Benzinga | Aug 10, 2021 06:55PM EDT

Allot Beats Q2 Earnings As Cybersecurity Responsibility Shifts To CSPs; Reiterates FY21 Guidance

* Allot Ltd (NASDAQ:ALLT) reported second-quarter FY21 revenue growth of 8% year-on-year to $35.3 million, beating the analyst consensus of $34.1 million.

* Margin: The GAAP margin reduced 100 bps to 69% as costs rose 10% Y/Y. The non-GAAP gross margin contracted 50 bps to 70.2%.

* Non-GAAP EPS loss of $(0.04) beat the analyst consensus loss of $(0.09).

* Allot held $105.6 million in cash and equivalents and generated $3.6 million in operating cash flow.

* Growth Drivers: The Q2 results reflect the growth and momentum of the revolution of shifting cybersecurity responsibility from the individual to the Communications Service Providers (CSPs).

* The 5G Netprotect product is gaining momentum with another win with a Tier-1 in APAC. Allot inked additional SECaas contracts with multiple operators in APAC, EMEA, and Latam.

* Outlook: Allot reiterated FY21 revenue outlook of $145 million - $150 million versus the analyst consensus of $147.1 million.

* Price action: ALLT shares closed lower by 7.38% at $17.33 on Tuesday.