Attunity Reports Third Quarter 2013 Results

                 Attunity Reports Third Quarter 2013 Results

Total revenues increased by 11% to $6.6 million for the third quarter of 2013

Net income increased significantly to $0.7 million for the third quarter of
2013

PR Newswire

BURLINGTON, Mass., Oct. 24, 2013

BURLINGTON, Mass., Oct. 24, 2013 /PRNewswire/ --Attunity, Ltd. (the
"Company") (NASDAQ CM: ATTU), a leading provider of information availability
software solutions, today reported its unaudited financial results for the
three month period ended September 30, 2013.

"We continue to make progress implementing our growth strategy, executing on
our sales and marketing initiatives, and cultivating our partnerships. As a
result, we are experiencing increased worldwide demand and winning
larger-sized deals," stated Shimon Alon, Chairman and Chief Executive Officer
of Attunity.

"Our performance during the quarter reflects our ability to deliver enhanced
and award winning Big Data solutions to a growing number of large-scale data
warehouses for real-time analytics. The market embraced our recently launched
Replicate 3.0 solution, which led to increased demand. Going forward, we
anticipate capitalizing on this momentum, as well as benefiting from the
consistent stream of revenue derived from the renegotiated contracts with one
of our larger OEM partners."

Financial Highlights for the Third Quarter of 2013, compared with the third
quarter of 2012:

  oTotal revenues for the third quarter grew 11% to $6.6 million
  oTotal maintenance and service revenues grew 22% to $3.5 million
  oNon-GAAP operating income increased 40% to $1.4 million
  oNet income for the third quarter of 2013 was $0.7 million or $0.06 per
    diluted share, compared with $43,000, or $0.00 per diluted share in the
    third quarter of 2012

Recent Operational Highlights:

  oLaunched Replicate 3.0:

       oEnables Big Data insights in real-time across globally distributed
         operations
       oAdded disaster recovery capabilities, ensuring the high availability
         of mission critical transactional systems
       oExpanded support to include additional heterogeneous data warehouses
         and databases

  oCompleted largest Replicate deal to date with a company focused on
    innovative, pre-paid products
  oRecognized first full quarter of material revenue, totaling $0.7 million,
    from amended OEM agreement with a world-leading software and IT
    corporation
  oAcquired displaced customers for Cloudbeam (who needed accelerated
    migration from Nirvanix to Amazon Web Services), following recent shutdown
    of storage provider Nirvanix
  oSigned OEM reseller agreement for core connectivity solutions with Infor,
    a world-leading supplier of enterprise applications
  oExpanded partnerships adding Attunity Click-2-Load solution for HP
    Vertica and Microsoft PDW
  oAppointed Paul Kelly as VP of sales in the EMEA region, expanding
    management team to support increased customer demand

Direct Sales
During the third quarter, the team benefited from new marketing programs,
which have been producing a growing number of effective leads. To properly
manage the increasing demand, the Company also plans to increase sales efforts
in the U.S. and EMEA. In order to oversee these efforts, Attunity recently
appointed Paul Kelly as its new VP of Sales in the EMEA region. Mr. Kelly is
responsible for growing revenue from new and existing customers and leveraging
the growing demand for Attunity solutions for Big Data loading and replication
as well as the existing strong partnerships with market leaders.

Partnership Activity
The Company launched a new solution for the HP Vertica large scale data
warehouse. The offering, which was unveiled at the HP Vertica Big Data
Conference in August 2013, allows users to accelerate the process of loading
data to HP Vertica. By feeding Big Data at high speeds to this data analytics
platform, this solution enables rich analytics and has drawn increased
attention from both customers and media. The new offering also strengthens
Attunity's partnership with HP with expected revenue recognition in the fourth
quarter of 2013.

Strategic relationships with Big Data vendors such as Pivotal Greenplum,
Teradata, Microsoft PDW, and HP Vertica continue to generate an increased
number of opportunities. In many circumstances, Attunity solutions are
introduced early in the sales cycle by the partner, enabling the partners to
win customers. Attunity's partnership activity with Amazon Web Services (AWS)
also continues to gain momentum.

"The improvements to our sales team, partnerships and solutions, further
reinforce our confidence in the potential of Attunity to continue to grow,
capitalize on the increasing demand for our solutions and cement us as a
necessary player in the Big Data and Analytics markets," Mr. Alon concluded.

Financial Results for Q3 2013
Total revenues for the third quarter of 2013 were $6.6 million, compared with
$5.9 million for the same period of 2012. The 11% increase year-over-year is
primarily a result of a 22% increase in maintenance and services revenues to
$3.5 million, compared with $2.9 million for the same period of 2012. License
revenues totaled $3.0 million and remained virtually flat as compared to the
third quarter of 2012.

Operating income for the third quarter of 2013 was $1.0 million, compared with
$0.6 million for the same period of 2012.

Non-GAAP operating income for the third quarter of 2013 was $1.4 million,
compared with $1.0 million for the same period of 2012. Non-GAAP operating
income for the third quarter of 2013 excludes the impact of stock-based
compensation expenses, amortization and expenses related to the acquisition of
RepliWeb of $0.4 million. Non-GAAP operating income for the same period of
2012 excludes the impact of stock-based compensation expenses, amortization
and expenses related to the acquisition of RepliWeb, and amortization of
software development costs of $0.4 million. See "Use of Non-GAAP Financial
Information" below for more information regarding Attunity's use of Non-GAAP
financial measures.

Net income for the third quarter of 2013 was $0.7 million, or $0.06 per
diluted share, compared with $43,000, or $0.00 per diluted share in the third
quarter of 2012.

Non-GAAP net income for the third quarter of 2013 was $1.3 million, compared
with $0.9 million for the third quarter of 2012. Non-GAAP net income for the
third quarter of 2013 excludes a total of $0.6 million in expenses and
amortization, which includes $0.2 million in amortization and other expenses
associated with acquisition of RepliWeb, compared with $0.2 million for the
same period last year; financial expense associated with the revaluation of
liabilities presented at fair value (attributed mainly to the rise in our
share price) of $0.3 million, compared with $0.4 million for the same period
last year; and $0.2 million stock-based compensation expenses, compared with
$0.2 million for the same period last year. 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 $2.1 million as of September 30, 2013, compared
with $3.8 million asof December 31, 2012. In April 2013, the Company paid the
final consideration of $2.0 million as an earn-out to RepliWeb's former
shareholders as part of the acquisition completed in September 2011.

Shareholders' equity increased to $10.0 million as of September 30, 2013,
compared with $9.6 million as of December 31, 2012.

"As we look ahead, the momentum in our business is building as we concentrate
on investing more of our resources on the sales and marketing of our
solutions, and experience a maturing of certain major go-to-market partners.
Although the ramp up of this activity has taken slightly longer than
anticipated, we believe the long-term potential for our business is more
secure than ever," concluded Mr. Alon.

Conference Call Information
The Company's management will host a conference call today, October 24, 2013,
at 10:00 a.m. Eastern Time. The dial-in numbers for the conference call are +1
877 249 9037 (U.S. Toll Free), +1 212 444 0896 (International) or 972 3 763
0146 (Israel). All dial-in participants must use the following code to access
the call: 5550188. 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, and 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 November 24, 2013 at +1 347 366 9565 (all
regions). Participants must use the following code to access the replay of the
call: 5550188. The online archive of the webcast will be available on
http://www.attunity.com/events or 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, stock-based compensation expenses in accordance with ASC 718,
amortization of software development costs in accordance with ASC 985-20, and
non-cash financial expenses such as the effect of a revaluation 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 (1) benefiting from a consistent stream of revenue, (2) our
plan to increase sales efforts in the U.S and EMEA, (3) our expected revenue
generation in Q4 from the new partnership with HP, (4) our confidence in our
potential to grow, to capitalize on increasing demand for our solutions and
cement us as a necessary player in the Big Data and Analytics market scene.
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, and Pivotal; 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
for the year ended December 31, 2012, 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 more information, please contact:
Garth Russell / Diane Imas
KCSA Strategic Communications
P: + 1 212-682-6300
grussell@kcsa.com / dimas@kcsa.com

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





INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                  September 30,   December 31,
                                                  2013            2012
                                                  Unaudited       Audited
ASSETS
CURRENT ASSETS:

                                                $ 2,129         $ 3,778
Cash and cash equivalents
Trade receivables (net of allowance for
doubtful accounts of 
                                                  2,925           3,671
$15 at September 30, 2013 and December 31,
2012)
Other accounts receivable and prepaid expenses    469             323

                                                $ 5,523         $ 7,772
Total current assets
LONG-TERM ASSETS:

                                                  278             93
Other long term assets
Severance pay fund                                3,044           2,880
Property and equipment, net                       871             423
Intangible assets, net                            1,310           1,870
Goodwill                                          13,152          13,094

                                                $ 18,655        $ 18,360
Total long-term assets

                                                $ 24,178        $ 26,132
Total assets



INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                September 30,   December 31,
                                                2013             2012
                                                Unaudited        Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables                                $ 423            $ 316
Payment obligation                              -                1,934
Deferred revenues                               5,095            4,759
Employees and payroll accruals                  1,902            2,589
Accrued expenses and other current              731              1,220
liabilities
Total current liabilities                     $ 8,151          $ 10,818
LONG-TERM LIABILITIES:
Long-term deferred revenue                      637              888
Liabilities presented at fair value and other
long-term                                       1,062            875

liabilities
Accrued severance pay                           4,237            3,989
Total long-term liabilities                   $ 5,936          $ 5,752
SHAREHOLDERS' EQUITY:

                                                1,319            1,270
Share capital - Ordinary shares of NIS 0.4
par value -
Authorized: 32,500,000 shares at September
30, 2013 

and December 31, 2012; Issued and
outstanding:

11,364,929 shares at September 30, 2013 and

10,919,930 shares at December 31, 2012
Additional paid-in capital                      111,177          110,318
Receipt on account of shares                    85               -
Accumulated other comprehensive loss            (670)            (672)
Accumulated deficit                             (101,820)        (101,354)
Total shareholders' equity                      10,091           9,562
Total liabilities and shareholders' equity    $ 24,178         $ 26,132



INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
                                       Nine months ended    Three months ended
                                       September 30,        September 30,
                                       2013       2012      2013       2012
                                       Unaudited            Unaudited
Software licenses                    $ 8,074   $  10,185  $ 3,031   $  3,044
Maintenance and services               9,181      8,227     3,537      2,892
Total revenue                          17,255     18,412    6,568      5,936
Operating expenses:

                                       1,553      1,747     507        574
Cost of revenues
Research and development               5,708      5,827     1,839      1,899
Selling and marketing                  8,042      6,964     2,586      2,151
General and administrative             2,186      2,274     675        743
Total operating expenses               17,489     16,812    5,607      5,367
Operating income (loss)                (234)      1,600     961        569
Financial expenses, net                348        1,046     263        489
Income (loss) before taxes on income   (582)      554       698        80

Taxes on income (benefit)              (116)      128       (11)       37
Netincome (loss)                    $ (466)   $  426     $ 709     $  43

                                     $ (0.04)  $  0.04    $ 0.06    $  0.00
Basic net income (loss) per share
Weighted average number of shares

used in computing basic net income     11,107     10,506    11,330     10,752

(loss)per share
Diluted net income (loss) per share  $ (0.04)  $  0.04    $ 0.06    $  0.00
Weighted average number of shares

used in computing diluted net income   11,107     11,782    12,571     12,356

(loss) per share



INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
                                               Nine months ended September 30,
                                               2013                2012
                                               Unaudited
Cash flowsfrom operating activities:
Net income (loss)                            $ (466)        $      426


Adjustments required to reconcile net income
(loss) to net cash 

provided by operating activities:
Depreciation                                   178                 168
Stock based compensation                       554                 481
Amortization ofintangible assets              560                 770
Accretion of payment obligation                66                  199
Convertible debt inducement expenses           -                   108
Change in:
 Accrued severance pay, net                  84                  219
 Trade receivables                           746                 (1,048)
 Other accounts receivable and prepaid       (144)               (127)
expenses
 Other long term assets                      -                   (17)
 Trade payables                              107                 (29)
 Deferred revenues                           85                  (898)
 Employees and payroll accruals              (687)               (136)
 Accrued expenses and other liabilities      (414)               (890)
Change in liabilities presented at fair        187                 742
value
Change in deferred taxes, net                  (262)               (77)
Net cash provided by (used in) operating     $ 594                 (109)
activities
Cash flows from investing activities:
Purchase of property and equipment             (626)               (209)
Decrease in restricted cash                    -                   341
Net cash provided by (used in) investing     $ (626)               132
activities
Cash flows from financing activities:
Proceeds from exercise of stock options,       354                 475
warrants and rights
Receipts on account of shares                  85                  -
Repayment of long-term debt                    -                   (109)
Repayment of convertible debt                  -                   (138)
Repayment of contingent consideration          (2,000)             -
Net cash provided by (used in) financing     $ (1,561)             228
activities
Foreign currency translation adjustments on
cash and cash                          (56)                (20)

equivalents
Increase (decrease) in cash and cash           (1,649)             230
equivalents
Cash and cash equivalents at the beginning     3,778               1,484
of the period
Cash and cash equivalents at the end of the  $ 2,129        $      1,714
period
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest                                     $ 6            $      225
Income tax                                   $ 425          $      234
Non cash activities:
Conversion of convertible debt and
bifurcated conversion                        $ -                   630

feature



RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except share and per share data
                                     
                                                          Three months ended
                                     Nine months ended
                                     September 30,       September 30,
                                     2013       2012      2013         2012
                                     Unaudited          Unaudited
GAAP operating income (loss)       $ (234)   $  1,600   $ 961      $   569
Stock based compensation (1)         554        481       248          157
Amortization of software             -          152       -            40
development costs
Acquisition-related amortization     559        740       186          227
and adjustments (2)
Non-GAAP operating income          $ 879     $  2,973   $ 1,395    $   993
GAAP net income (loss)               (466)      426       709          43
Stock based compensation (1)         554        481       248          157
Amortization of software             -          152       -            40
development costs
Acquisition-related amortization     559        740       186          227
and adjustments (2)
Revaluation of liabilities and
conversion feature presented         187        850       250          414

at fair value
Acquisition-related financial        66         199       -            66
expenses
Tax related to the acquisition      (216)      (247)     (72)         (82)
Non-GAAP net income                $ 684     $  2,601   $ 1,321    $   865
GAAP diluted net income (loss) per   (0.04)     0.04      0.06         0.00
share:
Stock based compensation and
amortization of software

development costs,                   0.10       0.12      0.03         0.03
acquisition-related amortization
and

adjustments
Revaluation of liabilities
presented at fair value, and         0.02       0.09      0.02         0.04
acquisition related financial
expenses
Tax related to the acquisition      (0.02)     (0.01)    (0.01)       0.00
Non-GAAP diluted net income per    $ 0.06    $  0.22    $ 0.10     $   0.07
share
Weighted average number of shares
used in computing                    12,589     11,782    12,646       12,356

diluted net income per share


(1) Stock-based compensation
expenses under ASC 718 included
in:
Research and development             182        219       50           98
Selling and marketing                239        132       151          56
General and administrative           133        130       47           3
                                   $ 554     $  481     $ 248      $   157
(2) Operating Acquisition-related, amortization
and

adjustments:
Valuation adjustment on acquired
deferred services                    -          122       -            21

revenue
Cost of Sales - Amortization of      386        419       129          140
technology
Selling and marketing -
Amortization of customer             173        199       57           66

relationships
                                   $ 559     $  740     $ 186      $   227



SOURCE Attunity

Website: http://www.attunity.com