Business in Brief: Allot Shares Down on Surprise Quarterly Loss

Africa Israel rallies on reports of offer to buy control | Radware shares tumble on disappointing results and outlook

Bloomberg

Allot shares down on surprise quarterly loss

Allot Communications shares ended lower Wednesday after the maker of internet protocol services gear surprised Wall Street with a third-quarter loss. The company lost $500,000, or 1 cent a share, after restructuring costs and stock option expenses. That narrowed from a loss of $700,000, or 2 cents, a year ago but fell short of the average estimate of analysts surveyed by Zacks Investment Research for earnings of 2 cents. Revenue fell to $21 million from $23.5 million a year ago and was below the average of $22.7 million forecast by Zacks analysts. “Our core markets remain tough and 2016 continues to be a slower year than we had originally expected,” said CEO Andrei Elefant, vowing that cost-cutting should bring back profits soon. Shares of Allot, which said it expects full-year revenue of $87 million to $90 million, down from a previous estimate of $90 million to $94 million, ended down 4.5% at 19.14 shekels ($5.02). (Omri Zerachovitz)

Africa Israel rallies on reports of offer to buy control

Shares in Africa Israel Investments climbed nearly 5% after the Calcalist financial daily reported that the Dayan family was in talks with management and bondholders to buy control of the heavily indebted property company. The deal would involve the Dayans, who control a property portfolio worth hundreds of millions of euros mainly in Germany, injecting 700 million shekels ($183 million) into the company and creditors writing off 500 million shekels of the company’s 2.75 billion-shekel debt. A source close to the talks confirmed to Reuters that such an offer had been made but would not say whether negotiations between the sides were still underway. A spokeswoman for Africa Israel declined to comment. Leviev, who has been negotiating a debt bailout with bondholders, will have a chance to make a counter-offer, but the Calcalist said he was unlikely to do so. Shares of Africa Israel finished up 4.7% at 1.15 shekels. (TheMarker Staff and Reuters)

Radware shares tumble on disappointing results and outlook

Shares of Radware tanked Wednesday after it disappointed investors with another bearish forecast. The cyber-security company had warned in October that its third quarter results would not be as good as it had forecast three months earlier – and indeed they were disappointing as profit fell to $1.6 million or 4 cents a share – two cents under average estimate of analysts surveyed by Zacks Investment Research. Revenue was $46.9 million, slightly under analysts’ expectations for $47.1 million. “Radware’s third quarter of 2016 was characterized by an accelerated shift towards an increased proportion of service and subscription sales, pressuring revenues in the short term, but reflecting a desired strategic transition in our business model,” said CEO Roy Zisapel. And the company said its fourth-quarter performance would also be weak, with revenue as low as $50 million versus an average forecast of $53.9 million. Radware shares were down 6.9% at $12.59 midday local time in New York. (Omri Zerachovitz)

TA-25 index slides below 1,400 mark for first time in fourth months

The Tel Aviv Stock Exchange’s TA-25 index fell below the 1,400 mark for the first time in four months as banks and telecoms shares led stock lower. The blue chip index lost 0.55% to end at 1,397.81 points, while the TA-100 fell 0.5% to 1,225.36, on turnover of of 1.27 billion shekels ($330 million). All the bank shares suffered losses of 1% or more, with Mizrahi Tefahot down 1.3% to 43.34 shekels and Bank Leumi off 1.2% at 14.30. Partner Communications ended down 2.7% at 17.42 and Cellcom Israel lost 2% to 28.38. Spacecom dropped 2.7% to 24.27 after a rally Monday on continued talks with a Chinese buyer. Teva Pharmaceuticals bounded back after a sell-off on Monday, advancing 2.4% to 164.66 in heavy trading of 259 million shekels. Nova led TA-100 stocks higher on a 3.5% gain to end at 47.11. In foreign currency trading, the dollar slid nearly 0.6% to a Bank of Israel rate of 3.827 shekels. (Guy Erez)