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Attunity Reports First Quarter 2014 Financial Results

            Attunity Reports First Quarter 2014 Financial Results

Total revenues grew 54% to $7.1 million

Total license revenues grew 102% to $3.5 million

PR Newswire

BURLINGTON, Mass., May 1, 2014

BURLINGTON, Mass., May 1, 2014 /PRNewswire/ --Attunity, Ltd. (NASDAQ CM:
ATTU), a leading provider of information availability software solutions,
today reported its unaudited financial results for the three month period
ended March 31, 2014.

Recent Operational Highlights

  oAnnounced Attunity Maestro, a new Big Data management and distribution
    platform
  oGrew Attunity Replicate sales by over 140% year-over-year
  oStrengthened sales team in the EMEA region with expanded presence in
    Germany, France and the Nordics in order to address increased customer
    demand
  oClosed several large-scale agreements for the Attunity Gold Client
    Solutions for SAP (the flagship product of Hayes, acquired by Attunity in
    December 2013)
  oAchieved certification from SAP for Attunity Gold Client Solutions Suite
    on the SAP HANA® platform, a premiere in-memory data analytics platform
    for SAP clients
  oIntroduced Attunity Replicate for MySQL, one of the world's most popular
    open-source databases; Replicate also optimized for multiple
    non-relational data sources
  oRecognized as one of the top 100 Coolest Cloud Vendors of 2014 for
    Attunity Cloudbeam by CRN Magazine and gained first-time entry into the
    Gartner Magic Quadrant report for iPaaS*

Financial Highlights for the First Quarter of 2014, compared with the First
Quarter of 2013

  oTotal revenues grew 54% to $7.1 million
  oTotal license revenues grew 102% to $3.5 million
  oTotal maintenance and service revenues grew 26% to $3.6 million
  oCash and cash equivalents of $18.1 million as of March 31, 2014 compared
    with $16.5 million as of December 31, 2013

"We enter 2014 with strong momentum, growing and expanding upon all aspects of
our business, as our Big Data solutions continued to dominate our portfolio,"
stated Shimon Alon, Chairman and CEO of Attunity. "The growth experienced in
the first quarter demonstrates how our innovative solutions are addressing
dynamic market demands, enabling us to further penetrate the total addressable
market.

"The first quarter ended on a high note as we launched our newest platform,
the Attunity Maestro, which provides a fully-automated master data flow and
process management solution to address an organization's need to implement
widely distributed Big Data initiatives. We are encouraged by the initial
interest of customers currently testing Attunity Maestro and anticipate
closing several customer agreements in the third quarter of 2014. 

"Since acquiring Hayes in December 2013, we have successfully integrated their
organization within our sales, marketing and finance operations, and have
expanded the Gold Client sales team. We expect these activities to contribute
to our revenue growth in 2014 and beyond." 

Sales and Marketing
Attunity continued to expand its sales force in the U.S. and EMEA.
Accordingly, the first quarter was driven by the united effort of Attunity's
sales and marketing team to create increased demand, resulting in a 125%
year-over-year increase in lead generation. The newly hired sales teams are
progressing and will be fully ramped by the end of the second quarter, to
support continued growth.

Attunity is also working closely with market analysts to establish thought
leadership in the industry. This includes a well-attended webinar held in
April 2014 with Forrester Research, covering new ground on the topic of "The
Industrial Internet of Things", an important area of growth for Big Data.

Products
The innovative, new Attunity Maestro is designed to execute, manage, monitor
and accelerate the flow of Big Data content across data centers in the
enterprise and the cloud. Launched in the beginning of April 2014, Attunity
Maestro is developed to solve the industry's challenge of effective Big Data
distribution flow to and from a large number of sources and targets. Attunity
believes that the new platform is poised for growth, as it is designed to give
customers the power to optimize their information flow on a very large scale.
Attunity Maestro is initially entering the market for file replication, with
database management availability slated for release later this year. It has
already generated significant interest as customers have begun to test the
product with deals expected to close in the third quarter of 2014.

Since the Company's acquisition of Hayes Technology Group in December 2013,
the Gold Client solution continues to successfully penetrate the market. In
March 2014, the product became officially certified to enable SAP clients to
use data replication within SAP HANA, an in-memory data analytics platform.

Partnership Activity
Attunity has experienced an increase in sales opportunities related to its
go-to-market partners including Pivotal, HP Vertica, Teradata, and Microsoft.
For example, the Company closed a large enterprise deal, referred by Pivotal,
to address a customer's high-performance data needs, solving the problem of
moving many terabytes of data in a matter of days, instead of weeks. Attunity
is also in the process of leveraging existing partnerships to include the Gold
Client solution. We further expect SAP HANA's entry into the data analytics
market to drive more demand for selling Attunity solutions to the SAP market
with existing as well as additional Big Data warehousing partners.

The Company continues to work closely with Amazon Web Services (AWS) and is
scheduled to launch in the second quarter a scalable, tightly integrated new
solution that will spur greater adoption of Attunity's Cloud offering for
Amazon's Redshift, S3 and RDS.

"The first quarter marks a strong start for 2014. The introduction of new
products, as well as the aggressive investments in sales and marketing, has
set the stage for continued growth in 2014 and beyond," concluded Mr. Alon.

Financial Results for Q1 2014
Total revenues for the first quarter of 2014 increased 54% to $7.1 million,
compared with $4.6 million for the same period of 2013. This included license
revenues for the first quarter of 2014, which increased 102% to $3.5 million,
compared with $1.7 million for the same period of 2013.

Net operating loss for the first quarter of 2014 was $0.7 million, compared
with $1.3 million for the same period of 2013. This decline was primarily due
to the revenue growth in the quarter, partially offset by a recent major
investment in sales and marketing activities, and in research and development.

Non-GAAP operating loss was $24,000 for the first quarter of 2014, compared
with $1.0 million for the first quarter of 2013. Non-GAAP operating loss for
the first quarter of 2014 excludes $0.7 million in expenses and amortization
associated with acquisitions and equity based compensation expenses. This is
compared with $0.4 million of similar expenses, for the same period last year.
**

Net loss for the first quarter of 2014 was $0.8 million, or $0.05 per diluted
share, compared with $1.4 million, or $0.12 per diluted share in the first
quarter of 2013.

Non-GAAP net loss for the first quarter of 2014 was $0.1 million, compared
with $1.0 million for the same period last year. Non-GAAP net loss for the
first quarter of 2014 excludes a total of $0.6 million in expenses, mostly
associated with acquisitions and equity based compensation expenses. This is
compared with $0.3 million of similar expenses, for the same period last
year.**

Cash and cash equivalents were $18.1 million as of March 31, 2014, compared
with $16.5 million asof December 31, 2013. Shareholders' equity was $30.0
million as of March 31, 2014, compared with $30.1 million as of December 31,
2013.

* Attunity is not assuming any responsibility for any of these awards or the
entities that award them.
** See "Use of Non-GAAP Financial Information" below for more information
regarding Attunity's use of Non-GAAP financial measures.

Conference Call Information

The Company's management will host a conference call today, May 1, 2014, at
10:00 a.m. Eastern Time. The dial-in numbers for the conference call are +1
877-280-2342 (U.S. Toll Free), +972-3-763-0145 (Israel), or +1-212-444-0481
(International). All dial-in participants must use the following code to
access the call: 6891373. 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, 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 live conference call, a replay
will be available through May 31, 2014 at +1-866-932-5017 (U.S. Toll Free) or
1-347-366-9565 (international). Participants must use the following code to
access the replay of the call: 6891373. The online archive of the webcast will
be available on http://www.attunity.com/events for 30 days following the call.

About Attunity

Attunity is a leading provider of information availability software solutions
that enable access, management, sharing and distribution of data, including
Big Data, across heterogeneous enterprise platforms, organizations, and the
cloud. Our software solutions include data replication, data management,
change data capture (CDC), data connectivity, enterprise file replication
(EFR), managed-file-transfer (MFT), and cloud data delivery. 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 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 (loss), operating income (loss), operating profit margin and net
income (loss) per share, which are adjustments from results based on GAAP to
exclude expenses and amortization associated with the acquisitions of RepliWeb
and Hayes, net of related tax; stock-based compensation expenses in accordance
with ASC 718; and non-cash financial expenses, such as the effect of a
revaluation of liabilities presented at fair value. 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. For further details, see the Reconciliation of
Selected GAAP Measures to Non-GAAP Measures table later in this press release.

Safe Harbor Statement
This press release contains forward-looking statements, including statements
regarding the anticipated features and benefits of Replicate Solutions, 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 say that we plan on continued growth in 2014 and
beyond, we use a forward-looking statement. Because such statements deal with
future events, they are subject to various risks and uncertainties and actual
results, expressed or implied by such forward-looking statements, 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, VAR and "go-to-market"
and other business partners, and on our other significant customers; our
ability to expand our business into the SAP market and the success of our Gold
Client offering; risks and uncertainties relating to acquisitions, including
costs and difficulties related to integration of acquired businesses; timely
availability and customer acceptance of Attunity's new and existing products,
including Attunity Maestro; 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 latest Annual Report on Form 20-F 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 with, 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.

© 2014 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





CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                     March 31,   December 31,
                                                     2014         2013
                                                     Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                          $ 18,136     $ 16,481
Trade receivables (net of allowance for doubtful
accounts of $15                                      3,845        5,224
at March 31, 2014 and December 31, 2013)
Other accounts receivable and prepaid expenses       751          685
Total current assets                               $ 22,732     $ 22,390
LONG-TERM ASSETS:
Other long term assets                               353          385
Severance pay fund                                   3,256        3,233
Property and equipment, net                          1,014        879
Goodwill and Intangible assets, net                  22,801       23,093
Total long-term assets                             $ 27,424     $ 27,590
Total assets                                       $ 50,156     $ 49,980





CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                    March 31,   December 31,
                                                    2014         2013
                                                    Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables                                      423          458
Deferred revenues                                   6,660        5,175
Employees and payroll accruals                      2,441        3,210
Accrued expenses and other current liabilities      1,186        1,365
Total current liabilities                         $ 10,710     $ 10,208
LONG-TERM LIABILITIES:
Long-term deferred revenue                          643          847
Liabilities presented at fair value and other       1,092        1,219
long-term liabilities
Contingent purchase consideration                  3,450        3,280
Accrued severance pay                               4,284        4,328
Total long-term liabilities                       $ 9,469      $ 9,674
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.4 par      1,714        1,677
value -
Authorized: 32,500,000 shares at March 31, 2014
and December
31, 2013; Issued and outstanding: 14,849,209
shares at March 31,
2014 and 14,527,292 shares at December 31, 2013
Additional paid-in capital                          131,607      130,944
Receipt on account of shares                        13           81
Accumulated other comprehensive loss                (618)        (621)
Accumulated deficit                                 (102,739)    (101,983)
Total shareholders' equity                          29,977       30,098
Total liabilities and shareholders' equity        $ 50,156     $ 49,980





CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
                                                 Three months ended
                                                 March 31,
                                                 2014       2013
                                                 Unaudited
Software licenses                              $ 3,487   $  1,730
Maintenance and services                         3,596      2,855
Total revenues                                   7,083      4,585
Operating expenses:
Cost of revenues                                 696        534
Research and development                         2,295      1,985
Selling and marketing                            3,969      2,651
General and administrative                       812        718
Total operating expenses                         7,772      5,888
Operating loss                                   (689)      (1,303)
Financial expenses, net                          80         113
Loss before income taxes                         (769)      (1,416)
Income tax benefit                               (13)       (61)
Net loss                                      $ (756)   $  (1,355)
Basic and diluted net loss per share           $ (0.05)  $  (0.12)
Weighted average number of shares used in        14,697     10,961
computing basic and dilutednet lossper share





CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
                                                 Three months ended March 31,
                                                 2014              2013
                                                 Unaudited
Cash flows activities:
Net loss                                       $ (756)       $     (1,355)
Adjustments required to reconcile net loss to
net cash
provided by operating activities:
Depreciation                                     77                46
Stock based compensation                         275               166
Amortization of intangible assets               295               187
Accretion of payment obligation                  170               66
Change in:
 Accrued severance pay, net                    (67)              134
 Trade receivables                             1,379             1,500
 Other accounts receivable and prepaid         41                (363)
expenses
 Other long term assets                        32                8
 Trade payables                                (35)              10
 Deferred revenues                             1,281             1,000
 Employees and payroll accruals                (769)             (618)
 Accrued expenses and other liabilities        (179)             (494)
Change in liabilities presented at fair value    (127)             -
Change in deferred taxes, net                    (107)             (88)
Net cash provided by operating activities      $ 1,510       $     199
Cash flows from investing activities:
Purchase of property and equipment               (212)             (314)
Net cash used in investing activities          $ (212)       $     (314)
Cash flows from financing activities:
Proceeds from exercise of stock options,         344               56
warrants and rights
Receipts on account of shares                    13                -
Net cash used in financing activities          $ 357         $     56
Foreign currency translation adjustments on
cash and cash                                  $ -           $     14
equivalents
Increase (decrease) in cash and cash             1,655             (45)
equivalents
Cash and cash equivalents at the beginning of    16,481            3,778
the period
Cash and cash equivalents at the end of the    $ 18,136      $     3,733
period
Supplemental disclosure of cash flow
activities:
Cash paid during the period for Income tax     $ 164         $     361
Non cash activities:
Purchase of property and equipment             $ -           $     71
Issuance of shares against receipts on account $ 81          $     -
of shares





RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
U.S. dollars in thousands, except share and per share data
               Three months ended March 31,  Three months ended March 31,

               2014                         2013
               Unaudited                     Unaudited
               GAAP   Adj.         Non-GAAP  GAAP    Adj.         Non-GAAP
Software       3,487               3,487     1,730                1,730
licenses
Maintenance    3,596  95   (a)     3,691     2,855   -            2,855
and services
Total revenue  7,083               7,178     4,585                4,585
Operating
expenses:
Cost of        696    214  (b)     482       534     129  (b)     405
revenues
Research and   2,295  83   (c)     2,212     1,985   68   (c)     1,917
development
Selling and    3,969  189  (b),(c) 3,780     2,651   110  (b),(c) 2,541
marketing
General and    812    84   (c)     728       718     46   (c)     672
administrative
Total
operating      7,772               7,202     5,888                5,535
expenses
Operating loss (689)               (24)      (1,303)              (950)
Financial      80     43   (d)     37        113     66   (d)     47
expenses, net
Loss before    (769)               (61)      (1,416)              (997)
income taxes
Taxes on
income         (13)   (80) (e)     67        (61)    (72) (e)     11
(benefit)
Net loss       (756)               (128)     (1,355)              (1,008)
Basic and
diluted net    (0.05)              (0.01)    (0.12)               (0.09)
loss
per share
Weighted
average number
of shares used
in
computing      14,697              14,697    10,961               10,961
basic and
diluted net
loss per
share



(a) Valuation adjustment on acquired deferred services revenue
(b) Operating acquisition-related expenses and amortization:
                                                  Three            Three

                                                  months           months

                                                  ended            ended

                                                  March 31,        March 31,

                                                  2014             2013
      Cost of revenues - amortization of          214              129
      technology
      Selling and marketing - amortization of     81               58
      customers relationship
                                                  295              187
(c) Stock-based compensation expenses under ASC 718 included in:
                                                  Three            Three

                                                  months           months

                                                  ended            ended

                                                  March 31,        March 31,

                                                  2014             2013
      Research and development                    83               68
      Selling and marketing                       108              52
      General and administrative                  84               46
                                                  275              166
(d) Acquisition-related financial expenses and revaluation of liabilities
presented at fair value
                                                  Three            Three

                                                  months           months

                                                  ended            ended

                                                  March 31,        March 31,

                                                  2014             2013
      Revaluation of liabilities presented at
      fair                                        (127)            -
      value
      Acquisition-related financial expenses      170              66
                                                                   
                                                  43
                                                                   66
(e) Taxes related to acquisitions





SOURCE Attunity

Website: http://www.attunity.com
 
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