|Allot Communications Has Fixed Its Booking Issues|
Oct. 19, 2014
Allot operates in the deep packet inspection or DPI market. This market has and is expected to continue to grow rapidly.
Despite 2013, Allot has been able to take advantage of the DPI market's rapid growth. In 2013, Allot's subpar financial performance was the result of booking weakness in 2012.
Yet since 2012, the company has experienced strong booking activity every quarter. Allot's strong booking activity has started to produce significant revenue growth. This growth should continue.
The DPI market is growing, Procera is struggling, and management is focusing more on the mobile market. Additionally, U.S. revenue should benefit most from management's shift in focus.
Allot is well positioned for growth and their stock is currently undervalued. As revenue and profitability continue to improve, the stock should start to trend higher.