Attunity Reports Third Quarter 2011 Results
License Revenue Increases 103% Year-Over-Year
BURLINGTON, Massachusetts, October 25, 2011 /PRNewswire/ --
Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration, reported today its unaudited financial results for the quarter ended September 30, 2011.
Financial Highlights:
- License revenues increased 103% to $1.75 million in the third quarter of 2011, compared to $0.86 million for the same period last year
- Total revenues increased 57% to $3.45 million in the third quarter of 2011, compared to $2.20 million for the same period last year
- Non-GAAP Net Income increased to $456,000 in the third quarter of 2011, compared to $114,000 for the same period last year
Recent Operational Highlights:
- Completed the acquisition of RepliWeb, a leading provider of enterprise file replication and managed file transfer technologies
- Received payments of $3.55 million under OEM agreements with Microsoft for delivery of CDC and ODBC components; Approximately half of these payments are recognized in the second half of 2011 and the remainder will be recognized ratably over 2012.
- Launched Attunity Replicate, a high-performance data replication software
"I am pleased with our continued growth and our completion of several key milestones during the quarter, which have advanced our position as a leading provider of real-time data integration for the enterprise environment and Cloud computing. This includes the acquisition of RepliWeb, which significantly expands our data replication capabilities and our cloud offering with its fast load technology. The expansion of our business and product offering has properly positioned the Company for rapid revenue growth and profitability," said Shimon Alon, Chairman and CEO of Attunity.
"The third quarter results were driven by strong software license and maintenance revenues, which increased by approximately 103% and 27%, respectively, compared to the same period last year. In addition, Non-GAAP operating income for the third quarter of 2011 increased by 168% compared to the same period last year.
"During the next few months, we plan to introduce an advanced data replication platform for the 'Big Data' and Cloud replication, using our new Repliweb capabilities, which platform is expected to further drive our growth," concluded Mr. Alon.
Total revenues for the third quarter of 2011 increased 57% to $3.45 million, compared to $2.2 million in the third quarter of 2010.
Net operating income (loss) for the third quarter of 2011 was ($407,000), compared to ($133,000) for the same period of 2010. Non-GAAP net operating income for the third quarter of 2011 was $620,000, compared to $231,000 for the same period last year. Non-GAAP net operating income for the third quarter of 2011 excludes equity-based compensation and amortization of software development costs of $163,000 compared to $364,000 for the third quarter of 2010 as well as $864,000 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 the third quarter of 2011 increased to ($792,000), or ($0.02) per share, from ($188,000), or ($0.01) per share, in the third quarter of 2010. Net income for the third quarter of 2011 was negatively impacted primarily by $1,172,000 in expenses and amortization associated with the acquisition of RepliWeb. Non-GAAP net income (loss) for the third quarter of 2011 was $456,000 compared to $114,000 for the same period last year. Non-GAAP net income for the third quarter of 2011 excludes $1,172,000 in expenses and amortization related to the acquisition of RepliWeb as well as equity-based compensation expenses and amortization of software development costs net of capitalization and expenses associated with the revaluation of conversion features related to the Company's convertible debt and outstanding warrants (see footnotes 1, 2, 3, 4 and 5 at the end of this release).
Cash and cash equivalents were $6.3 million as of September 30, 2011, compared to $1.9 million as of June 30, 2011. The increase of approximately $4.4 million is attributable to the acquisition of RepliWeb and includes $4.2 million that has been paid to RepliWeb's shareholders following the end of the third quarter, in October 2011.
Shareholders' equity was $4.2 million as of September 30, 2011 compared to $2.5 million as of June 30, 2011. The increase is mainly due to the issuance of approximately 4.0 million shares as part of the consideration to RepliWeb's shareholders. This increase was partially offset by a net loss of ($792,000).
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
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 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, non-cash capitalization and 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 future growth of revenues and 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: 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.
© 2011 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September December
30, 31,
2011 2010
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,339 $ 872
Restricted cash 438 224
Trade receivables (net of
allowance for doubtful
accounts of $30 at September
30, 2011 and $15 at December
31, 2010) 1,246 1,201
Other accounts receivable
and prepaid expenses 616 190
Total current assets 8,639 2,487
LONG-TERM ASSETS:
Other long term Assets 72 61
Severance pay fund 2,628 1,323
Property and equipment, net 379 205
Intangible Assets ,net 3,369 496
Goodwill 11,653 6,133
Total long-term assets 18,101 8,218
Total assets $ 26,740 $ 10,705
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands excpt share data
September December
30, 31,
2011 2010
LIABILITIES AND SHAREHOLDERS' EQUITY Unaudited
CURRENT LIABILITIES:
Short term payable on account of
acquisition $ 4,170 $ -
Current maturities of long-term
convertible debt 1,255 245
Current maturities of long-term debt 370 1,014
Trade payables 829 220
Deferred revenues 6,332 2,048
Employees and payroll accruals 1,544 844
Accrued expenses and other current
liabilities 2,077 759
Total current liabilities 16,577 5,130
LONG-TERM LIABILITIES:
Earn out liability , presented at fair
value 1,602 -
Long-term convertible debt 377 1,571
Other long-term debt 190 90
Warrants and bifurcated conversion
feature , presented at fair value 431 1,215
Accrued severance pay 3,367 1,966
Total long-term liabilities 5,967 4,842
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS
0.1 par value -
Authorized: 130,000,000 shares at
September 30, 2011 and December 31,
2010. Issued and outstanding:
38,108,439 shares at September 30,
2011 and 32,269,695 at December 31,
2010 1,098 939
Additional paid-in capital 106,121 102,459
Accumulated other comprehensive loss (563) (640)
Accumulated deficit (102,460) (102,025)
Total shareholders' equity 4,196 733
Total liabilities and shareholders'
equity $ 26,740 $ 10,705
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
9 months ended 3 months ended
September 30, September 30,
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
Software
licenses $ 4,959 $ 3,403 $ 1,754 $ 863
Maintenance
and services 4,499 4,093 1,697 1,332
9,458 7,496 3,451 2,195
Operating
expenses:
Cost of
revenues 966 1,543 353 511
Research and
development,
net 2,741 1,682 1,161 534
Selling and
marketing 3,576 2,855 1,338 816
General and
administrative 2,112 1,332 1,006 466
Total
operating
expenses 9,395 7,412 3,858 2,328
Operating
Income 63 85 (407) (133)
Financial
expenses, net 376 394 329 35
Other expenses
(income) - (2) - (2)
Income /
(loss) before
income taxes (313) (307) (736) (165)
Taxes on
income 122 57 56 23
Net Income/
(loss) $ (435) $ (364) $ (792) $ (188)
Basic net
Income/(loss)
per share $ (0.01) $ (0.01) $ (0.02) $ (0.01)
Weighted
average number
of shares used
in computing
basic and
diluted net
Income/(loss)
per share 33,704 31,897 34,312 32,185
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
9 months ended 9 months ended
September 30, September 30,
2011 2010
Unaudited Unaudited
Cash from operating activities:
Net Income /( loss) $ (435) $ (364)
Adjustments required to reconcile
net income ( loss) to net cash
provided by operating activities:
Depreciation 80 76
Stock based compensation 221 169
Amortization of intangible assets 328 910
Amortization of deferred interest 8 -
Increase (decrease) in accrued
severance pay, net (4) 116
Decrease (increase) in trade
receivables 352 (283)
Decrease ( increase) in other
accounts receivable and prepaid
expenses 71 (23)
Decrease (increase) in long-term
prepaid expenses (11) 24
Increase (decrease) in trade
payables 7 30
Increase (decrease) in deferred
revenues 2,827 (6)
Increase (decrease) in employees and
payroll accruals 178 (191)
Increase (decrease) in accrued
expenses and other liabilities 1,217 (232)
Changes in fair value of warrants
and bifurcated embedded conversion
feature 76 92
Net cash provided by operating
activities 4,915 318
Cash flows from investing
activities:
Purchase of property and equipment (117) (51)
Capitalization of software
development costs - (110)
Increase of restricted cash (192) (5)
Cash paid in connection with the
acquisition, net of acquired cash 1,499 -
Net cash provided by investing
activities 1,190 (166)
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 240 73
Receipt of long term loan 57 25
Repayment of long-term debt (785) (667)
Repayment of convertible debt (184) -
Net cash provided by (used in)
financing activities (672) (569)
Foreign currency translation
adjustments on cash and cash
equivalents 34 3
Increase (decrease) in cash and cash
equivalents 5,467 (414)
Cash and cash equivalents at the
beginning of the period 872 1,428
Cash and cash equivalents at the end
of the period $ 6,339 $ 1,014
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest $ 63 $ 392
Non cash activity
Shares issued as part of acquisition $ 2,500 -
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,
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
GAAP operating
Income (loss) $ 63 85 $ (407) (133)
Stock based
compensation (1) 221 170 76 56
Amortization and
Capitalization of
Software
Development Costs
(2) 278 800 87 308
Acquisition-related
expenses,
amortization and
adjsutments (3) 864 - 864 -
Non-GAAP operating
Income $ 1,426 1,055 $ 620 231
GAAP net Income
(loss) (435) (364) (792) (188)
Stock based
compensation (1) 221 170 76 56
Amortization and
Capitalization of
Software
Development Costs
(2) 278 800 87 308
Acquisition-related
expenses,
amortization and
adjsutments (3) 864 - 864 -
Financial expenses
(4) (224) 92 (87) (62)
Acquisition-related
financial expenses
(5) 308 - 308 -
Non-GAAP net Income
(Loss) $ 1,012 698 $ 456 114
GAAP diluted net
Income (loss) per
share (0.01) (0.01) (0.02) (0.01)
Operating expenses
Gaap 0.04 0.03 0.03 0.01
Financial expenses (0.01) 0.00 (0.00) (0.00)
$ 0.02 0.02 $ 0.00 0.00
(1) Stock-based
compensation
expenses under ASC
718 included in :
Research and
development 72 39 29 14
Selling and
marketing 70 62 26 19
General and
administrative 79 69 21 23
$ 221 170 $ 76 56
(2) Amortization of
Software
Development Costs
net of
capitalization
Amortization and
Capitalization of
Software
Development Costs
resulting under ASC
985-20 278 800 87 308
$ 278 800 $ 87 308
(3)
Acquisition-related
expenses,
amortization and
adjustments
Valuation
adjustment on
acquired deferred
services revenue 7 - 7 -
Cost of Sales -
Amortization of
Technology 22 - 22 -
Research and
development -
Carve-out to
RepliWeb employees 212 - 212 -
Selling and
marketing -
Carve-out to
RepliWeb employees 87 - 87 -
Selling and
marketing -
Amortization of
Customers
relationship 28 - 28 -
General and
administrative -
Carve-out to
RepliWeb employees 87 - 87 -
General and
administrative-
Acquisition
expenses 421 - 421 -
$ 864 - $ 864 -
(4) Financial
expenses:
Revaluation of
warrants and
conversion feature
of long term
convertible debt (224) 92 (87) (62)
$ (224) 92 $ (87) (62)
(5)
Acquisition-related
financial expenses
Fair value of carve
out feature related
to warrants 300 - 300 -
Accretion related
to earn-out
obligation 8 - 8 -
$ 308 - $ 308 -
Total
Acquisition-Related
Expenses
Acquisition-related
expenses,
amortization and
adjustments - Note
3 864 - 864 -
Acquisition-related
financial expenses
- Note 5 308 - $ 308 -
$ 1,172 - $ 1,172 -
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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