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Allot

Allott gives communication services providers the tools to keep consumers' data secure

Snapshot

With the help of Allot’s technology, for a monthly fee, service providers lift from consumers the burden of personal responsibility for cyber-protecting their devices

Allot -

Quick facts: Allot

Price: $7.88

Market: NASDAQ
Market Cap: $270.37 m
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  • Allot provides value-added security-as-a-service to CSPs, who in turn provide network security services to their customers.
  • Allot's NetworkSecure is the world’s largest deployed network-based security service for the mass market with over 20 million paying security customers
  • While the company’s technology is used mainly in Europe and Latin America, Allot has been expanding its activities in the US and Asia Pacific

What the company does:

Allot Ltd (NASDAQ:ALLT) is shifting the burden of cybersecurity provision from the shoulders of consumers by marketing its services direct to communication service providers (CSPs) rather than the individuals themselves. 

The Israeli company offers a suite of security products designed to empower telecommunication companies and other CSPs to weave together network-based security, home gateway security and Internet of Things security as a value-added service.

With the help of Allot’s technology, for a monthly fee, service providers lift from consumers the burden of personal responsibility for cyber-protecting their devices.

In short, Allot provides value-added security-as-a-service to CSPs. In turn, those CSPs can provide additional network security services to their customers.

The company’s NetworkSecure product helps providers guard against phishing attacks, bots, malware and other cybersecurity threats.

It also offers ClearSee Network Analytics, which provides real-time data that can be translated into actionable business opportunities.

Additionally, Allot's Secure Service Gateway product helps maximize network performance, monitor traffic, pinpoint problems and filter out potential security threats before they have an effect on service, lowering operating costs through a one-stop shop solution.

In addition to its suite of Security-as-a-Service offerings, the company’s 'bread and butter' product is deep packet inspection, a method of monitoring and managing network traffic. Backed up by more than two decades of experience, Allot has been making the transition from traditional Deep Packet Intelligence (DPI) to security and smart network intelligence.

How is it doing:

So far it's working: Allot's NetworkSecure is the world’s largest deployed network-based security service for the mass market with over 20 million paying security customers.

One of its clients, the Spanish telecommunications titan Telefónica, announced on August 12 that the custom security offering Allot created with fellow cybersecurity player McAfee LLC has helped block more than 80,000 potential security threats to its business customers. 

For the three months ended June 30, the company reported revenues of $26.6 million, a 15% increase from $23 million in the prior-year quarter. Its $0.04 loss per share came in ahead of consensus estimates for a $0.06 loss. 

Allot expects full-year revenue of between $106 million and $110 million, representing continued double-digit year-on-year growth. The break-even point, or even profitability for the group, is also in sight for the second half of 2019.

The company said cash and investments as of June 30 totaled $101.6 million, compared to $101.5 million in March.

Inflection Points:

While the company’s technology is used mainly in Europe and Latin America, Allot has been expanding its activities in the US and Asia Pacific in both the CSP and enterprise markets.

The need for network security in the US and beyond is increasing as the number of internet-connected devices in our lives continues to grow. 

In March, Allot partnered with US roaming and data analytics solutions provider Mobileum to enhance the quality of roaming services for the customers of a Tier 1 US mobile operator -- for which, read either Verizon Communications Inc (NYZE:VZ), AT&T Inc (NYSE:T), Sprint Corporation (NYSE:S) or T-Mobile US Inc (NASDAQ:TMUS).

What the boss says:

Allot's CEO Erez Antebi, a 35-year industry veteran, has led several telecommunications companies, including Gilat Satellite Networks, Spacenet Rural and Clariton Network. He also held positions with the Israeli Ministry of Defense.

In a interview with Proactive in August, Antebi described what makes Allot attractive to both providers and consumers: :You don’t have to download anything. You don’t have to try and figure out what’s better and what’s not better. Here’s a reputable company that’s providing you broadband access and now they’ll provide you a security service and that is so much easier.”

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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