Why Allot Communications Ltd Shares Ascended Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Allot Communications Ltd (NASDAQ: ALLT  ) rose more than 10% early Wednesday, then settled to close up around 8% after the company named a new CEO and released solid first-quarter results.

So what: Adjusted quarterly revenue increased 17.2% year over year to $28.3 million, which translated to adjusted net earnings of $0.06 per share. Analysts, on average, were looking for earnings of $0.06 per share on sales of $26.06 million.

Allot also announced its CEO, Rami Hadar, will retire during the second quarter of 2014. He will be replaced by Andrei Elefant, who has worked with the company for eight years and currently serves as its VP of product management and marketing.

Now what: On Allot's first-quarter performance, Hadar added, "Our well-diversified, differentiated VAS offering is one of the key catalysts for the demand that we experience from service providers and we look forward to continuing to address the needs of our Tier-1 customers with our innovative service generating VAS suite."

The market doesn't seem to mind the management change for Allot, which is still a relatively small business with a market cap under $500 million. And even after today's pop, shares still sit down 10% year to date, and around 24% off their 52-week highs. If Allot can keep marching toward sustained profitability on a GAAP basis, I see no reason the stock won't be able to continue rewarding patient shareholders from here.

The biggest thing to come out of Silicon Valley in years
Allot is a promising small-cap name, but it's hardly the only little company with huge potential. To be sure, if you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2938014, ~/Articles/ArticleHandler.aspx, 9/2/2015 11:03:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated Moments ago Sponsored by:
DOW 16,147.91 89.56 0.56%
S&P 500 1,922.49 8.64 0.45%
NASD 4,663.71 27.60 0.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 10:45 AM
ALLT $5.04 Down -0.10 -1.95%