Press Releases

January 30, 2013

Attunity Reports Fourth Quarter and Full Year 2012 Financial Results

Non-GAAP net income increased 100% in the fourth quarter of 2012; License revenues increased 34% in the fourth quarter of 2012

BURLINGTON, Massachusetts, January 30, 2013 -- Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of information availability software solutions, today reported its unaudited financial results for the three month period and year ended December 31, 2012.

Financial Highlights for the Fourth Quarter of 2012

  • Total revenues increased 24% to $7.1 million in the fourth quarter of 2012, compared to $5.7 million for the same period last year
  • License revenues increased 34% to $4.3 million in the fourth quarter of 2012, compared to $3.2 million for the same period last year
  • Operating income increased to $0.9 million in the fourth quarter of 2012, compared to an operating loss of ($14,000) for the same period last year  
  • Non-GAAP operating income increased 82% to $1.4 million in the fourth quarter of 2012, compared to $0.8 million for the same period last year
  • Net income increased to $1.1 million in the fourth quarter of 2012, compared to a loss of ($0.4) million for the same period last year
  • Non-GAAP net income increased 100% to $1.5 million in the fourth quarter of 2012, compared to $0.7 million for the same period last year

Financial Highlights for the Year Ended December 31, 2012

  • Total revenues increased 68% to $25.5 million in 2012, compared to $15.2 million in 2011
  • License revenues increased 77% to $14.4 million in 2012, compared to $8.1 million in 2011
  • Operating income increased to $2.5 million in 2012, compared to $70,000 in 2011
  • Non-GAAP operating income increased 97% to $4.4 million in 2012, compared to $2.2 million in 2011
  • Net income increased to $1.5 million in 2012, compared to a loss of $0.8 million in 2011
  • Non-GAAP net income increased 175% to $4.1 million in 2012, compared to $1.5 million in 2011
  • Shareholders' equity increased to $9.6 million as of December 31, 2012 compared to $5.2 million as of December 31, 2011

Recent Operational Highlights

  • Record quarterly revenues in the fourth quarter of 2012 for Attunity Replicate, partially attributable to signing major customer agreements across all regions and several industries, including a leading global semiconductor corporation, a large financial services institution, several healthcare organizations and a leading online E-commerce vendor. Closed several competitive wins with Attunity Replicate for EMC Greenplum for Big Data analytics, as well as for Oracle Exadata.
  • Launched commercial availability of Attunity CloudBeam, a fully-managed data transfer platform, with several solutions for Amazon Web Services (AWS) cloud storage.
  • Introduced new solution for Hadoop to accelerate Big Data collection and integration based on Attunity Managed File Transfer (MFT) software.

"We are excited to report a 100% increase in non-GAAP net income for the fourth quarter, which was driven by a 34% increase in license revenues.  This quarter's financial results reflect a surge in demand for both Attunity Replicate and Attunity MFT solutions as we continue to increase our sales and marketing efforts, and continue to ramp up several strategic partnerships and strategic alliances," stated Shimon Alon, Chairman and CEO of Attunity. "Since launching Attunity Replicate earlier this year, we have closed over 20 deals worldwide across several industries, including financial services, semiconductor, and healthcare.  As a result, Attunity Replicate is now recognized as a leading replication software solution for customers and partners with Big Data initiatives."

"Since launching Attunity Replicate, our collaborations with leading data warehouse vendors gave us the ability to sell into their extensive customer bases and led directly to closing new customer agreements. We expect to close additional deals with these large scale data warehouse companies in the upcoming quarters. For example, our EMC Greenplum integration presented us with important opportunities, closing some this quarter and targeting others in 2013."

"In regards to our Cloud initiatives, the CloudBeam SaaS product for AWS has become commercially available. During Amazon's re:Invent Conference in November 2012, Amazon highlighted Attunity CloudBeam's ability to transfer and move data between different cloud regions, data backup, recovery and migration. We believe Amazon's detailed explanation of our technologies at this conference served as a testament to the critical need of our solutions for Amazon's customers."

Mr. Alon concluded, "We plan to expand our solutions with partners in the Big Data and Cloud markets, both adding new solutions with existing partners as well as developing new partnerships. Accordingly, we expect to increase our customer base, cultivate existing customers and partnerships, and expand our marketing and sales efforts to serve the growing market in 2013."

Financial Results for Q4 2012

Total revenues for the fourth quarter of 2012 increased 24% to $7.1 million, compared to $5.7 million for the same period of 2011. This included license revenues for the fourth quarter of 2012, which increased 34% to $4.3 million, compared to $3.1 million for the same period of 2011.

Operating income for the fourth quarter of 2012 was $919,000, compared to an operating loss of ($14,000) for the same period of 2011.

Non-GAAP operating income for the fourth quarter of 2012 was $1,395,000, compared to $767,000 for the same period last year. Non-GAAP operating income for the fourth quarter of 2012 excludes equity-based compensation and amortization of software development costs totaling $264,000, compared to $196,000 for the same period last year; and $212,000 in amortization and expenses related to the acquisition of RepliWeb, compared to $585,000 for the same period last year (see footnotes 1 and 2 at the end of this release).

Net income for the fourth quarter of 2012 was $1,060,000, or $0.09 per diluted share, compared to a loss of ($412,000), or ($0.04) per diluted share (adjusted to reflect the recent reverse stock split), in the fourth quarter of 2011.

Non-GAAP net income for the fourth quarter of 2012 was $1,453,000, compared to $727,000 for the same period last year. Non-GAAP net income for the fourth quarter of 2012 excludes a total of $393,000 in expenses and amortization, including $36,000 of financial income associated with the revaluation of liabilities presented at fair value (attributed mainly to the rise of our share price) and the revaluation of the conversion feature related to the company's convertible debt; $212,000 in amortization and expenses associated with acquisition of RepliWeb; and $256,000 in expenses related to stock based compensation (see footnotes 1,2 and 3 at the end of this release).

See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

Financial Results for Full Year 2012

Total revenues increased 68% in 2012 to $25.5 million, compared to $15.2 million in 2011.  This included license revenues, which increased by 77% to $14.4 million in 2012, compared to $8.1 million in 2011.

RepliWeb contributed $9.5 million in total revenues and $4.4 million in license revenues in 2012, compared to $2.8 million and $1.3 million, respectively, in 2011, starting from the second half of September 2011.  

Operating income for 2012 was $2,518,000 compared to an operating income of $70,000 for 2011. Non-GAAP net operating income for 2012 was $4.4 million, compared to $2.2 million for 2011. Non-GAAP net operating income for 2012 excludes equity-based compensation and amortization of software development costs totaling $895,000 compared to $695,000 for 2011, as well as $952,000 in expenses and amortization related to the acquisition of RepliWeb, compared to $1.5 million for 2011 (see footnotes 1 and 2 at the end of this release).

Net income for 2012 was $1,486,000, or $0.12per diluted share, compared to a loss of $(815,000) for 2011, or ($0.09) per share, in 2011. Net income for 2012 was negatively impacted primarily by $0.9 million in expenses and amortization associated with the acquisition of RepliWeb, net of tax effect, compared to $0.8 million of similar expenses in 2011.

Non-GAAP net income for 2012 was $4.1 million compared to $1.5 million in 2011. Non-GAAP net income for 2012 excludes a total of $2.6 million in expenses and amortization related to the acquisition of RepliWeb, net of tax effect, equity-based compensation expenses, amortization of software development costs and financial expenses associated with the revaluation of conversion features related to convertible debt and liabilities presented at fair value (see footnotes 3 at the end of this release).

See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

Cash and cash equivalents were $3.8 million as of December 31, 2012, compared to $1.5 million as of December 31, 2011.

Shareholders' equity increased to $9.6 million as of December 31, 2012, compared to $5.2 million as of December 31, 2011.  

Outlook

For 2013, the Company expects revenue to grow by approximately 20%, compared to 2012.  This growth is expected to occur primarily in the second half of 2013. Additionally, we expect non-GAAP operating margin to range between 17% and 18%.  

We expect to continue providing annual guidance regarding revenues and Non-GAAP operating profit margin in future periods.

Financial Reconciliation to NON-GAAP figures:

      From    To
GAAP Operating Profit Margin     10%   11%
Equity based compensation                                       4.5%   4.5%
Amortization Associated with the acquisition of RepliWeb     2.5%   2.5%
Non-GAAP Operating Profit margin (*)     17%   18%
           
(*) Non GAAP Operating Profit Margin is calculated by dividing the Non GAAP Operating Profit by the total revenues for the period.          

 

 

 

 

 

 

 

 

Attunity Analyst and Investor Day Information

The company's management team will host an Analyst and Investor Day tomorrow, January 31, 2013 at 8:30 a.m. Eastern Time in New York City. The event will also feature select key opinion leaders from the Cloud and Big Data industries and Attunity's strategic partners.

A recording of the presentations will be available after the event, through the events and investor relations sections of Attunity's website, http://www.attunity.com, and at http://www.kcsa.com, the content of which is not part of this press release.

Conference Call Information

The Company's management will host a conference call today, January 30, 2013, at 10:00 a.m. Eastern Time. The dial-in numbers for the conference call are 1-866-691-3082 (U.S. Toll Free), +1-800-358-8709 (International) or 072-273-3197 (Israel) All dial-in participants must use the following code to access the call: 4589849. Please call at least five minutes before the scheduled start 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.

For interested individuals unable to join the conference call, a replay of the call will be available through February 28, 2013 at 1-800-406-7325 (U.S. 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: 4589849. 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 software solutions that enable access, sharing and distribution of data, including Big Data, across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication, change data capture (CDC), data connectivity, enterprise file replication (EFR) and managed-file-transfer (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 and join our community on Twitter, Facebook, LinkedIn and YouTube, 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 U.S. generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of 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 the acquisition of RepliWeb net of related tax, 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 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 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 our expectation to close additional deals with large scale data warehouse companies in the upcoming quarters, when we discuss our plan to expand our solutions with partners in the Big Data and Cloud markets, when we discuss our expectation to increase our customer base and expand our marketing and sales efforts to serve the growing market in 2013, when we discuss our expectation for revenue growth and Non GAAP operating profit margin in 2013, when we discuss our expectation to continue providing annual guidance, 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 acquisitions, including costs and difficulties related to integration of acquired businesses; 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.

© 2013 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
 

For full Financial Statements click here.

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