BURLINGTON, Massachusetts, November 10, 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 third quarter ended September 30, 2010.
"We achieved our year-to-date revenue targets as well as this quarter's direct sales targets. Certain OEM revenues expected in this quarter will be recognized in the coming quarters," said Shimon Alon, Chairman and CEO of Attunity. "However, I am pleased that we continue to demonstrate operating profitability while continuing to invest in sales and marketing infrastructure and innovation, all of which are essential for our future growth."
Third Quarter and Nine Months 2010 Highlights:
- License revenues of $0.86 million in Q3 2010 compared to
$1.0 million in Q3 2009.
- Total Revenues of $2.2 million in Q3 2010 compared to $2.4
million in Q3 2009.
- A Non-GAAP operating profit of $231,000 compared to $498,000
in Q3 2009.
- License revenues of $3.4 million in the first nine months of
2010 compared to $2.8 million in the same period of 2009.
- Total Revenues of $7.5 million in the first nine months of
2010 compared to $6.8 million in the same period of 2009.
- A Non-GAAP operating profit of $1.05 million in the first 9
month of 2010 compared to $0.9 million in the same period of 2009.
- Continue to repay and reduce our debts to $3.3 million.
Third Quarter 2010 Financial Results:
- Revenues were $2,195,000, compared to $2,400,000 in the
third quarter of 2009, a decrease of 8.5%.
- Net Operating Profit (Non GAAP) was $231,000, compared to a
net operating profit of $498,000 in the third 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 Loss (GAAP) was $133,000, compared to a net
operating loss of $73,000 in the third quarter of 2009.
- Net Profit (Non-GAAP) was $114,000, compared to a net profit
of $411,000 in the third 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 (see footnote 3).
- Net Loss (GAAP) was $188,000, compared to a net loss of
$432,000 in the third quarter of 2009.
- Net Profit/Loss per Diluted Share (Non-GAAP) was $0.00
compared to $0.01 net profit per diluted share in the third quarter of
2009.
- Net Loss per Diluted Share (GAAP) was $0.01, in both the
third quarters of 2010 and 2009.
- Cash and cash equivalents were approximately $1.0 million as
of September 30, 2010, compared to approximately $1.5 million as of
June 30, 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 building the business infrastructure required to grow our revenues, including by introducing new extension to our replication and CDC product line. We are expanding our partnerships with new and existing OEM partners, while we continue to repay our outstanding debts."
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 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://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) 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30, December 31,
2010 2009
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,014 1,428
Restricted cash 216 208
Trade receivables and unbilled
revenues (net of allowance for
doubtful accounts of $15 at both
September 30 , 2010 and December 31,
2009) 1,048 761
Other accounts receivable and prepaid
expenses 168 145
------------ ------------
Total current assets 2,446 2,542
------------ ------------
LONG-TERM ASSETS:
Long-term prepaid expenses 62 86
Severance pay fund 1,221 1,098
Property and equipment, net 216 241
Software development costs, net 814 1,615
Goodwill 6,178 6,313
Total long-term assets 8,491 9,353
------------ ------------
Total assets 10,937 11,895
============ ============
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
September 30, December 31,
2010 2009
------------ ------------
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current maturities of
long-term debt and short term
loans 1,000 917
Current maturities of
long-term convertible debt 1,333 333
Trade payables 234 204
Deferred revenues 2,021 1,991
Employees and payroll accruals 627 819
Accrued expenses and other
liabilities 755 988
------------ ------------
Total current liabilities 5,970 5,252
------------ ------------
LONG-TERM LIABILITIES:
Long-term convertible debt 667 1,667
Long-term debt 356 1,083
Revaluation of Liabilities
presented at fair value 395 303
Accrued severance pay 1,787 1,548
------------ ------------
Total long-term liabilities 3,205 4,601
------------ ------------
SHAREHOLDERS' EQUITY:
Share capital - Ordinary
shares of NIS 0.1 par value - 937 920
Authorized: 130,000,000 shares
at September 30 , 2010 and
December 31, 2009. Issued and
outstanding: 32,186,080 shares
at September 30, 2010 and
31,571,150 at December 31,
2009
Additional paid-in capital 102,321 102,095
Accumulated other
comprehensive loss (612) (453)
Accumulated deficit (100,884) (100,520)
------------ ------------
Total shareholders' equity 1,762 2,042
------------ ------------
Total liabilities and
shareholders' equity 10,937 11,895
============ ============
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
9 months ended 3 months ended
September 30, September 30,
-------------------- -----------------------
2010 2009 2010 2009
-------------------- -----------------------
Software
licenses 3,403 2,815 863 1,002
Maintenance
and services 4,093 3,953 1,332 1,399
------- ------- ------- -------
7,496 6,768 2,195 2,401
------- ------- ------- -------
Operating
expenses:
Cost of
revenues 1,543 2,256 511 808
Research and
development,
net 1,682 1,397 534 485
Selling and
marketing 2,855 2,512 816 753
General and
administrative 1,332 1,262 466 426
Total
operating
expenses 7,412 7,427 2,328 2,472
------- ------- ------- -------
Operating
profit/ (loss) 85 (659) (133) (71)
Financial
expenses, net 394 643 35 366
Other expense
(income) (2) (10) (2)
------- ------- ------- -------
Profit (Loss)
before income
taxes (307) (1,292) (165) (437)
Taxes on
income 57 20 23 (6)
------- ------- ------- -------
Net profit/
(loss) (364) (1,312) (188) (431)
======= ======= ======= =======
Basic and
diluted net
loss per share (0.01) $ (0.05) $ (0.01) $ (0.01)
======= ======= ======= =======
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
9 months ended Year Ended
September 30, December 31,
2010 2009
-------------------------------------
-------------------------------------
Cash flows from
operating
activities:
Net profit /
(loss) from
continued
operations (364) (1,303)
Adjustments
required to
reconcile net loss
to net cash
provided by (used
in) operating
activities:
Decrease
(increase) in
restricted cash (8) (2)
Depreciation 76 149
Stock based
compensation 169 196
Amortization of
deferred expenses 25
Amortization of
debt discount 126
Amortization of
software
development costs 910 2,348
Increase
(decrease) in
accrued severance
pay, net 116 25
Decrease
(increase) in
trade receivables (283) (255)
Decrease (
increase) in other
accounts
receivable and
prepaid expenses (23) 79
Decrease /
(Increase) in
long-term prepaid
expenses 24 20
Increase
(decrease) in
trade payables 30 (186)
Increase
(decrease) in
deferred revenues (6) (327)
Increase
(decrease) in
employees and
payroll accruals (191) (265)
increase /
(decrease) in
accrued expenses
and other
liabilities (232) (77)
Increase
(decrease) in Long
term liabilities 1 (20)
Increase (decrease) in
revaluation of Liabilities
presented at fair value 92 254
---------------------------------
Net cash provided by
(used in) operating
activities from continued
operations (reconciled from
continuing operations) 313 787
Net cash provided by
operating activities
from discontinued
operations (reconciled
from discontinued operations)
---------------------------------
Net cash provided (used) by
operating activities 313 787
---------------------------------
Cash flows from investing
activities:
Restricted cash, net -
Purchase of property and
equipment (51) (19)
Capitalization of software
development costs (110) (378)
Proceeds from sale of
property equipment - -
---------------------------------
Net cash used in
investing activities (161) (397)
---------------------------------
Cash flows from financing
activities:
Proceeds from exercise of
employee stock options 1 -
Receipt of long term loan 25
Issuance of shares 72
Receipt of Short term debt,
net - convert to Capital - 543
Repayment of long-term debt (667) (10)
---------------------------------
Net cash provided by
(used in) financing
activities (569) 533
---------------------------------
Foreign currency
translation adjustments
on cash and cash equivalents 3 25
---------------------------------
Increase (decrease) in cash
and cash equivalents (414) 948
Cash and cash equivalents
at the beginning
of the period 1,428 480
---------------------------------
Cash and cash equivalents
at the end of
the period 1,014 1,428
=================================
Supplemental disclosure
of cash flow
activities:
Cash paid during the
period for:
Interest 392 153
=================================
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except per share data
9 months ended 3 months ended
September 30, September 30,
---------------------------------------
2010 2009 2010 2009
---------------------------------------
---------------------------------------
GAAP operating
profit /(loss) 85 (659) (133) (71)
Stock based
compensation
(1) 170 137 56 39
Amortization
and
capitalization
of Software
development
costs (2) 800 1,378 308 532
----------------------------------------
Non-GAAP
operating
profit (loss) 1,055 856 231 500
========================================
GAAP net profit
(loss) (364) (1,312) (188) (431)
Stock based
compensation
(1) 170 137 56 39
Amortization
and
capitalization
of Software
development
costs (2) 800 1,378 308 532
Financial
expenses (3) 92 438 (62) 273
----------------------------------------
Non-GAAP net
profit (loss) 698 641 114 413
========================================
GAAP basic and
diluted net
profit (loss)
per share (0.01) (0.05) (0.01) (0.01)
Stock based
compensation
(1) 0.01 0.00 0.00 0.00
Amortization
and
capitalization
of Software
development
costs (2) 0.03 0.05 0.01 0.02
Financial
expenses (3) 0.00 0.02 (0.00) 0.01
----------------------------------------
Non-GAAP basic
and diluted net
profit (loss)
per share 0.02 0.02 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" 39 19 14 7
Equity-based
compensation
expense
included in
"Selling and
marketing" 62 65 19 14
Equity-based
compensation
expense
included in
"General and
administrative" 69 53 23 18
----------------------------------------
170 137 56 39
========================================
"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 910 1,730 308 593
Capitalization (110) (352) - (61)
----------------------------------------
800 1,378 308 532
========================================
(3) Financial
expenses:
Amortization of
debt discount - 125
Revaluation of
warrants and
conversion
features of
long term debt 92 293 -62 273
Amortization of
deferred
charges - 20
----------------------------------------
92 438 -62 273
========================================
For more information, please contact:
Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]
SOURCE Attunity Ltd
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