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Attunity Reports First Quarter 2012 Results

April 22, 2012

BURLINGTON, Massachusetts, April 23, 2012 /PRNewswire/ –

Attunity, Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of information
availability software solutions, today reported its unaudited financial results for the
three month period ended March 31, 2012.

Financial Highlights for the First Quarter of 2012:

        - Sixth consecutive quarter of license and total revenues growth.
        - Total revenues increased 106% to $6.1 million in the first quarter of 2012,
          compared to $3.0 million for the same period last year.
        - License revenues increased 125% to $3.6 million in the first quarter of 2012,
          compared to $1.6 million for the same period last year.
        - Non-GAAP net income increased 24% to $504,000 in the first quarter of 2012,
          compared to $408,000 for the same period last year.
        - Total outstanding debt was reduced to $0.3 million as of March 31, 2012 from
          $0.9 million as of December 31, 2011:
             - An additional $0.5 million of the Company's outstanding convertible
             promissory notes (debt) were converted into equity by certain holders,
             demonstrating their confidence in the Company's prospects; and
             - Outstanding Plenus debt was fully repaid with a final payment of $83,000
             during January 2012.
        - Cash and cash equivalents increased to $2.4 million as of March 31, 2012,
          compared to $1.5 million as of December 31, 2011.
        - Shareholders' equity increased to $6.1 million as of March 31, 2012 compared
          to $5.2 million as of December 31, 2011.

Recent Operational Highlights:

        - Consummated several major deals, primarily within the financial services
          sector.
        - Partnered with Hortonworks, a leading commercial vendor promoting the
          innovation, development and support of Apache Hadoop, to develop Big Data replication
          products for Apache Hadoop that enable Big Data analytics.
        - Completed the integration of RepliWeb with Attunity to unify all of the
          company's functions and to leverage the capabilities of both organizations.
        - Developed innovative products that enable data replication for leading cloud
          platforms. These new products, which leverage synergies between the Attunity and its
          recently acquired RepliWeb technologies, will be released during the second half of
          this year.

Commenting on the results, Mr. Shimon Alon, Chairman and CEO of Attunity, stated, “We
are pleased to report that our information availability solutions for replicating both
structured and unstructured data are continuously gaining traction in the market, making
this quarter our sixth consecutive quarter of revenue growth. The primary driver of this
growth was our direct sales organization, which performed well across all regions and
product lines. Additionally our OEM partnerships with IBM and Microsoft continue to
generate strong revenue performance.”

Mr. Alon concluded, “We are committed to growing our business and serving our
customers. Accordingly we regularly enhance our solutions and look to form partnerships
with providers of complementary solutions. We recently entered into a partnership with
Hortonworks that will facilitate loading massive amounts of structured and unstructured
data to the Apache Hadoop Distributed File System (HDFS). Together, we plan to deliver
solutions to the market that expedite and simplify the process of making Big Data
available for modern Business Intelligence (BI) and analytics. In addition, we are
expanding Attunity Replicate to address broader markets, including large-scale data
warehousing, predictive analytics, continuous availability, and data migration. We plan to
release multiple solutions for cloud computing, replicating data across data centers and
the cloud, with specific offerings for the leading IaaS (Infrastructure as a Service) and
SaaS (Software as a Service) platforms. These new solutions will offer scalability and
high-performance to expand and enhance our business from its traditional on-premise
infrastructure to private and public cloud environments. We will continue to develop
solutions based on our data and file replication technologies to deliver innovative Big
Data and Cloud transfer solutions.”

Financial Results for Q1 2012

Total revenues for the first quarter of 2012 increased 106% to $6.1 million, compared
to $3.0 million for the same period of 2011. This included license revenues for the first
quarter of 2012, which increased 125% to $3.6 million, compared to $1.6 million for the
same period of 2011. RepliWeb products contributed $2.1 million in total revenues and $0.9
million in license revenues in the first quarter of 2012.

Net operating income for the first quarter of 2012 was $343,000, compared to $340,000
for the same period of 2011. Non-GAAP net operating income for the first quarter of 2012
was $831,000 compared to $513,000 for the same period last year. Non-GAAP net operating
income for the first quarter of 2012 excludes equity-based compensation and amortization
of software development costs totaling $220,000 compared to $173,000 for the same period
last year, as well as $268,000 in amortization and expenses related to the acquisition of
RepliWeb (see footnotes 1 and 2 at the end of this release).

Net income (loss) for the first quarter of 2012 was ($125,000), or ($0.00) per diluted
share, compared to $179,000 profit, or $0.00 per diluted share, in the first quarter of
2011. Net loss for the first quarter of 2012 was negatively impacted by a total of
$157,000 in financial expenses including inducement expenses associated with conversion of
convertible debt of $108,000 (such expense did not exist in the same period in 2010) and
$49,000 associated with the revaluation of the conversion feature related to Company’s
convertible debt, and by a total of $206,000 of amortization of technology ($140,000) and
of customers relationship ($66,000) both associated with the acquisition of RepliWeb, as
well as $164,000 in expenses related to stock based compensation . Non-GAAP net income for
the first quarter of 2012 was $504,000 compared to $408,000 for the same period last year.
Non-GAAP net income for the first quarter of 2012 excludes a total of $629,000 in expenses
and amortization related to the acquisition of RepliWeb, financial expenses associated
with the revaluation of liabilities presented at fair value and with the conversion of
part of the convertible debt, equity-based compensation expenses and amortization of
software development costs (see footnotes 1 and 2 at the end of this release).

Cash and cash equivalents were $2.4 million as of March 31, 2012, compared to $1.5
million as of December 31, 2011.

Shareholders’ equity increased to $6.1 million as of March 31, 2012, compared to $5.2
million as of December 31, 2011.

See “Use of Non-GAAP Financial Information” below for more information regarding
Attunity’s use of Non-GAAP financial measures.

Conference Call Information

The Company’s management will host a conference call today, April 23, 2012, at 10:00
a.m. Eastern Time. The conference call will be available via webcast and can be accessed
through the Events section of Attunity’s website, http://www.attunity.com/events, and
http://www.kcsa.com, the contents of which are not part of this press release. Please
allow extra time prior to the call to visit the site and download any necessary software
to listen to the Internet broadcast. The dial-in numbers for the conference call are
1-866-691-3082 (US Toll Free), +1-480-629-1941 (International) or 072-273-3197 (Israel)
All dial-in participants must use the following code to access the call: 4531512. Please
call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay of the call
will be available through May 23, 2012 at 1-800-406-7325 (US Toll Free), +1-303-590-3030
(International) or 072-273-3198 (Israel). Participants must use the following code to
access the replay of the call: 4531512. The online archive of the webcast will be
available on http://www.attunity.com/events or http://www.kcsa.com for 30 days
following the call.

About Attunity

Attunity is a leading provider of information availability solutions that enable
access, sharing and distribution of data across heterogeneous enterprise platforms,
organizations, and the cloud. Our software solutions include data replication
[http://www.attunity.com/attunity_replicate ], change data capture
[http://www.attunity.com/attunity_stream ] (CDC), data connectivity
[http://www.attunity.com/attunity_connect ], enterprise file replication
[http://www.repliweb.com/products/r1-r/index.php ] (EFR) and managed-file-transfer
[http://www.repliweb.com/products/rmft/index.php ] (MFT). 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 [http://blog.attunity.com ] and join our community on Twitter
[http://www.twitter.com/attunity ], Facebook [http://www.facebook.com/attunity ], LinkedIn
[http://www.linkedin.com/groups?about=&gid=2884948&trk=anet_ug_grppro ] and YouTube
[http://www.youtube.com/attunity ].

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), 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,
amortization of software development costs in accordance with ASC 985-20, and non-cash
financial expenses such as revaluation net of related tax effect of liabilities presented
at fair value and convertible debt inducement expenses. 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 our outlook for 2012 or introduction of new solutions for cloud
computing, 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: our reliance on strategic
relationships with our distributors, OEM and VAR partners, including Microsoft; 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 known or unknown contingent liabilities, including litigation, costs,
tax and expenses; our liquidity challenges and the need to raise additional capital in the
future; timely availability and customer acceptance of Attunity’s new and existing
products, including Attunity Replicate; 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; 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/A for the year ended December 31, 2011, 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) 2012 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

                                                           March 31,   December 31,
                                                               2012           2011
                                                          Unaudited
        ASSETS
        CURRENT ASSETS:
        Cash and cash equivalents                       $     2,448    $     1,484
        Restricted cash                                         367            362
        Trade receivables (net of allowance for
        doubtful accounts of $15 at March 31, 2012 and
        December 31, 2011)                                    1,950          1,988
        Other accounts receivable and prepaid expenses          313            158
        Total current assets                                  5,078          3,992
        LONG-TERM ASSETS:
        Other long term assets                                   68             72
        Severance pay fund                                    2,797          2,684
        Property and equipment, net                             410            380
        Intangible assets ,net                                2,592          2,854
        Goodwill                                             13,119         13,011
        Total long-term assets                               18,986         19,001
        Total assets                                    $    24,064    $    22,993

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands except share data


                                                           March 31,   December 31,
                                                               2012           2011
        LIABILITIES AND SHAREHOLDERS' EQUITY              Unaudited
        CURRENT LIABILITIES:
        Current maturities of long-term convertible
        debt                                           $        307     $      835
        Current maturities of long-term debt                     23            115
        Trade payables                                          495            452
        Deferred revenues                                     6,678          5,733
        Employees and payroll accruals                        1,953          2,151
        Accrued expenses and other current liabilities        1,577          1,906
        Bifurcated conversion feature , presented at
        fair value                                               98            227
        Total current liabilities                            11,131         11,419
        LONG-TERM LIABILITIES:
        Contingent payment obligation                         1,735          1,669
        Long term deferred tax liability, net                   457            352
        Other long-term liabilities                             346            388
        Liabilities presented at fair value                     525            510
        Accrued severance pay                                 3,764          3,467
        Total long-term liabilities                           6,827          6,386
        SHAREHOLDERS' EQUITY:
        Share capital - Ordinary shares of NIS 0.1 par
        value -
        Authorized: 130,000,000 shares at March 31,
        2012 and December 31, 2011 Issued and
        outstanding: 41,380,215 shares at March 31,
        2012 and 39,951,106 at December 31, 2011              1,184          1,146
        Additional paid-in capital                          108,511        107,572
        Accumulated other comprehensive loss                   (624)          (690)
        Accumulated deficit                                (102,965)      (102,840)
        Total shareholders' equity                            6,106          5,188
        Total liabilities and shareholders' equity     $     24,064     $   22,993

CONSOLIDATED STATEMENTS OF OPERATIONS

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

                                                         3 months ended
                                                            March 31,
                                                        2012         2011
                                                   Unaudited    Unaudited
        Software licenses                        $     3,563   $    1,587
        Maintenance and services                       2,519        1,371
                                                       6,082        2,958
        Operating expenses:
        Cost of revenues                                 636          303
        Research and development                       2,037          751
        Selling and marketing                          2,282        1,016
        General and administrative                       784          548
        Total operating expenses                       5,739        2,618
        Operating Income                                 343          340
        Financial expenses, net                          347          121
        Income /(Loss) before income taxes               (4)          219
        Taxes on income                                  121           40
        Net income / (loss)                      $      (125)  $      179
        Basic net income/(loss) per share        $     (0.00)  $     0.01
        Weighted average number of shares used
        in computing basic net income /( loss)
        per share                                     41,093       33,193
        Diluted net income/(loss) per share      $     (0.00)  $     0.00
        Weighted average number of shares used
        in computing diluted net income/(loss)
        per share                                     41,093       40,116

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

                                                              3 months ended
                                                         March 31,       March 31,
                                                           2012            2011
                                                         Unaudited       Unaudited
        Cash from operating activities:
        Net Income /( loss)                            $      (125)    $       179
        Adjustments required to reconcile net income
        ( loss) to net cash provided by operating
        activities:
        Depreciation                                            48              26
        Stock based compensation                               164              68
        Amortization of intangible assets                      262             105
        Accretion of contingent payment obligation              66               -
        Convertible debt inducement expenses                   108               -
        Increase (decrease) in accrued severance pay,
        net                                                    184              25
        Decrease (increase) in trade receivables                38             502
        Decrease ( increase) in other accounts
        receivable and prepaid expenses                       (180)            (74)
        Decrease (increase) in long-term prepaid
        expenses                                                 4               7
        Increase (decrease) in trade payables                   43              72
        Increase (decrease) in deferred revenues               945             762
        Increase (decrease) in employees and payroll
        accruals                                              (198)            (11)
        Increase (decrease) in accrued expenses and
        other liabilities                                     (329)             23
        Revaluation of restricted cash                          (5)             (5)
        Change in liabiliteis presented at fair value           49              56
        Change in deferred taxes net                            88               -
        Net cash provided by operating activities            1,162           1,735
        Cash flows from investing activities:
        Purchase of property and equipment                     (78)            (65)
        Net cash used in investing activities                  (78)            (65)
        Cash flows from financing activities:
        Proceeds from exercise of stock options,
        warrants and rights                                     74             133
        Receipt of long term loan                                -              57
        Repayment of long-term debt                            (92)           (264)
        Repayment of convertible debt                          (61)            (61)
        Net cash used in financing activities                  (79)           (135)
        Foreign currency translation adjustments on
        cash and cash equivalents                              (41)             15
        Increase (decrease) in cash and cash
        equivalents                                            964           1,550
        Cash and cash equivalents at the beginning of
        the period                                           1,484             872
        Cash and cash equivalents at the end of the
        period                                         $     2,448     $     2,422
        Supplemental disclosure of cash flow
        activities:
        Cash paid during the period for:
        Interest                                       $         3     $        26
        Income tax                                     $       112     $         2
        Non cash activity
        Conversion of convertible debt and bifurcated
        conversion feature                             $       630               -

RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

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

                                                                   3 months ended
                                                                      March 31,
                                                                    2012         2011
                                                               Unaudited    Unaudited
           GAAP operating Income                             $       343    $     340
           Stock based compensation (1)                              164           68
           Amortization of Software Development Costs                 56          105
           Acquisition-related expenses, amortization and
           adjustments (2)                                           268            -
           Non-GAAP operating Income                         $       831    $     513
           GAAP net Income (loss)                                   (125)         179
           Stock based compensation (1)                              164           68
           Amortization of Software Development Costs                 56          105
           Acquisition-related expenses, amortization and
           adjustments (2)                                           268            -
           Revaluation of liabilities presented at fair
           value                                                     157           56
           Accretion of contingent payment obligation                 66            -
           Tax related to the acquisition                            (82)           -
           Non-GAAP net Income (Loss)                        $       504    $     408
           GAAP diluted net Income (loss) per share:               (0.00)        0.00
           Operating expenses GAAP                                  0.01         0.00
           Financial expenses                                       0.01         0.00
           Taxes on income                                         (0.00)           -
           Non-GAAP diluted net Income per share             $      0.01    $    0.01
           Weighted average number of shares used in
           computing diluted net income per share                 41,093       40,116
        (1)Stock-based compensation expenses under ASC 718
           included in:
           Research and development                                   60           19
           Selling and marketing                                      40           19
           General and administrative                                 64           30
                                                             $       164    $      68
        (2)Acquisition-related expenses, amortization and
           adjustments:
           Valuation adjustment on acquired deferred
           services revenue                                           62            -
           Cost of Sales - Amortization of technology                140            -
           Selling and marketing - Amortization of customers
           relationship                                               66            -
                                                             $       268    $       -
           Total Acquisition-Related Expenses:
           Acquisition-related expenses, amortization and
           adjustments - Note 2                                      268            -
           Accretion of contingent payment obligation                 66            -
           Tax related to the acquisition                            (82)           -
                                                             $       252    $       -

        For more information, please contact:
        Todd Fromer / Garth Russell
        KCSA Strategic Communications
        P: +1-212-682-6300
        tfromer@kcsa.com / grussell@kcsa.com

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

SOURCE Attunity Ltd


Source: PR Newswire