Allot Communications Ltd.

Allot Communications Ltd., a Hod Hasharon, Israel-based firm whose stock trades on Nasdaq and the Tel Aviv Stock Exchange and which reported $57 million in sales last year, sold its systems to a Randers, Denmark-based technology distributor. Workers at that company, RanTek A/S, repackaged the gear and shipped it to Iran, according to four former employees of Allot and RanTek. The shipments were legal under Danish law... Israeli lawmaker Nachman Shai called for a parliamentary investigation today, and the country’s Defense Ministry said it had begun to examine the report. Allot shares fell 5.1 percent to $15.84 at 11:04 a.m. in New York, after earlier plunging as much as 13 percent. Three former sales employees for Allot say it was well known inside the company that the equipment was headed for Iran. Allot officials say they have no knowledge of their equipment going there and are looking into RanTek’s sales... 'We do not authorize any sales to Iran,' says Jay Kalish, executive director of investor relations at Allot. If its products were shipped there by RanTek, it would be a 'breach of contract,' he says. Kalish says it’s challenging to track where its products go after they’ve been sold. Customers often don’t connect digitally to Allot, making electronic tracking difficult. The company has hundreds of distributors and their products have even appeared for sale on eBay, he says. Allot said in a statement today that its policy is to comply fully with Israeli and non-Israeli laws, including all applicable export laws and regulations. The product sold by Allot, NetEnforcer, conducts 'deep- packet inspection' of networks. The technology has commercial uses, such as helping a mobile network operator prioritize certain types of traffic or eliminating spam." (Bloomberg, "Israel Didn’t Know High-Tech Gear Was Sent to Iran" 12/23/2011)