BURLINGTON, Massachusetts,
March 5, 2015 /PRNewswire/ --
Company
increases Non-GAAP revenue
guidance for FY2015 to $51 - $54
million, and increases Non-GAAP
operating margin to range between 11% and 15%
Shareholder conference call scheduled
for 10 a.m. ET today
Attunity Ltd. (NASDAQ CM: ATTU), a leading provider of
information availability software solutions, announced today that
it has signed a definitive agreement to acquire Appfluent
Technology, Inc., a U.S.-based leading provider of data usage
analytics for Big Data environments, including data warehousing and
Hadoop, for a total consideration of approximately $18.0 million, payable in cash and stock, with
additional earn-out consideration based on performance
milestones.
Through this acquisition, Attunity will be able to offer the
industry's first product suite that analyzes Big Data usage
patterns, and then moves large data volumes and processing
workloads to Hadoop. Recent Industry analysts report that Hadoop
can save 70% or more of data storage and processing costs compared
to traditional data warehouses. Appfluent's solutions enable the
efficient utilization of Hadoop, delivering a significant ROI to
enterprises using Big Data. These savings can be in the order of
millions of dollars annually for large enterprises.
Appfluent solutions have been selected by key partners and are
positioned as part of their data warehouse optimization solution
packages. These partners include the leading Hadoop vendors,
Cloudera, Hortonworks and MapR, as well as Big Data solution
providers such as Cisco and CapGemini. Combined with Attunity's
data integration software, Attunity will be able to provide more
strategic solutions and expand its value to these Big Data partners
as well as to others.
"This acquisition aligns with our strategy to capitalize on the
changing dynamics in the market due to the Big Data revolution,
expanding our position as a leading provider of highly valuable and
uniquely differentiated Big Data solutions,"
said Shimon Alon,
Attunity's Chairman and CEO. "We also expect the
acquisition of Appfluent to contribute directly to our revenue
growth in 2015 as well as drive cross selling and bundling
opportunities with customers and business partners across the
entire Attunity product line. With data volumes growing so rapidly,
it is critical for enterprises to accurately understand how Big
Data is being used, and Appfluent provides a leading solution in
the market to address this growing demand."
Mr. Alon added: "With the unique technology and
market leading capabilities of Appfluent, we believe this
acquisition will strengthen the demand for Attunity Big Data
solutions and the awareness of the Attunity brand. Furthermore, we
expect that it will enable us to expand opportunities with both
existing and new partners. The respective products, partners and
go-to-market strategies of the two companies are very complementary
and well aligned, which will enable us to quickly turn this
opportunity into a growth engine that enhances shareholder value.
As we expand our platform and offerings, enterprises continue to
rely on us as their trusted provider of solutions that facilitate
and optimize their Big Data initiatives."
Frank
Gelbart, founder and CEO of
Appfluent, said: "We see tremendous synergy and are excited to
join forces with the Attunity team. Put together, our solutions
provide an answer to one of the most common needs that enterprises
are trying to address with the modern Big Data technologies - when
and how to leverage Hadoop. Our customers see significant
advantages from having deep insight into their data usage patterns
so they can strategically and intelligently decide where to store
and process their data, including a significant reduction in their
Big Data costs. Now, they will be able to see additional value by
facilitating the process of moving data across platforms and
offloading it from expensive ones with the Attunity suite of
solutions. Leveraging our complementary solutions and our mutual
success building partnerships, we will focus on becoming the
strategic partner of choice to the leading vendors in the Big Data
space."
The transaction, which is subject to customary closing
conditions, is expected to close in the next couple of weeks.
Additional details regarding the proposed transaction are
included in the Report on Form 6-K that the Company will furnish to
the Securities and Exchange Commission (SEC) in the next few
days.
Updated Revenue And Operating Margin Outlook
Appfluent is projected to generate approximately $7.0 million to $8.0 million over the 12 months
following closing. This reflects strong growth attributable to
increasing momentum in the business as well as access to Attunity's
sales and marketing teams.
The Company has updated its outlook for 2015 to reflect the
acquisition of Appfluent. The Company now expects total
revenue to be between approximately $51
million and $54 million for 2015. Additionally, the
Company now expects non-GAAP operating margin to range between 11%
and 15%.
Financial Reconciliation to NON-GAAP figures for Updated 2014
Outlook:
From To
GAAP Operating Profit Margin (1%) 4%
Equity base compensation 5% 4%
Amortization and other adjustments - related
acquisitions (*) 7% 7%
Non-GAAP Operating Profit margin (**) 11% 15%
(*) Includes estimated amortization and other adjustments
related to the proposed acquisition of Appfluent.
(**)Non GAAP Operating Profit Margin is calculated by dividing
the Non GAAP Operating Profit by the total revenues for the
period.
The Company does not expect to provide or update guidance more
often than on an annual basis.
Conference Call
The Company will host a conference call with the investment
community on Thursday, March
5th at 10:00 a.m. Eastern
Time featuring remarks by Shimon
Alon, Chairman and CEO of Attunity, and Dror Harel-Elkayam, CFO of Attunity. The dial-in
numbers for the conference call are +1-888-438-5474 (U.S. Toll
Free), 180-924-5905 (Israel Toll
Free), or +1-719-325-2410 (International). All dial-in
participants must use the following code to access the call:
8939892.
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 Events section of Attunity's
website, http://www.attunity.com/events. 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 March 17, 2015 at +1-877-870-5176 (U.S. Toll
Free) or 1-858-384-5517 (International). Participants must use the
following code to access the replay of the call: 8939892. The
online archive of the webcast will be available on
http://www.attunity.com/events for 30 days following the call.
About Attunity
Attunity is a leading provider of information availability
software solutions that enable access, management, sharing and
distribution of data, including Big Data, across heterogeneous
enterprise platforms, organizations, and the cloud. Our software
solutions include data replication, data flow management, test data
management, change data capture (CDC), data connectivity,
enterprise file replication (EFR), managed-file-transfer (MFT),
data warehouse automation, and cloud data delivery. Using
Attunity's software solutions, our customers enjoy significant
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 or our In Tune blog and join our community
on Twitter, Facebook, LinkedIn and YouTube, the content of which is
not part of this press release.
About Appfluent
Appfluent, a leading provider of data usage analytic software,
provides IT organizations with unprecedented visibility into their
Big Data systems to reduce costs, optimize performance and ensure
trusted usage of data. Appfluent helps companies put the right
workload on the right system, across data warehouses, business
intelligence, and Hadoop. By seeing every analytic query and
Extract, Transform and Load (ETL) against Big Data, Appfluent can
identify areas where expensive storage and compute is wasted. With
Appfluent, enterprises can address exploding data growth with
confidence, proactively manage performance of BI, data warehouse
and Hadoop systems, and realize the tremendous economies of Hadoop.
For more information please visit: http://www.appfluent.com
###
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 revenue, net income, operating income,
operating profit margin and net income per share, which are
adjustments from results based on GAAP to exclude expenses and
amortization associated with acquisitions, net of related tax,
stock-based compensation expenses in accordance with ASC 718, and
non-cash financial expenses such as the effect of a revaluation of
liabilities presented at fair value. 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.
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 the expected closing of the
proposed acquisition, future growth of revenues, other expected
benefits of the proposed acquisition or our updated look for
2015, we use a forward-looking statement. 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 acquisitions, including the
proposed acquisition of Appfluent, and costs and difficulties
related to integration of acquired businesses; our reliance on
strategic relationships with our distributors, OEM, VAR and
"go-to-market" and other business partners, and on our other
significant customers; timely availability and customer acceptance
of Attunity's new and existing products, including Attunity
Maestro; risks and uncertainties relating to fluctuations in our
quarterly operating results, which may not necessarily be
indicative of future periods; 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; the impact on revenue 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
latest Annual Report on Form 20-F 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.
© Attunity 2015. 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.
For more information, please contact:
Garth Russell / Chris Harrison
KCSA Strategic Communications
P: +1-212-682-6300
grussell@kcsa.com / charrison@kcsa.com
Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
dror.elkayam@attunity.com
SOURCE Attunity Ltd.