Service Gateway platform through additional partnerships and the integration of Ortiva Wireless technology, business, and operations with those of the Company, changes in general economic and business conditions; the Company's inability to develop and introduce new technologies, products and applications; loss of market; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
[ jkalish@allot.com ]

 TABLE - 1 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share data) Three Months Ended March 31, ----------------------------- 2012 2011 ------------ ------------ (Unaudited) ----------------------------- Revenues $ 24,217 $ 17,183 Cost of revenues 6,901 4,852 ------- -------- Gross profit 17,316 12,331 ------- -------- Operating expenses: Research and development costs, net 4,010 2,971 Sales and marketing 7,755 6,314 General and administrative 2,774 1,427 ------- -------- Total operating expenses 14,539 10,712 Operating profit 2,777 1,619 Financial and other income, net 462 92 ------- -------- Profit before income tax expenses 3,239 1,711 Tax expenses 3 85 ------- -------- Net profit 3,236 1,626 ======= ======== Basic net profit per share $ 0.10 $ 0.07 ======= ======== Diluted net profit per share $ 0.10 $ 0.06 ======= ======== Weighted average number of shares used in computing basic net earnings per share 31,218,667 23,980,623 ======= ======== Weighted average number of shares used in computing diluted net earnings per share 32,923,903 25,898,321 ======= ========

 TABLE - 2 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) Three Months Ended March 31, ----------------------- 2012 2011 --------- --------- (Unaudited) ----------------------- GAAP net profit as reported $ 3,236 $ 1,626 Non-GAAP adjustments Expenses recorded for stock-based compensation Cost of revenues 44 23 Research and development costs, net 188 92 Sales and marketing 318 221 General and administrative 166 181 Expenses related to M&A activities and compliance with regulatory matters General and administrative 1,045 - Core technology amortization- cost of revenues 31 30 --------- -------- Total adjustments to operating loss 1,792 547 Financial and other expenses, net --------- -------- Total adjustments 1,792 547 --------- -------- Non-GAAP net profit $ 5,028 $ 2,173 ========= ======== Non- GAAP basic net profit per share $ 0.16 $ 0.09 ========= ======== Non- GAAP diluted net profit per share $ 0.15 $ 0.08 ========= ======== Weighted average number of shares used in computing basic net earnings per share 31,218,667 23,980,623 ========= ======== Weighted average number of shares used in computing diluted net earnings per share 33,078,735 26,035,245 ========= ========

 TABLE - 3 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS on a NON-GAAP BASIS (U.S. dollars in thousands, except share and per share data) Three Months Ended March 31, ----------------------------- 2012 2011 ----------- ---------- (Unaudited) ----------------------------- Revenues $ 24,217 $ 17,183 Cost of revenues 6,826 4,799 -------- -------- Gross profit 17,391 12,384 -------- -------- Operating expenses: Research and development costs, net 3,822 2,879 Sales and marketing 7,437 6,093 General and administrative 1,563 1,246 -------- -------- Total operating expenses 12,822 10,218 Operating profit 4,569 2,166 Financial and other income, net 462 92 -------- -------- Profit before income tax expenses 5,031 2,258 Tax expenses 3 85 -------- -------- Net profit 5,028 2,173 ======== ======== Basic net profit per share $ 0.16 $ 0.09 ======== ======== Diluted net profit per share $ 0.15 $ 0.08 ======== ======== Weighted average number of shares used in computing basic net earnings per share 31,218,667 23,980,623 ======== ======== Weighted average number of shares used in computing diluted net earnings per share 33,078,735 26,035,245 ======== ========

 TABLE - 4 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) March 31, December 31, 2012 2011 ---------- ----------- (Audited) (Audited) ---------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 140,902 $ 116,682 Short term deposits 6,000 24,000 Marketable securities and restricted cash 18,535 18,718 Trade receivables, net 16,313 11,926 Other receivables and prepaid expenses 5,839 5,950 Inventories 10,652 10,501 ---------- ----------- Total current assets 198,241 187,777 ---------- ----------- LONG-TERM ASSETS: Severance pay fund 184 178 Other assets 357 356 ---------- ----------- Total long-term assets 541 534 ---------- ----------- PROPERTY AND EQUIPMENT, NET 5,406 5,352 ---------- ----------- GOODWILL AND INTANGIBLE ASSETS, NET 3,364 3,395 ---------- ----------- Total assets $ 207,552 $ 197,058 ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 5,939 $ 2,684 Deferred revenues 18,590 16,694 Other payables and accrued expenses 8,432 9,462 ---------- ----------- Total current liabilities 32,961 28,840 ---------- ----------- LONG-TERM LIABILITIES: Deferred revenues 4,745 5,430 Accrued severance pay 219 219 ---------- ----------- Total long-term liabilities 4,964 5,649 ---------- ----------- SHAREHOLDERS' EQUITY 169,627 162,569 ---------- ----------- Total liabilities and shareholders' equity $ 207,552 $ 197,058 ========== ===========

 TABLE - 5 ALLOT COMMUNICATIONS LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Three Months Ended March 31, ------------------- 2012 2011 ------------------- (Unaudited) Cash flows from operating activities: Net income $ 3,236 $1,626 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 645 661 Stock-based compensation related to options granted to employees and non-employees 716 517 Amortization of intangible assets 31 30 Capital loss (gain) 4 (4) Decrease (Increase) in accrued severance pay, net (6) 3 Increase in other assets (1) (3) Decease (Increase) in accrued interest and amortization of premium on marketable securities 37 (1) Increase in trade receivables (4,387) (2,768) Decrease (Increase) in other receivables and prepaid expenses 224 (94) Increase in inventories (151) (814) Increase in trade payables 3,255 27 Increase (Decrease) in employees and payroll accruals 265 (592) Increase in deferred revenues 1,211 1,459 Increase (Decrease) in other payables and accrued expenses (677) 918 --------------------- Net cash provided by operating activities 4,402 965 --------------------- Cash flows from investing activities: Increase in restricted deposit (44) (486) Redemption of short-term deposits 18,000 - Purchase of property and equipment (703) (710) Proceeds from sale of property and equipment - 30 Investment in marketable securities (251) (853) Proceeds from redemption or sale of marketable securities 450 800 --------------------- Net cash provided by (used in) investing activities 17,452 (1,219) --------------------- Cash flows from financing activities: --------------------- Proceeds from exercise of options 2,366 1,253 --------------------- Net cash provided by financing activities 2,366 1,253 Increase in cash and cash equivalents 24,220 999 Cash and cash equivalents at the beginning of the year 116,682 42,858 --------------------- Cash and cash equivalents at the end of the year $ 140,902 $ 43,857 ---------------------

SOURCE Allot Communications Ltd.

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10% Revenue Rise and Expanded Net Profit for First Quarter of 2012

Allot Communications: 10% Revenue Rise and Expanded Net Profit for First Quarter of 2012

Revenues reach $24.2 million; EPS was $0.15 on a non-GAAP basis ($0.10 on a GAAP basis)