Israel-based analytics and security vendor Allot Communications predicted an increase of approximately $9 million in allowance for credit losses for 2023, largely due to missed payments by Dish Network.

Dish Network picked Allot Communications’ network intelligence and security-as-a-service products in 2021 to provide customer cybersecurity on its 5G network.

In preliminary unaudited financial statements published on 11 January, the Israel-based company revealed it received “a notice from Dish Network alleging that the software provided to it by Allot Communications failed to meet certain specifications as required in the contract”.

It said Dish Network is demanding it rectify the alleged default and “provide compliant software and related support services”.

Allot Communications argued Dish Network has levelled “allegations that are without merit”, adding the US company is behind on certain payments.

It believes it provided compliant software and related support services “in a timely manner”, meaning there is no basis for Dish Network’s action.

Allot Communications plans to “vigorously pursue its rights to obtain full payment of all amounts due in accordance with the contract”.

The company still expects 2023 revenue to be within a guidance range provided on 16 November 2023.

A representative for Dish Network told Mobile World Live it made a contractual warranty claim against Allot Communications based on performance issues with its software.

Dish Network also took “additional compensatory steps” to ensure the security of its service.