Attunity Reports First Quarter 2010 Results
License Revenues Growth of 53% Over Q1 2009; Total Revenues Growth of 25% Over Q1 2009; Non-GAAP Operating Profit Growth Over 500% Compared to Q1 2009
BURLINGTON, Massachusetts, May 5, 2010 /PRNewswire-FirstCall/ -- Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real- time data integration and event capture software, reported today its unaudited financial results for the first quarter ended March 31, 2010.
"I am pleased that we are continuing to demonstrate strength in the first quarter of 2010, highlighted by year-over-year growth in revenues and operating profit," said Shimon Alon, Chairman and CEO of Attunity. "In particular, a 53% year-over-year growth in license revenues demonstrates a growing demand for our Change Data Capture (CDC) and replication product lines."
First Quarter 2010 Highlights:
- License revenues of $1.4 million in Q1 2010 compared to
$0.92 million in Q1 2009.
- Revenues of $2.8 million in Q1 2010 compared to $2.2 million
in Q1 2009.
- A Non-GAAP operating profit of $505,000 compared to $81,000
in Q1 2009.
- Continuous improvement of quarterly revenues.
- Positive cash flow from operations.
- First scheduled repayments of the principal loan to Plenus
commenced in February 2010.
- Extension of repayment of the $2 million of principal amount
under the Convertible Promissory Notes issued in 2004.
First Quarter 2010 Financial Results:
- Revenues were $2,758,000, compared to $2,213,000 in the
first quarter of 2009, an increase of 25%.
- Net Operating Profit (Non GAAP) was $505,000, compared to a
net operating profit (Non GAAP) of $81,000 in the first quarter of
2009. Non-GAAP operating profit excludes amortization and
capitalization of software development costs, (see footnote 1 at the
end of this release) and equity-based compensation expenses (see
footnote 2).
- Net Operating Profit/Loss (GAAP) was $164,000 net operating
profit, compared to a net operating loss (GAAP) of $418,000 in the
first quarter of 2009.
- Net Profit (Non-GAAP) was $463,000, compared to a net profit
(Non-GAAP) of $65,000 in the first quarter of 2009. Non-GAAP net profit
excludes amortization and capitalization of software development costs,
(see footnote 1), equity-based compensation expenses (see footnote 2),
and revaluation of conversion features related to our convertible debt
and outstanding warrants, amortization of debt discount and deferred
charges (see footnote 3).
- Net Loss (GAAP) was $229,000, compared to a net loss (GAAP)
of $593,000 in the first quarter of 2009.
- Net Profit per Diluted Share (Non-GAAP) was $0.01 compared
to $0.00 in the first quarter of 2009.
- Net Loss per Diluted Share (GAAP) was $0.01, compared to net
loss per diluted (GAAP) share of $0.03 in the first quarter of 2009.
- Cash and cash equivalents were $1.6M as of March 31, 2010,
compared to 1.4M as of December 31, 2009.
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
Mr. Alon concluded: "Our continued growth underscores our commitment to providing outstanding value to our customers and partners by responding to their evolving needs in terms of product excellence and business ROI. We will continue to focus on revenue growth, profitability and generation of cash. We plan to continue to introduce products for new platforms and new capabilities for the real-time data integration and replication markets in order to meet the requirements of our customers and partners. We also plan to expand our existing partnerships and develop new strategic relationships with the leading software vendors like Microsoft, Oracle, IBM, HP, SAP and other large Business Intelligence (BI) solutions players, to increase our penetration to those large markets."
About Attunity
Attunity is a leading provider of real-time data integration and event capture software.
Our offering include software solutions such as Attunity Stream(R), a real-time and change-data-capture (CDC) software, our Operational Data Replication (ODR) solution and Attunity Connect(R), our real-time connectivity software.
Using Attunity's software solutions, our customers enjoy dramatic business benefits by enabling real time access to information where and when needed, across the maze of heterogeneous systems making up today's IT environment.
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 strategic and OEM agreements with partners such as Microsoft, Oracle, IBM, HP and SAP/Business Objects. 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 and join our community on Twitter, Facebook and LinkedIn.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of net profit (loss), net operating profit (loss) and net profit (loss) per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation charges in accordance with ASC 718 (formerly known as SFAS 123(R)), non-cash capitalization and amortization of software development costs in accordance with ASC 985-20 (formerly known as SFAS 86) and non-cash financial expenses such as revaluation of conversion features related to its convertible debt and outstanding warrants in accordance with ASC 815-40 (formerly issued as EITF 07-5) (affected, among other factors, by changes in Attunity's share price). 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 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.
Safe Harbor Statement
This press release contains forward-looking statements 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 discuss future growth of revenues or planned introduction of new real-time data integration products, we are using a forward-looking statement. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from Attunity's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: 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; our liquidity challenges and the need to raise additional capital in the future; any unforeseen developmental or technological difficulties with regard to Attunity's products; 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; unknown factors affecting third parties with which Attunity has formed business alliances; timely availability and customer acceptance of Attunity's new and existing products; 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 Annual Report on Form 20-F for the year ended December 31, 2009, 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 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.
(c) 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March 31, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,599 1,428
Restricted cash 212 208
Trade receivables and unbilled revenues
(net of allowance for doubtful accounts of
$15 at both March 31 , 2010 and December
31, 2009) 979 761
Other accounts receivable and prepaid
expenses 243 145
Total current assets 3,033 2,542
LONG-TERM ASSETS:
Long-term prepaid expenses 79 86
Severance pay fund 1,151 1,098
Property and equipment, net 229 241
Software development costs, net 1,327 1,615
Goodwill 6,152 6,313
Total long-term assets 8,938 9,353
Total assets 11,971 11,895
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
March 31, December 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
short term loans 1,000 917
Current maturities of long-term
convertible debt 667 333
Trade payables 199 204
Deferred revenues 2,253 1,991
Employees and payroll accruals 851 819
Accrued expenses and other liabilities 905 988
Total current liabilities 5,875 5,252
LONG-TERM LIABILITIES:
Long-term convertible debt 1,333 1,667
Long-term debt 833 1,083
Revaluation of Liabilities presented at
fair value 654 303
Accrued severance pay 1,650 1,548
Total long-term liabilities 4,470 4,601
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.1
par value - 920 920
Authorized: 130,000,000 shares at March 31,
2010 and December 31, 2009. Issued and
outstanding: 31,581,554 shares at March
31, 2010 and 31,571,150 at December 31,
2009
Additional paid-in capital 102,149 102,095
Accumulated other comprehensive loss (694) (453)
Accumulated deficit (100,749) (100,520)
Total shareholders' equity 1,626 2,042
Total liabilities and shareholders' equity 11,971 11,895
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
3 months ended
March 31,
2010 2009
Software licenses 1,412 921
Maintenance and services 1,346 1,292
2,758 2,213
Operating expenses:
Cost of revenues 499 721
Research and development, net 597 520
Selling and marketing 1,074 920
General and administrative 424 470
Total operating expenses 2,594 2,631
Operating profit/ (loss) 164 (418)
Financial expenses, net 385 163
Other expense (income) - (10)
Profit (Loss) before income
taxes (221) (571)
Taxes on income 8 22
Net profit/ (loss) (229) (593)
Basic and diluted net loss
per share $ (0.01) $ (0.03)
Weighted average number of
shares used in computing
basic and diluted net loss
per share 31,575 23,196
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
March 31, December 31,
2010 2009
Cash flows from operating activities:
Net profit /( loss) from continued
operations (229) (1,303)
Adjustments required to reconcile net
loss to net cash provided by (used
in) operating activities:
Decrease (increase) in restricted
cash (4) (2)
Depreciation 23 149
Stock based compensation 54 196
Amortization of deferred expenses 25
Amortization of debt discount 126
Amortization of software development
costs 300 2,348
Increase (decrease) in accrued
severance pay, net 49 25
Decrease (increase) in trade
receivables (223) (255)
Decrease ( increase) in other
accounts receivable and prepaid
expenses (98) 79
Decrease / (Increase) in long-term
prepaid expenses 7 20
Increase (decrease) in trade payables (4) (186)
Increase (decrease) in deferred
revenues 206 (327)
Increase (decrease) in employees and
payroll accruals 33 (265)
increase / (decrease) in accrued
expenses and other liabilities (80) (77)
Increase (decrease) in Long term
liabilities (1) (20)
Increase (decrease) in revaluation of
Liabilities presented at fair value 351 254
Net cash provided by (used in)
operating activities from continued
operations (reconciled from
continuing operations) 384 787
Net cash provided by operating
activities from discontinued
operations (reconciled from
discontinued operations)
Net cash provided (used) by operating
activating 384 787
Cash flows from investing activities:
Restricted cash, net -
Purchase of property and equipment (11) (19)
Capitalization of software
development costs (12) (378)
Proceeds from sale of property
equipment - -
Net cash used in investing activities (23) (397)
Cash flows from financing activities:
Proceeds from exercise of employee
stock options - -
Issuance of shares
Receipt of Short term debt, net -
convert to Capital 543
Repayment of long-term debt (167) (10)
Net cash provided by (used in)
financing activities (167) 533
Foreign currency translation
adjustments on cash and cash
equivalents (24) 25
Increase (decrease) in cash and cash
equivalents 171 948
Cash and cash equivalents at the
beginning of the period 1,428 480
Cash and cash equivalents at the end
of the period 1,599 1,428
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest 200 153
Supplemental disclosure of non-cash
investing and financing activities:
Supplemental Non-GAAP Financial Information
U.S. dollars in thousands, except per share data
3 months ended
March 31,
2010 2009
GAAP operating profit /(loss) 164 (418)
Stock based compensation (1) 53 57
Amortization and
capitalization of Software
development costs (2) 288 442
-
Non-GAAP operating profit (loss) 505 81
GAAP net profit (loss) (229) (593)
Stock based compensation (1) 53 57
Amortization and
capitalization of Software
development costs (2) 288 442
Financial expenses (3) 351 159
Non-GAAP net profit (loss) 463 65
GAAP basic and diluted net
profit (loss) per share (0.01) (0.03)
Stock based compensation (1) 0.00 0.00
Amortization and
capitalization of Software
development costs (2) 0.01 0.02
Financial expenses (3) 0.01 0.01
Non-GAAP basic and diluted
net profit (loss) per share 0.01 0.00
Weighted average number of
shares used in computing
basic and diluted net loss
per share 31,575 23,196
*) Less than $0.01 per share
(1) Equity-based
compensation expenses
resulting under ASC 718
(formerly known as SFAS
123):
Equity-based compensation
expenses included in
"Research and development" 11 11
Equity-based compensation
expenses included in
"Selling and marketing" 20 28
Equity-based compensation
expenses included in
"General and administrative" 22 18
53 57
"Equity based compensation
expenses" refer to the
amortized fair value of all
equity based awards granted
to employees.
(2) Amortization and
capitalization of software
development costs resulting
under ASC 985-20 (formerly
known as SFAS 86):
Amortization 300 571
Capitalization (12) (129)
288 442
(3) Financial expenses:
Amortization of debt
discount - 99
Revaluation of warrants and
conversion features of long
term debt 351 48
Amortization of deferred charges - 12
351 159
For more information, please contact:
Dror Elkayam, VP Finance
Attunity Ltd.
Tel: +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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