Attunity Reports 49% Growth For The Second Quarter 2015

Total license revenue grew 53%

Jul 23, 2015, 07:00 ET from Attunity, Ltd.

BURLINGTON, Mass., July 23, 2015 /PRNewswire/ -- Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of information availability software solutions, today reported its financial results for the three month period ended June 30, 2015.

Recent Operational Highlights:

  • Closed approximately $1.0 million in Attunity Visibility (formerly Appfluent Visibility) deals:
    • $0.5 million deal with a Fortune 500 online travel company
    • $0.4 million deal with a large computer technology company
  • Fully integrated the organization of Appfluent
  • Launched Attunity CloudBeam for Microsoft Azure SQL Data Warehouse, strengthening Attunity's leadership position in the Cloud and Big Data markets
  • Received expansion order from a large cloud services company
  • Expanded Big Data offering for the fast-growing NoSQL market with the launch of Attunity Replicate for MongoDB

Financial Highlights for Q2 2015, compared with the Second Quarter of 2014:  

  • Total revenue increased by 47% to $12.2 million
  • Total non-GAAP revenue increased by 49% to $12.5 million*
  • Total license revenue grew 53% to $6.8 million
  • Net loss reduced by 31% to $0.8 million
  • Non-GAAP net income of $1.1 million, compared with a non-GAAP net loss of $0.4 million for the second quarter of 2014*
  • Generated positive cash flow from operations of $1.5 million
  • Secured a $5.0 million credit line

"The expansion of Attunity's Big Data management platform, our strong offering for the cloud and the ongoing investments in the sales and marketing teams, resulted in another quarter of record revenue," said Shimon Alon, Chairman and CEO of Attunity. "Looking ahead, we plan to keep investing in strategic partnerships with leading Cloud and Big Data providers to capitalize on the large opportunity within these rapidly growing markets."

 

Big Data Management

In the second quarter, Attunity further broadened its Big Data platform, which now provides a comprehensive end-to-end data management solution - from data collection and aggregation, to data movement and automation, to the optimization of different data warehouses. As a result, enterprise customers and strategic partners alike have recognized the value that Attunity and each of its products provides, as well as the synergies they offer in a complete solution.

During the second quarter, Attunity started to monetize Attunity Visibility by securing several large orders, including one from a large computer technology company. We believe that the traction secured to date is a strong testament to the quality and demand for a solution that enables customers to analyze data utilization levels to improve efficiency.

Attunity Replicate continues to drive revenues with key orders. The solution's strong performance amounts to over 50% of the Company's license revenue and we expect it to drive revenue growth throughout fiscal year 2015.

 

Sales and Marketing

Attunity continues to invest in its sales and marketing teams to drive consistent growth, which has yielded substantially increased productivity, enabling the business to close larger deals in higher volumes. Since the end of the 2014 fiscal year, Attunity has continued to grow the number of its quota-carrying sales people. This progress reflects the Company's long-term strategy to achieve sustainable growth through the addition of sales, business development, lead development and inside sales personnel to garner new customers and expand the footprint within existing accounts.

Sales management produced improved results across all geographical regions and business lines, including the first major deal in Japan.

"In the fast-pace world of Big Data, we are uniquely positioned to take advantage of new opportunities to further grow our business as customers' needs evolve and expand. This includes leveraging our highly scalable solutions and distribution channels," concluded Mr. Alon.

Financial Results for Q2 2015

 

Total revenues for the second quarter of 2015 increased 47% to $12.2 million, compared with $8.3 million for the same period in 2014. This included license revenues for the second quarter of 2015, which increased 53% to $6.8 million, compared with $4.4 million for the same period in 2014. It also includes maintenance and service revenue, which grew 41% to $5.4 million compared with $3.9 million for the same period in 2014.

Total non-GAAP revenue for the second quarter of 2015 was $12.5 million, compared with $8.4 million for the same period in 2014. This includes non-GAAP maintenance and service revenue of $5.8 million, which grew 46% from the same period in 2014.*

The growth in total revenue is primarily due to the sales team's increased productivity and the procurement of several key deals during the quarter, including revenue from a major cloud services company.

Operating loss for the second quarter of 2015 was $0.7 million, compared with $1.0 million for the same period in 2014. This decrease was primarily due to the increase in revenue.

Non-GAAP operating income was $1.4 million for the second quarter of 2015, compared with an operating loss of $0.2 million for the second quarter of 2014. Non-GAAP operating income for the second quarter of 2015 excludes $2.1 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.*

Net loss for the second quarter of 2015 was $0.8 million, or $0.05 per diluted share, compared with $1.2 million, or $0.08 per diluted share in the second quarter of 2014.

Non-GAAP net income for the second quarter of 2015 was $1.1 million, compared with a non-GAAP net loss of $0.4 million for the same period in 2014. Non-GAAP net income for the second quarter of 2015 excludes a total of $1.9 million in expenses mostly associated with acquisitions and equity-based compensation expenses, compared with $0.7 million of similar expenses for the same period in 2014.*

Cash and cash equivalents, including restricted cash, remained at the same level as compared to March 31, 2015, and were $11.3 million as of June 30, 2015. Shareholders' equity remained at the same level as compared to March 31, 2015, and was $37.2 million as of June 30, 2015.

* 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 Thursday, July 23 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 +1-888-510-1765 (U.S. Toll Free), +1 80 924 5906 (Israel), or +1-719-325-2484 (International). All dial-in participants must use the following code to access the call: 8583909.  

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, and http://www.kcsa.com.  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 August 6, 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: 8583909. 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, 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 automation, data usage analytics and cloud data delivery. 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 TwitterFacebookLinkedIn and YouTube.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

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 we are uniquely positioned to take advantage of new opportunities to further grow our business, 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.

 

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

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

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




June 30,


December 31,



2015


2014



Unaudited


Audited











ASSETS










CURRENT ASSETS:





Cash and cash equivalents


10,838


18,959

Restricted cash


430


430

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


4,601


5,991

Other accounts receivable and prepaid expenses


1,166


453






Total current assets


17,035


25,833
















Severance pay fund


3,542


3,247

Property and equipment, net


1,138


980

Goodwill and intangible assets, net


41,513


22,869

Other assets


143


577






Total long-term assets


46,336


27,673






Total assets


63,371


53,506

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

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




June 30,


December 31,



2015


2014



Unaudited


Audited






LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:










Trade payables


$          720


$        322

Payment obligation related to acquisitions   


2,442


2,278

Deferred revenues


9,666


7,091

Employees and payroll accruals


3,496


3,023

Accrued expenses and other current liabilities


1,015


1,551






Total current liabilities


17,339


14,265






LONG-TERM LIABILITIES:










Long-term deferred revenue


767


576

Liabilities presented at fair value and other long-term liabilities


1,574


1,004

Payment obligation related to acquisitions


1,736


2,208

Accrued severance pay


4,754


4,296






Total long-term liabilities


8,831


8,084











SHAREHOLDERS' EQUITY:





Share capital - Ordinary shares of NIS 0.4 par value -





Authorized: 32,500,000 shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 16,225,825 shares at June 30, 2015 and 15,375,716 shares at December 31, 2014


1,857


1,772

Additional paid-in capital


142,172


133,931

Accumulated other comprehensive loss


(1,028)


(871)

Accumulated deficit


(105,800)


(103,675)






Total shareholders' equity


37,201


31,157






Total liabilities and shareholders' equity


$      63,371


$     53,506

 

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

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




Six months ended


Three months ended


June 30,


June 30,



2015


2014


2015


2014



Unaudited


Unaudited










Software licenses


$    12,360


$      7,929


$      6,781


$      4,442

Maintenance and services


10,248


7,446


5,447


3,850

Total revenue


22,608


15,375


12,228


8,292

Operating expenses:









Cost of revenues


3,243


1,472


2,005


776

Research and development


4,893


4,837


2,697


2,542

Selling and marketing


13,285


8,861


7,103


4,892

General and administrative


2,636


1,888


1,080


1,076

Total operating expenses


24,057


17,058


12,885


9,286










Operating loss


(1,449)


(1,683)


(657)


(994)

Financial (income) expenses, net


235


189


(14)


109

Loss before taxes on income


(1,684)


(1,872)


(643)


(1,103)

Taxes on income


441


42


155


55

Net loss


$     (2,125)


$     (1,914)


$        (798)


$     (1,158)










Basic and diluted net loss per share


$        (0.13)


$       (0.13)


$      (0.05)


$     (0.08)

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


15,900


14,834


16,290


14,970










 

 

 


 

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands




Six months ended
June 30,



2015


2014



Unaudited

Cash  flows  activities:










Net loss


$       (2,125)


$       (1,914)

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





Depreciation


193


163

Stock based compensation


971


677

Amortization of intangible assets


1,285


591

Accretion of payment obligations


130


341

Change in:





   Accrued severance pay, net


163


174

   Trade receivables


1,390


127

   Other accounts receivable and prepaid expenses


(972)


(50)

   Other long term assets


(12)


(12)

   Trade payables


355


(102)

   Deferred revenues


2,225


1,486

   Employees and payroll accruals


421


349

   Accrued expenses and other liabilities


(339)


(145)

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


40


(251)

Tax benefits related to exercise of stock options


(60)


-

Change in deferred taxes, net


195


(165)






Net cash provided by operating activities


3,860


1,269






Cash flows from investing activities:





Purchase of property and equipment


(283)


(314)

Acquisition of company, net of cash acquired


(10,400)


-

Net cash used in investing activities


(10,683)


(314)






Cash flows from financing activities:





Proceeds from exercise of stock options, warrants and rights


696


695

Tax benefits related to exercise of stock options


60


-

Payment of contingent consideration


(2,054)


-






Net cash provided by (used in) financing activities


(1,298)


695






Foreign currency translation adjustments on cash and cash equivalents


-


(12)






Increase (decrease) in cash and cash equivalents


(8,121)


1,638

Cash and cash equivalents at the beginning of the period


18,959


16,481






Cash and cash equivalents at the end of the period


10,838


18,119






Supplemental disclosure of cash flow activities:





Cash paid during the period for taxes


$      1,028


$           382






Non cash activities:





Issuance of shares related to acquisition


6,600


-

 

 

 

RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

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



Three months ended June 30, 2015


Three months ended June 30, 2014


Unaudited 


Unaudited 


GAAP

Adj.


NON-GAAP


GAAP

Adj.


NON-GAAP

Software licenses

6,781



6,781


4,442



4,442

Maintenance and services

5,447

310

(a)

5,757


3,850

95

(a)

3,945

Total revenue

12,228



12,538


8,292



8,387











Operating expenses:










Cost of revenues

2,005

684

(b)

1,321


776

215

(b)

561

Research and development

2,697

235

(c)

2,462


2,542

108

(c)

2,434











Selling and marketing

7,103

692

(b), (c)

6,411


4,892

271

(b), (c)

4,621

General and administrative

1,080

153

(c)

927


1,076

104

(c)

972

Total operating expenses

12,885



11,121


9,286



8,588











Operating income (loss)

(657)



1,417


(994)



(201)

Financial expenses (income), net

(14)

157

(d)

(171)


109

45

(d)

64

Income (loss) before taxes on income

(643)



1,588


(1,103)



(265)

Taxes on income

155

(334)

(e)

489


55

(98)

(e)

153

Net income (loss)

(798)



1,099


(1,158)



(418)











Diluted net income (loss) per share

(0.05)



0.06


(0.08)



(0.03)

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

16,290



17,029


14,970



14,970





















(a) Valuation adjustment on acquired deferred maintenance revenue
















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








Three months ended June 30,







2015


2014






Cost of revenues

684


215






Research and development

114


-






Selling and marketing

441


81








1,239


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, June 30,








2015


2014






Research and development


121


108






Selling and marketing


251


190






General and administrative


153


104








525


402
















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




Three months ended, June 30,




2015


2014


Revaluation of liabilities presented at fair value

77


(126)


Accretion of payment obligations

80


171




157


45












(e) Taxes related to acquisitions








 

 

RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION


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











Six months ended June 30, 2015


Six months ended June 30, 2014


Unaudited 


Unaudited 


GAAP

Adj.


NON-GAAP


GAAP

Adj.


NON-GAAP

Software licenses

12,360



12,360


7,929



7,929

Maintenance and services

10,248

345

(a)

10,593


7,446

190

(a)

7,636

Total revenue

22,608



22,953


15,375



15,565











Operating expenses:










Cost of revenues

3,243

1,127

(b)

2,116


1,472

429

(b)

1,043

Research and development

4,893

335

(c)

4,558


4,837

191

(c)

4,646

Selling and marketing

13,285

946

(b), (c)

12,339


8,861

460

(b), (c)

8,401

General and administrative

2,636

865

(b), (c)

1,771


1,888

188

(c)

1,700

Total operating expenses

24,057



20,784


17,058



15,790











Operating income (loss)

(1,449)



2,169


(1,683)



(225)

Financial expenses, net

235

189

(d)

46


189

88

(d)

101

Income (loss) before taxes on income

(1,684)



2,123


(1,872)



(326)

Taxes on income

441

(383)

(e)

824


42

(178)

(e)

220

Net income (loss)

(2,125)



1,299


(1,914)



(546)











Diluted net income (loss) per share

(0.13)



0.08


(0.13)



(0.04)

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

15,900



16,602


14,834



14,834





















(a) Valuation adjustment on acquired deferred maintenance revenue

















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









Six months ended June 30,







2015


2014






Cost of revenues

1,127


429






Research and development

114


-






Selling and marketing

500


162






General and administrative

561


-








2,302


591






 

 

 

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:








Six months ended June 30,








2015


2014






Research and development


221


191






Selling and marketing


446


298






General and administrative


304


188








971


677
















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




Six months ended June 30,



2015


2014


Revaluation of liabilities presented at fair value

59


(253)


Accretion of payment obligations

130


341




189


88











(e) Taxes related to acquisitions









 

 

 

SOURCE Attunity, Ltd.



RELATED LINKS

http://www.attunity.com