Allot (ALLT) is undergoing a dramatic transformation from a hardware company selling systems to operators on a perpetual basis to a software company selling software on a Software-as-a-Service basis. The company’s current valuation, an enterprise value to revenue (EV/R) ratio of 1.5x, reflects its old business model and does not account for its emergence as a SaaS player where multiples range from 4x to 8x.
Allot sells a variety of products but these fall into two broad categories. First is their Deep Packet Inspection (DPI) technology which they have sold to operators for