Attunity Reports Second Quarter 2010 Results
License Revenues Growth of 26% over Q2 2009; Total Revenues Growth of 18% Over Q2 2009
BURLINGTON, Massachusetts, August 11, 2010 /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 second quarter ended June 30, 2010.
"I am pleased that we are continuing to demonstrate year-over-year growth in revenues and operating profit, while we strengthen the business relationships with our major partners" said Shimon Alon, Chairman and CEO of Attunity.
Second Quarter 2010 Highlights:
- License revenues of $1.13 million in Q2 2010 compared to
$0.89 million in Q2 2009.
- Total Revenues of $2.54 million in Q2 2010 compared to $2.15
million in Q2 2009.
- A Non-GAAP operating profit of $317,000 compared to $280,000
in Q2 2009.
- Positive cash flow from operations.
- Expansion of a strategic distribution agreement with one of
the world's largest software vendors.
- Launch of Attunity PowerConnector for Oracle, to support
Microsoft's newly introduced Business Intelligence (BI) product, the
PowerPivot.
- Launch of Attunity Change Data Capture (CDC) for HP's RMS
environment.
Second Quarter 2010 Financial Results:
- Revenues were $2,544,000, compared to $2,154,000 in the
second quarter of 2009, an increase of 18%.
- Net Operating Profit (Non GAAP) was $317,000, compared to a
net operating profit of $280,000 in the second quarter of 2009.
Non-GAAP operating profit excludes amortization and capitalization of
software development costs (see footnote 1 at the end of this release)
and equity-based compensation expenses (see footnote 2).
- Net Operating Profit/Loss (GAAP) was $53,000 net operating
profit, compared to a net operating loss of $168,000 in the second
quarter of 2009.
- Net Profit (Non-GAAP) was $120,000, compared to a net profit
of $153,000 in the second quarter of 2009. Non-GAAP net profit
excludes amortization and capitalization of software development costs
(see footnote 1), equity-based compensation expenses (see footnote 2),
and revaluation of conversion features related to our convertible debt
and outstanding warrants, amortization of debt discount and deferred
charges (see footnote 3).
- Net Profit/Loss (GAAP) was $53,000 profit, compared to a net
loss of $287,000 in the second quarter of 2009.
- Net Profit per Diluted Share (Non-GAAP) was $0.00 compared
to $0.01 in the second quarter of 2009.
- Net Profit/Loss per Diluted Share (GAAP) was $0.00, compared
to net loss per diluted share of $0.01 in the second quarter of 2009.
- Cash and cash equivalents were approximately $1.5 million as
of June 30, 2010, compared to approximately $1.6 million as of March
31, 2010.
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
Mr. Alon concluded: "We continue to focus on revenue growth, profitability and generation of cash from operations. We expect that the expansion of our strategic partnership with one of the world's largest software companies and the introduction of new innovative products, such as the new Attunity Power-Connector for Oracle, and the extension of our CDC product line to support all HP platforms, will contribute and support us in meeting those objectives."
About Attunity
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 strategic and OEM agreements with partners such as Microsoft, Oracle, IBM, HP and SAP/Business Objects. 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://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 or profitability, 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) 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June December
30, 31,
2010 2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,538 1,428
Restricted cash 204 208
Trade receivables and unbilled revenues (net
of allowance for doubtful accounts of $15 at
both June 30 , 2010 and December 31, 2009) 993 761
Other accounts receivable and prepaid
expenses 225 145
Total current assets 2,960 2,542
LONG-TERM ASSETS:
Long-term prepaid expenses 72 86
Severance pay fund 1,142 1,098
Property and equipment, net 231 241
Software development costs, net 1,123 1,615
Goodwill 5,965 6,313
Total long-term assets 8,533 9,353
Total assets 11,493 11,895
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
December
June 30, 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
short term loans 1,012 917
Current maturities of long-term
convertible debt 1,000 333
Trade payables 189 204
Deferred revenues 2,443 1,991
Employees and payroll accruals 685 819
Accrued expenses and other liabilities 744 988
Total current liabilities 6,073 5,252
LONG-TERM LIABILITIES:
Long-term convertible debt 1,000 1,667
Long-term debt 596 1,083
Revaluation of Liabilities presented at
fair value 458 303
Accrued severance pay 1,654 1,548
Total long-term liabilities 3,708 4,601
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS
0.1 par value - 936 920
Authorized: 130,000,000 shares at June 30
, 2010 and December 31, 2009. Issued and
outstanding: 32,179,054 shares at June
30, 2010 and 31,571,150 at December 31,
2009
Additional paid-in capital 102,264 102,095
Accumulated other comprehensive loss (794) (453)
Accumulated deficit (100,695) (100,520)
Total shareholders' equity 1,711 2,042
Total liabilities and shareholders'
equity 11,492 11,895
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per
share data
6 months ended 3 months ended
June 30, June 30,
2010 2009 2010 2009
Software licenses 2,540 1,813 1,129 893
Maintenance and services 2,761 2,555 1,415 1,261
5,301 4,368 2,544 2,154
Operating expenses:
Cost of revenues 1,032 1,448 533 727
Research and development,
net 1,148 912 550 390
Selling and marketing 2,038 1,759 965 839
General and administrative 866 836 443 365
Total operating expenses 5,084 4,955 2,491 2,321
Operating profit/ (loss) 218 (587) 53 (167)
Financial expenses, net 359 277 (26) 114
Other expense (income) - (10) (0)
Profit (Loss) before
income taxes (141) (854) 80 (281)
Taxes on income 34 26 26 4
Net profit/ (loss) (175) (880) 53 (285)
Basic and diluted net
profit (loss) per share $ (0.01) $ (0.03) $ 0.00 $(0.01)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
6 months ended 6 months ended Year Ended
June 30, June 30, December 31,
2010 2009 2009
Cash flows from operating
activities:
Net profit /(loss) from
continued operations (175) (880) (1,303)
Adjustments required to
reconcile net loss to net
cash provided by (used in)
operating activities:
Decrease (increase) in
restricted cash 4 6 (2)
Depreciation 53 95 149
Stock based compensation 113 98 196
Amortization of deferred
expenses 26 25
Amortization of debt
discount 126 126
Amortization of software
development costs 602 1,138 2,348
Increase (decrease) in
accrued severance pay, net 62 (17) 25
Decrease (increase) in
trade receivables (235) (441) (255)
Decrease ( increase) in
other accounts receivable
and prepaid expenses (80) (6) 79
Decrease / (Increase) in
long-term prepaid expenses 14 12 20
Increase (decrease) in
trade payables (14) (105) (186)
Increase (decrease) in
deferred revenues 464 362 (327)
Increase (decrease) in
employees and payroll
accruals (133) (333) (265)
increase / (decrease) in
accrued expenses and
other liabilities (239) 18 (77)
Increase (decrease) in
Long term liabilities (0) (21) (20)
Increase (decrease) in
revaluation of Liabilities
presented at fair value 154 19 254
Net cash provided by
(used in) operating
activities from continued
operations (reconciled
from continuing operations) 591 97 787
Net cash provided by
operating activities
from discontinued
operations (reconciled
from discontinued
operations)
Net cash provided
(used) by operating
activitise 591 97 787
Cash flows from investing
activities:
Restricted cash, net -
Purchase of property and
equipment (43) (6) (19)
Capitalization of software
development costs (110) (285) (378)
Net cash used in investing
activities (153) (291) (397)
Cash flows from financing
activities:
Proceeds from exercise of
employee stock options 1 - -
Receipt of long term loan 25 540
Issuance of shares 72
Receipt of Short term
debt, net - convert to
Capital - 543
Repayment of long-term debt (417) (8) (10)
Net cash provided by
(used in) financing
activities (319) 532 533
Foreign currency
translation adjustments
on cash and cash
equivalents (11) 15 25
Increase (decrease) in
cash and cash equivalents 109 353 948
Cash and cash equivalents
at the beginning of the
period 1,428 480 480
Cash and cash equivalents
at the end of the period 1,537 833 1,428
Supplemental disclosure of
cash flow activities:
Cash paid during the
period for:
Interest 355 65 153
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,
2010 2009 2010 2009
GAAP operating profit /(loss) 218 (587) 53 (167)
Stock based compensation (1) 113 97 60 41
Amortization and
capitalization of Software
development costs (2) 492 852 204 407
Non-GAAP operating profit
(loss) 823 362 317 281
GAAP net profit (loss) (175) (880) 53 (287)
Stock based compensation (1) 113 97 60 41
Amortization and
capitalization of Software
development costs (2) 492 852 204 407
Financial expenses (3) 154 171 (197) (8)
Non-GAAP net profit (loss) 584 240 120 153
GAAP basic and diluted net
profit (loss) per share (0.01) (0.03) 0.00 (0.01)
Stock based compensation (1) 0.00 0.00 0.00 0.00
Amortization and
capitalization of Software
development costs (2) 0.02 0.03 0.01 0.01
Financial expenses (3) 0.00 0.01 (0.01) (0.00)
Non-GAAP basic and diluted net
profit (loss) per share 0.02 0.01 0.00 0.01
(1)Equity-based compensation
expenses resulting under
ASC 718 (formerly known
as SFAS 123):
Equity-based compensation
expense included in
"Research and development" 25 12 14 1
Equity-based compensation
expense included
"Selling and marketing" 43 50 23 23
Equity-based compensation
expense included in
"General and administrative" 45 35 23 17
113 97 60 41
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 602 1,137 302 566
Capitalization (110) (285) (98) (159)
492 852 204 407
(3) Financial expenses:
Amortization of debt discount - 126 26
Revaluation of warrants and
conversion features of
long term debt 154 19 (197) (47)
Amortization of deferred
charges - 26 13
154 171 (197) (8)
For more information, please contact:
Dror Elkayam
VP Finance
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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