Attunity Reports 47% Revenue Growth For The First Quarter 2015

BURLINGTON, Mass., April 30, 2015 /PRNewswire/ -- Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of information availability software solutions, today reported its unaudited financial results for the three month period ended March 31, 2015.

Recent Operational Highlights:

• Acquired Appfluent, which enables customers to optimize the economics and performance of Hadoop and Big Data analytics
  • Now offers Attunity Visibility the industry's first product suite that analyzes Big Data usage patterns and then moves large data volumes and processing workload to Hadoop
• Expanded Attunity Replicate solutions for Hadoop to include disaster recovery, consolidation of data, and tighter integration with data warehouses as well as expanded support for partners' platforms
• Closed two Maestro deals with industry leading customers for a total of $1.8 million
• On track with expansion of sales and business development teams

Financial Highlights for the First Quarter of 2015, compared with the First Quarter of 2014:

• Total revenues grew 47% to $10.4 million
• Total license revenues grew 60% to $5.6 million, which was entirely organic   
• Non-GAAP net income of $0.2 million, compared with a Non-GAAP net loss of $0.1 million for the first quarter of 2014 *  
• Net loss of $1.3 million, compared with a net loss of $0.8 million for the first quarter of 2014
• Generated positive cash flow from operations of $2.4 million
• Cash and cash equivalents, including restricted cash, decreased to $11.3 million as of March 31, 2015 compared with $19.4 million as of December 31, 2014, primarily due to the funding of the Appfluent acquisition during the quarter 

"We are pleased to report this quarter a 60% increase in total license revenue as a result of organic growth of our Big Data platforms, including Maestro and Replicate, which resulted in record first quarter revenue. This strong performance is driven by a number of factors, including having the majority of our sales team fully on-boarded, an increasing number of larger deals, and growth in OEM revenues," stated Shimon Alon, Chairman and CEO of Attunity.  

Sales and Marketing
Attunity's expanded sales force in the U.S. and EMEA supported record first quarter revenues, including a significant increase from the EMEA region compared with the same period last year.

The Company's strategy to maintain growth includes a continued expansion of the sales force. The Company's two new regional vice presidents of sales are already having a positive impact as they manage the expansion of the sales team and establish a scalable platform for continued growth. The newly hired salespeople are progressing and are expected to be fully ramped later this year. Resulting from these initiatives, Attunity continues to expand its customer base globally.

"The investment in global sales force enables us to meet the growing demand for our Big Data solutions. At the same time, we continue to develop and acquire technologies that respond to our customers' evolving needs to take advantage of Big Data economics. Through the recent acquisitions of Appfluent and BIReady, we are expanding our value to analytics and Big Data customers. In particular, these acquisitions enabled us to significantly expand our product suite by offering end-to-end automation and optimization solutions, and  our sales team is now positioned to target a much larger addressable market," concluded Mr. Alon.

Appfluent
Attunity's recent acquisition, Appfluent, delivers critical business and IT visibility with data usage analytics that enable enterprises to optimize the economics and performance of their Big Data initiatives. The technology enables the efficient utilization of data warehouses and Hadoop, delivering significant ROI to enterprises using Big Data. With the Appfluent Visibility product, Attunity now offers the industry's first product suite that analyzes Big Data usage patterns, and then moves large data volumes and processing workloads to Hadoop.

Financial Results for Q1 2015
Total revenues for the first quarter of 2015 increased 47% to $10.4 million, compared with $7.1 million for the same period of 2014. This included license revenues for the first quarter of 2015, which increased 60% organically to $5.6 million, compared with $3.5 million for the same period of 2014, as well as maintenance and service revenue which grew 34% to $4.8 million, compared with $3.6 million for the same period of 2014.

Total non-GAAP revenue for the first quarter of 2015 was $10.4 million, compared with revenue of $7.2 million for the same period of 2014. Non-GAAP revenue for the first quarter of 2015 includes approximately $35,000 of acquired maintenance revenue from Appfluent that was not recognized due to business combination accounting rules. Non-GAAP revenue for the first quarter of 2014 includes approximately $95,000 of acquired maintenance revenue from Hayes that was not recognized due to business combination accounting rules.*

The growth in total revenue is mainly attributable to growth in revenues from our direct sales channels, including the improvement in the EMEA region and the growth in OEM revenues, in particular the previously announced strategic licensing agreement with a leading cloud services provider.

Operating loss for the first quarter of 2015 was $0.8 million, compared with an operating loss of $0.7 million for the same period of 2014. This increase was primarily due to Appfluent acquisition related expenses and recent major investment in sales and marketing activities, partially offset by the growth in revenues.

Non-GAAP operating income was $0.8 million for the first quarter of 2015, compared with an operating loss of $24,000 for the first quarter of 2014. Non-GAAP operating income for the first quarter of 2015 excludes $1.5 million in expenses and amortization associated with acquisitions and equity based compensation expenses. This is compared with $0.7 million of similar expenses, for the same period last year.*

Net loss for the first quarter of 2015 was $1.3 million, or $0.09 per diluted share, compared with $0.8 million, or $0.05 per diluted share in the first quarter of 2014.

Non-GAAP net income for the first quarter of 2015 was $0.2 million, compared with net loss of $0.1 million for the same period last year. Non-GAAP net income for the first quarter of 2015 excludes a total of $1.5 million in expenses, mostly associated with acquisitions and equity-based compensation expenses. This is compared with $0.6 million of similar expenses, for the same period last year.*

Cash and cash equivalents, including restricted cash, were $11.3 million as of March 31, 2015, compared with $19.4 million as of December 31, 2014. This decrease was primarily due to payments made for the Appfluent acquisition, partially offset by positive cash flow from operations of $2.4 million.  Shareholders' equity was $37.2 million as of March 31, 2015, compared with $31.2 million as of December 31, 2014.

* See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

Conference Call Information

The Company's management will host a conference call today, April 30, 2015, at 10:00 a.m. Eastern Time. The dial-in numbers for the conference call are +1-888-312-3055 (U.S. Toll Free), 1-80-924-5905 (Israel), or +1-719-457-2701 (International). All dial-in participants must use the following code to access the call: 2893372. Please call at least five minutes before the scheduled start time.

The conference call will be available via webcast and can be accessed through the Events section of Attunity's website, http://www.attunity.com/events, the contents of which are not part of this press release. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast.

For interested individuals unable to join the live conference call, a replay will be available through May 14, 2015 at +1-877-870-5176 (U.S. Toll Free) or +1-858-384-5517 (international). Participants must use the following code to access the replay of the call: 2893372. The online archive of the webcast will be available on http://www.attunity.com/events for 30 days following the call.

About Attunity
Attunity is a leading provider of information availability software solutions that enable access, management, sharing and distribution of data, including Big Data, across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication, data flow management, test data management, change data capture (CDC), data connectivity, enterprise file replication (EFR), managed file transfer (MFT), data warehouse automation, data usage analytics, and cloud data delivery.

Attunity has supplied innovative software solutions to its enterprise-class customers for nearly 20 years and has successful deployments at thousands of organizations worldwide. Attunity provides software directly and indirectly through a number of partners such as Microsoft, Oracle, IBM and HP. Headquartered in Boston, Attunity serves its customers via offices in North America, Europe, and Asia Pacific and through a network of local partners. For more information, visit http://www.attunity.com or our In Tune blog and join our community on Twitter, Facebook, LinkedIn and YouTube.

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of net income,  operating income, operating profit margin and net income per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisitions, net of related tax, stock-based compensation expenses in accordance with ASC 718, and non-cash financial expenses such as the effect of a revaluation of liabilities presented at fair value. Attunity's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Attunity's on-going core operations and prospects for the future. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. For further details, see the Reconciliation of Supplemental Non-GAAP Financial Information table later in this press release.

Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding the anticipated features and benefits of Replicate Solutions, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. For example, when we say that we established a scalable platform for continued growth and expansion of our customer base globally, we use a forward-looking statement. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results, expressed or implied by such forward-looking statements, could differ materially from Attunity's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: risks and uncertainties relating to our history of operating losses and ability to achieve profitability;  our reliance on strategic relationships with our distributors, OEM, VAR and "go-to-market" and other business partners, and on our other significant customers;  risks and uncertainties relating to acquisitions, including costs and difficulties related to integration of acquired businesses; our ability to expand our business into the SAP market and the success of our Gold Client offering;  timely availability and customer acceptance of Attunity's new and existing products, including Attunity Maestro; risks and uncertainties relating to fluctuations in our quarterly operating results, which may not necessarily be indicative of future periods; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as Attunity's products; the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism as well as cyber-attacks; and other factors and risks on which Attunity may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Attunity, reference is made to Attunity's latest Annual Report on Form 20-F which is on file with the Securities and Exchange Commission (SEC) and the other risk factors discussed from time to time by Attunity in reports filed with, or furnished to, the SEC. Except as otherwise required by law, Attunity undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

© 2015 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

For more information, please contact: 
Garth Russell / Chris Harrison 
KCSA Strategic Communications 
P: + 1 212-682-6300 
[email protected]  / [email protected]

Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
[email protected]  

SOURCE Attunity, Ltd.

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