Attunity Reports Third Quarter 2017 Results

 

License Revenue Grew 45%; Total Revenue Grew 27% Year-Over-Year

Appointed Mark Logan as Chief Operating Officer

BURLINGTON, Massachusetts, Nov. 2, 2017 /PRNewswire/ -- Attunity Ltd. (NasdaqCM: ATTU), a leading provider of data integration and Big Data management software solutions, today reported its unaudited financial results for the three-month period ended September 30, 2017.

"We continued to see an increasing demand for our innovative solutions from customers and partners in the growing Big Data and cloud markets. This demand has resulted in a strong third quarter during which license revenue and total revenue grew 45% and 27%, respectively," stated Shimon Alon, Chairman and CEO of Attunity. "We are also seeing a growing customer need for data lake, cloud and SAP solutions, and continue to see Attunity's platform selected by large global corporations."

"As we focus on driving our business forward, we announced this morning a strategic new hire to enhance our management team. Mark Logan will join the Attunity team as our new Chief Operating Officer. Mark is an experienced leader with a proven track record of revenue growth and enterprise value. We are excited to have him join our leadership team to take us to the next stage of accelerated growth for the Company," concluded Mr. Alon.

Recent Operational Highlights

  • Appointed Mark Logan as new Chief Operating Officer, effective November 20, 2017
  • Closed multiple agreements for Attunity Replicate and Compose for Hive, including a $1.0 million deal with a global financial services company
  • Launched Replicate for Microsoft Migrations, a collaboration with Microsoft
  • Announced v6 of our Modern Data Integration Platform
  • Recognized by Gartner for the second year in a row as a Challenger in the 2017 Magic Quadrant for Data Integration Tools

Financial Highlights for the Third Quarter of 2017, compared with the Third Quarter of 2016

  • Total revenue was $16.5 million, compared with $13.0 million
  • Operating profit was $0.1 million, compared with an operating loss of $4.1 million
  • Non-GAAP operating profit was $1.5 million, compared with an operating loss of $0.5 million*
  • Net loss of $0.4 million, compared with a net loss of $4.0 million
  • Non-GAAP net income of $0.8 million, compared with non-GAAP net loss of $1.7 million*

Attunity v6 – Technology

In September 2017, Attunity launched a major new release of its data integration platform. The new release includes Attunity Replicate 6.0 along with new versions of Attunity Compose for Hive and Attunity Enterprise Manager (AEM).  The Attunity v6 data integration platform uniquely accommodates these needs with the addition of many capabilities including:

  • Expanded cloud data integration for migration and analytics
  • Enhanced performance for Hadoop data ingestion and Oracle environments
  • Universal database stream generation to support streaming enterprise architectures
  • Secure management of data pipelines with global role-based access control and auditing
  • AEM Analytics, providing trend analysis on system resource utilization and performance monitoring in large-scale environments

Financial Results for Q3 2017
Total revenue for the third quarter of 2017 was $16.5 million, compared with $13.0 million for the same period in 2016. This includes license revenue of $9.2 million, which grew 45% compared with $6.3 million for the same period in 2016, and maintenance and service revenue, which grew 10% to $7.3 million, compared with $6.6 million for the same period in 2016. License revenue includes approximately $3.0 million recognized from a previously announced strategic OEM licensing agreement with a top information technology company.

Operating expenses for the third quarter of 2017 decreased 4% to $16.4 million, compared with $17.0 million for the same period in 2016.

Non-GAAP operating expenses for the third quarter of 2017 increased 12% to $15.0 million, compared with $13.5 million for the same period in 2016. Non-GAAP operating expenses exclude approximately $1.3 million in equity-based compensation expenses and amortization associated with acquisitions, compared with an approximately $2.0 million charge for partial impairment of acquired technology associated with the Appfluent acquisition and $1.6 million in equity-based compensation expenses and amortization associated with acquisitions for the same period in 2016.*

Operating profit for the third quarter of 2017 was $0.1 million, compared with an operating loss of $4.1 million for the same period in 2016.

Non-GAAP operating profit was $1.5 million for the third quarter of 2017, compared with non-GAAP operating loss of $0.5 million for the same period in 2016. Non-GAAP operating profit excludes a total of $1.3 million in equity-based compensation expenses and amortization associated with acquisitions, compared with an approximately $2.0 million charge for partial impairment of acquired technology associated with the Appfluent acquisition and $1.6 million in equity-based compensation expenses and amortization associated with acquisitions for the same period in 2016.*

Net loss for the third quarter of 2017 was $0.4 million, or ($0.03) per diluted share, compared with a net loss of $4.0 million, or ($0.24) per diluted share, in the third quarter of 2016.

Non-GAAP net income for the third quarter of 2017 was $0.8 million, or $0.04 per diluted share, compared with a non-GAAP net loss of $1.7 million, or ($0.10) per diluted share, for the same period in 2016. Non-GAAP net loss excludes approximately $1.2 million in equity-based compensation expenses, amortization associated with acquisitions and tax benefits related to non-GAAP adjustments, compared with approximately $2.3 million in partial impairment of acquired technology associated with the Appfluent acquisition, equity-based compensation expenses and amortization associated with acquisitions, including tax benefits related to non-GAAP adjustments of $1.2 million, for the same period in 2016.*

Cash and cash equivalents were $7.3 million as of September 30, 2017, compared with $10.0 million as of June 30, 2017. Cash and cash equivalents at the end of the third quarter of 2017 were mainly impacted by $1.6 million used in operating activities.

Shareholders' equity as of September 30, 2017 increased to $30.5 million, compared with $29.8 million as of June 30, 2017.

Conference Call and Webcast Information
The Company will host a conference call with the investment community on Thursday, November 2nd at 8:30 a.m. Eastern Time featuring remarks by Shimon Alon, Chairman and CEO, Dror Harel-Elkayam, CFO, and Itamar Ankorion, CMO of Attunity. The dial-in numbers for the conference call are +1-800-967-7134 (U.S. Toll Free), +1 80 925 8243 (Israel), or +1-719-325-2339 (International). All dial-in participants must use the following code to access the call: 5157422.

Please call at least five minutes before the scheduled start time.  The conference call will also be available via webcast, which can be accessed through the Investor Relations section of Attunity's website, ir.attunity.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.

For interested individuals unable to join the conference call, a replay of the call will be available through November 16, 2017, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 5157422. The online archive of the webcast will be available on ir.attunity.com/events for 30 days following the call.

About Attunity
Attunity is a leading provider of data integration and Big Data management software solutions that enable availability, delivery, and, management of data across heterogeneous enterprise platforms, organizations, and the Cloud. Our software solutions include data replication and distributiontest data managementchange data capture (CDC)data connectivityenterprise file replication (EFR), managed file transfer (MFT), data warehouse automationdata usage analytics, and cloud data delivery.

Attunity has supplied innovative software solutions to its enterprise-class customers for over 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 Hewlett Packard Enterprise. 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 or our blog and join our communities on TwitterFacebookLinkedIn and YouTube.

(*) 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), operating expenses, operating profit (loss), and diluted net income (loss) per share, which are adjusted from results based on GAAP to exclude amortization and impairment charges associated with the acquisitions, stock-based compensation expenses, non-cash financial expenses, such as the effect of a revaluation of liabilities presented at fair value and accretion of payment obligations, and tax benefits related to non-GAAP adjustments. 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 its 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. For further details, see the Reconciliation of Supplemental Non-GAAP Financial Information table later in this press release.

Important Note: Attunity is not responsible for the awards mentioned in this press release or the entities that award them.

Safe Harbor Statement

This press release contains forward-looking statements, including statements regarding the anticipated features and benefits of Replicate Solutions, 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 the demand for our products and expectations regarding future growth, we are using forward-looking statements. In addition, announced results for the third quarter of 2017 are preliminary, unaudited and subject to year-end audit adjustment. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results, expressed or implied by such forward-looking statements, 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: our history of operating losses and ability to achieve or sustain profitability; our ability to manage our growth effectively;  our business and operating results dependency on the successful and timely implementation of our third party partner solutions; the lengthy sales cycle of our products; competition; acquisitions, including costs and difficulties related to integration of acquired businesses and impairment charges; global economic conditions; the potential loss of one or more of our significant customers or a decline in demand from one or more of these customers; timely availability and customer acceptance of Attunity's new and existing products, including Attunity Compose and Attunity Visibility; international operations; our need and ability to raise capital; 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 latest Annual Report on Form 20-F (as amended) 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 with, 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.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

© Attunity 2017. All Rights Reserved. Attunity is a registered trademark of Attunity Inc. All other product and company names herein may be trademarks of their respective owners.

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands









 September 30,


December 31,




2017


2016










Unaudited




ASSETS












CURRENT ASSETS:












Cash and cash equivalents

$

7,293

$

9,166


Trade receivables (net of allowance for doubtful accounts of $15
at September 30, 2017 and December 31, 2016)


8,536


7,031


Other accounts receivable and prepaid expenses


1,307


663








Total current assets

$

17,136

$

16,860








LONG-TERM ASSETS:






Other assets


153


155


Deferred taxes


1,978


2,340


Severance pay fund


4,311


3,770


Property and equipment, net


1,267


1,214


Intangible assets, net


1,768


2,778


Goodwill


30,929


30,929


Total long-term assets

$

40,406

$

41,186








Total assets

$

57,542

$

58,046









 

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data








September 30,


December 31,



2017


2016








Unaudited



LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:










Trade payables

$

948

$

375

Payment obligation related to acquisitions


-


271

Deferred revenues


11,381


10,676

Employees and payroll accruals


4,444


4,741

Accrued expenses and other current liabilities


1,978


2,021

Liability presented at fair value


300


-






Total current liabilities


19,051


18,084











LONG-TERM LIABILITIES:





Other liabilities


304


277

Deferred revenues


1,805


1,438

Liability presented at fair value


-


512

Accrued severance pay


5,857


5,027






Total long-term liabilities


7,966


7,254






SHAREHOLDERS' EQUITY:





Share capital - Ordinary shares of NIS 0.4 par value -


1,955


1,921

Authorized: 32,500,000 shares at September 30, 2017 and
December 31, 2016; Issued and outstanding 17,147,011 shares at
September 30, 2017 and 16,841,238 shares at December 31, 2016





Additional paid-in capital


152,754


149,716

Accumulated other comprehensive loss


(1,175)


(1,013)

Accumulated deficit


(123,009)


(117,916)






Total shareholders' equity


30,525


32,708






Total liabilities and shareholders' equity

$

57,542

$

58,046

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars and shares in thousands, except per share data













Three months ended



Nine months ended



September 30,



September 30,



2017


2016



2017


2016



Unaudited



Unaudited

Revenues:










Software licenses 

$

9,189

$

6,323


$

22,353

$

19,862

Maintenance and services 


7,290


6,629



21,470


19,062











Total revenues


16,479


12,952



43,823


38,924

Operating expenses:










Cost of revenues 


2,703


2,292



7,228


6,671

Research and development


3,674


3,284



10,473


10,076

Selling and marketing


8,527


8,177



25,182


26,024

General and administrative


1,464


1,293



3,965


3,601

Impairment of acquisition-related
intangible assets


-


1,990



-


4,122

Total operating expenses


16,368


17,036



46,848


50,494











Operating profit (loss)


111


(4,084)



(3,025)


(11,570)











Financial (expenses) income, net


20


(75)



(37)


5











Profit (loss) before income taxes


131


(4,159)



(3,062)


(11,565)











Income tax benefit (taxes on
income) 


(559)


160



(2,031)


1,117











Net loss

$

(428)

$

(3,999)


$

(5,093)

$

(10,448)











Basic and diluted net loss per share

$

(0.03)

$

(0.24)


$

(0.30)

$

(0.63)

Weighted average number of
shares used in computing basic net
and diluted loss per share


17,090


16,790



17,060


16,711

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands



Nine months ended September 30,



2017


2016



Unaudited

Cash flows activities:





Net loss

$

(5,093)

$

(10,448)

Adjustments required to reconcile net loss to net cash used in
operating activities:





Depreciation


363


366

Stock based compensation


2,654


2,957

Amortization of intangible assets


1,010


1,948

Impairment of acquisition-related intangible assets


-


4,122

Accretion of payment obligation


-


33

Change in:





   Accrued severance pay, net


289


104

   Trade receivables


(1,472)


(1,212)

   Other accounts receivable and prepaid expenses


(596)


(410)

   Other long term assets


6


152

   Trade payables


555


365

   Deferred revenues


783


1,077

   Employees and payroll accruals


(309)


793

   Accrued expenses and other liabilities


(15)


872

Liabilities presented at fair value


(212)


(213)

Tax benefit related to exercise of stock options


-


146

Change in deferred taxes, net


388


(1,745)

Net cash used in operating activities


(1,649)


(1,093)

Cash flows from investing activities:





Purchase of property and equipment


(409)


(392)

Net cash used in investing activities


(409)


(392)

Cash flows from financing activities:





Proceeds from exercise of options


421


185

Payment of contingent consideration


(271)


(1,990)

Tax benefit related to exercise of stock options


-


(146)

Net cash provided by (used in) financing activities


150


(1,951)

Foreign currency translation adjustments on cash and cash
equivalents


35


(154)






Decrease in cash and cash equivalents


(1,873)


(3,590)

Cash and cash equivalents at the beginning of the year


9,166


12,522






Cash and cash equivalents at the end of the period

$

7,293

$

8,932






Supplemental disclosure of cash flow activities:





Cash paid during the year for taxes

$

1,619

$

588

Supplemental disclosure of non- cash investing activities: 





Issuance of shares related to acquisition

$

-

$

224

 

 

 

RECONCILIATION OF SUPPLEMENTAL, NON-GAAP FINANCIAL INFORMATION

U.S. dollars and shares in thousands, except per share data










Three months ended


Nine months ended


September 30,


September 30,


2017


2016


2017


2016


Unaudited


Unaudited









GAAP revenues

$16,479


$12,952


$43,823


$38,924

Valuation adjustment on acquired deferred service
revenue

-


9


-


35

Non-GAAP revenues

16,479


12,961


43,823


38,959


-







GAAP operating expenses

16,368


17,036


46,848


50,494

Cost of revenues (1)

(51)


(42)


(115)


(122)

Research and development (1) (2)

(213)


(265)


(578)


(944)

Sales and marketing (1) (2)

(497)


(473)


(1,279)


(1,931)

General and administrative (1)

(243)


(255)


(682)


(739)

Amortization of acquired intangible assets

(337)


(555)


(1,010)


(1,948)

Impairment of acquisition-related intangible assets

-


(1,990)


-


(4,122)

Non-GAAP operating expenses

15,027


13,456


43,184


40,688









GAAP operating income (loss)

111


(4,084)


(3,025)


(11,570)

Operating loss adjustments

(1,341)


(3,589)


(3,664)


(9,841)

Non-GAAP operating income (loss)

1,452


(495)


639


(1,729)









GAAP financial (expenses) income, net

20


(75)


(37)


5

Revaluation of liabilities presented at fair value

-


(127)


(212)


(213)

Accretion of payment obligations

-


10


-


(2)

Non -GAAP Financial (expense) income, net

20


(192)


(249)


(210)









GAAP income tax benefit (taxes on income)

(559)


160


(2,031)


1,117

Tax benefits (taxes on income) related to non-GAAP
adjustments

(161)


(1,189)


22


(2,503)

Non-GAAP taxes on income

(720)


(1,029)


(2,009)


(1,386)









GAAP net loss

(428)


(3,999)


(5,093)


(10,448)

Valuation adjustment on acquired deferred revenue

-


9


-


35

Amortization of acquired intangible assets

337


555


1,010


1,948

Impairment of acquisition-related intangible assets

-


1,990


-


4,122

Acquisition related expenses

-


-


-


779

Stock-based compensation

1,004


1,035


2,654


2,957

Revaluation of liabilities presented at fair value

-


(127)


(212)


(213)

Accretion of payment obligations

-


10


-


(2)

Tax benefits (taxes on income) related to non-GAAP
adjustments

(161)


(1,189)


22


(2,503)

Non-GAAP net income (loss)

$752


$(1,716)


$(1,619)


$(3,325)









GAAP basic and diluted net loss per share

$(0.03)


$(0.24)


$(0.30)


$(0.63)

Non-GAAP diluted net income (loss) per share

$0.04


$(0.10)


$(0.09)


$(0.20)









Shares used in computing GAAP basic and diluted net
loss per share

17,090


16,790


17,060


16,711









Shares used in computing Non-GAAP diluted net income
(loss) per share

17,896


16,790


17,060


16,711

















(1) Stock-based compensation expenses (*):









Three months ended


Nine months ended


September 30,


September 30,


2017


2016


2017


2016

Cost of revenues

$      51


$        42


$     115


$     122

Research and development

213


265


578


758

Sales and marketing

497


473


1,279


1,338

General and administrative

243


255


682


739


$ 1,004


$   1,035


$   2,654


$    2,957

(*) Retention bonus paid in Attunity shares constitute part of (2) below
















(2) Acquisition related expenses

-


-


-


$      186

Research and development

-


-


-


593

Sales and marketing

-


-


-


$     779

 

 

For more information, please contact:

Todd Fromer / Allison Soss
KCSA Strategic Communications
P: +1-212-682-6300
tfromer@kcsa.com / asoss@kcsa.com

Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
dror.elkayam@attunity.com

 

View original content:http://www.prnewswire.com/news-releases/attunity-reports-third-quarter-2017-results-300548337.html

SOURCE Attunity Ltd



RELATED LINKS
http://www.attunity.com

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos and customised feeds just for media.

View and download archived video content distributed by MultiVu on The Digital Center.

 

Get content for your website

Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Start today.

 

 
 

Contact PR Newswire

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
 

Become a PR Newswire client

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
  1. Products & Services
  2. News Releases
  3. Contact Us