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Burlington, MA, November 11, 2008 – 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 third quarter ended September 30, 2008.
Key financial metrics for the third quarter of 2008:
· Revenues: $2,570,000 compared to $2,543,000 in the third quarter of 2007.
· Net Operating Loss (GAAP): $659,000 compared to $1,401,000 in the third quarter of 2007, an improvement of 53%.
· Net Operating Loss (Non-GAAP): $485,000 Non-GAAP net operating loss compared to $1,328,000 Non-GAAP net operating loss in the third quarter of 2007, an improvement of 65%. Non-GAAP operating loss excludes equity based compensation expenses (see footnote 1), software development costs capitalization and amortization (see footnote 2)
· Net Loss (GAAP): $1,022,000, compared to $1,757,000 in the third quarter of 2007, an improvement of 42%.
· Net Loss (Non-GAAP): $625,000 compared to $1,472,000 in the third quarter of 2007, an improvement of 57%. Non-GAAP net loss excludes equity based compensation expenses (see footnote 1), software development costs capitalization and amortization (see footnote 2) and amortization of debt discount and deferred charges (see footnote 4).
· Net Loss per Diluted Share (GAAP): $0.04 compared to $0.08 in the third quarter of 2007.
· Net Loss per Diluted Share (Non-GAAP): $0.03 compared to $0.06 in the third quarter of 2007. Non-GAAP loss per Diluted Share excludes equity based compensation expenses (see footnote 1), software development costs capitalization and Amortization (see footnote 2) and amortization of debt discount and deferred charges (see footnote 4).
See “Use of Non-GAAP Financial Information” below for more information regarding Attunity’s use of Non-GAAP financial measures.
“Seasonality makes Q3 normally our weakest quarter, and this year’s Q3 was no exception. However, we have continued to improve our cost structure which has had a positive effect on our financial results year-on-year, and is encouraging particularly given the current economic climate”, stated Shimon Alon, Attunity Chairman and CEO.
Highlights of the Quarter
Microsoft OEM Agreement
Following the strategic licensing (OEM) agreement between Attunity and Microsoft Corporation at the end of 2007, the first two high-speed adapters called ‘Microsoft Connector for Oracle by Attunity’ and ‘Microsoft Connector for Teradata by Attunity’, were delivered to Microsoft for use and shipment with Microsoft SQL Server 2008 Integration Services.
Mr. Alon commented, “We believe this to be a significant achievement which further strengthens our relationship with Microsoft, and we believe exposes Attunity to the Microsoft Developer Network, a potentially new market for Attunity’s software products.”
Oracle OEM Agreement
Additional software products were delivered to Oracle under the terms of the existing 2003 OEM agreement, and were subsequently showcased by Oracle at their annual Oracle Open World event. These products, part of Attunity’s CDC technology stack, were provided to Oracle for real-time capture of changed-data from mainframe data sources.
· Company re-focused around core competencies of real-time integration, event and changing data capture (ECDC)
· Major customer and partner wins across the world including HSBC, Peacocks, George Weiss Associates, Atlantic Detroit Diesel and Axcius Strategic Consulting.
“We took the decision early in Q3 to re-focus our efforts more tightly around our core competencies and our existing competitive advantage in what we believe to be a growing market segment of real-time data integration, event and changing data capture, or ECDC as we call it” continued Shimon Alon. “This refinement has taken much of Q3 but has now ostensibly been done, and we believe we are now well positioned for attracting additional customers and new partnerships over the coming quarters.”
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 www.attunity.com, the content of which is not part of this press release.
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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. For example, when we discuss the possible effects of the Microsoft OEM agreement and the delivery of two new adapters, 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, 2007, which is on file with the Securities and Exchange Commission. 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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© 2008 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
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