Press Releases

January 27, 2010

ATTUNITY REPORTS FOURTH QUARTER AND FULL YEAR 2009 RESULTS

To view the full release including financial information click here.

Burlington, MA– January 27, 2010 – Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration and event capture software, reported today its financial results for the fourth quarter and full year ended December 31, 2009.

Commenting on the results, Shimon Alon, Attunity's Chairman and CEO, stated, “We are pleased, as demonstrated by our financial results for the fourth quarter and for the full year 2009, that we turned into profitability and have generated a positive cash flow in 2009. During the year, we focused the turn-around on further developing our core leading products, introducing product lines for the real-time data integration market, extending our offerings into the operational data replication market, strengthening our partnerships with market leaders, and expanding our offering to the large open system market".

Financial Highlights of Q4 2009 and FY 2009

  • A Non-GAAP operating profit of $1.6 million in 2009 compared to $1.4 million loss in 2008.
  • A Non-GAAP operating profit of $0.7 million for Q4 2009, setting a quarterly record for 2009.
  • Continuous improvement of Non-GAAP operating profit quarter-over-quarter in 2009.
  • Record quarterly revenues in 2009 of $2.7 million, compared to $2.2 million in Q4 2008
  • License revenues of $1.3 million in Q4 2009 compared to $0.9 million in Q4 2008

Q4 2009 Financial Summary

  • Revenues: $2,685,000, compared to $2,200,000 in the fourth quarter of 2008.
  • Net Operating Profit/Loss – (Non GAAP): $725,000 profit, compared to $970,000 net operating loss in the fourth quarter of 2008. Non-GAAP operating profit (loss) excludes software development costs, capitalization and amortization (see footnote 1 at the end of this release) and equity based compensation expenses (see footnote 2).
  • Net Operating Profit/Loss – (GAAP): $79,000 profit, compared to $1,452,000 net operating loss in the fourth quarter of 2008.
  • Net Profit/Loss (Non-GAAP): $649,000 net profit compared to net loss of $1,000,000 in the fourth quarter of 2008. Non-GAAP net profit (loss) excludes software development costs, capitalization and amortization (see footnote 1), equity- based compensation expenses (see footnote 2) and revaluation of conversion features related to our convertible debt and outstanding warrants (in 2008, 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) - see footnote 3.
  • Net Profit/Loss (GAAP): $41,000, compared to $1,705,000 net loss in the fourth quarter of 2008.
  • Net Profit/Loss per Diluted Share (Non-GAAP): $0.02 net profit per diluted share compared to net loss per diluted share of $0.04 in the fourth quarter of 2008.
  • Net Profit/Loss per Diluted Share (GAAP): $0.00 net profit per diluted share, compared to net loss per diluted share of $0.07 in the fourth quarter of 2008.

FY 2009 Financial Summary

  • Revenues: $9,453,000, compared to $11,472,000 in 2008.
  • Net Operating Profit/Loss – (Non GAAP): $1,578,000 net operating profit, compared to $1,402,000 net operating loss in 2008. Non-GAAP operating profit (loss) excludes software development costs, capitalization and amortization (see footnote 1 at the end of this release), and equity-based compensation expenses (see footnote 2).
  • Net Operating Profit /Loss – (GAAP): $588,000 net operating loss, compared to $2,547,000 net operating loss in 2008.
  • Net Profit/Loss (Non-GAAP): $1,263,000 net profit compared to net loss of $2,040,000 in 2008. Non-GAAP net profit (loss) excludes software development costs, capitalization and amortization (see footnote 1), and equity-based compensation expenses (see footnote 2), and revaluation of conversion features related to its convertible debt and outstanding warrants 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, (see footnote 3).
  • Net Loss (GAAP): $1,303,000, compared to $3,857,000 in 2008.
  • Net Profit/Loss per Diluted Share (Non-GAAP): $0.04 net profit per diluted share compared to net loss per diluted share of $0.09 in 2008.
  • Net Loss per Diluted Share (GAAP): $0.05 net loss per diluted share, compared to net loss per diluted share of $0.17 in 2008.

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

Mr. Alon concluded, “We are looking forward to 2010, as we plan to focus on growth of revenues. Responding to market demand, we intend to continue to introduce new products for the real-time data integration market to meet the requirements of our users and partners. We will also continue our focus on the large markets of Oracle, Microsoft, IBM, SAP and HP as well as other leading Business Intelligence (BI) solutions, while strengthening our partnerships with these leading market players.”

About Attunity
Attunity is a leading provider of real-time data integration and event capture software. Using our software solutions such as Attunity Connect, a real-time connectivity software, or Attunity Stream, our log-based, real-time change-data-capture software, 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, visit http://www.attunity.com.

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 profit (loss), net operating profit (loss) and net profit (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 and non-cash financial expenses such as revaluation of conversion features related to its convertible debt and outstanding warrants in accordance with EITF 07-5 (affected, among other factors, by changes in Attunity ‘s share price). 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 introduction of new real-time data integration products, 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.

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© 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
For more information, please contact:
Dror Elkayam, VP Finance
Attunity Ltd.
Tel. +972 9-899-3000
dror.elkayam@attunity.com