BURLINGTON, Massachusetts, February 14, 2011 /PRNewswire-FirstCall/ -- Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration and event capture software, reported today its unaudited financial results for the fourth quarter and full year ended December 31, 2010.
Commenting on the results, Mr. Shimon Alon, Attunity's Chairman and CEO, stated, "We are pleased that we met our 2010 strategic goals for revenue growth, non-GAAP operating profitability and improved cash position. We expanded our product offerings while elevating our OEM relationships and enhancing marketing and sales infrastructure required for our future growth and competitiveness."
Mr. Alon continued, "We have recently entered into a strategic OEM agreement with Microsoft, the largest in Attunity's history and as we announced today, we entered into an additional OEM agreement with Microsoft. Aside from their strategic importance, making Attunity the de-facto partner of choice of Microsoft for cloud computing and heterogeneous connectivity, these two five-year agreements worth nearly $9 million in total and with expected proceeds of nearly $4 million during 2011, will create new and exciting opportunities for us in the future. As previously announced, we have also extended our OEM agreements with two other industry giants during the year, which will allow us an additional stable stream of revenues."
Highlights of Q4 and FY 2010: - License revenues of $1.25 million in Q4 2010 compared to $0.9 million in Q3 2010, representing a 44% growth. - Total revenues of $2.6 million in Q4 2010 compared to $2.1 million in Q3 2010, representing a 17% growth. - License revenues of $4.6 million in 2010 compared to $4.1 million in 2009, representing 13% growth. - Total revenues of $10.1 million in 2010 compared to $9.5 million in 2009, representing a 7% growth. - New strategic five-year OEM agreement with Microsoft, worth nearly $7 million in total for our change data capture technology for Oracle databases, with expected payments of nearly $3.0 million during 2011. - Repayment and reduction of debts from $4.0 million as of December 31 2009 to $2.9 million as of December 31 2010. - Extend and expand our OEM agreements with two industry giants. - Positive cash flow from operations in both Q4 2010 and FY 2010. Q4 2010 Financial Summary: - Revenues were $2,579,000, compared to $2,685,000 in the fourth quarter of 2009. - Net Operating Profit (Non GAAP) was $248,000, compared to a net operating profit of $725,000 in the fourth quarter of 2009. Non-GAAP operating profit excludes amortization and capitalization of software development costs of $319,000 compared to $586,000 in the fourth quarter of 2009 (see footnote 1 at the end of this release) and equity-based compensation expenses of $55,000 compared to $60,000 in the fourth quarter of 2009 (see footnote 2). - Net Operating Loss (GAAP) was $126,000, compared to a net operating profit of $79,000 in the fourth quarter of 2009. - Net Profit (Non-GAAP) was $105,000, compared to a net profit of $649,000 in the fourth quarter of 2009. Non-GAAP net profit excludes amortization and capitalization of software development costs of $319,000 compared to $586,000 in the fourth quarter of 2009 (see footnote 1), equity-based compensation expenses of $55,000 compared to $60,000 in the fourth quarter of 2009 (see footnote 2), and revaluation of conversion features related to our convertible debt and outstanding warrants of $873,000 compared to income of $38,000 in the fourth quarter of 2009 (see footnote 3). - Net Loss (GAAP) was $1,142,000 compared to a net profit of $41,000 in the fourth quarter of 2009. - Net Profit/Loss per Diluted Share (Non-GAAP) was $0.00 compared to $0.02 net profit per diluted share in the fourth quarter of 2009. - Net Loss per Diluted Share (GAAP) was $0.04, compare to $0.00 in the fourth quarter of 2009. - Cash and cash equivalents were approximately $0.9 million as of December 31, 2010, compared to approximately $1.0 million as of September 30, 2010. FY 2010 Financial Summary: - Revenues were $10,075,000, compared to $9,453,000 in 2009. - Net Operating Profit (Non GAAP) was $1,300,000, compared to a net operating profit of $1,557,000 in 2009. Non-GAAP operating profit excludes amortization and capitalization of software development costs of $1,119,000 compared to $1,970,000 in 2009 (see footnote 1 at the end of this release) and equity-based compensation expenses of $223,000 compared to $196,000 in 2009 (see footnote 2). - Net Operating Loss (GAAP) was $43,000, compared to a net operating loss of $609,000 in 2009. - Net Profit (Non-GAAP) was $802,000, compared to a net profit of $1,263,000 in 2009. Non-GAAP net profit excludes amortization and capitalization of software development costs of $1,119,000 compared to $1,970,000 in 2009 (see footnote 1), equity-based compensation expenses of $223,000 compared to $196,000 in 2009 (see footnote 2), and revaluation of onversion features related to our convertible debt and outstanding warrants of $966,000 compared to $400,000 in 2009 (see footnote 3). - Net Loss (GAAP) was $1,506,000 compared to a net loss of $1,303,000 in 2009. - Net Profit per Diluted Share (Non-GAAP) was $0.03 compared to $0.04 per diluted share in 2009. - Net Loss per Share (GAAP) was $0.05 compared to $0.05 in 2009. - Cash and cash equivalents were approximately $0.9 million as of December 31, 2010, compared to approximately $1.4 million as of December 31, 2009.
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
Mr. Alon concluded:
"We are entering 2011 with a strong business momentum from both our direct channels and our OEM partners. During 2010, we generated a positive cash from operations while reducing our debts from approximately $4 million to $2.9 million. In 2011, we plan that the cash generated from operations, including the expected proceeds from Microsoft and other OEM agreements, will allow us to repay our outstanding debts and even redeem them early, at our discretion. We intend to continue to build our business, expand current partnerships with the industry leaders and enter into strategic and large markets such as cloud computing and application replication."
Attunity is a leading provider of real-time data integration and event capture software.
Our offering includes software solutions such as Attunity Stream(R), a real-time change-data-capture (CDC) software, our Operational Data Replication (ODR) solution and Attunity Connect(R), our real-time connectivity software.
Using Attunity's software solutions, our customers enjoy dramatic business benefits by enabling real time access to information where and when needed, across the maze of heterogeneous systems making up today's IT environment.
Attunity has supplied innovative software solutions to its enterprise-class customers for nearly 20 years and has successful deployments at thousands of organizations worldwide. Attunity provides software directly and indirectly through a number of partners such as Microsoft, Oracle, IBM and HP. Headquartered in Boston, Attunity serves its customers via offices in North America, Europe, and Asia Pacific and through a network of local partners. For more information, visit http://www.attunity.com and join our community on Twitter (http://www.twitter.com/attunity), Facebook (http://www.facebook.com/attunity) and LinkedIn ( http://www.linkedin.com/groups?about=&gid=2884948&trk=anet_ug_grppro).
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of net profit (loss), net operating profit (loss) and net profit (loss) per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation charges in accordance with ASC 718 (formerly known as SFAS 123(R)), non-cash capitalization and amortization of software development costs in accordance with ASC 985-20 (formerly known as SFAS 86) and non-cash financial expenses such as revaluation of conversion features related to its convertible debt and outstanding warrants in accordance with ASC 815-40 (formerly known as EITF 07-5) (affected, among other factors, by changes in Attunity's share price). Attunity's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Attunity's on-going core operations and prospects for the future. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. For example, when we discuss future growth of revenues, 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: 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; our liquidity challenges and the need to raise additional capital in the future; any unforeseen developmental or technological difficulties with regard to Attunity's products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as Attunity's; unknown factors affecting third parties with which Attunity has formed business alliances; timely availability and customer acceptance of Attunity's new and existing products; and other factors and risks on which Attunity may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Attunity, reference is made to Attunity's Annual Report on Form 20-F for the year ended December 31, 2009, 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.
(c) 2011 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December 31, December 31, 2010 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents 872 1,428 Restricted cash 224 208 Trade receivables and unbilled revenues 1,201 761 (net of allowance for doubtful accounts of $15) Other accounts receivable and prepaid 190 145 expenses Total current assets 2,487 2,542 LONG-TERM ASSETS: Long-term prepaid expenses 61 86 Severance pay fund 1,323 1,098 Property and equipment, net 205 241 Software development costs, net 496 1,615 Goodwill 6,133 6,313 Total long-term assets 8,218 9,353 Total assets 10,705 11,895 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December 31, December 31, 2010 2009 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt and short term loans 1,014 917 Current maturities of long-term convertible debt 245 333 Trade payables 220 204 Deferred revenues 2,048 1,991 Employees and payroll accruals 844 819 Accrued expenses and other liabilities 759 988 Total current liabilities 5,130 5,252 LONG-TERM LIABILITIES: Long-term debt 90 1,667 Long-term convertible debt 1,571 1,083 Warrants and bifurcated conversion feature, presented at fair value 1,215 303 Accrued severance pay 1,966 1,548 Total long-term liabilities 4,842 4,601 SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.1 par value - 939 920 Authorized: 130,000,000 shares at December 31 , 2010 and December 31, 2009. Issued and outstanding: 32,269,695 shares at December 31, 2010 and 31,571,150 at December 31, 2009 Additional paid-in capital 102,459 102,095 Accumulated other comprehensive loss (640) (453) Accumulated deficit (102,025) (100,520) Total shareholders' equity 733 2,042 Total liabilities and shareholders' equity 10,705 11,895 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except share and per share data Year ended 3 months ended December 31, December 31, 2010 2009 2010 2009 Software licenses 4,645 4,126 1,242 1,311 Maintenance and 5,430 5,327 1,337 1,374 services 10,075 9,453 2,579 2,685 Operating expenses: Cost of revenues 1,951 3,070 408 814 Research and 2,482 1,894 799 489 development, net Selling and marketing 3,831 3,469 976 957 General and 1,854 1,629 522 346 administrative Total operating 10,118 10,062 2,705 2,606 expenses Operating profit/ (43) (609) (126) 79 (loss) Financial expenses, net 1,391 676 997 42 Other expense (income) (1) (10) 2 Profit (Loss) before (1,432) (1,275) (1,125) 37 income taxes Taxes on income 74 28 17 (4) Net profit/ (loss) (1,506) (1,303) (1,142) 41 Basic and diluted net $ (0.05) $ (0.05) $ (0.04) $ 0.00 loss per share Weighted average number 31,973 28,494 32,198 31,551 of shares used in computing basic and diluted net loss per share CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year Ended Year Ended December 31, December 31, 2010 2009 Cash flows from operating activities: Net profit /( loss) (1,505) (1,303) Adjustments required to reconcile net loss - - to net cash provided by (used in) operating activities: Decrease (increase) in restricted cash (16) (2) Depreciation 95 149 Stock based compensation 223 196 Amortization of deferred expenses - 25 Amortization of debt discount - 126 Amortization of software development costs 1,119 2,348 Increase (decrease) in accrued severance 193 25 pay, net Decrease (increase) in trade receivables (435) (255) Decrease ( increase) in other accounts (45) 79 receivable and prepaid expenses Decrease / (Increase) in long-term prepaid 25 20 expenses Increase (decrease) in trade payables 17 (186) Increase (decrease) in deferred revenues 19 (327) Increase (decrease) in employees and payroll 28 (265) accruals increase / (decrease) in accrued expenses (226) (77) and other liabilities Increase (decrease) in Long term liabilities 1 (20) Increase (decrease) in revaluation of 965 254 Liabilities presented at fair value and debt modificaton expenses Net cash provided by operating activities 458 787 Cash flows from investing activities: Purchase of property and equipment (58) (19) Capitalization of software development costs - (378) Net cash used in investing activities (58) (397) Cash flows from financing activities: Proceeds from exercise of employee stock 33 - options Receipt of long term loan 25 - Proceeds from exercise of Warrants 74 - Receipt of Short term debt, net - convert to - 543 Capital Repayment of long-term debt (922) (10) Repayment of convertible debt (184) Net cash provided by (used in) financing (974) 533 activities Foreign currency translation adjustments on 18 25 cash and cash equivalents Increase (decrease) in cash and cash (556) 948 equivalents Cash and cash equivalents at the beginning 1,428 480 of the period Cash and cash equivalents at the end of the 872 1,428 period Supplemental disclosure of cash flow activities: Cash paid during the period for: Interest 484 153 RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION U.S. dollars in thousands, except per share data Year ended 3 months ended December 31, December 31, 2010 2009 2010 2009 GAAP operating (43) (609) (126) 79 profit /(loss) Stock based 223 196 55 60 compensation (1) Amortization 1,119 1,970 319 586 and capitalization of Software development costs (2) Non-GAAP 1,300 1,557 248 725 operating profit (loss) GAAP net profit (1,506) (1,303) (1,142) 41 (loss) Stock based 223 196 55 60 compensation (1) Amortization 1,119 1,970 319 586 and capitalization of Software development costs (2) Financial 966 400 873 (38) expenses (3) Non-GAAP net 802 1,263 105 649 profit (loss) GAAP basic and (0.05) (0.05) (0.04) * diluted net profit (loss) per share Stock based 0.01 0.01 0.00 * compensation (1) Amortization 0.03 0.07 0.01 0.02 and capitalization of Software development costs (2) Financial 0.03 0.01 0.03 * expenses (3) Non-GAAP basic 0.03 0.04 * 0.02 and diluted net profit (loss) per share Weighted 31,973 28,494 32,198 31,551 average number of shares used in computing basic and diluted net loss per share *) Less than $0.01 per share (1) Equity-based compensation expenses under ASC 718 (formerly known as SFAS 123): Equity-based 54 40 15 21 compensation expense included in "Research and development" Equity-based 74 83 13 18 compensation expense included in "Selling and marketing" Equity-based 95 73 27 21 compensation expense included in "General and administrative" 223 196 55 60 "Equity based compensation expenses" refer to the amortized fair value of all equity based awards granted to employees. (2) Amortization and capitalization of software development costs resulting under ASC 985-20 (formerly known as SFAS 86): Amortization 1,119 2,348 209 618 Capitalization - (378) 110 (32) 1,119 1,970 319 586 (3) Financial expenses: Amortization of - 125 - - debt discount Revaluation of 966 255 873 (38) warrants and conversion features of convertible debt and Debt modification expenses Amortization of - 20 - - deferred charges 966 400 873 (38) For more information, please contact: Dror Elkayam, CFO Attunity Ltd. Tel. +972-9-899-3000 firstname.lastname@example.org
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