Rory Wallace: Okay. And then with Verizon deal and the opportunity to target additional customer segments outside of fixed wireless, I was wondering if you could comment on how the launch is performing in any more detail if they’ve made any changes to how they’re marketing the service within the FWA segment? And just any sort of pulse taking you can give us on how that’s performing?
Erez Antebi: Unfortunately, I can’t share any numbers on this. But I would say that it’s performing according to plan and perhaps even slightly better than planned. And from everybody that we talk to in Verizon, it’s considered a very successful launch and a very successful service. And that’s why we have to get looking together with them on changing or not changing sorry, on adding additional market segments to the service and broadening the scope of whom this service is being offered to. Overall, it’s — I think it’s going very well in my mind.
Rory Wallace: Okay. And then how about the SECaaS business outside of Verizon and any trends that you’re observing there? I know you’ve talked a lot about changing the structure of that business to emphasize profitability and efficiency and also to sort of cross-pollinate the learnings of some of those successful customers you’ve had.
Erez Antebi: Well, I think that was I’d say that almost all — I’m saying almost all, just because I don’t want to — maybe there’s one or two that I missed in my mind when I go through the list, everybody who’s launched this is very happy with the service. And they’re seeing good returns. They’re seeing good penetration. The operators that are providing the service are happy with it, and I think that’s great. Now we’re working closely with those that are providing the service today to try and expand that to get higher penetration, get into more segments and so on. And that — and I think that’s very positive, and that’s what we’re building our 2024 forecast on. I would say that in terms of new customers, we made the decision to do a few things.
One is to focus on a significantly smaller number of new customers than we had been focusing on or we had been looking at, I don’t know, just a year or 1.5 years ago. We have significantly reduced our cost base in order to make — to enable ourselves, I would say, the stamina and the ability to continue to grow the SECaaS business while waiting for the whole market at large to embrace the concept of network-native security and start launching it in much, much larger numbers that we see today. I’m convinced that at some point in the future, it will happen. But right now, it has not yet. So we’re focusing — we’re spending much less resources and focusing on those opportunities that we believe we have a high chance of converting into successful deals, and we believe that those specific operators will put the right go-to-market emphasis priority and so on this type of service.
Rory Wallace: Okay. And then as far as the operating expenses, were there any restructuring expenses in the Q4 non-GAAP operating expense number? And what’s a good number to use when the restructuring activities are complete as far as the baseline of non-GAAP operating expenses.
Ziv Leitman: So the total OpEx for Q4, it was around $29.6 million. Out of it, approximately $9 million, it was a onetime provision for credit loss. So it’s about — it’s less than $21 million, excluding the doubtful debt or the credit loss. We had a few millions of other onetime items. And we did say that at the end of the year, we had the 559 FTEs, while at the end of the Q1, we are expecting around 510. So, it’s about another 9% reduction in headcount. So it’s also a few millions a year.
Rory Wallace: That’s helpful. So is it fair to think about that non-GAAP OpEx number adjusting for onetime items would be somewhere in the vicinity of $17 million or so a quarter in Q2, when you go through the restructuring and you have that new lower headcount?
Ziv Leitman: Again, as Erez said, we decided not to provide the guidance. I think that $17 million is too low, but I would guess it will not be $19 million.
Rory Wallace: Sorry. Will be lower than $19 million.
Ziv Leitman: Could be lower than $19 million.
Rory Wallace: Okay. That’s helpful. That narrows it down. So thank you for taking my questions.
Operator: [Operator Instructions] There are no further questions at this time. Mr. Antebi, would you like to make your concluding statement?
Erez Antebi: Yes. I will. Yes, I want to thank everyone for joining our call, and I want to thank you all for your support of Allot. And I look forward to meeting with you and talking to you, either in person and sometime in the near future, and if not, in the next earning call. Thank you very much.
Operator: Thank you. This concludes the Allot Fourth Quarter 2023 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.
