BURLINGTON, Massachusetts,
April 27, 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 March 31, 2017.
"The first quarter of 2017 represents record first quarter
results, including a 25% increase in license revenue, an 18%
increase in total revenue, and strong cash flow from operations,"
stated Shimon Alon, Chairman and CEO
of Attunity. "Our suite of Big Data solutions, including the
recently launched Replicate for SAP, continues to set us apart as
innovators in the market. The importance of our solutions in
the Big Data, data lakes and cloud markets are increasingly being
validated by our customers. As a result, the growing brand
awareness of Attunity and market demand for our solutions from new
and current customers is helping us to achieve our goals."
Recent Operational Highlights
- Closed agreements with new and existing Replicate
customers for Attunity Replicate for SAP
o Closed a $1.8 million deal
with a global food processing company using Attunity Replicate for
SAP to ingest SAP data in real-time to its Hadoop data lake
o Closed initial deal for several hundred thousand dollars
with one of the largest telecommunications companies in the
world
- Signed a deal that expands an existing strategic license
agreement with a leading Cloud services provider
- Received several industry awards:
o 'Developers' Choice for Data Integration and Management'
by Hosting Advice
o 'Best Big Data Management Company' by Corporate Vision
Magazine's Technology Innovator Awards
o Finalist in Cloud International's 2016-2017 Cloud Awards
Program in the 'Best Cloud Business Intelligence or Analytics
Solution' category
Financial Highlights for Q1 2017, compared with Q1
2016
- Total revenue was $13.8 million,
compared with $11.7 million
- Operating loss was $0.6 million,
compared with operating loss of $3.2
million
- Non-GAAP operating profit was $0.5
million, compared with non-GAAP operating loss of
$1.1 million*
- Net loss of $1.5 million,
compared with net loss of $3.6
million
- Non-GAAP net loss of $0.4
million, compared with Non-GAAP net loss of $1.7 million*
- Positive cash flow from operations of $2.9 million, compared with $2.4 million cash used in operating
activities
Big Data Management and Cloud Solutions
The demand for Hadoop and data lake solutions continues to grow,
driven by business needs for real-time analytics and IoT solutions.
Combined with more customers moving to production with Big Data
solutions, Attunity sees growth in the demand for its solutions.
The customers' strategic data lake initiatives are typically larger
in scale, generating sales opportunities that range from several
hundred thousand dollars to over a million dollars, and continue to
play an important role in driving our topline growth.
We believe that Attunity's competitive strength is primarily in
its ability to deliver a universal, hybrid and real-time platform.
Customers prefer the universal platform as it meets their need for
broad support of data sources and targets, including hybrid
environments across cloud and on premise data centers.
Attunity ramped up its activity in the SAP market, the largest in
the ERP industry, with its Replicate for SAP solution. This
solution offers a unique value to the SAP market and strengthens
Attunity's differentiation with an application-level replication
that its traditional competition does not offer. Market demand for
the Attunity Replicate for SAP solution was validated in a
relatively short period of time by customers. Looking ahead, there
is a great interest for Attunity Replicate for SAP among Fortune
500 companies, which are key in driving future deal size.
The cloud continues to present a growth opportunity for Attunity
as enterprises look to migrate their databases to cloud platforms,
and leverage the cloud as a platform for data lakes and big data
analytics. These needs drive the demand for efficient and reliable
solutions for moving data from customers' data centers. Attunity is
well positioned to accommodate this growing need with its hybrid
data ingestion and replication platform, engaging customers
directly as well as referrals from leading global partners, such as
Amazon Web Services (AWS) and Microsoft.
Financial Results for Q1 2017
Total revenue for the first quarter of 2017 increased 18% to
$13.8 million, compared with
$11.7 million for the same period in
2016. This includes license revenue of $7.0
million, which increased 25% compared with $5.6 million for the same period in 2016, and
maintenance and service revenue, which grew 11.4% to $6.9 million, compared with $6.2 million for the same period in 2016.
Operating expenses for the first quarter of 2017 decreased 3% to
$14.5 million, compared with
$14.9 million for the same period in
2016.
Non-GAAP operating expenses for the first quarter of 2017
increased 3.6% to $13.3 million,
compared with $12.8 million for the
first quarter of 2016. Non-GAAP operating expenses in the first
quarter of 2017 exclude approximately $1.2
million in expenses and amortization associated with
acquisitions and equity-based compensation expenses, compared with
$2.1 million of similar expenses for
the same period in 2016.*
Operating loss for the first quarter of 2017 was $0.6 million, compared with $3.2 million for the same period in 2016.
Non-GAAP operating income was $0.5
million for the first quarter of 2017, compared with an
operating loss of $1.1 million for
the first quarter of 2016. Non-GAAP operating income for the first
quarter of 2017 excludes a total of $1.2
million in expenses and amortization associated with
acquisitions and equity-based compensation expenses, compared with
$2.1 million of similar expenses for
the same period in 2016.*
Net loss for the first quarter of 2017 was $1.5 million, or ($0.09) per diluted share, compared with a net
loss of $3.6 million, or ($0.22) per diluted share, in the first quarter
of 2016.
Non-GAAP net loss for the first quarter of 2017 was $0.4 million, or ($0.02) per diluted share, compared with non-GAAP
net loss of $1.7 million, or
($0.10) per diluted share, for the
same period in 2016. Non-GAAP net loss for the first quarter of
2017 excludes approximately $1.1
million primarily in expenses and amortization associated
with acquisitions and equity-based compensation expenses, compared
with $1.8 million of similar expenses
for the same period in 2016.*
Cash and cash equivalents were $12.0
million as of March 31, 2017,
compared with $9.2 million as of
December 31, 2016. During the first
quarter of 2017 we generated positive cash flow from operations of
$2.9 million, compared with
$2.4 million cash used in operating
activities during the same period in 2016.
Shareholders' equity as of March 31,
2017 decreased to $32.2
million, compared with $32.6
million as of December 31,
2016.
Conference Call and Webcast Information
The Company will host a conference call with the investment
community on Thursday, April 27th at 8:30
a.m. Eastern Time featuring remarks by Shimon Alon, Chairman
and CEO of Attunity, Dror
Harel-Elkayam, CFO of Attunity, and Itamar Ankorion, Chief
Marketing Officer. The dial-in numbers for the conference call are
+1-877-397-0298 (U.S. Toll Free), +1 80 925 8243 (Israel), or +1-719-325-4747 (International).
All dial-in participants must use the following code to access the
call: 2976626.
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 May 11,
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: 2976626. 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 distribution, test
data management, change data capture (CDC), data
connectivity, enterprise file
replication (EFR), managed file
transfer (MFT), data warehouse automation, data
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 community
on Twitter, Facebook, LinkedIn 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 income (loss), and diluted net income (loss) per share,
which are adjusted from results based on GAAP to exclude
amortization 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 interest in our products, growth and
deal size, we are using forward-looking statements . In addition,
announced results for the first quarter of 2017 are
preliminary, unaudited and subject to 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 profitability; our reliance on
strategic relationships with our distributors, OEM, VAR and
"go-to-market" and other business partners, and on our other
significant customers; our ability to manage our growth
effectively; acquisitions, including costs and difficulties
related to integration of acquired businesses and possible
impairment charges; our ability to continue to expand our business
into the SAP market and the success of our Gold Client offering;
timely availability and customer acceptance of Attunity's new and
existing products, including Attunity Replicate, Attunity Compose
and Attunity Visibility; 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 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 as well as cyber-attacks; 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.
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.
© 2017 Attunity Ltd. All rights reserved. Attunity is a
trademark of Attunity Inc.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
11,950
|
$
|
9,166
|
|
Trade receivables
(net of allowance for doubtful accounts of $15 at
March 31 2017 and December 31, 2016)
|
|
4,578
|
|
7,031
|
|
Other accounts
receivable and prepaid expenses
|
|
1,760
|
|
663
|
|
Total current
assets
|
|
18,288
|
|
16,860
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Other
assets
|
|
148
|
|
155
|
|
Deferred
taxes
|
|
2,133
|
|
2,248
|
|
Severance pay
fund
|
|
4,095
|
|
3,770
|
|
Property and
equipment, net
|
|
1,174
|
|
1,214
|
|
Intangible assets,
net
|
|
2,441
|
|
2,778
|
|
Goodwill
|
|
30,929
|
|
30,929
|
|
Total long-term
assets
|
|
40,920
|
|
41,094
|
|
|
|
|
|
|
|
Total
assets
|
$
|
59,208
|
$
|
57,954
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands, except share and per share data
|
|
|
March
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
Unaudited
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Trade
payables
|
$
|
240
|
$
|
375
|
Payment obligation
related to acquisitions
|
|
-
|
|
271
|
Deferred
revenues
|
|
13,434
|
|
10,676
|
Employees and payroll
accruals
|
|
3,235
|
|
4,741
|
Accrued expenses and
other current liabilities
|
|
2,124
|
|
2,021
|
Liability presented
at fair value
|
|
455
|
|
-
|
Total current
liabilities
|
|
19,488
|
|
18,084
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Other
liabilities
|
|
302
|
|
277
|
Deferred
revenues
|
|
1,731
|
|
1,438
|
Liability presented
at fair value
|
|
-
|
|
512
|
Accrued severance
pay
|
|
5,442
|
|
5,027
|
Total long-term
liabilities
|
|
7,475
|
|
7,254
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share capital -
Ordinary shares of NIS 0.4 par value -
|
|
1,928
|
|
1,921
|
Authorized:
32,500,000 shares at March 31, 2017 and December
31, 2016; Issued and outstanding: 16,898,380 shares at March
31,
2017 and 16,841,238 shares at December 31, 2016
|
|
|
|
Additional paid-in
capital
|
|
150,739
|
|
149,716
|
Accumulated other
comprehensive loss
|
|
(941)
|
|
(1,013)
|
Accumulated
deficit
|
|
(119,481)
|
|
(118,008)
|
|
|
|
|
|
Total shareholders'
equity
|
|
32,245
|
|
32,616
|
Total liabilities and
shareholders' equity
|
$
|
59,208
|
$
|
57,954
|
CONDENSED
STATEMENTS OF OPERATIONS
|
U.S. dollars and
share amounts in thousands, except per share data
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
Revenues:
|
|
|
|
|
|
Software
licenses
|
|
6,970
|
|
5,575
|
|
Maintenance and
services
|
|
6,866
|
|
6,165
|
|
Total
revenue
|
|
13,836
|
|
11,740
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of
revenues
|
|
2,079
|
|
2,058
|
|
Research and
development
|
|
3,292
|
|
3,300
|
|
Selling and
marketing
|
|
7,901
|
|
8,457
|
|
General and
administrative
|
|
1,184
|
|
1,130
|
|
Total operating
expenses
|
|
14,456
|
|
14,945
|
|
|
|
|
|
|
|
Operating
loss
|
|
(620)
|
|
(3,205)
|
|
|
|
|
|
|
|
Financial
expenses
|
|
120
|
|
57
|
|
Loss before income
taxes
|
|
(740)
|
|
(3,262)
|
|
|
|
|
|
|
|
Taxes on
income
|
|
733
|
|
326
|
|
Net loss
|
|
(1,473)
|
|
( 3,588)
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
(0.09)
|
|
(0.22)
|
|
Weighted average
number of shares used in
computing basic and diluted net loss per share
|
|
16,878
|
|
16,606
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
|
Unaudited
|
Cash
flows activities:
|
|
|
|
|
Net loss
|
|
(1,473)
|
|
(3,588)
|
Adjustments required
to reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
|
|
122
|
|
120
|
Stock based
compensation
|
|
828
|
|
985
|
Retention plan
associated with acquisition and other compensation in
shares
|
|
-
|
|
160
|
Amortization of
intangible assets
|
|
337
|
|
696
|
Accretion of payment
obligation
|
|
-
|
|
24
|
Changes in fair value
of payment obligation
|
|
-
|
|
35
|
|
|
|
|
|
Change in:
|
|
|
|
|
Accrued
severance pay, net
|
|
90
|
|
24
|
Trade
receivables
|
|
2,471
|
|
(1,085)
|
Other
accounts receivable and prepaid expenses
|
|
(962)
|
|
(700)
|
Other
long term assets
|
|
7
|
|
38
|
Trade
payables
|
|
(130)
|
|
132
|
Deferred
revenues
|
|
2,960
|
|
1,389
|
Employees and payroll accruals
|
|
(1,505)
|
|
(446)
|
Accrued
expenses and other current liabilities
|
|
99
|
|
11
|
Liabilities presented
at fair value
|
|
(57)
|
|
(147)
|
Change in deferred
taxes, net
|
|
119
|
|
(10)
|
Net cash provided by
(used in) operating activities
|
|
2,931
|
|
(2,362)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of property
and equipment
|
|
(80)
|
|
(211)
|
Net cash used in
investing activities
|
|
(80)
|
|
(211)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
exercise of warrants and options
|
|
202
|
|
51
|
Payment of contingent
consideration
|
|
(271)
|
|
-
|
Net cash provided by
(used in) financing activities
|
|
(69)
|
|
51
|
|
|
|
|
|
Foreign currency
translation adjustments on cash and cash equivalents
|
|
2
|
|
18
|
Increase (Decrease)
in cash and cash equivalents
|
|
2,784
|
|
(2,504)
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
9,166
|
|
12,522
|
Cash and cash
equivalents at the end of the period
|
$
|
11,950
|
$
|
10,018
|
Supplemental
disclosure of cash flow activities:
|
|
|
|
|
Cash paid during the
year for taxes
|
|
458
|
|
574
|
Non cash
activities:
|
|
|
|
|
Issuance of shares
related to acquisition
|
|
-
|
|
224
|
RECONCILIATION OF
SUPPLEMENTAL, NON-GAAP FINANCIAL INFORMATION
|
U.S. dollars and
share amounts in thousands, except per share data
|
|
Three months
ended
|
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
|
Unaudited
|
|
GAAP
revenues
|
13,836
|
|
11,740
|
|
Valuation adjustment
on acquired deferred service revenue
|
-
|
|
18
|
|
Non-GAAP
revenues
|
13,836
|
|
11,758
|
|
|
|
|
|
|
GAAP operating
expenses
|
14,456
|
|
14,945
|
|
Cost of revenues
(1)
|
(23)
|
|
(40)
|
|
Research and
development (1) (2)
|
(201)
|
|
(362)
|
|
Sales and marketing
(1) (2)
|
(379)
|
|
(768)
|
|
General and
administrative (1)
|
(225)
|
|
(251)
|
|
Amortization of
acquired intangible assets
|
(337)
|
|
(696)
|
|
Non-GAAP operating
expenses
|
13,291
|
|
12,828
|
|
|
|
|
|
|
GAAP operating
loss
|
(620)
|
|
(3,205)
|
|
Operating loss
adjustments
|
(1,165)
|
|
(2,135)
|
|
Non-GAAP operating
income (loss)
|
545
|
|
(1,070)
|
|
|
|
|
|
|
GAAP Financial
expense, net
|
(120)
|
|
(57)
|
|
Revaluation of
liabilities presented at fair value
|
(57)
|
|
(147)
|
|
Accretion of payment
obligations
|
-
|
|
24
|
|
Non-GAAP Financial
expense, net
|
(177)
|
|
(180)
|
|
|
|
|
|
|
GAAP taxes on
income
|
(733)
|
|
(326)
|
|
Tax related to
non-GAAP adjustments
|
(32)
|
|
(167)
|
|
Non-GAAP taxes on
income
|
(765)
|
|
(493)
|
|
|
|
|
|
|
GAAP net
loss
|
(1,473)
|
|
(3,588)
|
|
Valuation adjustment
on acquired deferred revenue
|
-
|
|
18
|
|
Amortization of
acquired intangible assets
|
337
|
|
696
|
|
Acquisition related
expenses
|
-
|
|
436
|
|
Stock-based
compensation
|
828
|
|
985
|
|
Revaluation of
liabilities presented at fair value
|
(57)
|
|
(147)
|
|
Accretion of payment
obligations
|
-
|
|
24
|
|
Tax related to
non-GAAP adjustments
|
(32)
|
|
(167)
|
|
Non-GAAP net
loss
|
(397)
|
|
(1,743)
|
|
|
|
|
|
|
GAAP basic and
diluted net loss per share
|
(0.09)
|
|
(0.22)
|
|
Non-GAAP basic and
diluted net loss
|
(0.02)
|
|
(0.10)
|
|
Shares used in
computing basic and diluted net loss per share
|
16,878
|
|
16,606
|
|
|
Three months
ended
|
|
|
March 31,
|
|
(1) Stock-based
compensation expenses (*):
|
2017
|
|
2016
|
|
Cost of
revenues
|
23
|
|
40
|
|
Research and
development
|
201
|
|
262
|
|
Sales and
marketing
|
379
|
|
432
|
|
General and
administrative
|
225
|
|
251
|
|
|
828
|
|
985
|
|
(*) Retention bonus
paid in Attunity shares constitute part of (2) below
|
|
|
|
|
|
|
|
|
|
(2) Acquisition
related expenses
|
|
|
|
|
Research and
development
|
-
|
|
100
|
|
Sales and
marketing
|
-
|
|
336
|
|
|
-
|
|
436
|
|
For more information, please contact:
Garth Russell / Allison Soss
KCSA Strategic Communications
P: + 1 212-682-6300
grussell@kcsa.com / asoss@kcsa.com
Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
dror.elkayam@attunity.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/attunity-reports-first-quarter-2017-results-300447089.html
SOURCE Attunity Ltd.