Attunity Reports Fourth Quarter and Full Year 2011 Financial Results
A 83% Increase in Non-GAAP Net Income for 2011; Total Revenues Increased 51% to $15.2 Million in 2011
BURLINGTON, Massachusetts, January 25, 2012 /PRNewswire/ --
Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration, reported today its unaudited financial results for the fourth quarter and year ended December 31, 2011.
Highlights for the Fourth Quarter of 2011:
- Fifth consecutive quarter of license and total revenues growth
- License revenues increased 156% to $3.2 million in the fourth quarter of 2011, compared to $1.2 million for the same period last year
- Total revenues increased 121% to $5.7 million in the fourth quarter of 2011, compared to $2.6 million for the same period last year
- Non-GAAP operating income increased 209% to $767,000 in the fourth quarter of 2011, compared to $248,000 for the same period last year
- Non-GAAP net income increased 593% to $728,000 in the fourth quarter of 2011, compared to $105,000 for the same period last year
Highlights for the Year Ended December 31, 2011:
- License revenues increased 75% to $8.1 million in 2011, compared to $4.6 million in 2010
- Total revenues increased 51% to $15.2 million in 2011, compared to $10.1 million in 2010
- Non-GAAP operating income increased 70% to $2.2 million in 2011, compared to $1.3 million in 2010
- Non-GAAP net income increased 83% to $1.5 million in 2011, compared to $802,000 in 2010
- Shareholders' equity increased to $5.2 million as of December 31, 2011 compared to $733,000 as of December 31, 2010
Recent Operational Highlights:
- The conversion into equity of 47% of the Company's outstanding convertible promissory notes (debt) held by the Chairman/CEO and another director demonstrated a vote of confidence in the Company and increased shareholder equity
- Outstanding debt from Plenus of $83,000 was paid in early January 2012, such that, together with said conversion, total outstanding debt was reduced from $2.9 million at December 31,2010 to only $0.9 million at December 31, 2011
- Company is considering the relisting of its ordinary shares on a National Exchange, pending market conditions and satisfaction of the applicable listing criteria
- Completed major deals with a large international bank and a telecommunication company in North America
- Launched Attunity Replicate, an innovative replication platform in the third quarter of 2011
- Completed the acquisition of RepliWeb Inc. in the third quarter of 2011
Commenting on the results, Mr. Shimon Alon, Attunity's Chairman and CEO, stated, "We are pleased to have exceeded our goals and expectations for 2011, which includes achieving our fifth consecutive quarter of revenue growth. This growth was partially driven by the launch and market acceptance of Attunity's replication products; an increase in the size of client agreements; the strategic large-scale distribution agreements we have entered or renewed with Microsoft and other world leading software companies and the expansion of our portfolio of solutions following the recent acquisition of RepliWeb. This was achieved while we also significantly reduced our debt load, thereby allowing us to continue to invest in our business."
Mr. Alon continued, "During 2011, we have taken actions to advance our position as a leading provider of real-time data integration for the enterprise environment and Cloud computing. The outlook for 2012 is positive as we continue to introduce and market several of our new software solutions launched in late-2011, including Attunity Replicate, the first replication platform delivering an 'end-to-end click to replicate' solution, that enable us to increase our addressable markets and the enhanced file replication solution. Furthermore, during the first half of 2012 we plan to introduce new solutions for cloud computing that uniquely address the critical need of transferring data and files across data centers and cloud environments, based on the integration of RepliWeb's and Attunity's technologies. One of the most notable trends we have seen as we entered 2012 is an increase in the size and scope of our client agreements, as well as several clients extending their agreements for our solutions. This client activity includes a recent agreement with one of the world's largest banks."
In the third quarter of 2011 we completed the acquisition of RepliWeb Inc. Accordingly, starting from September 19, 2011 (the closing date of the acquisition), the financial results of RepliWeb Inc. are consolidated into our financial statements.
Financial Results for Q4 2011
Total revenues for the fourth quarter of 2011 increased 121% to $5.7 million, compared to $2.6 million for the same period of 2010. This included license revenues for the fourth quarter of 2011, which increased 156% to $3.2 million, compared to $1.2 million for the same period of 2010. RepliWeb contributed $2.4 million in total revenues and $1.2 in license revenues in the fourth quarter of 2011.
Net operating (loss) for the fourth quarter of 2011 was ($14,000), compared to ($126,000) for the same period of 2010. Non-GAAP net operating income for the fourth quarter of 2011 was $767,000, compared to $248,000 for the same period last year. Non-GAAP net operating income for the fourth quarter of 2011 excludes equity-based compensation and amortization of software development costs totaling $196,000 compared to $374,000 for the same period last year, as well as $585,000 in expenses and amortization related to the acquisition of RepliWeb (see footnotes 1, 2 and 3 at the end of this release).
Net loss for the fourth quarter of 2011 decreased to ($412,000), or ($0.01) per share, from ($1.1 million), or ($0.04) per share, in the fourth quarter of 2010. Net loss for the fourth quarter of 2011 was negatively impacted primarily by $875,000 in financial expenses associated mainly with the revaluation of the conversion feature related to Company's convertible debt and with the conversion of part of the convertible debt, and by $68,000 in expenses and amortization associated with the acquisition of RepliWeb, net of tax effect. Non-GAAP net income for the fourth quarter of 2011 was $728,000 compared to $105,000 for the same period last year. Non-GAAP net income for the fourth quarter of 2011 excludes a total of $1.1 million in financial expenses associated with the revaluation of conversion features related to the convertible debt and with the conversion of part of the convertible debt, expenses and amortization related to the acquisition of RepliWeb, net of tax effect, equity-based compensation expenses and amortization of software development costs (see footnotes 1, 2, 3, 4 and 5 at the end of this release).
Financial Results for Full Year 2011
Total revenues increased 51% in 2011 to $15.2 million, compared to $10.1 million in 2010. This included license revenues, which increased by 75% to $8.1 million in 2011, compared to $4.6 million in 2010. RepliWeb contributed $2.8 million in total revenues and $1.3 million in license revenues in 2011.
Net operating income (loss) for 2011 was $70,000, compared to ($43,000) for 2010. Non-GAAP net operating income for 2011 was $2.2 million, compared to $1.3 million for the same period last year. Non-GAAP net operating income for 2011 excludes equity-based compensation and amortization of software development costs totaling $695,000 compared to $1.3 million for 2010, as well as $1.4 million in expenses and amortization related to the acquisition of RepliWeb (see footnotes 1, 2 and 3. at the end of this release).
Net income (loss) for 2011 decreased to ($815,000), or ($0.02) per share, from ($1,.5), or ($0.05) per share, in 2010. Net income of 2011 was negatively impacted primarily by $1.2 million in expenses and amortization associated with the acquisition of RepliWeb, net of tax effect. Non-GAAP net income (loss) for 2011 was $1.4 million compared to $802,000 in 2010.
Non-GAAP net income for 2011 excludes a total of $2.3 million in expenses and amortization related to the acquisition of RepliWeb, net of tax effect, equity-based compensation expenses, amortization of software development costs and financial expenses associated with the revaluation of conversion features related to the convertible debt and with the conversion of Company's convertible debt (see footnotes 1, 2, 3, 4, and 5 at the end of this release).
Cash and cash equivalents were $1.5 million as of December 31, 2011, compared to $872,000 as of December 31, 2011.
Shareholders' equity increased to $5.2 million as of December 31, 2011, compared to $733,000 as of December 31, 2010.
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 on today at 10:00 a.m. Eastern 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. The dial-in number for the conference call is (877) 399-3397 (U.S. domestic) or 1(707) 287-9284 (international) participants. All dial-in participants must use the following code to access the call: 42579207. Please call at least five minutes before the scheduled start time.
For interested individuals unable to join the conference call, a replay of the call will be available through February 1, 2012 at (855) 859-2056 (U.S. domestic) or (404) 537-3406 (international). Participants must use the following code to access the replay of the call: 42579207. 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 real-time data integration software that enables access, sharing and distribution of data across heterogeneous enterprise platforms, organizations, and the cloud. Our offering includes software solutions such as data replication, real-time change data capture (CDC) and real-time data connectivity, as well as enterprise file replication and managed-file-transfer (MFT) offered through our RepliWeb division. Using Attunity's software solutions, our customers enjoy dramatic 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 and join our community on Twitter, Facebook and LinkedIn.
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 (loss), net operating income (loss) and net income (loss) per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisition of RepliWeb, 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 of conversion features related to its convertible debt and outstanding warrants in accordance with ASC 815-40 (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 our outlook for 2012, or our plans to introduce 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: 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 ability to repay debt and timing thereof; our liquidity challenges and the need to raise additional capital in the future; market acceptance of the Attunity Replicate and the development of a market for such product; timely availability and customer acceptance of Attunity's new and existing products; 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 products; unknown factors affecting third parties with which Attunity has formed business alliances; 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 for the year ended December 31, 2010, 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, December 31,
2011 2010
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,484 $ 872
Restricted cash 362 224
Trade receivables (net of allowance for
doubtful accounts of $15 at December 31,
2011 and 2010) 1,988 1,201
Other accounts receivable and prepaid
expenses 158 190
Total current assets 3,992 2,487
LONG-TERM ASSETS:
Other long term assets 235 61
Severance pay fund 2,684 1,323
Property and equipment, net 380 205
Intangible assets ,net 2,854 496
Goodwill 13,011 6,133
Total long-term assets 19,164 8,218
Total assets $ 23,156 $ 10,705
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands except share data
December December
31, 31,
2011 2010
LIABILITIES AND SHAREHOLDERS' EQUITY Unaudited
CURRENT LIABILITIES:
Current maturities of long-term
convertible debt $ 835 $ 245
Current maturities of long-term debt 115 1,014
Trade payables 452 220
Deferred revenues 5,733 2,048
Employees and payroll accruals 2,151 844
Accrued expenses and other current
liabilities 2,345 759
Bifurcated conversion feature , presented
at fair value 227 -
Total current liabilities 11,858 5,130
LONG-TERM LIABILITIES:
Contingent payment obligation 1,669 -
Long term deferred tax liability, Net 298
Long-term convertible debt - 1,571
Other long-term liabilities 166 90
Liabilities presented at fair value 510 1,215
Accrued severance pay 3,467 1,966
Total long-term liabilities 6,110 4,842
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.1
par value -
Authorized: 130,000,000 shares at December
31, 2011 and 2010 Issued and outstanding:
39,951,106 shares at December 31, 2011 and
32,269,695 at December 31, 2010 1,146 939
Additional paid-in capital 107,572 102,459
Accumulated other comprehensive loss (690) (640)
Accumulated deficit (102,840) (102,025)
Total shareholders' equity 5,188 733
Total liabilities and shareholders' equity $ 23,156 $ 10,705
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Year ended 3 months ended
December 31, December 31,
2011 2010 2011 2010
Unaudited Unaudited Unaudited
Software
licenses $ 8,140 $ 4,645 $ 3,182 $ 1,242
Maintenance
and services 7,029 5,430 2,530 1,337
15,169 10,075 5,712 2,579
Operating
expenses:
Cost of
revenues 1,453 1,951 509 408
Research and
development,
net 4,960 2,482 2,219 799
Selling and
marketing 5,851 3,831 2,275 976
General and
administrative 2,835 1,854 723 522
Total
operating
expenses 15,099 10,118 5,726 2,705
Operating
Income (loss) 70 (43) (14) (126)
Financial
expenses, net 1,284 1,388 918 999
Loss before
income taxes (1,214) (1,431) (932) (1,125)
Taxes on
income
(benefit) (399) 74 (521) 17
Net loss $ (815) $ (1,505) $ (412) $ (1,142)
Basic and
diluted net
loss per share $ (0.02) $ (0.05) $ (0.01) $ (0.04)
Weighted
average number
of shares used
in computing
basic and
diluted net
loss per share 34,647 31,973 38,177 32,198
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended Year ended
December 31, December 31,
2011 2010
Unaudited
Cash from operating activities:
Net Income /( loss) $ (815) $ (1,505)
Adjustments required to reconcile net
income ( loss) to net cash provided by
operating activities:
Revaluation of restricted cash - (16)
Depreciation 123 94
Stock based compensation 359 223
Amortization of intangible assets 843 1,119
Fair value of guarantee associated with
short term loan 49 -
Accretion of contingent payment
obligation 75 -
Increase (decrease) in accrued severance
pay, net 40 193
Decrease (increase) in trade receivables (453) (435)
Decrease ( increase) in other accounts
receivable and prepaid expenses 537 (45)
Decrease (increase) in long-term prepaid
expenses (174) 25
Increase (decrease) in trade payables (370) 17
Increase (decrease) in deferred revenues 2,228 19
Increase (decrease) in employees and
payroll accruals 785 28
Increase (decrease) in accrued expenses
and other liabilities 920 (226)
Change in liabilities presented at fair
value 791 965
Change in deferred taxes net (774) -
Net cash provided by operating
activities 4,165 456
Cash flows from investing activities:
Purchase of property and equipment (161) (58)
Increase of restricted cash (116) -
Cash paid in connection with the
acquisition, net of acquired cash (2,285) -
Net cash used in investing activities (2,562) (58)
Cash flows from financing activities:
Receipt of short term bridge loan to
finance the acquisition 3,000 -
Repayment of bridge loan (3,000) -
Proceeds from exercise of stock options
and warrants 249 107
Receipt of long term loan 57 25
Repayment of long-term debt (1,046) (922)
Repayment of convertible debt (245) (184)
Net cash used in financing activities (985) (974)
Foreign currency translation adjustments
on cash and cash equivalents (5) 18
Increase (decrease) in cash and cash
equivalents 612 (556)
Cash and cash equivalents at the
beginning of the period 872 1,428
Cash and cash equivalents at the end of
the period $ 1,484 $ 872
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest $ 63 $ 484
Non cash activity
Shares issued as part of acquisition $ 2,621 -
Conversion of convertible debt and
related beneficial conversion feature $ 1,182 -
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,
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
GAAP operating
Income (loss) $ 70 (43) $ (14) (126)
Stock based
compensation (1) 359 223 138 55
Amortization of
Software
Development Costs
(2) 336 1,119 58 319
Acquisition-related
expenses,
amortization and
adjustments (3) 1,449 - 585 -
Non-GAAP operating
Income $ 2,214 1,299 $ 767 248
GAAP net Income
(loss) (815) (1,505) (412) (1,142)
Stock based
compensation (1) 359 223 138 55
Amortization of
Software
Development Costs
(2) 336 1,119 58 319
Acquisition-related
expenses,
amortization and
adjustments (3) 1,449 - 585 -
Financial expenses
(4) 351 965 875 873
Acquisition-related
financial expenses
(5) 565 - 257 -
Tax related to the
acquisition (774) - (774) -
Non-GAAP net Income
(Loss) $ 1,471 802 $ 728 105
GAAP diluted net
Income (loss) per
share (0.02) (0.05) (0.01) (0.04)
Operating expenses
GAAP 0.06 0.04 0.02 0.01
Financial expenses 0.03 0.03 0.03 0.03
Taxes on income (0.02) - (0.02) -
Non-GAAP diluted
net Income per
share $ 0.04 0.03 $ 0.02 0.00
Weighted average
number of shares
used in computing
diluted net income
per share 34,647 31,973 38,177 32,198
Stock-based
compensation
expenses under ASC
718 included in:
Research and
development 122 54 50 15
Selling and
marketing 100 74 30 13
General and
administrative 137 95 58 27
$ 359 223 $ 138 55
Amortization of
Software
Development Costs 336 1,119 58 319
$ 336 1,119 $ 58 319
Acquisition-related
expenses,
amortization and
adjustments:
Valuation
adjustment on
acquired deferred
services revenue 135 - 128 -
Cost of Sales -
Amortization of
technology 220 - 198 -
Research and
development -
Carve-out to
RepliWeb employees 212 - - -
Selling and
marketing -
Carve-out to
RepliWeb employees 87 - - -
Selling and
marketing -
Amortization of
customers
relationship 287 - 259 -
General and
administrative -
Carve-out to
RepliWeb employees 87 - - -
General and
administrative-
Acquisition
expenses 421 - - -
$ 1,449 - $ 585 -
Revaluation of
warrants and
conversion feature
of long term
convertible debt $ 351 965 $ 875 873
Acquisition-related
financial expenses:
Fair value of
carve-out feature
related to warrants 440 - 140 -
Accretion of
contingent payment
obligation 75 - 67 -
Fair value of
guarantee
associated with
short term loan 50 50
$ 565 - $ 257 -
Total
Acquisition-Related
Expenses:
Acquisition-related
expenses,
amortization and
adjustments - Note
2 1,449 - 585 -
Acquisition-related
financial expenses
- Note 4 565 - 257 -
Tax related to the
acquisition (774) (774)
$ 1,240 - $ 68 -
For more information, please contact:
Todd Fromer / Garth Russell
KCSA Strategic Communications
P: +1-212-682-6300
[email protected] / [email protected]
Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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