Monday, October 8, 2007

Allot Trims Revenue Outlook for 2007

Allot Communications, which supplies IP service optimization solutions based on deep packet inspection (DPI) technology, trims its financial guidance. The company now expects to report revenues for 2007 in the range of $32 million to $35 million, which is lower than its previous guidance. Q3 revenues will be approximately $7.0 million.

Allot cited slow sales during Q3 coupled with delays in customer purchase decisions due to growing interest in its newly introduced 10GB Service Gateway product. In addition, during the quarter the company received a $2 million order from a major telecom operator in Latin America. The company expects that revenues from this order may be recognized over an extended period of time, most likely commencing during 2008.

Allot also cited longer than originally anticipated sales cycles for the its Service Gateway.

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