Allot Ltd. (ALLT, Financial) has announced a public offering of its ordinary shares, with all shares being sold by the company itself. The generated funds from this offering are earmarked to repay $31.41 million of the principal balance on a senior unsecured convertible promissory note. Originally valued at $40 million, this note was issued to Lynrock Lake Master Fund, the company's largest shareholder, in February 2022. The remaining balance will be directed towards general corporate needs.
In addition, Lynrock has consented to convert the outstanding $8.59 million of the principal from the Lynrock Note into ordinary shares. A customary 75-day lock-up agreement with the underwriters will accompany this conversion, affecting the shares received through this process. Once these financial maneuvers are complete, Allot Ltd. will be free of borrowed money debt.
Top financial firms TD Cowen and William Blair are appointed as joint book-running managers, and Needham & Company takes the role of lead manager for this public offering.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Allot Ltd (ALLT, Financial) is $13.00 with a high estimate of $13.00 and a low estimate of $13.00. The average target implies an upside of 35.28% from the current price of $9.61. More detailed estimate data can be found on the Allot Ltd (ALLT) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Allot Ltd's (ALLT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Allot Ltd (ALLT, Financial) in one year is $2.57, suggesting a downside of 73.26% from the current price of $9.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Allot Ltd (ALLT) Summary page.
ALLT Key Business Developments
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Allot Ltd (ALLT, Financial) reported a 6% year-over-year increase in first-quarter revenues, marking a return to growth.
- The company's Security as a Service Solution, CIA, contributed significantly to revenue, with a 55% year-over-year increase.
- Allot Ltd (ALLT) achieved a non-GAAP net income of $0.8 million, compared to a loss in the same quarter last year.
- The company reported positive operating cash flow of $1.7 million, increasing its cash position to over $60 million.
- Allot Ltd (ALLT) secured a significant expansion of its partnership with Verizon Business, offering a substantial growth opportunity.
Negative Points
- The official launch of Verizon's mobile service occurred only in mid-April, resulting in minimal contribution to Q1 results.
- The company's growth projections are reliant on the marketing efforts and campaigns of service providers, introducing uncertainty.
- Despite positive results, there is still potential for CIA's ARR growth to be slightly below the 50% target.
- The transition of Vodafone's partnership to a CCAS revenue structure is still ongoing, with some agreements not yet fully realized.
- The competitive nature of the industry and reliance on external service providers' marketing strategies pose risks to growth projections.
