Allot Communications to Acquire Oversi Networks
Poster: SySAdmin
Posted on July 31, 2012 at 12:07:01 AM
Allot Communications to Acquire Oversi Networks
Provides Allot with a leading video caching service offering
HOD HASHARON, Israel, July 31, 2012/PRNewswire-FirstCall/ --
Allot Communications Ltd. (NASDAQ: ALLT), a leading provider of service optimization
and revenue generation solutions for fixed and mobile data networks worldwide, today
announced that it has signed a definitive agreement to acquire Oversi Networks, a leading
global provider of rich-media caching and content delivery solutions for Internet video
and peer-to-peer (P2P) traffic.
This transaction is another milestone in Allot's vision of further enhancing its
industry-leading Allot Service Gateway by offering a comprehensive video solution, which
now includes both video optimization and caching. The incorporation of Oversi's technology
with Allot's Service Gateway will allow fixed and mobile service providers to effectively
manage the ever-increasing volume of video traffic on their networks. Allot's fixed line
customers report that video traffic currently uses over 50% of bandwidth and is rapidly
increasing. On the wireless side, according to Allot's latest Global MobileTrends report,
video now represents 42% of mobile data traffic worldwide.
Oversi's innovative caching and acceleration solutions help both fixed and mobile
service providers to relieve the heavy network congestion associated with Internet video
traffic. Its technology identifies popular content and caches it at the edge of the
network, therefore achieving significant bandwidth saving and minimizing long delays in
video delivery. The end result is a dramatic improvement in the subscribers' quality of
experience (QoE) for video applications. By assuring quality of experience, Oversi's
solutions enable service providers to offer tiered services at different price levels,
increasing average revenues per user (ARPU). Its solution has been widely deployed at
several large and medium service providers to date.
"The acquisition of Oversi is another step in realizing our Service Gateway vision,"
commented Rami Hadar, Allot's President and CEO. "By adding video caching, Allot now
offers its customers a comprehensive video solution that includes the critical caching and
optimization services required to manage the ever-increasing volume of over-the-top video
on the Internet. Over the past year, we have seen an increase in customer interest in
video caching solutions, which made clear to us the critical need for Allot to own a
leading solution in this growing market instead of reselling a third-party offering. With
our shared vision of enabling service providers to monetize video traffic, we are excited
about incorporating another excellent team and product offering into Allot."
"By joining Allot, we will now be able to further our joint market vision more
effectively," commented Oversi's CEO, David Tolub. "While we have seen growing traction
for our leading edge caching solutions, we believe that integrating our solution into the
Allot Service Gateway will accelerate our market penetration by offering a more robust
video solution. We are excited about joining the Allot team."
Under the terms of the acquisition, Allot will be paying $16 million in cash, as well
as up to $5 million based on Oversi's performance during 2012. The acquisition is subject
to the satisfaction of certain closing conditions, and is expected to close during the
third quarter of 2012. On a non-GAAP basis, management currently anticipates the
following:
- Oversi will contribute approximately $2.0 million in revenues per quarter.
- Gross margins for the Oversi offering should be within Allot's current gross
margin range.
- Operating expenses will increase by approximately $2.0 million per quarter,
which will impact earnings per share by approximately $0.02 per share in the 4th
quarter.
- The offering should reach break-even by the first quarter of 2013.
Non-GAAP financial measures exclude stock-based compensation expenses and amortization
of acquired intangible assets, and add back the fair value of acquired deferred revenue
written-off for GAAP purposes as part of purchase accounting.
About Allot
Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent data
traffic optimization and monetization solutions for fixed and mobile broadband operators
and large enterprises worldwide. Allot's scalable, carrier-grade solutions provide the
visibility, topology awareness, security, application control and subscriber management
that are vital to managing fixed and mobile data, enhancing user experience, containing
operating costs, and enabling service providers to generate revenues from their broadband
networks. The company offers the broadest portfolio of value-added services, including a
comprehensive and unique video optimization and caching suite. Allot's rich portfolio of
solutions leverages dynamic actionable recognition technology (DART) to transform
broadband pipes into smart networks that can rapidly and efficiently deploy value added
Internet services. For more information, please visit http://www.allot.com.
Safe Harbor Statement
Information provided in this press release may contain statements relating to current
expectations, estimates, forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally relate to the company's plans, objectives
and expectations for future operations, including without limitation the company's
integration vision and expected revenues and operating expenses in connection with the
acquisition described in this press release. These forward-looking statements are based
upon management's current estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a result of certain risks and
uncertainties. These factors include, but are not limited to: the integration of Oversi
Networks technology, business, and operations with those of the company; increased demand
for video optimization solutions in mobile networks; changes in general economic and
business conditions and, specifically, a decline in demand for the company's products; the
company's inability to develop and introduce new technologies, products and applications;
loss of market; and other factors are discussed under the heading "Risk Factors" in the
company's annual report on Form 20-F filed with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date hereof, and the company
undertakes no obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
jkalish@allot.com
Marketing Communications
Jonathon Gordon
Director of Marketing
International access code +972-9-762-8423
International access code +972-54-223-3589
jgordon@allot.com
Source: Allot Communications Ltd.
Provides Allot with a leading video caching service offering
HOD HASHARON, Israel, July 31, 2012/PRNewswire-FirstCall/ --
Allot Communications Ltd. (NASDAQ: ALLT), a leading provider of service optimization
and revenue generation solutions for fixed and mobile data networks worldwide, today
announced that it has signed a definitive agreement to acquire Oversi Networks, a leading
global provider of rich-media caching and content delivery solutions for Internet video
and peer-to-peer (P2P) traffic.
This transaction is another milestone in Allot's vision of further enhancing its
industry-leading Allot Service Gateway by offering a comprehensive video solution, which
now includes both video optimization and caching. The incorporation of Oversi's technology
with Allot's Service Gateway will allow fixed and mobile service providers to effectively
manage the ever-increasing volume of video traffic on their networks. Allot's fixed line
customers report that video traffic currently uses over 50% of bandwidth and is rapidly
increasing. On the wireless side, according to Allot's latest Global MobileTrends report,
video now represents 42% of mobile data traffic worldwide.
Oversi's innovative caching and acceleration solutions help both fixed and mobile
service providers to relieve the heavy network congestion associated with Internet video
traffic. Its technology identifies popular content and caches it at the edge of the
network, therefore achieving significant bandwidth saving and minimizing long delays in
video delivery. The end result is a dramatic improvement in the subscribers' quality of
experience (QoE) for video applications. By assuring quality of experience, Oversi's
solutions enable service providers to offer tiered services at different price levels,
increasing average revenues per user (ARPU). Its solution has been widely deployed at
several large and medium service providers to date.
"The acquisition of Oversi is another step in realizing our Service Gateway vision,"
commented Rami Hadar, Allot's President and CEO. "By adding video caching, Allot now
offers its customers a comprehensive video solution that includes the critical caching and
optimization services required to manage the ever-increasing volume of over-the-top video
on the Internet. Over the past year, we have seen an increase in customer interest in
video caching solutions, which made clear to us the critical need for Allot to own a
leading solution in this growing market instead of reselling a third-party offering. With
our shared vision of enabling service providers to monetize video traffic, we are excited
about incorporating another excellent team and product offering into Allot."
"By joining Allot, we will now be able to further our joint market vision more
effectively," commented Oversi's CEO, David Tolub. "While we have seen growing traction
for our leading edge caching solutions, we believe that integrating our solution into the
Allot Service Gateway will accelerate our market penetration by offering a more robust
video solution. We are excited about joining the Allot team."
Under the terms of the acquisition, Allot will be paying $16 million in cash, as well
as up to $5 million based on Oversi's performance during 2012. The acquisition is subject
to the satisfaction of certain closing conditions, and is expected to close during the
third quarter of 2012. On a non-GAAP basis, management currently anticipates the
following:
- Oversi will contribute approximately $2.0 million in revenues per quarter.
- Gross margins for the Oversi offering should be within Allot's current gross
margin range.
- Operating expenses will increase by approximately $2.0 million per quarter,
which will impact earnings per share by approximately $0.02 per share in the 4th
quarter.
- The offering should reach break-even by the first quarter of 2013.
Non-GAAP financial measures exclude stock-based compensation expenses and amortization
of acquired intangible assets, and add back the fair value of acquired deferred revenue
written-off for GAAP purposes as part of purchase accounting.
About Allot
Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent data
traffic optimization and monetization solutions for fixed and mobile broadband operators
and large enterprises worldwide. Allot's scalable, carrier-grade solutions provide the
visibility, topology awareness, security, application control and subscriber management
that are vital to managing fixed and mobile data, enhancing user experience, containing
operating costs, and enabling service providers to generate revenues from their broadband
networks. The company offers the broadest portfolio of value-added services, including a
comprehensive and unique video optimization and caching suite. Allot's rich portfolio of
solutions leverages dynamic actionable recognition technology (DART) to transform
broadband pipes into smart networks that can rapidly and efficiently deploy value added
Internet services. For more information, please visit http://www.allot.com.
Safe Harbor Statement
Information provided in this press release may contain statements relating to current
expectations, estimates, forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally relate to the company's plans, objectives
and expectations for future operations, including without limitation the company's
integration vision and expected revenues and operating expenses in connection with the
acquisition described in this press release. These forward-looking statements are based
upon management's current estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a result of certain risks and
uncertainties. These factors include, but are not limited to: the integration of Oversi
Networks technology, business, and operations with those of the company; increased demand
for video optimization solutions in mobile networks; changes in general economic and
business conditions and, specifically, a decline in demand for the company's products; the
company's inability to develop and introduce new technologies, products and applications;
loss of market; and other factors are discussed under the heading "Risk Factors" in the
company's annual report on Form 20-F filed with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date hereof, and the company
undertakes no obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor Relations Contact:
Jay Kalish
Executive Director Investor Relations
International access code +972-54-221-1365
jkalish@allot.com
Marketing Communications
Jonathon Gordon
Director of Marketing
International access code +972-9-762-8423
International access code +972-54-223-3589
jgordon@allot.com
Source: Allot Communications Ltd.