Allot Ltd (ALLT) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, welcome to Allot's Fourth Quarter 2023 Results Conference Call.

女士們、先生們，感謝你們的耐心等待，歡迎參加 Allot 2023 年第四季業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

If you should have all received by now the company's press release, if you have not received it, please contact Allot's Investor Relations team at EK Global Investor Relations at 1212-378-040 or view it in the News section of the Company's website at www.allot.com. I would now like to hand over the call to Mr. Kenny Green of EK Global Investor Relations.

如果您現在應該已收到公司的新聞稿，如果您尚未收到，請聯絡EK 全球投資者關係部的Allot 投資者關係團隊，電話：1212-378-040，或在公司網站www. 的新聞部分查看。現在我想將電話轉交給 EK 全球投資者關係部的 Kenny Green 先生。

Mr. Green, would you like to begin, please?

格林先生，您願意開始嗎？

Thank you, operator, and welcome to Allot's Fourth Quarter and Full Year 2023 conference call.

謝謝營運商，歡迎參加 Allot 2023 年第四季和全年電話會議。

I would like to welcome all of you to the conference call and thank lot management for hosting this call.

我歡迎大家參加電話會議，並感謝管理階層主持這次電話會議。

With us on the call today are Mr. Erez Antebi, President and CEO; and Mr. Ziv Leitman, CFO; Erez will provide an opening statement and summarize the key highlights of the quarter.

今天與我們一起參加電話會議的是總裁兼執行長 Erez Antebi 先生；財務長 Ziv Leitman 先生；埃雷茲將發表開幕詞並總結本季的主要亮點。

We'll then open the call for the question-and-answer session and both areas and see will be available to answer those questions.

然後，我們將開始問答環節，兩個區域都可以回答這些問題。

You can also find the highlights, the financial highlights and metrics, including those we typically discuss on the conference call in today's earnings press release.

您還可以找到亮點、財務亮點和指標，包括我們通常在今天的收益新聞稿中的電話會議上討論的內容。

Before we start, I'd like to point out the Safe Harbor space.

在我們開始之前，我想指出安全港空間。

This conference call contains projections or other forward-looking statements regarding future events or the future performance of the company.

本次電話會議包含有關未來事件或公司未來績效的預測或其他前瞻性陳述。

Those statements are only predictions and Allot cannot guarantee that they will in fact occur and does not assume any obligation to update that information.

這些陳述只是預測，Allot 不能保證它們實際上會發生，並且不承擔任何更新該資訊的義務。

Actual events or results may differ materially from those projected, including as a result of changing market trends, delays in the launch of services by our customers, reduce demand and the competitive nature of the security services industry as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission.

實際事件或結果可能與預測有重大差異，包括由於市場趨勢變化、客戶推出服務的延遲、需求減少和安全服務行業的競爭性質以及文件中確定的其他風險該公司向美國證券交易委員會備案。

And with that, I would now like to turn the call over to Erez Antebi, CEO.

現在，我想將電話轉給執行長 Erez Antebi。

Erez, please go ahead.

埃雷茲，請繼續。

Thank you, Kenny.

謝謝你，肯尼。

I'd like to welcome all of you to our conference call.

歡迎大家參加我們的電話會議。

Thank you for joining us today.

感謝您今天加入我們。

And I would like to start with a summary of 2023, our fourth quarter revenues were $24.3 million or 26% lower than the comparable quarter last year.

我想先對 2023 年進行總結，我們第四季的營收為 2,430 萬美元，比去年同期下降了 26%。

Our total revenues for the full year 2023 were $93.1 million, 24% lower than our revenues in 2022.

我們 2023 年全年的總收入為 9,310 萬美元，比 2022 年的收入下降 24%。

In December 2023, our SECaaS ARR was $12.7 million, 20% higher than our SECaaS ARR in September 2023, and 38% higher than our SECaaS ARR for December 2022.

2023 年 12 月，我們的 SECaaS ARR 為 1,270 萬美元，比 2023 年 9 月的 SECaaS ARR 高 20%，比 2022 年 12 月的 SECaaS ARR 高 38%。

Our cash and equivalents as of December 31, 2023, were $54.9 million, down from $86.4 million at the end of 2022, our backlog mix, our backlog as of December 31, 2023, was $58.8 million, down from $87.7 million at the end of 2022.

截至2023 年12 月31 日，我們的現金和等價物為5,490 萬美元，低於2022 年底的8,640 萬美元；我們的積壓組合，即截至2023 年12 月31 日的積壓，為5,880 萬美元，低於2022 年底的8,770 萬美元。

This includes a reduction of approximately $26 million of previous year's recorded booking.

這包括比去年記錄的預訂減少約 2600 萬美元。

We removed from the backlog after applying a new and more stringent framework.

在應用了新的、更嚴格的框架後，我們從積壓的工作中刪除了。

Our total FTE or full-time employee count as of December 31, 2023, was $559 million, down from $749 million at the end of 2022.

截至 2023 年 12 月 31 日，我們的 FTE 或全職員工總數為 5.59 億美元，低於 2022 年底的 7.49 億美元。

We expect Q1 2024 to end with approximately $510 million, which is a reduction of about 35% compared to NFTE peaked in September 2022.

我們預計 2024 年第一季結束時的營收約為 5.1 億美元，與 2022 年 9 月 NFTE 的高峰相比減少約 35%。

Our non-GAAP operating loss for the year 2023 was $55.2 million compared to $23.1 million loss for 2022.

我們 2023 年的非 GAAP 營運虧損為 5,520 萬美元，而 2022 年的虧損為 2,310 萬美元。

The operating loss in 2023 includes approximately $23 million of reserve for credit loss as we already have quarters and previous press releases, the transition of the business into SECaaS recurring revenue model has proven to be slower than we originally anticipated.

2023 年的營運虧損包括約 2,300 萬美元的信貸損失準備金，因為我們已經有季度和先前的新聞稿，事實證明業務向 SECaaS 經常性收入模式的過渡比我們最初的預期要慢。

During 2023.

2023 年期間。

Two large operators we expected would launch services one in North America and one in Europe decided to cancel their launches for now due to their own internal issues.

我們預計將推出服務的兩家大型營運商，一家在北美，一家在歐洲，由於自身的內部問題，決定暫時取消其推出。

These cancellations were the main reason for our 2023 SECaaS revenues for where are ours.

這些取消是我們 2023 年 SECaaS 收入的主要原因。

2023 SECaaS revenues ended up lower than we had expected at the beginning of the year.

2023 年 SECaaS 收入最終低於我們年初的預期。

In addition, our core DPI business is experiencing macro related headwinds, budget tightening by both governments and CSPs led to lower 2023 smart bookings and revenues than we expected at the beginning of the year.

此外，我們的核心 DPI 業務正面臨宏觀相關的不利因素，政府和通訊服務提供者的預算緊縮導致 2023 年智慧預訂和收入低於我們年初的預期。

After reassessing our ability to collect on several deals we had signed in previous years, we took a significant reserve for credit loss.

在重新評估了我們對前幾年簽署的幾筆交易的收款能力後，我們提取了大量信用損失準備金。

I would emphasize that we have not given up on these debts and are continuously working to secure their payments as a result of these issues.

我想強調的是，我們並沒有放棄這些債務，並且不斷努力確保這些問題導致的付款。

Our negative net cash flow was $31.5 million.

我們的淨現金流量為負 3,150 萬美元。

We went through several rounds of cost cutting and restructuring through the year and ended 2023 with a significantly reduced cost base. 2023 was extremely disappointing for us all.

我們全年經歷了多輪成本削減和重組，到 2023 年底，成本基礎顯著降低。 2023 年對我們所有人來說都非常令人失望。

We have made significant changes in the company as we look to drive improved results going forward.

為了推動未來績效的改善，我們對公司進行了重大變革。

All of us, our Board, the management team and myself personally are all fully committed to turning the situation around, we are committed to doing whatever is needed to stop the losses and cash bleed in 2024 and put a lot on the track for profitable growth.

我們所有人、我們的董事會、管理團隊和我個人都完全致力於扭轉局面，我們致力於採取一切必要措施來阻止 2024 年的損失和現金流失，並為實現盈利增長做出巨大努力。

I would like to turn now to discuss the changes we made in a lot and what to expect going forward as a result over the past couple of years there were several changes to our Board.

我現在想談談我們所做的許多改變以及對未來的期望，因為過去幾年我們的董事會發生了一些變化。

David Reis joined as our new Chairman, Cynthia Paul, Raffi Kesten, and Efrat Makov join the Board as well.

David Reis 加入成為我們的新任董事長，Cynthia Paul、Raffi Kesten 和 Efrat Makov 也加入董事會。

Several long-serving Board members stepped down, including Yigal Jacoby, who is a co-founder of a Allot and until recently was our Chairman as well as Itzhak Danziger and Manuel Echanove I want to take this opportunity to thank the various board members.

幾位長期任職的董事會成員辭職，其中包括 Allot 聯合創始人 Yigal Jacoby，直到最近才擔任我們的董事長，以及 Itzhak Danziger 和 Manuel Echanove。

I would like to especially thank and acknowledge Yigal Jacoby, His contribution to Allot was immeasurable as we announced in July.

我要特別感謝並承認 Yigal Jacoby，正如我們在 7 月宣布的那樣，他對 Allot 的貢獻是不可估量的。

Given the challenges facing our business, the Board formed an executive committee that has been working with management to identify and recommend opportunities for further improvement with a focus on driving sustainable profitability and enhancing shareholder value management, together with the executive committee work together to form the budget and operating plan for 2024.

鑑於我們的業務面臨的挑戰，董事會成立了一個執行委員會，該委員會一直與管理層合作，以確定和建議進一步改進的機會，重點是推動可持續盈利能力和加強股東價值管理，與執行委員會共同組成2024 年預算和營運計劃。

As I stated earlier, we had several rounds of cost cutting, primarily by reducing headcount.

正如我之前所說，我們進行了幾輪成本削減，主要是透過減少員工數量。

Our FTE is down from a peak of [770] in September 2022 to [559] at the end of 2023.

我們的 FTE 從 2022 年 9 月的高峰 [770] 下降到 2023 年底的 [559]。

I expect our FTE to be around [510] by the end of Q1, about 35% lower than when it peaked in September 2022 at a high level, our plan for the company in 2024 is to reach breakeven while also investing in the business to drive profitable multiyear growth.

我預計到第一季末，我們的 FTE 將在 [510] 左右，比 2022 年 9 月的高水準峰值低約 35%，我們對公司的計劃是在 2024 年實現盈虧平衡，同時也投資於業務推動獲利性多年成長。

As you know, Allot operates in two business lines, Allot Smart and Allot Secure.

如您所知，Allot 經營兩條業務線：Allot Smart 和 Allot Secure。

On the AllotSmart front, while we continue to see growing interest globally from governments as they look to block illegal activities such as drug trafficking, child pornography and terrorism.

在 AllotSmart 方面，我們繼續看到全球各國政府對 AllotSmart 的興趣日益濃厚，因為他們希望阻止販毒、兒童色情和恐怖主義等非法活動。

Our CSP and enterprise businesses remain soft while some of the weakness is due to cutbacks in spending by governments and CSPs.

我們的 CSP 和企業業務仍然疲軟，而部分疲軟是由於政府和 CSP 支出的削減。

We also need to continue shifting our resources and focusing toward developing countries and governments as developed countries and enterprises embrace the cloud.

隨著已開發國家和企業紛紛擁抱雲端，我們也需要繼續將資源轉向開發中國家和政府。

The Allot secure front, while spending by CSPs remains challenging and deployments are taking longer than we previously expected.

分配安全性方面，雖然 CSP 的支出仍然具有挑戰性，而且部署時間比我們之前預期的要長。

Our cash revenues continued to grow double digits with a strong customer base.

憑藉強大的客戶基礎，我們的現金收入持續成長兩位數。

We'd like to discuss now our Allot Smart business, believe we have a very strong product.

我們現在想討論我們的 Allot Smart 業務，並相信我們有一個非常強大的產品。

We are winning many of the new greenfield opportunities we see, i.e., CSPs that have no DPI and wish to add one in multiple CSPs.

我們正在贏得許多新的綠地機會，即沒有 DPI 並希望在多個 CSP 中添加一個的 CSP。

We are replacing our competition where the opportunity arises.

只要機會出現，我們就會取代我們的競爭對手。

This is true for some CSPs in e-mail, A-Pac and North America and this is also true in our enterprise business.

對於電子郵件、A-Pac 和北美的一些 CSP 來說是這樣，對於我們的企業業務也是如此。

The decision to replace an installed and working DPI system is not common since it is a big and expensive to ship decision for our CSP, but when they have decided to do so, it historically has resulted in market share gains for Allot.

更換已安裝且正在運行的DPI 系統的決定並不常見，因為對於我們的CSP 來說，這是一個重大且昂貴的運輸決定，但當他們決定這樣做時，從歷史上看，這會導致Allot的市佔率增加。

We have had significant challenges with collection in several large deals.

我們在幾筆大型交易的收款方面遇到了重大挑戰。

As a result, we modified our sales compensation and accountability procedures to emphasize collection and significantly reduce the chances of such problems occurring again, I would like to discuss our 2024 plan for SMART took a conservative view of our planned bookings and revenues.

因此，我們修改了銷售補償和問責程序，以強調收款並顯著減少再次發生此類問題的機會，我想討論我們的 2024 年 SMART 計劃，對我們的計劃預訂和收入持保守觀點。

Our approach was built bottom up segment by segment and region by region from the backlog, expected maintenance and support contracts, small expansion deals and large deals with a conservative success probability entering into 2024.

我們的方法是根據積壓訂單、預期維護和支援合約、小型擴張交易以及進入 2024 年保守成功機率的大型交易，逐個細分市場、逐個區域地自下而上建立的。

We have a significantly larger pipeline of large deals in several geographies in the government business and in Allot Smart opportunities in low ARPU countries as part of our plan, despite the reduction in overall resources due to cost-cutting initiatives, we have increased resources for Allot Smart sales in several areas where we see a strong pipeline.

作為我們計劃的一部分，我們在多個地區的政府業務和低 ARPU 國家的分配智能機會方面擁有大量的大型交易渠道，儘管由於成本削減舉措導致總體資源減少，但我們增加了分配資源我們在幾個擁有強大管道的領域進行了明智的銷售。

In addition, we have identified several market segments.

此外，我們也確定了幾個細分市場。

We have not focused on historically where we see a need for our solutions.

從歷史上看，我們並沒有專注於我們認為需要我們的解決方案的地方。

This includes certain specific use cases for fixed wireless access needs and small tier three or four CSPs.

這包括固定無線存取需求和小型三級或四級 CSP 的某些特定用例。

We allocated resources to go after these market segments.

我們分配資源來瞄準這些細分市場。

And while we do not expect significant sales in 2024 due to the long sales cycle, we feel it can help make a difference for us in the years ahead, we'd like to discuss now our Allot Secure business.

雖然由於銷售週期長，我們預計 2024 年不會出現重大銷售，但我們認為這可以幫助我們在未來幾年中發揮作用，但我們現在想討論我們的 Allot Secure 業務。

I believe in Allot Secure, we have a very effective and highly differentiated product.

我相信 Allot Secure，我們擁有非常有效且高度差異化的產品。

We are the leaders of network native security solutions for the mass market.

我們是大眾市場網路原生安全解決方案的領導者。

The clearest evidence of our leadership is the significant list of marquee customers who have launched network native security services for their customers.

我們領先地位最明顯的證據是為其客戶推出網路原生安全服務的重要客戶名單。

Verizon, Vodafone, Jio, Telefonica, Hutchison, PPF Group, FarEasTone, our strong customer base is a testimony to the quality of our solution.

Verizon、沃達豐、Jio、Telefonica、Hutchison、PPF Group、FarEasTone，我們強大的客戶群證明了我們解決方案的品質。

While the relevant network native security market for CSPs is developing slower than we had originally hoped and expected We are experiencing strong double digit growth.

雖然 CSP 的相關網路原生安全市場的發展速度比我們最初希望和預期的要慢，但我們正在經歷強勁的兩位數成長。

This business remains our growth driver into the future, and we believe we are well positioned with existing customers and potential new customers to ensure staying power, we reduced our expenses to reduce cash burn while waiting for the market to catch up.

這項業務仍然是我們未來的成長動力，我們相信我們在現有客戶和潛在新客戶方面處於有利地位，以確保持久力，我們在等待市場迎頭趕上的同時減少了開支以減少現金消耗。

We are taking a conservative approach as we plan for 2024.

我們在製定 2024 年計畫時採取保守態度。

While we expect to have the new SECaaS launches in 2024, we built our internal revenue forecast to rely almost entirely on the revenues.

雖然我們預計新的 SECaaS 將於 2024 年推出，但我們的內部收入預測幾乎完全依賴收入。

We expect to see from our current large customers with their existing go to market.

我們希望看到我們目前的大客戶將其現有的產品推向市場。

We will be emphasizing working with existing customers in order to expand the customer base to whom the services are offered and to make for more aggressive go-to-market strategies.

我們將強調與現有客戶的合作，以擴大提供服務的客戶群，並制定更積極的進入市場策略。

As we have discussed previously for new SECaaS customers, we are focusing us on a select number of interesting opportunities.

正如我們之前針對新的 SECaaS 客戶所討論的那樣，我們將重點放在一些有趣的機會上。

One exciting new launch in 2023 was, of course, Verizon business, which has successfully launched its network native security service incorporating Allot network secure.

2023 年一項令人興奮的新推出當然是 Verizon Business，該公司已成功推出了包含 Allot 網路安全的網路原生安全服務。

The launch is going well.

發射進展順利。

The number of customers is growing, and we are discussing with Verizon several expansion opportunities to different customer segments.

客戶數量不斷增長，我們正在與 Verizon 討論針對不同客戶群的幾個擴展機會。

While we cannot be assured of our success in adding additional customer segments, I believe Verizon is the largest sign SECaaS opportunity for Allot.

雖然我們不能保證在增加額外客戶群方面能夠成功，但我相信 Verizon 是 Allot 最大的標誌 SECaaS 機會。

We remain excited about our SECaaS opportunities as operators continue to be interested in launching network-based security service, and we have a differentiated scalable solution, For CSPs.

由於營運商繼續對推出基於網路的安全服務感興趣，我們對 SECaaS 機會仍然感到興奮，並且我們為 CSP 提供了差異化的可擴展解決方案。

Looking ahead, I want to summarize our expectations for 2024 reaching profitability is our main goal for 2024, Accounting for what we consider an achievable revenue target together with a significantly reduced cost base.

展望未來，我想總結我們對 2024 年的預期，實現盈利是我們 2024 年的主要目標，考慮到我們認為可實現的收入目標以及顯著降低的成本基礎。

We expect to breakeven on our non-GAAP operating profit for the full year as there is seasonality in the year with the second half, typically better than the first half.

我們預計全年非公認會計準則營業利潤將達到損益兩平，因為下半年有季節性，通常好於上半年。

We expect to start with some loss in the beginning and to make up for it in the second half.

我們預計一開始會有一些損失，下半年會彌補。

In terms of cash we expect not to burn cash in 2024 as a whole.

現金方面，我們預計2024年全年不會燒錢。

We expect our cash will initially continue to go down and bottom out at around $50 million after which it will start going up to reach a similar cash level at the end of 2024 as we had at the end of 2023, i.e., $55 million we expect our C-class revenue to continue to grow sequentially quarter over quarter throughout 2024.

我們預計我們的現金最初將繼續下降，並在 5000 萬美元左右觸底，之後將開始上升，到 2024 年底達到與 2023 年底相似的現金水平，即我們預計的 5500 萬美元我們的C 級收入將在2024 年持續季增。

We have decided that this year we will not are we providing further guidance for the yearly or quarterly numbers, [Verizon] we have made the tough decisions necessary to rightsize our cost structure to provide us with staying power.

我們決定，今年我們不會為年度或季度數據提供進一步的指導，[Verizon]我們已經做出了必要的艱難決定，以調整我們的成本結構，為我們提供持久力。

Given that SECaaS is taking longer to scale than we had initially projected.

鑑於 SECaaS 的擴展時間比我們最初預計的要長。

We have scalable, proven products.

我們擁有可擴展、經過驗證的產品。

We have a strong customer base.

我們擁有強大的客戶群。

It's just time for us to execute and reallocate resources to the best ROI opportunities to drive sustainable, profitable growth.

現在正是我們執行和重新分配資源以獲得最佳投資回報機會的時候，以推動可持續的獲利成長。

And now I would like to open the call for Q&A, and Ziv and myself will be available to take your questions.

現在我想開始問答環節，Ziv 和我自己將可以回答你們的問題。

Operator?

操作員？

Thank you.

謝謝。

Ladies and gentlemen, at this time, we will begin the question and answer session.

女士們、先生們，現在我們將開始問答環節。

(Operator Instructions) Nehal Chokshi, Northland Capital Market.

（操作員指令）Nehal Chokshi，北國資本市場。

Yeah, good morning.

是的，早安。

Erez you talked about how you need to shift focus toward CSP.

Erez 您談到如何需要將重點轉向 CSP。

The emerging markets as opposed to mature markets like CSPs and mature markets are starting to embrace the cloud.

與 CSP 等成熟市場相反，新興市場正開始擁抱雲端。

And that's a and that makes for

這就是一個並且使得

[I guess, less fertile ground where you guys hunt for deals. Can you double-click on that commentary there]?

[我猜，你們尋找交易的土壤不太肥沃。你能雙擊那裡的評論嗎]？

Yes.

是的。

I think that area CSPs in developed countries and we are starting to embrace the cloud and go under.

我認為已開發國家和我們的地區 CSP 正開始擁抱雲端並走向破產。

We see very few greenfield opportunities for DPI in developed countries.

我們認為已開發國家的 DPI 綠地機會很少。

On the other hand, on the developing countries, sorry another important point is that in most developed countries, the use cases, Laurent, I'm sorry, as a way that the operators are selling.

另一方面，在發展中國家，抱歉另一個重要的一點是，在大多數已開發國家，用例，勞倫特，對不起，作為運營商銷售的一種方式。

For example, mobile services are flat fees, all you can eat in our 50 gig a month a capacity do whatever you like, things like that in developing countries where bandwidth is still a lot more expensive and RPUs are much lower there are still use cases like a policy-based charging in our social networks beyond the week and things like that.

例如，行動服務是固定費用，您可以在我們每月 50 GB 的容量中吃所有的東西，做任何您喜歡的事情，在發展中國家，頻寬仍然昂貴得多，RPU 低得多，仍然有用例就像我們的社交網路中基於政策的一周之外的收費之類的事情。

So we see there both much more significant growth in terms of the operator customer base.

因此，我們看到營運商客戶群的成長更為顯著。

We see a broader set of use cases that require DPI and we see there are simply more opportunities.

我們看到了需要 DPI 的更廣泛的用例，我們發現還有更多的機會。

So it's not that we're abandoning the developed countries, but we're shifting some of our resources to developing countries and lower our two countries because that's where we see more opportunity for DPI.

所以並不是說我們要放棄已開發國家，而是我們正在將一些資源轉移到發展中國家並降低我們兩國的水平，因為那是我們看到更多DPI機會的地方。

And what about the refresh opportunity within mature markets?

成熟市場中的更新機會又如何呢？

How is that?

那個怎麼樣？

Yes, the refresh opportunities within sorry, you could repeat that?

是的，抱歉，您可以重複嗎？

Within the mature market with an existing customer out there.

在擁有現有客戶的成熟市場中。

A refresh with the mature market of customers?

刷新成熟的客戶市場？

There is some, but it's less than what it was say five years ago, but we're just seeing more opportunities elsewhere.

有一些，但比五年前所說的要少，但我們只是在其他地方看到了更多機會。

What we are seeing in developed countries is we're seeing new use cases mostly really around fixed wireless access in both by the large carriers and by smaller carriers.

我們在已開發國家看到的是，我們看到的新用例主要圍繞著大型營運商和小型營運商的固定無線存取。

And that's why I said that we're looking around at different use cases that fixed wireless access carriers and Tier three and four carriers in these mature markets are going to use, but that's not a segment that we were focusing on in the past.

這就是為什麼我說我們正在研究這些成熟市場中的固定無線接入運營商以及三級和四級運營商將要使用的不同用例，但這不是我們過去關注的細分市場。

So we'll be focusing on it more now and like I mentioned in the India and what I read earlier, I don't expect that to bring significant revenues already in 2024 because of the longer sales, long sales cycle that it takes.

因此，我們現在將更多地關注它，就像我在印度提到的以及我之前讀到的那樣，我預計2024 年不會帶來可觀的收入，因為它需要更長的銷售和更長的銷售週期。

So I expect that we'll see the fruits of that more in the 2025 and beyond.

因此，我預計我們將在 2025 年及以後看到更多成果。

But we do see a need there.

但我們確實看到了那裡的需要。

The fruits of investing in emerging markets will people born in calendar 25?

25年出生的人會在新興市場投資的成果嗎？

No, no.

不，不。

And I'm sorry.

我很抱歉。

No, I didn't explain myself.

不，我沒有解釋自己。

I said that in mature markets, high-ARPU markets, okay, Europe, North America, et cetera.

我說的是成熟市場，高ARPU市場，好吧，歐洲，北美等等。

We do see new use cases coming up for fixed wireless access carriers and for smaller operators, Tier three, Tier four operators these are areas that we did not focus on in the mature markets before until now.

我們確實看到固定無線接入運營商和小型運營商、三級、四級運營商出現了新的用例，這些是我們之前在成熟市場中沒有關注的領域，直到現在。

So we're putting resources to focus on those selling into those markets in mature markets into those segments today.

因此，我們今天將資源集中在那些在成熟市場中向這些市場銷售的產品。

But I expect since the sales cycle are long that we won't be able to conclude significant revenues from that in 2024.

但我預計，由於銷售週期較長，我們將無法在 2024 年從中獲得可觀的收入。

And we'll see the fruits of that in 2025 in the in developing countries, low our two countries, I fully expect to see a business continuing to grow in 2024.

到 2025 年，我們將在發展中國家（低至我們兩國）看到這項成果，我完全期望看到業務在 2024 年繼續成長。

Got it.

知道了。

Sorry, I misunderstood the value.

抱歉，我誤會了價值。

And on a callenge [0.3 basis, 1%] of your DPI revenue came in the emerging markets?

假設您的 DPI 收入中有 0.3%，即 1% 來自新興市場？

Ziv maybe you have the numbers?

Ziv 也許你有數字？

I don't have the exact number, the exact numbers, but the what we do disclose that some in 2023, about 60% of the business of the revenues derived from me now, which is the developed and developing countries and 18% from America and 22% from Asia.

我沒有確切的數字，確切的數字，但是我們確實透露，到2023年，大約60%的業務收入來自我現在，這是發達國家和發展中國家，18%來自美國22% 來自亞洲。

What I'm trying to establish is that the sales motion and the emerging market that already established sales motion regarding how establish that you can sell your DPI market

我想要建立的是銷售動議和已經建立的銷售動議的新興市場，關於如何建立您可以銷售您的 DPI 市場

(inaudible - microphone inaccessible)

（聽不清楚 - 麥克風無法存取）

Yes, it is established.

是的，這是成立的。

It's not new for us.

這對我們來說並不新鮮。

We've been selling there in 23 and even before.

我們23年甚至更早之前就在那裡銷售過。

And we will and I expect that we will sell more than in 23 and before that, I expect that we will sell more in 2024.

我預計我們的銷量將超過 23 年，在此之前，我預計我們將在 2024 年銷售更多。

And so how does the overall DPI pipeline look like today relative to performance?

那麼今天的整體 DPI 管道相對於性能如何呢？

I think it looks significantly stronger.

我認為它看起來明顯更強。

And like I said, I think we have we see that a stronger pipeline of large deals, actually both for governments and for a for emerging market opportunities.

正如我所說，我認為我們已經看到了更強大的大型交易管道，實際上對於政府和新興市場機會。

Great.

偉大的。

Thanks.

謝謝。

Thank you.

謝謝。

Rory Wallace, Outerbridge Capital.

羅裡·華萊士，Outerbridge Capital。

Hi, Erez.

嗨，埃雷茲。

I was just wondering if you could comment a bit further on that increased pipeline that you're seeing in the DPI business or the smart business?

我只是想知道您是否可以進一步評論一下您在 DPI 業務或智慧業務中看到的增加的管道？

And specifically, are you seeing any improvement in close rates or actual large deal closures.

具體來說，您是否看到成交率或實際大宗交易成交有任何改善。

I know the pipeline progress is encouraging, but there were definitely issues over the past couple of years with deal slippage.

我知道管道進展令人鼓舞，但過去幾年肯定存在交易下滑的問題。

So just curious if you have a sense if the market is returning to healthier behavior and specifically with the customers you're targeting?

那麼，您是否知道市場是否正在恢復健康的行為，特別是您的目標客戶？

And I don't think that we can I think it's premature for me to say that the market is getting much healthier.

我認為現在說市場變得更健康還為時過早。

And with that, we're seeing better close rates.

由此，我們看到了更好的成交率。

I think it's still taking a long time to close I do see a larger pipeline of large deals that I definitely see.

我認為它仍然需要很長時間才能完成，我確實看到了更多的大型交易，我確實看到了。

But I would be cautious and wait on commenting whether these deals will start closing faster than they have during this year or something like that.

但我會持謹慎態度，等待評論這些交易是否會比今年或類似的情況更快完成。

I'm not sure yet, I'm hopeful, but I'm not sure.

我還不確定，我充滿希望，但我也不確定。

Okay.

好的。

And then with the Verizon deal and the opportunity target additional customer segments outside of fixed wireless, I was wondering if you could comment on how the launch is performing in any more detail if they've made any changes to how they're marketing the service with in the FWA segment and just any sort of poles taking you can give us on how that's performing?

然後，隨著 Verizon 的交易以及針對固定無線之外的其他客戶群的機會，我想知道如果他們對服務營銷方式做出了任何改變，您是否可以更詳細地評論此次發布的表現在FWA 領域，您可以告訴我們它的表現如何嗎？

Unfortunately, I can't share any numbers on this, but I would say that it's a it's performing according to plan and perhaps even slightly better than plan.

不幸的是，我無法分享這方面的任何數字，但我想說，它正在按計劃執行，甚至可能比計劃稍好一些。

And from everybody that we talk to in Verizon, it's considered a very successful launch and a very successful service and that's why we're -- we have to get looking together with them on changing or not changing.

從我們在 Verizon 交談過的每個人看來，它被認為是一次非常成功的發布和一項非常成功的服務，這就是為什麼我們必須與他們一起考慮改變或不改變。

Sorry, on the on adding additional market segments to the service and broadening the scope of whom the services being offered to overall, it's I think it's going very well, in my mind.

抱歉，在我看來，在為服務添加額外的細分市場並擴大服務提供對象的範圍方面，我認為進展非常順利。

Okay.

好的。

And then how about SECaaS business outside of Verizon and NE trends that you're observing there.

然後，您觀察到的 Verizon 以外的 SECaaS 業務和 NE 趨勢如何。

I know you've talked a lot about changing the structure of that business to emphasize profitability and efficiency and also to sort of cross-pollinate the learnings of some of those successful customers you have?

我知道您已經談論過很多關於改變該業務結構以強調盈利能力和效率以及將您所擁有的一些成功客戶的經驗進行交叉傳播的問題？

Yeah.

是的。

Well, I think that was the I'd say that almost all I'm saying almost all just because I don't want to maybe there's one or two that I missed in my mind when I go through the list, everybody who's launched, this is very happy with the service and they're seeing good returns.

好吧，我想這就是我想說的幾乎所有我所說的幾乎所有隻是因為我不想當我瀏覽列表時我可能會錯過一兩個，每個推出的人，他們對服務非常滿意，並且看到了好的回報。

They're seeing good penetration at the operators that are that are providing the service are happy with it and I think that's great.

他們看到提供服務的業者有良好的滲透率，他們對此感到滿意，我認為這很好。

Now we're working closely with those that are -- it's providing the service today to try and expand that to get higher penetration, get into more segments and so on.

現在，我們正在與那些正在提供服務的公司密切合作，嘗試擴大服務範圍，以獲得更高的滲透率，進入更多的細分市場等等。

And that's the and I think that's very positive and that's what we're building our 2024 forecast on.

這就是，我認為這是非常積極的，這就是我們制定 2024 年預測的基礎。

I would say that on in terms of new customers, we made the decision to do a few things.

我想說，就新客戶而言，我們決定做些什麼。

One is to focus on a significantly smaller number of new customers than we had been focusing on or we have been looking at.

一是關注的新客戶數量比我們之前關注的或我們一直關注的要少得多。

And now just a year or year and a half ago, we have significantly reduced our cost base in order to make to enable ourselves, I would say the stamina and the ability to continue to grow the SECaaS business a lot while waiting for the whole market at large to embrace the concept of network native security and start launching it in much, much larger numbers that we see today.

現在就在一年或一年半前，我們已經顯著降低了我們的成本基礎，以便使我們自己能夠在等待整個市場的同時繼續大幅增長 SECaaS 業務的耐力和能力人們普遍接受網絡本機安全的概念，並開始以我們今天看到的數量大得多的數量推出它。

I'm convinced that at some point in the future will happen.

我堅信，在未來的某個時刻，這將會發生。

But right now it has not yet.

但現在還沒有。

So we're focusing we're spending much less resources and focusing on those opportunities that we believe we have a high chance of kind of converting into successful deals.

因此，我們專注於花費更少的資源，專注於那些我們認為很有可能轉化為成功交易的機會。

And we believe that those specific operators, we'll put the right go-to-market emphasis priority and so on this, but on this type of service.

我們相信，對於那些特定的運營商，我們將把正確的上市重點放在優先位置，等等，但放在這種類型的服務上。

Okay.

好的。

And then as far as the operating expenses, were there any restructuring expenses in the Q4 non-GAAP operating expense number?

那麼就營運費用而言，第四季非公認會計原則營運費用數字中是否有重組費用？

And what's a good number to use when the restructuring activities are complete as far as a baseline of non-GAAP operating expenses?

重組活動完成後，就非公認會計準則營運費用的基準而言，使用多少數字比較合適？

So the total OpEx for Q4, which was around the [$29.26 million] out of the approximately $9 million, it was a one-time provision for credit loss.

因此，第四季的總營運支出約為 900 萬美元中的 [2,926 萬美元]，這是一次性的信用損失撥備。

So it's about it's less than $21 million excluding the doubtful debt or the credit loss.

因此，除去可疑債務或信用損失，約不到 2,100 萬美元。

We are a few millions of other one-time items, and we did say that at the end of the year, we had [559] FTEs while at the end of the Q1, we are expecting around [510] So it's about another the 9% reduction in headcount.

我們還有數百萬個其他一次性項目，我們確實說過，在今年年底，我們有[559] 個全職員工，而在第一季度末，我們預計約為[510] 個，所以這是關於另一個員工人數減少 9%。

So it's also there few millions.

所以它也有幾百萬。

And that's helpful.

這很有幫助。

So is it fair to think about that non-GAAP OpEx number adjusting for one-time items would be somewhere in the vicinity of [$17 million] or so a quarter in Q2 when you go through the restructuring and you have that new lower headcount?

那麼，當你進行重組並且員工人數減少時，考慮一下第二季度一次性項目的非 GAAP 營運支出調整後的數字將在 [1700 萬美元] 左右，這樣想是否公平？

And again, as I said, the we decided not to provide the guidance.

正如我所說，我們再次決定不提供指導。

I think that [$17 million] is too low but the but I would guess it will Don't be in [$19 million] sorry, bit lower than lower than

我認為 [1700 萬美元] 太低了，但我猜它不會在 [1900 萬美元] 抱歉，略低於低於

[$19 million].

[1900萬美元]。

Okay.

好的。

That's that's helpful.

這就是有幫助的。

That narrows it down so thank you for taking my questions.

這縮小了範圍，所以感謝您回答我的問題。

(Operator Instructions) There are no further questions at this time.

（操作員說明） 目前沒有其他問題。

Mr. Antebi, would you like to make your concluding statement.

安特比先生，請您做一下總結發言。

I want to thank everyone for joining our call, and I want to thank you all for your support of Allot, and I look forward to meeting with you and talking to you and either in person sometime in the near future and if not in the next earning call.

我要感謝大家加入我們的電話會議，我要感謝你們所有人對 Allot 的支持，我期待在不久的將來（如果不是下一次）與你們見面並與你們交談。

Thank you very much.

非常感謝。

Thank you.

謝謝。

This concludes the Allot Fourth Quarter 2023 Results Conference Call.

Allot 2023 年第四季業績電話會議至此結束。

Thank you for your participation.

感謝您的參與。

You may go ahead and disconnect.

您可以繼續並斷開連線。