Allot Ltd. (NASDAQ:ALLT) Q4 2022 Earnings Call Transcript

Page 4 of 4

Ziv Leitman: I would say it’s mainly related to the general business environment and the delays that we see in the market. It’s not because we see that we are losing market share. We’re not losing market share as far as we know. It’s just the general business environment, everything, it takes more time and we see delays in project. So this is the main reason. And we think that in Q1, the amount of deals that we will be able to recognize revenue are relatively low with the CSP.

Rory Wallace: Okay. And in terms of the resellers and the accounts receivable that you called out being up $10 million, is that something that’s with relatively large and solvent customers? Are you expecting that you’ll be able to collect those down in the first half of the year and start to bring that working capital back in line?

Ziv Leitman: We are expecting to collect those amounts in the coming months.

Rory Wallace: Okay. And switching to more positive subject matter, but with the SECaaS business, it was encouraging to see the 30% sequential growth, and I was wondering how much of that came from Taiwan Far EasTone? I know it launched pretty late in the quarter, so did it impact that run rate materially or is that really not in this quarter.

Ziv Leitman: There was an impact of SECaaS but I don’t know what is significant. There was an impact.

Rory Wallace: Okay.

Ziv Leitman: It’s not — but it’s not the reason for the entire inquiry.

Rory Wallace: Got it. And with sort of the large deals that you’ve won, the tent pole projects from Verizon to the Vodafone Home security to some of the other Tier 1s that you’ve announced, do you have good confidence that some of these deals are launching this year? And that we’ll be able to actually see these networks running and use the products ourselves in some cases, if we’re in the U.S. or Canada and want to actually try these products. I think it would be very positive for shareholders and for the broader company to actually get some exposure via obviously Verizon launching or some of these other Tier 1s launching. Do you think that’s something we can actually expect in 2023?

Erez Antebi: And we would like them to launch to everything tomorrow morning, obviously. But they have their own plans and because it’s a competitive environment and this is a new service that they plan to launch, unfortunately we can’t share what their plans for launch are and neither the timing or pricing or anything like that. So we’ll just have to wait and see.

Operator: . There are no further questions at this time. Mr. Antebi, would you like to make your concluding statement?

Erez Antebi: Yes. Thank you, Operator. I want to thank everyone for joining the call and I want to thank you for your support in Allot and I look forward to seeing you in the next conference call or before perhaps meet you someplace. Thank you very much.

Operator: Thank you. This concludes the Allot fourth quarter 2022 results conference call. Thank you for your participation. You may go ahead and disconnect.

Follow Allot Ltd. (NASDAQ:ALLT)

Page 4 of 4