Allot Communications

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Allot Communications
Type Public (NASDAQALLT; TASEALLT)
Industry Technology, Communication systems
Founded 1996
Key people CEO: Rami Hadar, CTO: Jay Klein
VP Operations: Pini Gvili
Products Networking, QoS Solutions, Bandwidth optimization
Revenue Increase US$ 104.7 million (2012)
Net income Increase US$ 8.75 million (2011)
Employees 400
Website www.allot.com
Allot headquarter near Tel Aviv

Allot Communications is a provider of IP service optimization solutions for service providers, carriers, and enterprises based in Hod HaSharon, Israel.[1] Allot solutions use deep packet inspection (DPI) technology to change broadband pipes into smart networks offering complete network visibility, application control and subscriber management.[2] In 2012, it registered $105 million in sales.[1]

Corporate history[edit]

Allot Communications was founded in 1996, by Michael Shurman and Yigal Jacoby, who served as chief executive and chairman until 2006.[3] Jacoby previously founded Armon Networking, a manufacturer of RMON-based network management solutions, which was sold to Bay Networks for $33 million in 1996.[4]

In November 2003, Deloitte & Touche named Allot the fourth-fastest growing company on its Israel Technology Fast 50 list. This ranking represented revenue growth of nearly 1,900% in a year's time.[3]

By 2004 Allot raised $38 million, in several rounds of funding, from several venture capital funds, including: Genesis Partners, Gemini, Walden Israel, JAFCO Investment, BancBoston Capital, Jerusalem Venture Partners, and Tamar Technology Ventures.[3]

In 2006, Rami Hadar appointed President and Chief Executive Officer, and the company began trading publicly on the Nasdaq Global Market under the ticker symbol ALLT, following an IPO that raised $78 million.[5]

In 2011 it was revealed that Allot equipment had illegally been sold to Iran.[6] However, in January 2012 Allot was cleared by the Ministry of Defense of any wrongdoing.[7]

In 2011 Allot settled a class-action lawsuit regarding securities fraud involving its stock whereby it agreed to pay $1.3 million (USD).[8][9]

Acquisitions[edit]

  • In September 2002 Allot acquired NetReality, a provider of network application priority switches (NAPS), in order to enhance its quality of service (QoS) and bandwidth management solutions.[10]
  • In May 2012 Allot Acquired Ortiva Wireless, a San Diego–based developer of YouTube video traffic reduction equipment.[12]
  • In July 2012 Allot Acquired Oversi Networks, a provider of rich-media caching and content delivery solutions for Internet video and peer-to-peer (P2P) traffic.[13]

Products[edit]

Allot provides intelligent IP service optimization solutions for DSL, wireless broadband carriers, service providers, and enterprises. Allot's portfolio of hardware platforms and software applications employs deep packet inspection (DPI) technology to turn broadband pipes into smart networks, so that value-added Internet services can be rapidly deployed, or for surveillance of individuals.[14] Allot solutions are also used to support the need of service providers to charge more from heavy users of peer-to-peer, VoIP, and video applications.[2]

Controversy[edit]

In May 2011 Bloomberg Businessweek revealed that Allot's NetEnforcer product was being used in Iran to conduct surveillance on its dissidents and activists. Allot did not directly market and sell its product to Iran; rather, RanTek A/S, a distributor based in Randers, Denmark, stripped the equipment of labels and repackaged it before shipping it to Iran. The trade was legal under Danish law, but Israel has a ban on trade with Iran; Bloomberg reported that former Allot employees stated that it was "well known inside the company that the equipment was headed for Iran".[1]

In January 2012, Israel's Defense Ministry closed the probe into Allot's alleged Iran sales, as its investigation concluded that the company was unaware that the equipment it sold to a distributor may have ended up in Iranian hands.[15]

Partners in different countries[edit]

  • Authorized partner in Russia is Impuls Telecom LLC. ( www.impulstelecom.ru )
  • Authorized partner in Dominican Republic is Redesip, SRL. ( www.redesip.com.do)

References[edit]

  1. ^ a b c Elgin, Ben (23 December 2011). "Israel Didn’t Know High-Tech Gear Was Sent to Iran". Bloomberg Businessweek. 
  2. ^ a b Grigonis, Richard (March 17, 2009), "Allot Communications' Sigma Service Gateway", TMCnet.com 
  3. ^ a b c Dar, Zuri (2004-08-25), "Allot Communications wraps up $8 million financing round", The Marker 
  4. ^ "Bay Networks acquires Armon Networking", Israel Business Today, March 24, 1996 
  5. ^ Krawitz, Avi (November 17, 2006), "Allot raises $78m. in Nasdaq listing", The Jerusalem Post 
  6. ^ "Israeli company sold surveillance equipment to Iran", Haaretz, December 23, 2011 
  7. ^ "Allot Cleared by Israel Defense Ministry in Iran Sales Probe", Bloomberg, 26 January 2012
  8. ^ "Summary Notice of Pendency of Class Action and Proposed Settlement with all Defendants", BusinessWire, January 3, 2011 
  9. ^ "Allot Communications Ltd.: Filed Case", Stanford, June 8, 2007 
  10. ^ "Allot Communications Acquires NetReality; Combines Teams and Technologies to Form Solid Base for Continued Growth.", Business Wire, September 24, 2002 
  11. ^ "Allot Acquires Esphion", Light Reading, January 3, 2008 
  12. ^ "Allot Snaps Up Ortiva Wireless", Light Reading, May 1, 2012 
  13. ^ Allot posts 43% revenue rise; buys Oversi Networks, Globes, 31 July 2012
  14. ^ "Allot", Surveillance Who's Who, July 8, 2012 
  15. ^ Defense Ministry closes probe into Allot's alleged Iran sales, Globes, January 25, 2012

External links[edit]