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 Internet optimization manager Allot Communications (Nasdaq: ALLT) fell as much as 13% today, due to "transaction delays" revealed on its earnings call, before recovering moderately

So what: The company actually beat estimates by a penny with an adjusted profit of $0.15/share, and revenue came in ahead of expectations as well. On the earnings call, Allot's CEO said the process to finalize deals "is taking longer, more related to pricing development and actual needs. Maybe service providers are a little bit more cautious and anxious to optimize cap ex spending." Allot also announced an acquisition of Oversi Networks for $16 million in cash.

Now what: The Israeli upstart had been a strong performer throughout 2012 with shares up nearly 80% at one point, but earnings growth has not matched the increase in share price and its P/E ratio now sits at a lofty 46. The company also brings in much of its revenue from Europe, where current conditions have been challenging, to say the least. There may be reasons to be excited about Allot in the long run but with an uninspiring climate in Europe and issues going on with its business partners, it looks like it's time for shares to cool off a bit.

You can stay on top of any developments with Allot Communications by adding it to My Watchlist here.

Fool contributor Jeremy Bowman holds no positions in the companies in this article. The Motley Fool has a disclosure policy.

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