Attunity Reports Record Revenues for Third Quarter 2015

36% REVENUE GROWTH FOR THE QUARTER

Nov. 4, 2015 7:00 am |  More About Attunity


BURLINGTON, Mass., Nov. 4, 2015 /PRNewswire/ -- Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of big data management software solutions, today reported its unaudited financial results for the three month period ended September 30, 2015.

"The record revenue we reported for the quarter was driven by scaling our direct sales force, expanding our big data solutions for enterprise and cloud environments and delivering on effective marketing and business development programs.  Each of these factors is continually feeding a pipeline of customer orders that are becoming larger in scope and value, and across a wider base of new customers than ever before," said Shimon Alon, Chairman and CEO of Attunity. "We are experiencing strong activity and increasing interest from customers, partners and other vendors across all of our product offerings, geographies and business lines. As we further extend our portfolio of innovative Big Data management solutions, we are able to support a larger number of different environments, such as data warehouses, clouds, Hadoop, open source, and others."

Recent Operational Highlights:

  • Signed a strategic global resell agreement with Teradata, expanding distribution to the large data warehousing and fast-growing Big Data markets
  • Introduced Attunity Replicate Express to drive market awareness and demand generation for the expansive  mainstream database market, as well as the rapidly expanding Hadoop market
  • Won a strategic deal for Attunity Compose (formerly "BIReady"), the new Data Warehouse Automation offering, with one of the world's largest global insurance companies
  • Closed first Microsoft  Azure customer order for the recently launched Attunity CloudBeam for Azure SQL data warehouse
  • Expanded offerings for the cloud with a new solution for loading data into Hadoop running on AWS
  • Introduced Attunity Visibility for enterprise data usage analytics and monitoring for Hadoop 
  • Launched Attunity Replicate for PostgreSQL, a leading open-source database with rapidly growing market adoption

Financial Highlights for Q3 2015, compared with Q3 2014:  

  • Total non-GAAP revenue increased 37% to $13.0 million
  • Total revenue increased 36% to $12.7 million
  • Non-GAAP net income of $0.4 million, compared with non-GAAP net income of $1.1 million for the third quarter of 2014
  • Generated positive cash flow from operations of $0.4 million 

"Our strong partnerships with the major Big Data vendors have resulted in an extension of the OEM agreements we have with Microsoft and another leading global provider of business software and hardware systems. These agreements enable us to continue to generate leads and revenue, enhancing our brand. Working closely together with the Amazon Web Services (AWS) and Microsoft Azure teams, we are becoming a critical enabler of database migration services that facilitate data transfers between on-premises and cloud environments," continued Mr. Alon.

Big Data Management and Cloud Solutions

Attunity enhanced its replication platform for the cloud "CloudBeam," with the launch of a version for Microsoft Azure, as well as an expanded portfolio for AWS Cloud with support for Hadoop. The Company has already closed the first CloudBeam solution order for the Microsoft Azure SQL Data Warehouse and is building a growing pipeline working jointly with the Microsoft cloud team.

Attunity Visibility has become a trusted solution for enterprises, optimizing performance and balancing workloads from traditional data warehouses to Hadoop. Now, as enterprises look to adopt Hadoop at scale, they need to prioritize investments and make more informed decisions to optimize the value to business users. To accommodate this growing market need, Attunity enhanced Visibility with the launch of "Attunity Visibility 7.0" in order to enable data usage analytics in large Hadoop clusters. With these capabilities, Attunity Visibility is the market's only Big Data Management solution offering users business insights on the utilization of both Hadoop and data warehouses.  

Sales and Marketing 

The Company continued to expand its sales, marketing and business development teams, having grown the total headcount nearly 40% compared with the same period in 2014. These investments in sales and marketing, along with an expanded presence in the Big Data space at events and with analysts, have resulted in steady new customer acquisition and a strong sales pipeline. More importantly, we believe they will enable us to position the Company for sustainable long-term growth through the remainder of the year.

"By working closely with the AWS and Microsoft Azure teams, we are now widely recognized as a keystone for database migration services that facilitate data transfers between on-premises and cloud environments. The strong partnership with the major Big Data vendors resulted in extending the OEM agreements we have with Microsoft and another leading global provider of business software and hardware systems," concluded Mr. Alon.

Financial Results for Q3 2015

Total revenues for the third quarter of 2015 increased 36% to $12.7 million, compared with $9.4 million for the same period in 2014. This includes license revenues for the third quarter of 2015, which increased 26% to $7.0 million, compared with $5.5 million for the same period in 2014. It also includes maintenance and service revenue, which grew 49% to $5.8 million compared with $3.9 million for the same period in 2014.

Total non-GAAP revenue for the third quarter of 2015 was $13.0 million, compared with $9.5 million for the same period in 2014. This includes non-GAAP maintenance and service revenue of $6.0 million, which grew 52% from the same period in 2014.*

Operating loss for the third quarter of 2015 was $1.3 million, compared with an operating income of $0.4 million for the same period in 2014.

Non-GAAP operating income was $1.0 million for the third quarter of 2015, compared with operating income of $1.2 million for the third quarter of 2014.*

Net loss for the third quarter of 2015 was $1.9 million, or $0.12 per diluted share, compared with net income of $0.3 million, or $0.02 per diluted share in the third quarter of 2014.

Non-GAAP net income for the third quarter of 2015 was $0.4 million, compared with non-GAAP net income of $1.1 million for the same period in 2014. Non-GAAP net income for the third quarter of 2015 excludes a total of $2.3 million in expenses and amortization associated with acquisitions and equity-based compensation expenses, compared with $0.8 million of similar expenses for the same period in 2014.*

Cash and cash equivalents were $11.8 million as of September 30, 2015.

Shareholders' equity as of September 30, 2015 increased to $36.3 million, compared to $31.2 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 and Webcast Information

The Company will host a conference call with the investment community on Wednesday, November 4th at 10:00 a.m. Eastern Time featuring remarks by Shimon Alon, Chairman and CEO of Attunity, and Dror Harel-Elkayam, CFO of Attunity. The dial-in numbers for the conference call are +1-888-539-3679 (U.S. Toll Free), +1 80 924 6042 (Israel), or +1-719-325-2138 (International). All dial-in participants must use the following code to access the call: 1144915.

Please call at least five minutes before the scheduled start time.  The conference call will also be available via webcast, which can be accessed through the Events section of Attunity's website, http://www.attunity.com/events.  Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.

For interested individuals unable to join the conference call, a replay of the call will be available through November 18, 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: 1144915. 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 big data management 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 replicationdata flow managementtest data managementchange data capture (CDC), data connectivityenterprise file replication (EFR), managed file transfer (MFT), data warehouse automationdata usage analytics, and cloud data delivery.

Attunity has supplied innovative software solutions to its enterprise-class customers for over 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 TwitterFacebookLinkedIn 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, acquisition-related compensation expense and non-cash financial expenses such as the effect of a revaluation of liabilities presented at fair value and accretion of payment obligations. 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 investments in sales and marketing will enable to position the Company for sustainable long-term growth through the remainder of the year, 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 and Attunity Visibility; 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.

 


CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data




September 30,


December 31,



2015


2014



Unaudited


Audited











ASSETS










CURRENT ASSETS:





Cash and cash equivalents


11,786


18,959

Restricted cash


-


430

Trade receivables (net of allowance for doubtful accounts of $15 at September 30, 2015 and December 31, 2014)


4,656


5,991

Other accounts receivable and prepaid expenses


1,448


453






Total current assets


17,890


25,833
















Severance pay fund


3,427


3,247

Property and equipment, net


1,174


980

Goodwill and intangible assets, net


41,004


22,869

Other assets


159


577






Total long-term assets


45,764


27,673






Total assets


63,654


53,506

 

 


CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data




September 30,


December 31,



2015


2014



Unaudited


Audited






LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:










Trade payables


$          478


$        322

Payment obligation related to acquisitions   


2,526


2,278

Deferred revenues


9,532


7,091

Employees and payroll accruals


4,361


3,023

Accrued expenses and other current liabilities


1,197


1,551






Total current liabilities


18,094


14,265






LONG-TERM LIABILITIES:










Long-term deferred revenue


776


576

Liabilities presented at fair value and other long-term liabilities


1,959


1,004

Payment obligation related to acquisitions


1,899


2,208

Accrued severance pay


4,604


4,296






Total long-term liabilities


9,238


8,084











SHAREHOLDERS' EQUITY:





Share capital - Ordinary shares of NIS 0.4 par value -





Authorized: 32,500,000 shares at September 30, 2015 and December 31, 2014; Issued and outstanding: 16,471,460 shares at September 30, 2015 and 15,375,716 shares at December 31, 2014


1,868


1,772

Additional paid-in capital


143,286


133,931

Accumulated other comprehensive loss


(1,125)


(871)

Accumulated deficit   


(107,707)


(103,675)






Total shareholders' equity


36,322


31,157






Total liabilities and shareholders' equity


$      63,654


$     53,506

 

 

 


CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data



Nine months ended


Three months ended


September 30,


September 30,



2015


2014


2015


2014



Unaudited


Unaudited










Software licenses


$      19,328


$      13,459


$        6,968


$        5,530

Maintenance and services


16,026


11,312


5,778


3,868

Total revenue


35,354


24,771


12,746


9,398

Operating expenses:









Cost of revenues


5,155


2,315


1,912


843

Research and development


7,983


7,102


3,090


2,265

Selling and marketing


21,146


13,743


7,861


4,883

General and administrative


3,787


2,924


1,151


1,036

Total operating expenses


38,071


26,084


14,014


9,027










Operating loss


(2,717)


(1,313)


(1,268)


371

Financial expenses, net


744


316


509


127

Loss before taxes on income


(3,461)


(1,629)


(1,777)


244

Taxes on income


571


8


130


(34)

Net loss


$      (4,032)


$      (1,637)


$      (1,907)


$          278










Basic and diluted net loss per share


$        (0.25)


$       (0.11)


$      (0.12)


$     0.02

Weighted average number
of shares used in computing
basic and diluted net loss per
share


16,075


14,950


16,421


15,179










 

 

 


CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands



Nine months ended

September 30,



2015


2014



Unaudited

Cash  flows  activities:










Net loss


$       (4,032)


$       (1,637)

Adjustments required to reconcile net loss to net cash provided by operating activities:





Depreciation


300


255

Stock based compensation


1,832


1,083

Amortization of intangible assets


2,073


887

Accretion of payment obligations


377


512

Change in:





   Accrued severance pay, net


128


63

   Trade receivables


1,335


1,347

   Other accounts receivable and prepaid expenses


(698)


161

   Other long term assets


(28)


(1)

   Trade payables


113


87

   Deferred revenues


2,132


1,318

   Employees and payroll accruals


1,286


(1,130)

   Accrued expenses and other liabilities


(373)


91

Change in liabilities presented at fair value and other long-term liabilities


156


(391)

Tax benefits related to exercise of stock options


(135)


-

Change in deferred taxes, net


(204)


(203)






Net cash provided by operating activities


4,262


2,442






Cash flows from investing activities:





Purchase of property and equipment


(427)


(395)

Decrease (Increase) in restricted cash


430


(850)

Acquisition of company, net of cash acquired


(10,402)


-

Net cash used in investing activities


(10,399)


(1,245)






Cash flows from financing activities:





Proceeds from exercise of stock options, warrants and rights


885


695

Tax benefits related to exercise of stock options


135


-

Payment of contingent consideration


(2,054)


-






Net cash provided by (used in) financing activities


(1,034)


695






Foreign currency translation adjustments on cash and cash equivalents


(2)


51






Increase (decrease) in cash and cash equivalents


(7,173)


1,943

Cash and cash equivalents at the beginning of the period


18,959


16,481






Cash and cash equivalents at the end of the period


11,786


18,424






Supplemental disclosure of cash flow activities:





Cash paid during the period for taxes


$           1,327


$           417






Non cash activities:





Issuance of shares related to acquisition


$           6,599


-

 

 

 


RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

U.S. dollars in thousands, except share and per share data



Three months ended September 30, 2015


Three months ended September 30, 2014


Unaudited 


Unaudited


GAAP

Adj.


NON-
GAAP


GAAP

Adj.


NON-
GAAP

Software licenses

6,968



6,968


5,530



5,530

Maintenance and services

5,778

240

(a)

6,018


3,868

94

(a)

3,962

Total revenue

12,746



12,986


9,398



9,492











Operating expenses:










Cost of revenues

1,912

696

(b)

1,216


843

215

(b)

628

Research and development

3,090

333

(b), (c)

2,757


2,265

119

(c)

2,146

Selling and marketing

7,861

825

(b), (c)

7,036


4,883

257

(b), (c)

4,626

General and administrative

1,151

196

(c)

955


1,036

110

(c)

926

Total operating expenses

14,014



11,964


9,027



8,326











Operating income (loss)

(1,268)



1,022


371



1,166

Financial expenses net

509

362

(d)

147


127

31

(d)

96

Income (loss) before taxes on income

(1,777)



875


244



1,070

Taxes on income

130

(320)

(e)

450


(34)

(46)

(e)

12

Net income (loss)

(1,907)



425


278



1,058











Diluted net income (loss) per share

(0.12)



0.02


0.02



0.07

Weighted average number
of shares used in computing
diluted net income (loss) per
share

16,421



17,278


15,837



15,862



(a) Valuation adjustment on acquired deferred maintenance revenue


(b) Acquisition-related compensation expenses and amortization of intangible assets:

 

 



Three months ended September 30,




2015


2014




Cost of revenues

696


215




Research and development

100


-




Selling and marketing

393


81






1,189



296


































 

 

 


RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

U.S. dollars in thousands, except share and per share data

(c) Stock-based compensation expenses under ASC 718  included in:










Three months ended, September 30,








2015


2014






Research and development


233


119






Selling and marketing


432


176






General and administrative


196


110








861


405






 

 

(d) Accretion of payment obligations and revaluation of liabilities presented at fair value:




Three months ended, September 30,




2015


2014


Revaluation of liabilities presented at fair value

116


(140)


Accretion of payment obligations

246


171




362


31












(e) Taxes related to acquisitions

 

 











RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

U.S. dollars in thousands, except share and per share data


Nine months ended September 30, 2015


Nine months ended September 30, 2014


Unaudited 


Unaudited 


GAAP

Adj.


NON-GAAP


GAAP

Adj.


NON-GAAP

Software licenses

19,328



19,328


13,459



13,459

Maintenance and services

16,026

586

(a)

16,612


11,312

284

(a)

11,596

Total revenue

35,354



35,940


24,771



25,055











Operating expenses:










Cost of revenues

5,155

1,823

(b)

3,332


2,315

643

(b)

1,672

Research and development

7,983

667

(b), (c)

7,316


7,102

311

(c)

6,791

Selling and marketing

21,146

1,771

(b), (c)

19,375


13,743

717

(b), (c)

13,026

General and administrative

3,787

1,062

(b), (c)

2,725


2,924

299

(c)

2,625

Total operating expenses

38,071



32,748


26,084



24,114











Operating income (loss)

(2,717)



3,192


(1,313)



941

Financial expenses, net

744

554

(d)

190


316

119

(d)

197











Income (loss) before taxes on income

(3,461)



3,002


(1,629)



744

Taxes on income

571

(702)

(e)

1,273


8

(225)

(e)

233

Net income (loss)

(4,032)



1,729


(1,637)



511











Diluted net income (loss) per share

(0.25)



0.10


(0.11)



0.03

Weighted average number of shares used in computing  diluted net income (loss) per share

16,075



16,834


14,950



15,832





















(a) Valuation adjustment on acquired deferred maintenance revenue

















(b) Acquisition-related costs, compensation expenses and amortization of intangible assets:









Nine months ended September 30,







2015


2014






Cost of revenues

1,823


643






Research and development

214


-






Selling and marketing

893


244






General and administrative

561


-








3,491


887






 

 

RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

U.S. dollars in thousands, except share and per share data

(c) Stock-based compensation expenses  under ASC 718  included in:








Nine months ended September 30,








2015


2014






Research and development


453


311






Selling and marketing


878


473






General and administrative


501


299








1,832


1,083






 

(d) Accretion of payment obligations and revaluation of liabilities presented at fair value:




Nine months ended September 30,



2015


2014


Revaluation of liabilities presented at fair value

175


(393)


Accretion of payment obligations

379


512




554


119











(e) Taxes related to acquisitions









For more information, please contact:


Garth Russell / Allison Monat
KCSA Strategic Communications
P: + 1 212-682-6300
grussell@kcsa.com   / amonat@kcsa.com  

Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
dror.elkayam@attunity.com  

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/attunity-reports-record-revenues-for-third-quarter-2015-300172155.html

SOURCE Attunity Ltd.

PR Newswire
November 4, 2015 - 7:00 AM EST


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