Attunity Reports Second Quarter 2012 Results Total Revenues Increased 110% to $6.4 Million; Net Income Increased 185% to $0.5 Million

BURLINGTON, Massachusetts, July 25, 2012 /PRNewswire/ --

Attunity, Ltd. (OTC Bulletin Board: ATTUD), a leading provider of information availability software solutions, today reported its unaudited financial results for the three month period ended June 30, 2012.

Financial Highlights for the Second Quarter of 2012:

  • Represents the seventh consecutive quarter of license and total revenue growth
  • Total revenues increased 110% to $6.4 million in the second quarter of 2012, compared to $3.0 million for the same period last year
  • License revenues increased 121% to $3.6 million in the second quarter of 2012, compared to $1.6 million for the same period last year
  • Net income increased 185% to $508,000 in the second quarter of 2012, compared to $178,000 for the same period last year
  • Non-GAAP net income increased 786% to $1.2 million in the second quarter of 2012, compared to $139,000 for the same period last year
  • Shareholders' equity increased to $6.8 million as of June 30, 2012 compared to $5.2 million as of December 31, 2011

Recent Operational Highlights:

  • Attunity expects to list on the NASDAQ Capital Market on Thursday, July 26, 2012, subject to final approval by NASDAQ
  • Became a partner with Amazon Web Services (AWS) to enable Big Data availability in the Cloud and overcome the data transfer bottleneck in moving data to, from, and across cloud environments through the introduction of the Attunity CloudBeam SaaS platform
  • Teamed with EMC  to optimize Attunity Replicate for the EMC Greenplum data warehouse to enable Big Data replication, leveraging Big Data for a combined Enterprise Analytics solution
  • Continuous strong market acceptance of Attunity Replicate platform with several major wins this quarter in competitive environments
  • Expansion of Big Data products with the release of Attunity Replicate for Actian-Vectorwise, a large-scale data warehouse for Big Data analytics
  • Attunity Replicate named winner in the "Best of TechEd 2012" awards by Penton Media's SQL Server Pro Magazine
  • Earned top distinction as "Innovator" in New Managed File Transfer Vendor Landscape Report

Commenting on the results for the second quarter, Mr. Shimon Alon, Chairman and CEO of Attunity, stated, "We are pleased with our financial results, and with the increased traction of our replication solutions in today's information availability market, as we achieved our seventh consecutive quarter of revenue growth. The award winning platform, Attunity Replicate, has landed a number of sizable deals in North America and Europe this quarter, with customers in the big data and large-scale data warehouse environments, demonstrating strong demand for our data replication products. We are also pleased with the strength of our file replication business, the core RepliWeb product line, which has delivered continuous growth since acquiring RepliWeb in September 2011.

"We have just launched our 'Big Data' replication solutions for cloud and data center environments, teaming with two market leaders, Amazon Web Services (AWS) and EMC, respectively. Amazon customers will be able to utilize our new Attunity CloudBeam SaaS platform to overcome challenges with the transfer and replication of Big Data. EMC's customers will be able to use our Big Data Replication platform for a combined enterprise analytics solution.  The addition of these two partners further demonstrates Attunity's position as a leading provider of Big Data and Cloud solutions with a significantly broader base of target customers."

Mr. Shimon Alon concluded, "We are excited to gain such positive momentum leading up to our NASDAQ listing. Our new market-leading partners, Amazon Web Services and EMC, will enable us to increase our penetration into the very large and fast growing markets of Big Data and Cloud services. This will not only grow our business, but also allow us to gain broader exposure within these markets and the investment community. Looking ahead, we expect to continue to deliver on all fronts of our growth strategy and become a more accredited company as we establish ourselves at the forefront of the information availability market."  

Financial Results for Q2 2012

Total revenues for the second quarter of 2012 increased 110% to $6.4 million, compared to $3.0 million for the same period of 2011. This included license revenues for the second quarter of 2012, which increased 121% to $3.6 million, compared to $1.6 million for the same period of 2011. RepliWeb products contributed $2.6 million in total revenues and $1.3 million in license revenues in the second quarter of 2012.

Net operating income for the second quarter of 2012 was $688,000, compared to $130,000 for the same period of 2011. Non-GAAP net operating income for the second quarter of 2012 was $1.1 million compared to $294,000 for the same period last year. Non-GAAP net operating income for the second quarter of 2012 excludes equity-based compensation and amortization of software development costs totaling $216,000 compared to $164,000 for the same period last year, as well as $245,000 in amortization and expenses related to the acquisition of RepliWeb (see footnotes 1 and 2 at the end of this release).

Net income for the second quarter of 2012 was $508,000, or $0.04 per diluted share (adjusted to reflect the recent reverse stock split), compared to $178,000, or $0.02 per diluted share (adjusted to reflect the recent reverse stock split), in the second quarter of 2011.

Non-GAAP net income for the second quarter of 2012 was $1.2 million, compared to $139,000 for the same period last year. Non-GAAP net income for the second quarter of 2012 excludes a total of $724,000 in expenses and amortization, mainly including $279,000 of financial expenses associated with the revaluation of the conversion feature related to the Company's convertible debt and to the revaluation of liabilities presented at fair value (attributed mainly to the rise of the share price), $245,000 in amortization and expenses associated with acquisition of RepliWeb, and $160,000 in expenses related to stock based compensation (see footnotes 1 and 2 at the end of this release).

Cash and cash equivalents were $1.8 million as of June 30, 2012, compared to $1.5 million as of December 31, 2011.  Shareholders' equity increased to $6.8 million as of June 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, July 25, 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: 4552019. 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 August 25, 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: 4552019. 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 growth opportunities or introduction of 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
 
                                                    June 30,      December 31,
                                                      2012            2011
 
                                                    Unaudited
    ASSETS
 
    CURRENT ASSETS:
    Cash and cash equivalents                     $     1,752   $        1,484
    Restricted cash                                       360              362
    Trade receivables (net of allowance for
    doubtful accounts of $15 at June 30, 2012
    and December 31, 2011)                              2,402            1,988
    Other accounts receivable and prepaid
    expenses                                              410              158
 
    Total current assets                                4,924            3,992
 
    LONG-TERM ASSETS:
    Other long term assets                                100               72
    Severance pay fund                                  2,739            2,684
    Property and equipment, net                           404              380
    Intangible assets ,net                              2,330            2,854
    Goodwill                                           12,988           13,011
 
    Total long-term assets                             18,561           19,001
 
    Total assets                                  $    23,485   $       22,993


                          CONSOLIDATED BALANCE SHEETS
                  U.S. dollars in thousands except share data
   
                                                  June 30,     December 31,
                                                    2012           2011
 
    LIABILITIES AND SHAREHOLDERS' EQUITY          Unaudited
    CURRENT LIABILITIES:
    Current maturities of long-term
    convertible debt                            $       215   $         835
    Current maturities of long-term debt                 12             115
    Trade payables                                      358             452
    Deferred revenues                                 5,834           5,733
    Employees and payroll accruals                    2,158           2,151
    Accrued expenses and other current
    liabilities                                       1,098           1,906
    Bifurcated conversion feature , presented
    at fair value                                       177             227
    Contingent payment obligation                     1,801               -
 
    Total current liabilities                        11,653          11,419
 
    LONG-TERM LIABILITIES:
    Contingent payment obligation                         -           1,669
    Long term deferred tax liability, net               351             352
    Other long-term liabilities                         315             388
    Liabilities presented at fair value                 725             510
    Accrued severance pay                             3,690           3,467
 
    Total long-term liabilities                       5,081           6,386
 
    SHAREHOLDERS' EQUITY:
    Share capital - Ordinary shares of NIS
    0.1 par value -
    Authorized: 32,500,000 shares at June 30,
    2012 and December 31, 2011 Issued and
    outstanding: 10,573,464 shares at June
    30, 2012 and 9,987,777 at December 31,
    2011                                              1,208           1,146
    Additional paid-in capital                      108,757         107,572
    Accumulated other comprehensive loss              (757)           (690)
    Accumulated deficit                           (102,457)       (102,840)
 
    Total shareholders' equity                        6,751           5,188
 
    Total liabilities and shareholders'
    equity                                      $    23,485   $      22,993
 
                                                          -               -
 


    *) In 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
 
                                          6 months ended              3 months ended
                                              June 30,                    June 30,
                                          2012          2011         2012         2011
                                     Unaudited     Unaudited    Unaudited    Unaudited
 
    Software licenses            $       7,141   $     3,205  $     3,578  $     1,618
    Maintenance and services             5,335         2,802        2,816        1,431
 
                                        12,476         6,007        6,394        3,049
    Operating expenses:
    Cost of revenues                     1,173           612          537          309
    Research and development             3,928         1,581        1,891          829
    Selling and marketing                4,813         2,238        2,531        1,223
    General and administrative           1,531         1,106          747          558
 
    Total operating expenses            11,445         5,537        5,706        2,919
 
    Operating Income                     1,031           470          688          130
 
    Financial expenses /
    (income), net                          557            47          210          (74)
 
    Income before income taxes             474           423          478          204
 
    Taxes on income (benefit)               91            66          (30)          26
 
    Net income                    $        383   $       357  $       508  $       178
 
    Basic net income per share    $       0.04   $      0.04  $      0.05  $      0.02

    Weighted average number of 
    shares used in computing
    basic net income per share          10,382         8,303       10,493        8,304
 
    Diluted net income per share  $       0.03   $      0.04  $      0.04  $      0.02
    Weighted average number of 
    shares used in computing
    diluted net income per share        11,759        10,010       11,789        9,746


    *) In July 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
                                                          6 months ended
                                                     June 30,        June 30,
                                                       2012            2011
                                                     Unaudited       Unaudited
 
    Cash from operating activities:
    Net Income / (loss)                            $       383     $       357
    Adjustments required to reconcile net income
    (loss) to net cash provided by operating
    activities:
 
    Depreciation                                           102              53
    Stock based compensation                               324             144
    Amortization of intangible assets                      524             192
    Accretion of contingent payment obligation             132               -
    Convertible debt inducement expenses                   108               -
    Increase in accrued severance pay, net                 168              61
    Decrease (increase) in trade receivables              (414)            215
    Decrease (increase) in other accounts
    receivable and prepaid expenses                       (277)            (59)
    Decrease (increase) in long-term prepaid
    expenses                                               (28)              -
    Increase (decrease) in trade payables                  (94)            (76)
    Increase in deferred revenues                          101             489
    Increase in employees and payroll accruals               7             206
    Increase (decrease) in accrued expenses and
    other liabilities                                     (808)            186
    Decrease/ (increase) and revaluation of
    restricted cash                                          2            (172)
    Change in liabilities presented at fair
    value                                                  328            (147)
    Change in deferred taxes net                           (47)              -
 
    Net cash provided by operating activities              511           1,449
 
    Cash flows from investing activities:
    Purchase of property and equipment                    (126)            (77)
 
    Net cash used in investing activities                 (126)            (77)
 
    Cash flows from financing activities:
    Proceeds from exercise of stock options,
    warrants and rights                                    184             137
    Receipt of long term loan                                -              57
    Repayment of long-term debt                           (103)           (526)
    Repayment of convertible debt                         (153)           (123)
 
    Net cash used in financing activities                  (72)           (455)
 
    Foreign currency translation adjustments on
    cash and cash equivalents                              (45)            104
 
    Increase in cash and cash equivalents                  268           1,022
    Cash and cash equivalents at the beginning
    of the period                                        1,484             872
 
    Cash and cash equivalents at the end of the
    period                                         $     1,752     $     1,894
 
    Supplemental disclosure of cash flow
    activities:
    Cash paid during the period for:
    Interest                                       $       225     $        48
 
    Income tax                                     $       234     $         -
 
    Non cash activity
    Conversion of convertible debt and
    bifurcated conversion feature                  $       630               -


               RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
                     U.S. dollars in thousands, except per share data
 
                                              6 months ended          3 months ended
                                                 June 30,                June 30,
                                             2012        2011        2012        2011

                                          June 30,    June 30,    June 30,    June 30,
                                        Unaudited   Unaudited   Unaudited   Unaudited
 
        GAAP operating
        Income                          $   1,031   $     470   $     688   $     130
        Stock based compensation (1)          324         144         160          77
        Amortization of Software
        Development Costs                     112         192          56          87
        Acquisition-related expenses,
        amortization and adjustments (2)      513           -         245           -
        Non-GAAP operating Income       $   1,980   $     806   $   1,149   $     294
 
        GAAP net Income                       383         357         508         178
        Stock based compensation (1)          324         144         160          77
        Amortization of Software
        Development Costs                     112         192          56          87
        Acquisition-related expenses,
        amortization and adjustments (2)      513           -         245           -
        Revaluation of liabilities
        presented at fair value               436        (146)        279        (203)
        Accretion of contingent 
        payment obligation                    132           -          66           -
        Tax related to the acquisition       (165)          -         (82)          -
        Non-GAAP net Income             $   1,735   $     547   $   1,232   $     139
 
        GAAP diluted net
        Income per share:                    0.03        0.04        0.04        0.02
        Operating expenses GAAP              0.08        0.03        0.04        0.02
        Financial expenses                   0.05       (0.01)       0.03       (0.02)
        Taxes on income                     (0.01)          -       (0.01)          -
 
        Non-GAAP diluted net Income 
        per share                       $    0.15   $    0.05   $    0.10   $    0.01
        Weighted average number of 
        shares used in computing 
        diluted net income per share       11,759      10,010      11,789       9,746

    (1) Stock-based compensation expenses 
        under ASC 718 included in:
        Research and development              121          42          61           24
        Selling and marketing                  76          44          36           25
        General and administrative            127          58          63           28
                                        $     324   $     144   $     160   $       77
    (2) Acquisition-related expenses,
        amortization and adjustments:
        Valuation adjustment on acquired 
        deferred services revenue             101           -          39            -
        Cost of Sales - Amortization 
        of technology                         280           -         140            -
        Selling and marketing -
        Amortization of customers
        relationship                          132           -          66            -
 
                                        $     513   $       -   $     245   $        -
        Total Acquisition-Related
        Expenses:
        Acquisition-related expenses,
        amortization and adjustments 
        - Note 2                              513           -         245            -
        Accretion of contingent payment
        obligation                            132                      66
        Tax related to the acquisition       (165)                    (82)
                                        $     480   $       -   $     229   $        -


       *) In 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.


For more information, please contact:

Todd Fromer / Garth Russell  
KCSA Strategic Communications
P: +1-212-682-6300
tfromer@kcsa.com / grussell@kcsa.com

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

.


SOURCE Attunity Ltd




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.