Allot Communications Ltd

Riverwater Partners' Micro Opportunities Strategy increased its position in Allot Ltd., a network intelligence and security software provider, following a substantial buyback announcement. The addition modestly raised the strategy's technology exposure, which the firm noted had been too thin during the quarter. Allot shares closed at $7.65 on July 24, 2026, with a market capitalization of $374.26 million, and posted a one-month return of negative 11.76% while losing 4.38% over the past 52 weeks. The strategy underperformed the Russell Microcap Index in the second quarter of 2026 despite a positive absolute result, as the micro-cap rally exhibited speculative traits the fund avoids by design. The fund remains focused on owning profitable, well-managed small businesses at reasonable prices.

Allot Ltd. received board authorization for a share repurchase program allowing the company to buy back up to $40 million of its ordinary shares. The program reflects the board's confidence in the company's long-term growth strategy, with repurchases to be made opportunistically through open market purchases, private negotiations, or other permitted methods. CEO Eyal Harari noted consecutive quarters of double-digit topline growth over the past 12 months and improving profitability and cash generation, stating the buyback is an attractive use of excess capital to create shareholder value while continuing to invest in internal growth initiatives.

Allot Ltd. has authorized a share repurchase program of up to $40 million of its ordinary shares. The program reflects the Board's confidence in Allot's long-term growth strategy and financial position, allowing the company to opportunistically repurchase shares while continuing to invest in growth initiatives. CEO Eyal Harari highlighted consecutive quarters of profitable growth with double-digit revenue increases and improving cash generation. Repurchases may be made on the Tel Aviv Stock Exchange and Nasdaq through open market or privately negotiated transactions, funded from existing cash resources. The program does not obligate any specific amount and may be modified or discontinued at any time.