Attunity Reports First Quarter 2009 Results
Posted on: Monday, 27 April 2009, 01:00 CDT
BURLINGTON, Massachusettes, April 27 /PRNewswire-FirstCall/ -- Attunity
Ltd (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time event
capture and data integration software, reported today its unaudited financial
results for the first quarter ended March 31, 2009.
- Key financial metrics for the first quarter of 2009:
- Net Operating Profit - (Non GAAP): $80,000 net operating profit
compared to $39,000 Non-GAAP net operating profit in the first quarter of
2008.Non-GAAP operating profit excludes equity based compensation expenses
(see footnote 1 at the end of this release), and software development costs
capitalization and amortization (see footnote 2)
- Net Operating Loss - (GAAP): $418,000, compared to $223,000 in the
first quarter of 2008.
- Revenues: $2,213,000, a decrease of 32.4% compared to $3,276,000 in the
first quarter of 2008.
- Net Profit (Loss) (Non-GAAP): $64,000 compared to ($68,000) net loss in
the first quarter of 2008. Non-GAAP net profit (loss) excludes equity based
compensation expenses (see footnote 1), software development costs
capitalization and amortization (see footnote 2) and amortization of debt
discount, revaluation of warrants and deferred charges (see footnote 3).
- Net loss (GAAP): $593,000, compared to $554,000 in the first quarter of
2008.
- Net Profit per Diluted Share (Non-GAAP): $0.00, in both the first
quarters of 2008 and 2009.
- Net Loss per Diluted Share (GAAP): $0.03 compared to $0.02 in the first
quarters of 2008.
See "Use of Non-GAAP Financial Information" below for more information
regarding Attunity's use of Non-GAAP financial measures.
"Despite the continued difficulties in the capital market, we were able
to achieve our goal of attaining non-GAAP operational profitability in the
first quarter of 2009", stated Shimon Alon, Attunity Chairman and CEO. "Our
increased focus on creating a much tighter value proposition combined with
our cautiousness around costs and expenses over the last few quarters helped
us to achieve this goal. Furthermore, it is our intention to build upon this
achievement, while the pending rights offering is designed to address the
Company's working capital and capital resource requirements, enabling us to
be well positioned to meet the challenging market conditions in 2009."
Highlights of the Quarter
Microsoft
- Launched into Beta testing the first tightly packaged
change-data-capture (CDC) product - Attunity Oracle-CDC for SSIS -
specifically engineered for the large Microsoft SQL and Integration Services
(SSIS) community, amid positive industry support.
OEM agreements
- Renewed license agreement with business partner Consist covering Spain
and South American territories.
Major customer and partner wins
- Major customer contracts across the world included Ministry of Water
Resources (China), Shanghai Stock Exchange, International Atomic Energy
Agency (Austria), Morgan Keegan and Fidelity National Financial.
- Announced new business partnership with open-source integration
provider Talend.
Other Highlights
As previously announced, the Company has commenced a rights offering to
raise up to $1.2 million in gross proceeds. The rights offering is designed
to enable Attunity to complete its recent debt restructuring activities.
"Our tighter company focus around core competencies is now translating
our offering and value proposition into new market opportunities. Our value
proposition has always been one of delivering increased value from our
customers' information assets, and with the economic realities of today
focusing everyone's attention on costs, we believe the demand for real-time
integration technologies such as our solutions, will grow" continued Shimon
Alon. "We believe that our recent debt restructuring activities, including
the pending rights offering, along with our refined cost structure, will
continue to help drive us towards non-GAAP profitability and positive cash
flows from operations this year".
About Attunity
Attunity is a leading provider of real-time event capture and data
integration software. Using our software solutions, Attunity's customers
enjoy dramatic business benefits by driving down the cost of managing their
operational systems, creating flexible, service-based architectures for
increased business agility, and by detecting critical actionable business
events, as they happen, for faster business execution.
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 strategic and OEM agreements with partners
such as Microsoft, Oracle, IBM, HP and SAP/Business Objects. 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, please visit us at http://www.attunity.com, the content of which
is not part of this press release.
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 loss, net operating profit (loss) and net loss per share, which are
adjustments from results based on GAAP to exclude non-cash equity based
compensation charges in accordance with SFAS 123(R), non-cash capitalization
and amortization of software development costs in accordance with SFAS 86,
expenses related to employment termination and offices shutdown costs, and
non cash financial expenses such as amortization of beneficial conversion
features related to the convertible debt and deferred charges related to
warrants granted in connection with a long term loan. 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 profitability and cash flows, 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: 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; our liquidity challenges and the need to
raise additional capital in the near future; 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;
unknown factors affecting third parties with which Attunity has formed
business alliances; timely availability and customer acceptance of Attunity's
new and existing products; 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, 2008, 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) 2009 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
ATTUNITY LTD. AND ITS SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF March 31, 2009
U.S. DOLLARS IN THOUSANDS
INDEX
Page
Consolidated Balance Sheets 2-3
Consolidated Statements of Operations 4
Statements of Changes in Shareholders' Equity 5
Consolidated Statements of Cash Flows 6
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December
March 31, 31,
2009 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 798 480
Restricted cash 187 206
Trade receivables and unbilled revenues (net
of allowance for doubtful accounts of $15
both at December 31, 2008 and March 31,
2009) 646 502
Other accounts receivable and prepaid
expenses 217 221
Total current assets 1,848 1,409
LONG-TERM ASSETS:
Long-term prepaid expenses 107 106
Severance pay fund 954 1,121
Property and equipment, net 333 371
Software development costs, net 3,143 3,585
Goodwill 6,141 6,234
Deferred charges, net 13 204
Total long-term assets 10,691 11,621
Total assets 12,539 13,030
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
March 31, December 31,
2008 2008
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
short term loans 658 412
Current maturities of long-term
convertible debt 1,975 1,781
Trade payables 314 389
Deferred revenues 2,663 2,220
Employees and payroll accruals 909 1,079
Accrued expenses and other liabilities 856 718
Total current liabilities 7,375 6,599
LONG-TERM LIABILITIES:
Long-term debt 1,870 2,063
Accrued severance pay 1,346 1,546
Total long-term liabilities 3,216 3,609
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS
0.1 par value - 720 720
Authorized: 130,000,000 shares at
December 31 2008 and 70,000,000 at
December 31, 2007; Issued and
outstanding: 23,196,236 shares at
December 31, 2008 and December 31, 2007
Additional paid-in capital 104,338 104,279
Accumulated other comprehensive loss (474) (455)
Accumulated deficit (102,636) (101,722)
Total shareholders' equity 1,948 2,822
Total liabilities and shareholders'
equity 12,539 13,030
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Revenues:
3 months ended
Mar-31
2009 2008
Software licenses 921 1,654 -44.3%
Maintenance and services 1,292 1,622 -20.3%
2,213 3,276 -32.4%
Operating expenses:
Cost of revenues 721 632 14.1%
Research and development,
net 520 710 -26.8%
Selling and marketing 920 1,702 -45.9%
General and administrative 470 455 3.3%
Employment termination and
offices shutdown costs - -
Total operating expenses 2,631 3,499 -24.8%
Operating loss (418) (223) 87.4%
Financial expenses, net 163 310 -47.4%
Other expense (income) (10) -
Loss before income taxes (571) (533) 7.1%
Taxes on income 22 21 4.8%
Net loss -593 (554) 7.0%
Basic and diluted net loss
per share $ (0.03) $ (0.02) 7.0%
Weighted average number of
shares used in computing
basic and diluted net loss
per share 23,196 23,196 0.0%
(**) The above items are
inclusive of the
following equity-based
compensation expenses
resulting under SFAS 123(R):
Equity-based compensation
expense included in
"Research and development"
Equity-based compensation
expense included in "Selling
and marketing"
Equity-based compensation
expense included in "General
and administrative"
0 0
Net basic and diluted
equity-based compensation
expense, per share $ (0.03) $ (0.02)
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
U.S. dollars in thousands, except share data
Accumulated
Additional Other
Ordinary shares paid-in comprehensive
Shares Amount Capital loss
Balance as of
December 31,
2006 23,166,931 720 102,772 (569)
Exercise of
employee stock
options 29,305 *) 27 -
Warrants
issued in
consideration
of credit line - - 495 -
Stock-based
compensation - - 630 -
Other
comprehensive
loss:
Foreign
currency
translation
adjustments - - - 138
Net loss - - - -
Total
comprehensive
loss
Balance as of
December 31,
2007 23,196,236 720 103,924 (431)
Stock-based
compensation - - 355 -
Other
comprehensive
loss:
Foreign
currency
translation
adjustments - - - (24)
Net loss - - - -
Total
comprehensive
loss
Balance as of
December 31,
2008
(unaudited) 23,196,236 720 104,279 (455)
Stock-based
compensation - - 59
Other
comprehensive
loss:
Foreign
currency
translation
adjustments - - 2
Net loss - - - (21)
Total
comprehensive
loss
Balance as of
March 31, 2009
(unaudited) 23,196,236 720 104,338 (474)
Table Continued...
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
U.S. dollars in thousands, except share data
Total Total
Accumulated comprehensive shareholders'
deficit loss equity
Balance as of
December 31, 2006 (90,914) 12,009
Exercise of employee
stock options 27
Warrants issued in
consideration of credit
line 495
Stock-based compensation 630
Other comprehensive loss:
Foreign currency
translation adjustments 138 138
Net loss (6,936) (6,936)
(6,996)
Total comprehensive loss (6,798)
Balance as of
December 31, 2007 (97,910) 6,303
-
Stock-based compensation 355
Other comprehensive loss: -
Foreign currency
translation adjustments (24) (24)
Net loss (3,812) (3,812) (3,812)
Total comprehensive loss (3,836) 2,822
Balance as of
December 31, 2008 (unaudited)(101,722)
Stock-based compensation (321) (262)
Other comprehensive loss: -
Foreign currency
translation adjustments 2 2
Net loss (593) (593) (593)
Total comprehensive loss (591) (853)
Balance as of
March 31, 2009 (unaudited) (102,636) 1,948
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
3 months ended
March 31,
2009 2008
Cash flows from operating activities:
Net loss from continued operations (593) (3,812)
Adjustments required to reconcile net loss to
net cash provided by (used in) operating
activities:
Depreciation 39 243
Stock based compensation 59 322
Amortization of deferred expenses 12 219
Amortization of debt discount 99 682
Amortization of software development costs 571 1,659
Increase (decrease) in accrued severance pay,
net (33) 110
Decrease (increase) in trade receivables (147) 373
Decrease in other accounts receivable and
prepaid expenses 3 255
Increase in long-term prepaid expenses (1) (34)
Increase (decrease) in trade payables (74) (64)
Increase in deferred revenues 441 (2)
Increase in employees and payroll accruals (166) (142)
Decrease in accrued expenses and other
liabilities 93 (128)
Increase (decrease)Long term liabilities (26) 63
Net cash provided by (used in) operating
activities from continued operations
(reconciled from continuing operations) 276 (257)
Net cash provided by operating activities from
discontinued operations (reconciled from
discontinued operations)
Net cash provided by operating activating 276 (257)
Cash flows from investing activities:
Restricted cash, net - (47)
Purchase of property and equipment - (38)
Capitalization of software development costs (126) (837)
Proceeds from sale of property equipment - -
Net cash used in investing activities (126) (922)
Cash flows from financing activities:
Proceeds from exercise of employee stock
options - -
Receipt of Short -term debt, net 84 402
Repayment of long-term debt (5) (17)
Repayment of short-term debt - -
Net cash provided by (used in) financing
activities 79 385
Foreign currency translation adjustments on
cash and cash equivalents 89 (47)
DIecrease in cash and cash equivalents 318 (841)
Cash and cash equivalents at the beginning of
the period 480 1,321
Cash and cash equivalents at the end of the
period 798 480
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest 49 175
Supplemental disclosure of non-cash investing
and financing activities:
Stock-based compensation that was capitalized
as part of capitalization of software
development costs 35
Issuance of warrant and extension of
contractual period of warrants in
consideration of long-term loan - -
U.S. dollars in thousands, except per share data
Three months ended
March 31,
2009 2008
GAAP operating loss (418) (223)
Stock based compensation (1) 56 92
Software development costs
capitalization and amortization (2) 442 170
Non-GAAP operating profit (loss) 80 39
GAAP net loss (593) (554)
Stock based compensation (1) 56 92
Software development costs
capitalization and amortization (2) 442 170
Financial expenses (3) 159 224
Non-GAAP net profit (loss) 64 (68)
GAAP basic and diluted net loss per
share (0.03) (0.02)
Stock based compensation (1) 0.00 0.00
Software development costs
capitalization and amortization (2) 0.02 0.01
Financial expenses (3) 0.01 0.01
Non-GAAP basic and diluted net loss per
share 0.00 (0.00)
Weighted average number of shares used
in computing basic and diluted net loss
per share 23,196 23,196
*) Less than $0.01 per share
(1) Equity-based compensation**
expenses resulting under SFAS 123(R):
Equity-based compensation expense
included in "Research and development" 11 31
Equity-based compensation expense
included in "Selling and marketing" 28 48
Equity-based compensation expense
included in "General and
administrative" 18 13
56 92
"Equity based compensation expenses" refer to the amortized fair value of
all equity based awards granted to employees.
(2) Software development costs
capitalization and amortization
resulting under SFAS 86:
Capitalization (129) (211)
Amortization 571 381
442 170
(3) Financial expenses:
Amortization of debt discount 99 170
Revaluation of warrants and embedded
derivatives 48
Amortization of deferred charges 12 54
159 224
For more information:
Andy Bailey, VP Marketing Dror Elkayam, VP Finance
Attunity Attunity
+1-781-213-5204 +972-9-899-3000
andy.bailey@attunity.com dror.elkayam@attunity.com
SOURCE Attunity Ltd
Source: PR Newswire
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