Attunity Reports Third Quarter 2011 Results
License Revenue Increases 103% Year-Over-Year
BURLINGTON, Massachusetts, October 25, 2011 /PRNewswire/ --
Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration, reported today its unaudited financial results for the quarter ended September 30, 2011.
Financial Highlights:
- License revenues increased 103% to $1.75 million in the third quarter of 2011, compared to $0.86 million for the same period last year
- Total revenues increased 57% to $3.45 million in the third quarter of 2011, compared to $2.20 million for the same period last year
- Non-GAAP Net Income increased to $456,000 in the third quarter of 2011, compared to $114,000 for the same period last year
Recent Operational Highlights:
- Completed the acquisition of RepliWeb, a leading provider of enterprise file replication and managed file transfer technologies
- Received payments of $3.55 million under OEM agreements with Microsoft for delivery of CDC and ODBC components; Approximately half of these payments are recognized in the second half of 2011 and the remainder will be recognized ratably over 2012.
- Launched Attunity Replicate, a high-performance data replication software
"I am pleased with our continued growth and our completion of several key milestones during the quarter, which have advanced our position as a leading provider of real-time data integration for the enterprise environment and Cloud computing. This includes the acquisition of RepliWeb, which significantly expands our data replication capabilities and our cloud offering with its fast load technology. The expansion of our business and product offering has properly positioned the Company for rapid revenue growth and profitability," said Shimon Alon, Chairman and CEO of Attunity.
"The third quarter results were driven by strong software license and maintenance revenues, which increased by approximately 103% and 27%, respectively, compared to the same period last year. In addition, Non-GAAP operating income for the third quarter of 2011 increased by 168% compared to the same period last year.
"During the next few months, we plan to introduce an advanced data replication platform for the 'Big Data' and Cloud replication, using our new Repliweb capabilities, which platform is expected to further drive our growth," concluded Mr. Alon.
Total revenues for the third quarter of 2011 increased 57% to $3.45 million, compared to $2.2 million in the third quarter of 2010.
Net operating income (loss) for the third quarter of 2011 was ($407,000), compared to ($133,000) for the same period of 2010. Non-GAAP net operating income for the third quarter of 2011 was $620,000, compared to $231,000 for the same period last year. Non-GAAP net operating income for the third quarter of 2011 excludes equity-based compensation and amortization of software development costs of $163,000 compared to $364,000 for the third quarter of 2010 as well as $864,000 in expenses and amortization related to the acquisition of RepliWeb (see footnotes 1,2 and 3 at the end of this release).
Net income (loss) for the third quarter of 2011 increased to ($792,000), or ($0.02) per share, from ($188,000), or ($0.01) per share, in the third quarter of 2010. Net income for the third quarter of 2011 was negatively impacted primarily by $1,172,000 in expenses and amortization associated with the acquisition of RepliWeb. Non-GAAP net income (loss) for the third quarter of 2011 was $456,000 compared to $114,000 for the same period last year. Non-GAAP net income for the third quarter of 2011 excludes $1,172,000 in expenses and amortization related to the acquisition of RepliWeb as well as equity-based compensation expenses and amortization of software development costs net of capitalization and expenses associated with the revaluation of conversion features related to the Company's convertible debt and outstanding warrants (see footnotes 1, 2, 3, 4 and 5 at the end of this release).
Cash and cash equivalents were $6.3 million as of September 30, 2011, compared to $1.9 million as of June 30, 2011. The increase of approximately $4.4 million is attributable to the acquisition of RepliWeb and includes $4.2 million that has been paid to RepliWeb's shareholders following the end of the third quarter, in October 2011.
Shareholders' equity was $4.2 million as of September 30, 2011 compared to $2.5 million as of June 30, 2011. The increase is mainly due to the issuance of approximately 4.0 million shares as part of the consideration to RepliWeb's shareholders. This increase was partially offset by a net loss of ($792,000).
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
About Attunity
Attunity is a leading provider of real-time data integration software that enables access, sharing and distribution of data across heterogeneous enterprise platforms, organizations, and the cloud. Our offering includes software solutions such as data replication, real-time change data capture (CDC) and real-time data connectivity, as well as enterprise file replication and managed-file-transfer (MFT) offered through our RepliWeb division. Using Attunity's software solutions, our customers enjoy dramatic business benefits by enabling real-time access and availability of data and files 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, 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 income (loss), net operating income (loss) and net income (loss) per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisition of RepliWeb,non-cash equity based compensation charges in accordance with ASC 718, non-cash capitalization and amortization of software development costs in accordance with ASC 985-20 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 (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 and profitability, 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: risks and uncertainties relating to the acquisition of RepliWeb, including costs and difficulties related to integration of acquired businesses, the combined companies' financial results and performance, and ability to repay debt and timing thereof; our liquidity challenges and the need to raise additional capital in the future; market acceptance of the Attunity Replicate and the development of a market for such product; timely availability and customer acceptance of Attunity's new and existing products; 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 products; unknown factors affecting third parties with which Attunity has formed business alliances; 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; 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, 2010, 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.
© 2011 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands September December 30, 31, 2011 2010 Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 6,339 $ 872 Restricted cash 438 224 Trade receivables (net of allowance for doubtful accounts of $30 at September 30, 2011 and $15 at December 31, 2010) 1,246 1,201 Other accounts receivable and prepaid expenses 616 190 Total current assets 8,639 2,487 LONG-TERM ASSETS: Other long term Assets 72 61 Severance pay fund 2,628 1,323 Property and equipment, net 379 205 Intangible Assets ,net 3,369 496 Goodwill 11,653 6,133 Total long-term assets 18,101 8,218 Total assets $ 26,740 $ 10,705 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands excpt share data September December 30, 31, 2011 2010 LIABILITIES AND SHAREHOLDERS' EQUITY Unaudited CURRENT LIABILITIES: Short term payable on account of acquisition $ 4,170 $ - Current maturities of long-term convertible debt 1,255 245 Current maturities of long-term debt 370 1,014 Trade payables 829 220 Deferred revenues 6,332 2,048 Employees and payroll accruals 1,544 844 Accrued expenses and other current liabilities 2,077 759 Total current liabilities 16,577 5,130 LONG-TERM LIABILITIES: Earn out liability , presented at fair value 1,602 - Long-term convertible debt 377 1,571 Other long-term debt 190 90 Warrants and bifurcated conversion feature , presented at fair value 431 1,215 Accrued severance pay 3,367 1,966 Total long-term liabilities 5,967 4,842 SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.1 par value - Authorized: 130,000,000 shares at September 30, 2011 and December 31, 2010. Issued and outstanding: 38,108,439 shares at September 30, 2011 and 32,269,695 at December 31, 2010 1,098 939 Additional paid-in capital 106,121 102,459 Accumulated other comprehensive loss (563) (640) Accumulated deficit (102,460) (102,025) Total shareholders' equity 4,196 733 Total liabilities and shareholders' equity $ 26,740 $ 10,705
CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data 9 months ended 3 months ended September 30, September 30, 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Software licenses $ 4,959 $ 3,403 $ 1,754 $ 863 Maintenance and services 4,499 4,093 1,697 1,332 9,458 7,496 3,451 2,195 Operating expenses: Cost of revenues 966 1,543 353 511 Research and development, net 2,741 1,682 1,161 534 Selling and marketing 3,576 2,855 1,338 816 General and administrative 2,112 1,332 1,006 466 Total operating expenses 9,395 7,412 3,858 2,328 Operating Income 63 85 (407) (133) Financial expenses, net 376 394 329 35 Other expenses (income) - (2) - (2) Income / (loss) before income taxes (313) (307) (736) (165) Taxes on income 122 57 56 23 Net Income/ (loss) $ (435) $ (364) $ (792) $ (188) Basic net Income/(loss) per share $ (0.01) $ (0.01) $ (0.02) $ (0.01) Weighted average number of shares used in computing basic and diluted net Income/(loss) per share 33,704 31,897 34,312 32,185
CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands 9 months ended 9 months ended September 30, September 30, 2011 2010 Unaudited Unaudited Cash from operating activities: Net Income /( loss) $ (435) $ (364) Adjustments required to reconcile net income ( loss) to net cash provided by operating activities: Depreciation 80 76 Stock based compensation 221 169 Amortization of intangible assets 328 910 Amortization of deferred interest 8 - Increase (decrease) in accrued severance pay, net (4) 116 Decrease (increase) in trade receivables 352 (283) Decrease ( increase) in other accounts receivable and prepaid expenses 71 (23) Decrease (increase) in long-term prepaid expenses (11) 24 Increase (decrease) in trade payables 7 30 Increase (decrease) in deferred revenues 2,827 (6) Increase (decrease) in employees and payroll accruals 178 (191) Increase (decrease) in accrued expenses and other liabilities 1,217 (232) Changes in fair value of warrants and bifurcated embedded conversion feature 76 92 Net cash provided by operating activities 4,915 318 Cash flows from investing activities: Purchase of property and equipment (117) (51) Capitalization of software development costs - (110) Increase of restricted cash (192) (5) Cash paid in connection with the acquisition, net of acquired cash 1,499 - Net cash provided by investing activities 1,190 (166) Cash flows from financing activities: Receipt of short term bridge loan to finance the acquisition 3,000 - Repayment of bridge loan (3,000) - Proceeds from exercise of stock options and warrants 240 73 Receipt of long term loan 57 25 Repayment of long-term debt (785) (667) Repayment of convertible debt (184) - Net cash provided by (used in) financing activities (672) (569) Foreign currency translation adjustments on cash and cash equivalents 34 3 Increase (decrease) in cash and cash equivalents 5,467 (414) Cash and cash equivalents at the beginning of the period 872 1,428 Cash and cash equivalents at the end of the period $ 6,339 $ 1,014 Supplemental disclosure of cash flow activities: Cash paid during the period for: Interest $ 63 $ 392 Non cash activity Shares issued as part of acquisition $ 2,500 -
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION U.S. dollars in thousands, except per share data 9 months ended 3 months ended September 30, September 30, 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited GAAP operating Income (loss) $ 63 85 $ (407) (133) Stock based compensation (1) 221 170 76 56 Amortization and Capitalization of Software Development Costs (2) 278 800 87 308 Acquisition-related expenses, amortization and adjsutments (3) 864 - 864 - Non-GAAP operating Income $ 1,426 1,055 $ 620 231 GAAP net Income (loss) (435) (364) (792) (188) Stock based compensation (1) 221 170 76 56 Amortization and Capitalization of Software Development Costs (2) 278 800 87 308 Acquisition-related expenses, amortization and adjsutments (3) 864 - 864 - Financial expenses (4) (224) 92 (87) (62) Acquisition-related financial expenses (5) 308 - 308 - Non-GAAP net Income (Loss) $ 1,012 698 $ 456 114 GAAP diluted net Income (loss) per share (0.01) (0.01) (0.02) (0.01) Operating expenses Gaap 0.04 0.03 0.03 0.01 Financial expenses (0.01) 0.00 (0.00) (0.00) $ 0.02 0.02 $ 0.00 0.00 (1) Stock-based compensation expenses under ASC 718 included in : Research and development 72 39 29 14 Selling and marketing 70 62 26 19 General and administrative 79 69 21 23 $ 221 170 $ 76 56 (2) Amortization of Software Development Costs net of capitalization Amortization and Capitalization of Software Development Costs resulting under ASC 985-20 278 800 87 308 $ 278 800 $ 87 308 (3) Acquisition-related expenses, amortization and adjustments Valuation adjustment on acquired deferred services revenue 7 - 7 - Cost of Sales - Amortization of Technology 22 - 22 - Research and development - Carve-out to RepliWeb employees 212 - 212 - Selling and marketing - Carve-out to RepliWeb employees 87 - 87 - Selling and marketing - Amortization of Customers relationship 28 - 28 - General and administrative - Carve-out to RepliWeb employees 87 - 87 - General and administrative- Acquisition expenses 421 - 421 - $ 864 - $ 864 - (4) Financial expenses: Revaluation of warrants and conversion feature of long term convertible debt (224) 92 (87) (62) $ (224) 92 $ (87) (62) (5) Acquisition-related financial expenses Fair value of carve out feature related to warrants 300 - 300 - Accretion related to earn-out obligation 8 - 8 - $ 308 - $ 308 - Total Acquisition-Related Expenses Acquisition-related expenses, amortization and adjustments - Note 3 864 - 864 - Acquisition-related financial expenses - Note 5 308 - $ 308 - $ 1,172 - $ 1,172 -
For more information, please contact:
Todd Fromer / Garth Russell
KCSA Strategic Communications
P: +1-212-682-6300
[email protected] / [email protected]
Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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