The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Allot Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Margins contracted across the board.
Allot Communications tallied revenue of $27.8 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $27.7 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $20.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.07 for Q3 were 13% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.5%, 200 basis points worse than the prior-year quarter. Operating margin was 7.3%, 240 basis points worse than the prior-year quarter. Net margin was 8.6%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $31.1 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $109.6 million. The average EPS estimate is $0.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 112 members out of 125 rating the stock outperform, and 13 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Allot Communications a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allot Communications is buy, with an average price target of $28.91.
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