- 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.