Attunity Reports Third Quarter 2012 Results
Total Quarterly Revenues Increased 72%
BURLINGTON, Massachusetts, October 31, 2012 /PRNewswire/ --
Attunity, Ltd. (NASDAQ: ATTU), a leading provider of information availability software solutions, today reported its unaudited financial results for the three month period ended September 30, 2012.
Financial Highlights for the Third Quarter of 2012:
- Total revenues increased 72% to $5.9 million in the third quarter of 2012, compared to $3.5 million for the same period last year
- License revenues increased 73% to $3.0 million in the third quarter of 2012, compared to $1.8 million for the same period last year
- Non-GAAP operating income increased 60% to $1.0 million in the third quarter of 2012, compared to $0.6 million for the same period last year
- Net income increased to an income of $43,000 in the third quarter of 2012, compared to a loss of ($792,000) for the same period last year
- Non-GAAP net income increased 90% to $0.9 million in the third quarter of 2012, compared to $0.5 million for the same period last year
- Shareholders' equity increased to $8.1 million as of September 30, 2012 compared to $5.2 million as of December 31, 2011.
Recent Operational Highlights:
- Successfully returned to trading ordinary shares on the NASDAQ Capital Market
- Closed first deal of Attunity Replicate for EMC Greenplum Big Data analytics
- Introduced Attunity Replicate to Oracle Exadata, continuing expansion into the Big Data market with Business Intelligence (BI) and enterprise analytics initiatives
- Teamed with Teradata to optimize Attunity Replicate for Big Data warehouses to enable Big Data replication
- Signed several major customer agreements for Attunity Replicate across all regions, including a major European financial institution, and a large telecommunication provider in Asia Pacific further improving its competitive advantage for Big Data with analytics
- Expanded services for Amazon Web Services (AWS) Simple Storage Service (S3) with Attunity's new data replication SaaS solution, providing disaster recovery, backup and data distribution between different AWS regions
- Awarded the #1 Data Replication Innovator distinction on the "Top 40 Companies We're Watching" List from Information Management Magazine.
We are quickly gaining market share and becoming a go-to-provider of replication software solutions amid growing demand from new customers deploying Big Data warehouses for Big Data analytics. These customers are quickly recognizing the value and the advantages our solutions offer and have often chosen Attunity over other Big Data replication solution in today's market," stated Mr. Shimon Alon, Chairman and CEO of Attunity. "We are pleased to report a 72% increase in revenue compared to the third quarter of 2011. This strength in market demand for our solutions is also resulting in a continuous rise in our average sales price for our replication products. And, while the third quarter is generally our weakest quarter of the year due to the seasonality of our business, we continue to demonstrate strong growth and profitability on a year-over-year basis. As a result, we expect our fourth quarter to be the strongest this year in terms of record quarterly revenues and profits."
"The Attunity Replicate has led to several new industry partnership and collaborations, including EMC Greenplum, Teradata, HP Vertica and Action Vectorwise, who have recognized the critical need and value of our solutions to enhance their BI and Big Data analytics capabilities. I am pleased that we already closed the first deal of Replicate for EMC Greenplum just several weeks after its introduction in the beginning of the third quarter. Additionally, we have launched the public beta of our SaaS upload and replication solutions for the cloud for Amazon Web Services (AWS) Simple Storage Service (S3), and will showcase these solutions with AWS in the November 2012 AWS re: Invent Conference, including new solutions for data automation and management for cloud replication."
Mr. Alon concluded, "Since our successful listing on NASDAQ, we have seen increased interest in the company from the capital markets, as demonstrated by our invitations to more investor conferences and general excitement within the investment community. We are also excited by the growth potential from the recent deals we have closed. And we believe our penetration of the Big Data and BI markets will increase as our offerings now include solutions for major Big Data warehouse players, such as Oracle Exadata, Teradata and EMC Greenplum. As we look to the future, several of our new solutions for the Cloud and Big Data are expected to generate a new stream of customers in 2013."
Financial Results for Q3 2012
Total revenues for the third quarter of 2012 increased 72% to $5.9 million, compared to $3.5 million for the same period of 2011. This included license revenues for the third quarter of 2012, which increased 73% to $3.0 million, compared to $1.8 million for the same period of 2011. RepliWeb products contributed $2.4 million in total revenues and $1.0 million in license revenues in the third quarter of 2012.
Net operating income for the third quarter of 2012 was $569,000, compared to an operating loss of ($407,000) for the same period of 2011.
Non-GAAP operating income for the third quarter of 2012 was $993,000, compared to $620,000 for the same period last year. Non-GAAP operating income for the third quarter of 2012 excludes equity-based compensation and amortization of software development costs totaling $197,000, compared to $163,000 for the same period last year; and $227,000 in amortization and expenses related to the acquisition of RepliWeb compared to $864,000 for the same period last year (see footnotes 1 and 2 at the end of this release).
Net income for the third quarter of 2012 was $43,000, or $0.00 per diluted share, compared to a loss of ($792,000), or ($0.10) per diluted share (adjusted to reflect the recent reverse stock split), in the third quarter of 2011.
Non-GAAP net income for the third quarter of 2012 was $865,000, compared to $456,000 for the same period last year. Non-GAAP net income for the third quarter of 2012 excludes a total of $822,000 in expenses and amortization, including $414,000 of financial expenses associated with the revaluation of liabilities presented at fair value (attributed mainly to the rise of our share price) and the revaluation of the conversion feature related to the Company's convertible debt; $227,000 in amortization and expenses associated with acquisition of RepliWeb; and $157,000 in expenses related to stock based compensation (see footnotes 1 and 2 at the end of this release).
Cash and cash equivalents were $1.7 million as of September 30, 2012, compared to $1.5 million as of December 31, 2011.
Shareholders' equity increased to $8.1 million as of September 30, 2012, compared to $5.2 million as of December 31, 2011.
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, October 31, 2012, at 10:00 a.m. Eastern Time. The dial-in numbers for the conference call are 1-866-691-3082 (US Toll Free), +1-480-629-1941 (International) or 072-273-3197 (Israel). All dial-in participants must use the following code to access the call: 4569045. 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, and http://www.kcsa.com, 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 conference call, a replay of the call will be available through November 30, 2012 at 1-800-406-7325 (US Toll Free), +1-303-590-3030 (International) or 072-273-3198 (Israel) . Participants must use the following code to access the replay of the call: 4569045. The online archive of the webcast will be available on http://www.attunity.com/events or http://www.kcsa.com for 30 days following the call.
About Attunity
Attunity is a leading provider of information availability software solutions that enable access, sharing and distribution of data, including Big Data, across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication, change data capture (CDC), data connectivity, enterprise file replication (EFR) and managed-file-transfer (MFT). Using Attunity's software solutions, our customers enjoy significant 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 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, net operating income and net income per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisition of RepliWeb net of related tax, non-cash equity based compensation charges in accordance with ASC 718, amortization of software development costs in accordance with ASC 985-20, and non-cash financial expenses such as revaluation effect of liabilities presented at fair value and convertible debt inducement expenses. 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 our expected revenues and profits or demand for our new solutions for cloud computing, 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: our reliance on strategic relationships with our distributors, OEM and VAR partners, including Microsoft; 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 known or unknown contingent liabilities, including litigation, costs, tax and expenses; our liquidity challenges and the need to raise additional capital in the future; timely availability and customer acceptance of Attunity's new and existing products, including Attunity Replicate; 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; 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/A for the year ended December 31, 2011, 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.
© 2012 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30, December 31,
2012 2011
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $ 1,714 $ 1,484
Restricted cash 21 362
Trade receivables
(net of allowance
for doubtful
accounts of $15 at
September 30, 2012
and December 31,
2011) 3,036 1,988
Other accounts
receivable and
prepaid expenses 260 158
Total current
assets 5,031 3,992
LONG-TERM ASSETS:
Other long term
assets 89 72
Severance pay fund 2,740 2,684
Property and
equipment, net 421 380
Intangible assets
,net 2,084 2,854
Goodwill 13,050 13,011
Total long-term
assets 18,384 19,001
Total assets $ 23,415 $ 22,993
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands except share data
September December
30, 31,
2012 2011
LIABILITIES AND
SHAREHOLDERS'
EQUITY Unaudited
CURRENT
LIABILITIES:
Current maturities
of long-term
convertible debt $ - $ 835
Current maturities
of long-term debt 6 115
Trade payables 423 452
Deferred revenues 4,835 5,733
Employees and
payroll accruals 2,015 2,151
Accrued expenses
and other current
liabilities 1,016 1,906
Bifurcated
conversion feature
, presented at fair
value - 227
Contingent payment
obligation 1,867 -
Total current
liabilities 10,162 11,419
LONG-TERM
LIABILITIES:
Contingent payment
obligation - 1,669
Long term deferred
tax liability, net 309 352
Other long-term
liabilities 329 388
Liabilities
presented at fair
value 766 510
Accrued severance
pay 3,742 3,467
Total long-term
liabilities 5,146 6,386
SHAREHOLDERS'
EQUITY:
Share capital -
Ordinary shares of
NIS 0.4 par value -
Authorized:
32,500,000 shares
at September 30,
2012 and December
31, 2011 Issued and
outstanding:
10,882,902 shares
at September 30,
2012 and 9,987,777
at December 31,
2011 1,225 1,146
Additional paid-in
capital 109,967 107,572
Accumulated other
comprehensive loss (671) (690)
Accumulated deficit (102,414) (102,840)
Total shareholders'
equity 8,107 5,188
Total liabilities
and shareholders'
equity $ 23,415 $ 22,993
*) On July 19 2012, the Company performed a reverse stock split of the Company's ordinary shares of four (4) for one (1).
The earning per share amounts and the share data presented for all prior periods were restated to reflect the effects of the reverse stock split.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
9 months ended 3 months ended
September 30, September 30,
2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited
Software
licenses $ 10,185 $ 4,959 $ 3,044 $ 1,754
Maintenance
and services 8,227 4,499 2,892 1,697
18,412 9,458 5,936 3,451
Operating
expenses:
Cost of
revenues 1,747 966 574 353
Research and
development 5,827 2,741 1,899 1,161
Selling and
marketing 6,964 3,576 2,151 1,338
General and
administrative 2,274 2,112 743 1,006
Total
operating
expenses 16,812 9,395 5,367 3,858
Operating
Income /
(Loss) 1,600 63 569 (407)
Financial
expenses , net 1,046 376 489 329
Income /
(loss) before
income taxes 554 (313) 80 (736)
Taxes on
income 128 122 37 56
Net income /
(loss) $ 426 $ (435) $ 43 $ (792)
Basic net
income /
(loss) per
share $ 0.04 $ (0.05) $ 0.00 $ (0.09)
Weighted
average number
of shares used
in computing
basic net
income per
share 10,506 8,426 10,752 8,578
Diluted net
income /
(loss) per
share 0.04 $ (0.06) $ 0.00 $ (0.10)
Weighted
average number
of shares used
in computing
diluted net
income per
share 11,782 8,426 12,356 8,578
*) On July 19, 2012, the Company performed a reverse stock split of the Company's ordinary shares of four (4) for one (1).
The earning per share amounts and the share data presented for all prior periods were restated to reflect the effects of the reverse stock split.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
9 months ended
September 30, September 30,
2012 2011
Unaudited Unaudited
Cash from operating activities:
Net Income /( loss) $ 426 (435)
Adjustments required to reconcile net
income ( loss) to net cash provided by
(used in) operating activities:
Depreciation 168 80
Stock based compensation 481 221
Amortization of intangible assets 770 328
Accretion of contingent payment obligation 199 8
Convertible debt inducement expenses 108 -
Increase (decrease) in accrued severance
pay, net 219 (4)
Decrease (increase) in trade receivables (1,048) 352
Decrease ( increase) in other accounts
receivable and prepaid expenses (127) 71
Increase in other long term assets (17) (11)
Increase (decrease) in trade payables (29) 7
Increase (decrease) in deferred revenues (898) 2,827
Increase (decrease) in employees and
payroll accruals (136) 178
Increase (decrease) in accrued expenses
and other liabilities (890) 1,217
Change in liabilities presented at fair
value 742 76
Change in deferred taxes, net (77) -
Net cash provided by (used in) operating
activities (109) 4,915
Cash flows from investing activities:
Purchase of property and equipment (209) (117)
decrease (increase) of restricted cash 341 (192)
Cash paid in connection with the
acquisition ,net of acquired cash - 1,499
Net cash provided by investing activities 132 1,190
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,
warrants and rights 475 240
Receipt of long term loan - 57
Repayment of long-term debt (109) (785)
Repayment of convertible debt (138) (184)
Net cash provided by (used in) financing
activities 228 (672)
Foreign currency translation adjustments
on cash and cash equivalents (20) 34
Increase in cash and cash equivalents 230 5,467
Cash and cash equivalents at the beginning
of the period 1,484 872
Cash and cash equivalents at the end of
the period $ 1,714 6,339
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest $ 225 63
Income tax $ 234 -
Non cash activity
Conversion of convertible debt and
bifurcated conversion feature $ 630 -
Shares Issued as part of the 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,
2012 2011 2012 2011
September 30, September 30, September 30, September 30,
Unaudited Unaudited Unaudited Unaudited
GAAP operating
Income / (loss) $ 1,600 $ 63 569 $ (407)
Stock based
compensation (1) 481 221 157 76
Amortization of
Software
Development Costs 152 278 40 87
Acquisition-related
expenses,
amortization and
adjustments (2) 740 864 227 864
Non-GAAP operating
Income $ 2,973 $ 1,426 993 $ 620
GAAP net Income 426 (435) 43 (792)
Stock based
compensation (1) 481 221 157 76
Amortization of
Software
Development Costs 152 278 40 87
Acquisition-related
expenses,
amortization and
adjustments (2) 740 864 227 864
Revaluation of
liabilities
presented at fair
value 850 (224) 414 (87)
Acquisition related
financial expense 199 308 66 308
Tax related to the
acquisition (247) - (82) -
Non-GAAP net Income $ 2,601 $ 1,012 865 $ 456
GAAP diluted net
Income (loss) per
share: 0.04 (0.05) 0.00 (0.09)
Operating expenses
GAAP 0.12 0.16 0.03 0.12
Financial expenses 0.09 0.01 0.04 0.03
Taxes on income (0.02) - (0.01) -
Non-GAAP diluted
net Income per
share $ 0.22 $ 0.12 0.07 $ 0.05
Weighted average
number of shares
used in computing
diluted net income
per share 11,782 8,426 12,356 8,578
(1)Stock-based
compensation
expenses under ASC
718 included in:
Research and
development 219 72 98 29
Selling and
marketing 132 70 56 26
General and
administrative 130 79 3 21
$ 481 $ 221 157 $ 76
(2)Operating
acquisition-related
expenses,
amortization and
adjustments:
Valuation
adjustment on
acquired deferred
services revenue 122 7 21 7
Cost of Sales -
Amortization of
technology 419 22 140 22
Carve-out to
RepliWeb employees - 386 - 386
Selling and
marketing -
Amortization of
customers
relationship 199 28 66 28
General and
administration -
Acquisition
expenses - 421 - 421
$ 740 $ 864 227 $ 864
(3)Total
Acquisition-Related
Expenses:
Acquisition-related
expenses,
amortization and
adjustments - Note
2 740 864 227 864
Accretion of
contingent payment
obligation 199 8 66 8
Fair value of carve
out feature related
to warrants - 300 - 300
Tax related to the
acquisition (247) (82)
$ 692 $ 1,172 211 $ 1,172
*) On July 19,2012, the Company performed a reverse stock split of the Company's ordinary shares of four (4) for one (1).
The earning per share amounts and the share data presented for all prior periods were restated to reflect the effects of the reverse
For more information, please contact:
Todd Fromer / Garth Russell
KCSA Strategic Communications
P: +1-212-682-6300
tfromer@kcsa.com / [email protected]
Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel: +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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