Attunity Reports Fourth Quarter 2010 and Full Year 2010 Results
Significant OEM Agreements Accelerate Future Growth
BURLINGTON, Massachusetts, February 14, 2011 /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 fourth quarter and full year ended December 31, 2010.
Commenting on the results, Mr. Shimon Alon, Attunity's Chairman and CEO, stated, "We are pleased that we met our 2010 strategic goals for revenue growth, non-GAAP operating profitability and improved cash position. We expanded our product offerings while elevating our OEM relationships and enhancing marketing and sales infrastructure required for our future growth and competitiveness."
Mr. Alon continued, "We have recently entered into a strategic OEM agreement with Microsoft, the largest in Attunity's history and as we announced today, we entered into an additional OEM agreement with Microsoft. Aside from their strategic importance, making Attunity the de-facto partner of choice of Microsoft for cloud computing and heterogeneous connectivity, these two five-year agreements worth nearly $9 million in total and with expected proceeds of nearly $4 million during 2011, will create new and exciting opportunities for us in the future. As previously announced, we have also extended our OEM agreements with two other industry giants during the year, which will allow us an additional stable stream of revenues."
Highlights of Q4 and FY 2010:
- License revenues of $1.25 million in Q4 2010 compared to
$0.9 million in Q3 2010, representing a 44% growth.
- Total revenues of $2.6 million in Q4 2010 compared to $2.1 million in
Q3 2010, representing a 17% growth.
- License revenues of $4.6 million in 2010 compared to $4.1 million in
2009, representing 13% growth.
- Total revenues of $10.1 million in 2010 compared to $9.5 million in
2009, representing a 7% growth.
- New strategic five-year OEM agreement with Microsoft, worth
nearly $7 million in total for our change data capture technology for
Oracle databases, with expected payments of nearly $3.0 million during
2011.
- Repayment and reduction of debts from $4.0 million as of
December 31 2009 to $2.9 million as of December 31 2010.
- Extend and expand our OEM agreements with two industry
giants.
- Positive cash flow from operations in both
Q4 2010 and FY 2010.
Q4 2010 Financial Summary:
- Revenues were $2,579,000, compared to $2,685,000 in the
fourth quarter of 2009.
- Net Operating Profit (Non GAAP) was $248,000, compared to a
net operating profit of $725,000 in the fourth quarter of 2009. Non-GAAP
operating profit excludes amortization and capitalization of software
development costs of $319,000 compared to $586,000 in the fourth quarter
of 2009 (see footnote 1 at the end of this release) and equity-based
compensation expenses of $55,000 compared to $60,000 in the fourth
quarter of 2009 (see footnote 2).
- Net Operating Loss (GAAP) was $126,000, compared to a net
operating profit of $79,000 in the fourth quarter of 2009.
- Net Profit (Non-GAAP) was $105,000, compared to a net profit
of $649,000 in the fourth quarter of 2009. Non-GAAP net profit excludes
amortization and capitalization of software development costs of $319,000
compared to $586,000 in the fourth quarter of 2009 (see footnote 1),
equity-based compensation expenses of $55,000 compared to $60,000 in the
fourth quarter of 2009 (see footnote 2), and revaluation of conversion
features related to our convertible debt and outstanding warrants of
$873,000 compared to income of $38,000 in the fourth quarter of 2009 (see
footnote 3).
- Net Loss (GAAP) was $1,142,000 compared to a net profit of
$41,000 in the fourth quarter of 2009.
- Net Profit/Loss per Diluted Share (Non-GAAP) was $0.00
compared to $0.02 net profit per diluted share in the fourth quarter of
2009.
- Net Loss per Diluted Share (GAAP) was $0.04, compare to
$0.00 in the fourth quarter of 2009.
- Cash and cash equivalents were approximately $0.9 million as
of December 31, 2010, compared to approximately $1.0 million as of
September 30, 2010.
FY 2010 Financial Summary:
- Revenues were $10,075,000, compared to $9,453,000 in 2009.
- Net Operating Profit (Non GAAP) was $1,300,000, compared to
a net operating profit of $1,557,000 in 2009. Non-GAAP operating profit
excludes amortization and capitalization of software development costs of
$1,119,000 compared to $1,970,000 in 2009 (see footnote 1 at the end of
this release) and equity-based compensation expenses of $223,000 compared
to $196,000 in 2009 (see footnote 2).
- Net Operating Loss (GAAP) was $43,000, compared to a net
operating loss of $609,000 in 2009.
- Net Profit (Non-GAAP) was $802,000, compared to a net profit
of $1,263,000 in 2009. Non-GAAP net profit excludes amortization and
capitalization of software development costs of $1,119,000 compared to
$1,970,000 in 2009 (see footnote 1), equity-based compensation expenses
of $223,000 compared to $196,000 in 2009 (see footnote 2), and
revaluation of onversion features related to our convertible debt and
outstanding warrants of $966,000 compared to $400,000 in 2009 (see
footnote 3).
- Net Loss (GAAP) was $1,506,000 compared to a net loss of
$1,303,000 in 2009.
- Net Profit per Diluted Share (Non-GAAP) was $0.03 compared
to $0.04 per diluted share in 2009.
- Net Loss per Share (GAAP) was $0.05 compared to $0.05 in
2009.
- Cash and cash equivalents were approximately $0.9 million as
of December 31, 2010, compared to approximately $1.4 million 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:
"We are entering 2011 with a strong business momentum from both our direct channels and our OEM partners. During 2010, we generated a positive cash from operations while reducing our debts from approximately $4 million to $2.9 million. In 2011, we plan that the cash generated from operations, including the expected proceeds from Microsoft and other OEM agreements, will allow us to repay our outstanding debts and even redeem them early, at our discretion. We intend to continue to build our business, expand current partnerships with the industry leaders and enter into strategic and large markets such as cloud computing and application replication."
About Attunity
Attunity is a leading provider of real-time data integration and event capture software.
Our offering includes software solutions such as Attunity Stream(R), a real-time 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 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 and join our community on Twitter (http://www.twitter.com/attunity), Facebook (http://www.facebook.com/attunity) and LinkedIn ( http://www.linkedin.com/groups?about=&gid=2884948&trk=anet_ug_grppro).
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 known 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, 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) 2011 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 872 1,428
Restricted cash 224 208
Trade receivables and unbilled revenues 1,201 761
(net of allowance for doubtful accounts
of $15)
Other accounts receivable and prepaid 190 145
expenses
Total current assets 2,487 2,542
LONG-TERM ASSETS:
Long-term prepaid expenses 61 86
Severance pay fund 1,323 1,098
Property and equipment, net 205 241
Software development costs, net 496 1,615
Goodwill 6,133 6,313
Total long-term assets 8,218 9,353
Total assets 10,705 11,895
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, December 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term
debt and short term loans 1,014 917
Current maturities of long-term
convertible debt 245 333
Trade payables 220 204
Deferred revenues 2,048 1,991
Employees and payroll accruals 844 819
Accrued expenses and other liabilities 759 988
Total current liabilities 5,130 5,252
LONG-TERM LIABILITIES:
Long-term debt 90 1,667
Long-term convertible debt 1,571 1,083
Warrants and bifurcated conversion
feature, presented at fair value 1,215 303
Accrued severance pay 1,966 1,548
Total long-term liabilities 4,842 4,601
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of
NIS 0.1 par value - 939 920
Authorized: 130,000,000 shares at
December 31 , 2010 and December
31, 2009. Issued and outstanding:
32,269,695 shares at December 31,
2010 and 31,571,150 at December 31, 2009
Additional paid-in capital 102,459 102,095
Accumulated other comprehensive loss (640) (453)
Accumulated deficit (102,025) (100,520)
Total shareholders' equity 733 2,042
Total liabilities and shareholders'
equity 10,705 11,895
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Year ended 3 months ended
December 31, December 31,
2010 2009 2010 2009
Software licenses 4,645 4,126 1,242 1,311
Maintenance and 5,430 5,327 1,337 1,374
services
10,075 9,453 2,579 2,685
Operating expenses:
Cost of revenues 1,951 3,070 408 814
Research and 2,482 1,894 799 489
development, net
Selling and marketing 3,831 3,469 976 957
General and 1,854 1,629 522 346
administrative
Total operating 10,118 10,062 2,705 2,606
expenses
Operating profit/ (43) (609) (126) 79
(loss)
Financial expenses, net 1,391 676 997 42
Other expense (income) (1) (10) 2
Profit (Loss) before (1,432) (1,275) (1,125) 37
income taxes
Taxes on income 74 28 17 (4)
Net profit/ (loss) (1,506) (1,303) (1,142) 41
Basic and diluted net $ (0.05) $ (0.05) $ (0.04) $ 0.00
loss per share
Weighted average number 31,973 28,494 32,198 31,551
of shares used in
computing basic and
diluted net loss per
share
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year Ended Year Ended
December 31, December 31,
2010 2009
Cash flows from operating activities:
Net profit /( loss) (1,505) (1,303)
Adjustments required to reconcile net loss - -
to net cash provided by (used in) operating
activities:
Decrease (increase) in restricted cash (16) (2)
Depreciation 95 149
Stock based compensation 223 196
Amortization of deferred expenses - 25
Amortization of debt discount - 126
Amortization of software development costs 1,119 2,348
Increase (decrease) in accrued severance 193 25
pay, net
Decrease (increase) in trade receivables (435) (255)
Decrease ( increase) in other accounts (45) 79
receivable and prepaid expenses
Decrease / (Increase) in long-term prepaid 25 20
expenses
Increase (decrease) in trade payables 17 (186)
Increase (decrease) in deferred revenues 19 (327)
Increase (decrease) in employees and payroll 28 (265)
accruals
increase / (decrease) in accrued expenses (226) (77)
and other liabilities
Increase (decrease) in Long term liabilities 1 (20)
Increase (decrease) in revaluation of 965 254
Liabilities presented at fair value and debt
modificaton expenses
Net cash provided by operating activities 458 787
Cash flows from investing activities:
Purchase of property and equipment (58) (19)
Capitalization of software development costs - (378)
Net cash used in investing activities (58) (397)
Cash flows from financing activities:
Proceeds from exercise of employee stock 33 -
options
Receipt of long term loan 25 -
Proceeds from exercise of Warrants 74 -
Receipt of Short term debt, net - convert to - 543
Capital
Repayment of long-term debt (922) (10)
Repayment of convertible debt (184)
Net cash provided by (used in) financing (974) 533
activities
Foreign currency translation adjustments on 18 25
cash and cash equivalents
Increase (decrease) in cash and cash (556) 948
equivalents
Cash and cash equivalents at the beginning 1,428 480
of the period
Cash and cash equivalents at the end of the 872 1,428
period
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest 484 153
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except per share data
Year ended 3 months ended
December 31, December 31,
2010 2009 2010 2009
GAAP operating (43) (609) (126) 79
profit /(loss)
Stock based 223 196 55 60
compensation
(1)
Amortization 1,119 1,970 319 586
and
capitalization
of Software
development
costs (2)
Non-GAAP 1,300 1,557 248 725
operating
profit (loss)
GAAP net profit (1,506) (1,303) (1,142) 41
(loss)
Stock based 223 196 55 60
compensation
(1)
Amortization 1,119 1,970 319 586
and
capitalization
of Software
development
costs (2)
Financial 966 400 873 (38)
expenses (3)
Non-GAAP net 802 1,263 105 649
profit (loss)
GAAP basic and (0.05) (0.05) (0.04) *
diluted net
profit (loss)
per share
Stock based 0.01 0.01 0.00 *
compensation
(1)
Amortization 0.03 0.07 0.01 0.02
and
capitalization
of Software
development
costs (2)
Financial 0.03 0.01 0.03 *
expenses (3)
Non-GAAP basic 0.03 0.04 * 0.02
and diluted net
profit (loss)
per share
Weighted 31,973 28,494 32,198 31,551
average number
of shares used
in computing
basic and
diluted net
loss per share
*) Less than
$0.01 per share
(1)
Equity-based
compensation
expenses under
ASC 718
(formerly known
as SFAS 123):
Equity-based 54 40 15 21
compensation
expense
included in
"Research and
development"
Equity-based 74 83 13 18
compensation
expense
included in
"Selling and
marketing"
Equity-based 95 73 27 21
compensation
expense
included in
"General and
administrative"
223 196 55 60
"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 1,119 2,348 209 618
Capitalization - (378) 110 (32)
1,119 1,970 319 586
(3) Financial
expenses:
Amortization of - 125 - -
debt discount
Revaluation of 966 255 873 (38)
warrants and
conversion
features of
convertible
debt and Debt
modification
expenses
Amortization of - 20 - -
deferred
charges
966 400 873 (38)
For more information, please contact:
Dror Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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