The 10-second takeaway
For the quarter ended March 31 (Q1), Allot Communications whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins dropped, net margins contracted.
Allot Communications reported revenue of $24.1 million. The 11 analysts polled by S&P Capital IQ anticipated sales of $27.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.02. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. Non-GAAP EPS of $0.02 for Q1 were 87% lower than the prior-year quarter's $0.15 per share. GAAP EPS were -$0.06 for Q1 against $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.0%, 50 basis points better than the prior-year quarter. Operating margin was -8.3%, much worse than the prior-year quarter. Net margin was -7.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $29.2 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $122.7 million. The average EPS estimate is $0.64.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 118 members out of 129 rating the stock outperform, and 11 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Allot Communications a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allot Communications is outperform, with an average price target of $20.00.
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