you call. Thank us you, Kenny. I'd today. like of you for joining Thank to our conference all to welcome
our comparable $X.X ARR SECaaS In than quarter XXXX. Our second million, year. the SECaaS and than quarter ARR revenues higher our June XXXX for in XX% last than million, were XXXX, lower X% our $XX ARR June March XX% higher SECaaS was
into the proven model slower has we to recurring for The anticipated. us. first challenging revenue XXXX half The SECaaS originally transition than be of of business was
core our experiencing macro-related DPI addition, business some In headwinds. is
our I with future. in business about control. disappear given we that we to progress can challenging make we near to term, expect challenges these remain aspects the the of economic While backdrop, the optimistic continue don't the
today's opportunities the challenges the why are we the confident I During in call, future. and facing, see am we will discuss I
second a result of is, balance like cash quarter, by higher decrease. During and $XX This our fell burn to the it cash would we be. Allot's than increase payable accounts of inventory million course, as
efforts and into full flow are cash in our effect partially projected expect fourth our we a to in improve in As together in XXXX. our the with come revenues, reiterating profitable be cost-cutting in expectations quarter XXXX, increase to and we
mix. in margin due was the our deal gross to Our second XX% quarter
a QX margin We continue a as expecting gross margin for the deal despite specific target to a in gross result XXXX lower of of XX% mix.
In July, to for arising losses increase an announced relating allowance million receivables of $XX the three in African credit sales we from countries. approximately in
assessing most the the basis, determined previously be reasonable on these assessment, collected. certainty collectibility accounts as disclosed these a that of in recent been have quarterly accounts We our would and receivable outstanding company with not
are continuing collect these and We them. able be should collect amounts to believe we our to efforts
However, took losses. longer reasonable allowance could an as said, state with I for credit this we certainty, we no so
business, security continue we prioritize traffic management solutions, analytics the and network our focus engine. In maintain management right area, formed sustainable native profitability driving to main agreed this value. that committee The that on is modifying recommend on our worked solutions. management shareholder growth further As to facing has to Board executive for focus with the a we and and profitability. with executive our our In given July, as opportunities will in initiatives improvement the SECaaS direction an announced enhancing challenges committee are we to and identify
staying and up, ensure plan. cost we to power profitability a are that we SECaaS cash, conserve as reach ramp takes implementing to In even XXXX, have reduction order in longer
headcount employee reduction a in our current other cost well as result will actions our approximately from as Specifically, reductions. of XX%
We notified. which employees been $X plan relevant have cost that to this booked quarter. in be will already reduction may effort will $XX expect be third affected The approximately cost approximately This million, of year. the save per have million cost-cutting a onetime
Now, and to continues I and our by we digital and quality today our lines. discuss of would by especially enforcement. product use congestion video, business in main Allot product discussing experience, like be traffic in different like I would user for management, start Smart charging The our line. control addressed analytics management to management, policy see traffic CSP cases to
drug illegal As terrorism, governments a child and growing globally able such phonography to as trafficking, and we see terrorism. look activities block fight interest being to crime and
interest solutions we issues, have products. these that in and We growing address are our seeing
will pursue will this continue to to segment is direction continue that we believe a this grow. We as
for In such competitive traffic continuing. the see low cases, few In charging need management, see are management opportunities product. CSPs, we use, a fair policy-based of to some we and replace a which countries, as from analytics quite use congestion ARPU still
the the from this government from that enterprises solution Broadcom, deal on-prem our with monthly America growing business, for enterprise such we see enterprises Currently, relatively in that our bandwidth Europe, provider countries with after countries, systems solutions. entities for we developed require demand and are from reasons, as demand to see such ours on-prem demand reduced cloud, major moving continue for North need. we In remained to developing In is where as security expensive.
short we that for facing recognize are to forecast over several business more to challenges us continue make it timeframes. that we our difficult Overall,
past. growing. total control CSPs seeing we due tighter it is expense taking And deals CSPs, are not First, earnings DPI as previous tighter in of discussed to and longer the for in to number bids close calls, headwinds is by DPI the we than the
CSPs XG of impacting grow negatively NetProtect ability port to standalone very slow, our move to XG our the is Second, product.
growth in enterprise Third, peaked. the we has Broadcom a the deal result as the believe market, we saw of
together large DPI it business I call, short to the in to earnings large makes the we with mentioned, remainder forecast continue a lumpiness year, while pipeline timeframes. our have just of of the over As deals stated the challenging we strong our last potential for of dynamics deals,
I market want attention and see your what cybersecurity to we how business is in now developing. to turn our the
company Allot growth previously, transforming into is is from. said most have we I see and our where coming a cybersecurity As future of this
Our Nevertheless, steadily, than would not deployment SECaaS revenues are to we quite a continue there expected. at the see positive pace worth slower as like, albeit are growing highlighting. we few notes
service, would discussing with to Verizon will The Verizon Verizon with months reach I native to incorporates more broadband North Verizon's Allot This expertise happy about the help quarter. received, did [indiscernible], its their SECaaS revenues a even ours during measures. third simple at any couple from complicated that various solutions Verizon, offering security have to devices. in to network for I Business begin I and NetworkSecure. puts will that is the like start protection are very of generate layer ways wireless expand small very this I for American business am announce fixed am security can not being market. Allot defend like of especially contributing reach. are note the service believes not second they might defense well manage zero-touch Internet we and revenues services ago, that to businesses, which in-house Verizon quarter, threats but Verizon for service before a helpful which excited segments against of cyberthreats. intersecting the customers which cybersecurity provides them launched
I opportunity calls, our as success, the CSPs earlier in stated SECaaS largest opportunity. continue single some is see I to other follow suit. signed I believe Verizon's believe Verizon that Furthermore, As will
might how what We they is better getting to do the interest understand enhanced are doing Verizon already from and operators same. other
to decided not On a they a to bittersweet service signed Allot one note, also Canadian Allot. for business significant launch the CSP, to their the this SECaaS with the now, ARR is forecast they operators significantly for refocusing an is a as business the we following Smart launch had us. [indiscernible] recently of Cancellation was and CSP have are network reduction the issue SECaaS customer unrelated has our they major a year. in have of contributor This expanded
also we APAC, in is Pacific deploy Recently, progressing small are well. small NetworkSecure deals relatively One a two SECaaS deal, we In signed a where in APAC. we additional Island.
more services be are is security importance of later potentially a testament other business a high-value to major operator I Secure initially in DNS postpaid other most with offered XX to the and their network-based The CSPs subscribers, whom to Tier believe these with providing are with than telecom customers. customers The a prepaid. will services. X see deal consumers million deals and
in to service has committed as Since to day now December number more of expanding subscribers minimum process we Also number in been that should a in subscribers. exceeded, growing the expanding not rapidly month or our so will has subscribers Asia, note launch ARR because per the from FET, and seeing even in been the minimum handle Far FET the capacity has I XXXX, one. successful EasTone, very Taiwan of experienced ramped FET of are been growth the the grow. ARR as start from payment That has we of has a launch.
and presidents with core their brand strategic FET and as in at important customers. their security their and to service to line their image look commitments
be network As the security shows of we I per CSP importance is with example discussed native experience a SECaaS this that month. that XX aligns services the believe this average, when solution. excellent user its value It an of security per in the validation security of strategy. FET the noteworthy past, how is successful this blocked the can attacks is on strong and
that As operators and par the reliability. We to of see services security see in and operators services markets, coverage with provide be to in momentum that speed, we various interested market, direction at are respect the many continues on look network-based with that we positive. launching
are the security to it they security directly with service is is access Because Tier who As them conclusion to network-based network operator's the differentiation, significant is itself. is X customers a to several importance element. the an reached how network, look providing coupled There to and so. as their do they network-based network are operators native us discussing of emerging important of have to for security
deals several we months. In to in operators other discussions to addition, the globally, where coming are hope able be we with conclude over
the plus and Allot security unified a value many like words to years, management would CSPs core to in provide and a been a tangible and a the unified a convergence protocol. starting on services. This don't We platform offering struggling few is bring convergence. billing the been mostly can CSPs tangible Secure with both Unfortunately, mobile on that see The several DNS I access. looking customers talking few Europe their combine about worldwide, one for their enforcements experience converged we customers, have to under CSPs few convergence to quite fixed unified launched the in but router mobile fixed CSPs our and their and have to it and fixed customers CSPs about and system perhaps offering line SECaaS bring offering. mobile are have to of convergence value are discussions service in combining discounts. say to expand in with basically mobile a
As strategy we Allot you calls, remind that discussed previous want I to Secure for we the changed our business. in
can strategic number can of new revenue high emphasis while we large medium We in for more on looking accounts thresholds. are These impact, CSPs putting changes we to up. that minimum small have deals, sign the a are revenue reduce
it However, see SECaaS for for which number as in focus differentiated, We revenue opportunity service, about excited that profitable value the more we solution of our resources have to scalable us growth smaller should CSPs. a our the allows drive remain CSPs Allot. SECaaS on strategic
second quarter for SECaaS year-over-year. $X.X ARR end million second the growth the at quarter Our was a the the $X.X significant million, SECaaS were of and revenues
As large signed their strategy Most small service but canceled the XX, are been to of only for our have them have There this a more year. discontinued June launched customers, them seven on of started XX customers. have of and XXXX, mainly a Unfortunately, subscriber operators XX portion we them only due revenues. focus to launches of relatively are planned majority of few and to to base. generate the
want our for I expectations Looking summarize XXXX. to ahead,
for to revenues $XX around XXXX SECaaS expect million. be We
million $XX SECaaS We $XX be ARR and million be including between $XX to million. expect ARR, December 'XX $XX our to between support total and maintenance, and the for million and
Regarding large our this we total flow guidance, providing operating to deal a cash close specific are we wide revenue, expect range of year. a loss expansion and because
doubtful be We and debt to million $XX year burn to $XX including the our full million. cash million be operating revenues be between million, million. million $XXX for between loss to and expect the XXXX whole and Non-GAAP the $XX $XX $XX And million year for between total reserve. $XX
mainly will This year stated, for revenue committed I in reach expense through As control. growth, remain some XXXX. we SECaaS combined profitability be tight the to achieved full with
with XX% quarter third the mix. lower-than-average expect $XX to deal We approximately margin specific but gross expected be due the revenues of a million, to
the remains Our strategy same.
and While over business and we DPI potential we difficult maintain our we lumpiness it use short market SECaaS growth see limited are flow cash generation believe in the business, makes gains, share because we of future and where new timeframes, think our level business a opportunities. growth stable using we cases profitability that the is business to DPI's of has can our SECaaS revenues to invest forecast through and significant
years. our actions company, and and we believe I taking the I'm we this faith remain have our revenues taking are grow in coming our make later will would believe being actions potential confident the are our convinced our full goals we goal that While SECaaS large it -- our achievable. later liked to and than products, of than significantly and the in expected, recognized business we make to I the of are have team in I and I
I the call available Ziv to like and now, to be And And for take would your and Operator? will questions. open questions myself answers.
