Attunity Reports Second Quarter 2014 Financial Results

            Attunity Reports Second Quarter 2014 Financial Results

Total non-GAAP revenue grew 37% to a record $8.4 million

Total license revenue grew 34% to $4.4 million

PR Newswire

BURLINGTON, Mass., July 24, 2014

BURLINGTON, Mass., July 24, 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 June 30, 2014.

Recent Operational Highlights:

  oAttunity Replicate is the largest revenue contributor making up 58% of
    total license revenue
  oIncreased size and volume of Attunity Replicate deals, which include:

       o$0.7 million deal with one of the largest European insurance
         companies
       o$0.6 million deal with an American communication company

  oClosed first deal of Attunity Maestro, a new Big Data management platform
    launched in early Q2 2014, for composing, conducting, and monitoring
    information flow across global enterprises
  oIntroduced new Attunity Gold Client solution to accelerate SAP HANA®
    adoption and deployment
  oGrew Cloud business with the availability of Attunity CloudBeam in AWS
    Marketplace, allowing a broader base of customers to easily access
    securedeployment of scalable Big Data loading and replication in the AWS
    Cloud

Financial Highlights for the Second Quarter of 2014, compared with the Second
Quarter of 2013:

  oTotal non-GAAP revenue grew 37% to $8.4 million, a record quarter of
    total revenue*
  oTotal GAAP revenue grew 36% to $8.3 million
  oTotal license revenue grew 34% to $4.4 million 
  oTotal non-GAAP maintenance and service revenue grew 41% to $3.9 million*
  oCash and cash equivalents of $18.1 million as of June 30, 2014 compared
    with $16.5 million as of December 31, 2013 

"Our accelerated revenue growth in the second quarter demonstrates the
efficiency in which we are executing upon our strategy," stated Shimon Alon,
Chairman and CEO of Attunity. "Attunity Replicate continues to be a major
contributor of revenue with Replicate license revenue increasing 66% for the
quarter, and representing 58% of our total license revenue. Other significant
accomplishments included the closing of our first deal for Attunity Maestro,
which was just launched in early Q2 2014. Given the product's rapid progress,
we expect Attunity Maestro sales to ramp up in the second half of 2014."

"We are benefiting from the swift onboarding of newly hired salespeople, who
are already contributing to our growth. We have added key hires in certain
geographic territories, who are dedicating focused attention to further
cultivating our partnerships with Teradata, Microsoft, HP Vertica and Pivotal.
These expanded sales teams contributed to the influx in effective referrals
from our go-to-market partners, during the quarter. We continue to strengthen
our relationship with Amazon as demonstrated by the new direct availability of
Attunity CloudBeam, through AWS marketplace, providing easy, fast and secure
data integration and replication solutions within the Cloud," continued Mr.
Alon.

Sales
Attunity continues to develop its sales force in order to take advantage of
growing global demand, achieving record quarterly sales in the EMEA and Asia
Pacific regions. The majority of new sales recruits since the beginning of
2014, have already contributed to our revenue. The Company also bolstered the
Inside Sales team, allowing the Company to convert incoming leads to closed
deals more efficiently.

Marketing
As market awareness for Attunity solutions increases, the Company has seen a
substantial rise in customer leads. Marketing activity has expanded
significantly since the beginning of 2014, as the Company participated in over
a dozen conferences, tradeshows and customer appreciation events. The team has
also increased its production of thought-leadership content such as
whitepapers, webinars, and e-books to help educate the market about Attunity's
technology as well as important industry trends.

Products
The Company experienced significant interest in its newest data distribution
and management solution, Attunity Maestro. The launch has immediately
generated interest, including demos and proof-of-concepts, one of which
already resulted in the closing of a deal within the quarter.

During the quarter, Attunity Gold Client introduced support for SAP HANA®,
allowing SAP users to accelerate data flow within SAP HANA and enable rapid
deployment of SAP applications in the data center or in the Cloud. Recently,
Colmobil Corporation, a large international distributor of commercial
vehicles, has selected Gold Client, to enable their business-critical data
initiative within its SAP environment. 

The new release of Attunity CloudBeam was made available inAWS Marketplace
during the quarter. CloudBeam nowallows a broader base of customers to easily
access the seamless and secure deployment of scalable Big Data loading and
replication in the AWS Cloud.

Partnership Activity
The continued focus and investments in partnering activity, which includes
support from an expanded global sales presence within key regions, has
resulted in more referrals and larger deals. This is evident in the progress
of our relationships with partners such as Microsoft and Teradata,
collectively generating a substantial amount of new customer opportunities
during the quarter.

We have also enhanced our relationship with Amazon Web Services as we recently
announced a 30-day free trial of Attunity CloudBeam for Amazon Redshift, on
AWS Marketplace. This free trial is expected to fuel adoption of CloudBeam,
providing an easy-to-use data loading and replication experience for Redshift
users.

"We are committed to investing in our growth strategy with the hiring of
additional sales people to service high demand areas like the EMEA region,
further expanding upon key marketing efforts, strengthening our partner
channels and enhancing our product portfolio," concluded Mr. Alon.

Financial Results for Q2 2014
Total revenue for the second quarter of 2014 increased 36% to $8.3 million
compared with $6.1 million last year.

Total non-GAAP revenue for the second quarter of 2014 increased 37% to $8.4
million, compared with revenue of $6.1 million for the same period of 2013.
This included license revenue which increased 34% to $4.4 million, compared
with $3.3 million for the same period of 2013 and non-GAAP maintenance and
service revenue which grew 41% to $3.9 million, compared with $2.8 million for
the same period of 2013. Non-GAAP maintenance and service revenue includes
approximately$0.1 millionof acquired maintenance revenue from Hayes that was
not recognized due to business combination accounting rules.*

Operating loss for the second quarter of 2014 was $1.0 million, compared with
an operating income of $0.1 million for the same period of 2013. This decline
was primarily due to an increase in sales and marketing activities, research
and development, amortization expenses associated with the acquisition of
Hayes, general and administrative costs associated with the Company's growth
strategy.

Non-GAAP operating loss was $0.2 million for the second quarter of 2014,
compared with a non-GAAP operating income of $0.4 million for the second
quarter of 2013. Non-GAAP operating loss for the second quarter of 2014
excludes $0.8 million in expenses and amortizations associated with
acquisitions and equity based compensation expenses. This is compared with a
$0.3 million of similar expenses, for the same period last year.*

Net loss for the second quarter of 2014 was $1.2 million, or $0.08 per diluted
share, compared with a net income of $0.2 million, or $0.02 per diluted share
in the second quarter of 2013.

Non-GAAP net loss for the second quarter of 2014 was $0.4 million, compared
with a non-GAAP net income of $0.4 million for the same period last year.
Non-GAAP net loss for the second quarter of 2014 excludes a total of $0.7
million in expenses mostly attributable to expenses and amortization
associated with acquisitions and equity based compensation expenses. This is
compared with $0.2 million in similar expenses, for the same period in 2013.*

Cash and cash equivalents were $18.1 million as of June 30, 2014, compared
with $16.5 million asof December 31, 2013. Shareholders' equity was $29.5
million as of June 30, 2014, compared with $30.1 million as of December 31,
2013.

* 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, July 24, 2014, at
10:00 a.m. Eastern Time. The dial-in numbers for the conference call are +1
877-879-6209 (U.S. Toll Free), +1-719-325-4891 (International), or
180-925-8243 (Israel). All dial-in participants must use the following code to
access the call: 6003397. 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 August 7, 2014 at +1-877-870-5176 (U.S. Toll Free)
or 1-858-384-5517 (international). Participants must use the following code to
access the replay of the call: 6003397. The online archive of the webcast will
be available on http://www.attunity.com/eventsfor 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, 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
revenue, 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 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 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 expect Attunity Maestro sales to ramp up in the second
half of 2014, 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 revenue 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
                                                   June 30,       December 31,
                                                   2014           2013
                                                   Unaudited      Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                          $   18,119   $  16,481
Trade receivables (net of allowance for doubtful
accounts of $15 at                                5,097          5,224
June30, 2014 and December 31, 2013)
Other accounts receivable and prepaid expenses     857            685
Total current assets                               24,073         22,390
Other long-term assets                             440            385
Severance pay fund                                 3,436          3,233
Property and equipment, net                        1,030          879
Intangible assets, net                             4,754          5,345
Goodwill                                           17,728         17,748
Total long-term assets                             27,388         27,590
Total assets                                       $   51,461  $  49,980



CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                   June 30,       December 31,
                                                   2014           2013
                                                   Unaudited      Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables                                     $     356  $    458
Contingent purchase consideration                 1,912          -
Deferred revenues                                  6,876          5,175
Employees and payroll accruals                     3,559          3,210
Accrued expenses and other current liabilities     1,220          1,365
Total current liabilities                          13,923         10,208
LONG-TERM LIABILITIES:
Long-term deferred revenue                         632            847
Liabilities presented at fair value and other      968            1,219
long-term liabilities
Contingent purchase consideration                 1,709          3,280
Accrued severance pay                              4,705          4,328
Total long-term liabilities                        8,014          9,674
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.4 par
value -
Authorized: 32,500,000 shares at June 30, 2014
and December 31, 2013;
Issued and outstanding: 15,179,196 shares at  1,752          1,677
June 30, 2014 and
14,527,292 shares at December 31, 2013
Additional paid-in capital                         132,322        130,944
Receipt on account of shares                       -              81
Accumulated other comprehensive loss               (653)          (621)
Accumulated deficit                                (103,897)      (101,983)
Total shareholders' equity                         29,524         30,098
Total liabilities and shareholders' equity         $  51,461    $  49,980



CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                          Six months ended            Three months ended
                          June 30,                    June 30,
                          2014          2013          2014          2013
                          Unaudited                   Unaudited
Software licenses         $  7,929    $  5,043    $  4,442    $  3,313
Maintenance and services  7,446         5,644         3,850         2,789
Total revenue             15,375        10,687        8,292         6,102
Operating expenses:
Cost of revenues          1,472         1,046         776           512
Research and development  4,837         3,869         2,542         1,884
Selling and marketing     8,861         5,456         4,892         2,805
General and               1,888         1,511         1,076         793
administrative
Total operating expenses  17,058        11,882        9,286         5,994
Operating income (loss)   (1,683)       (1,195)       (994)         108
Financial income          189           (85)          109           28
(expenses), net
Income (loss) before      (1,872)       (1,280)       (1,103)       136
taxes on income
Taxes on income           42            (105)         55            (44)
(benefit)
Net income (loss)         $  (1,914)  $  (1,175)  $  (1,158)  $  180
Basic net income (loss)   (0.13)        (0.11)        (0.08)        0.02
per share
Weighted average number
of shares used in         14,834        10,994        14,970        11,026
computing basic net
income (loss) per share
Diluted net income        (0.13)        (0.11)        (0.08)        0.01
(loss) per share
Weighted average number
of shares used in         14,834        10,994        14,970        12,397
computing diluted net
loss per share



CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
                                                 Six months ended

                                                 June 30,
                                                 2014          2013
                                                 Unaudited
Cash flows activities:
Net loss                                         $  (1,914)  $  (1,175)
Adjustments required to reconcile net loss to
net cash provided by operating activities:
Depreciation                                     163           114
Stock based compensation                         677           306
Amortization of intangible assets               591           373
Accretion of payment obligation                  341           66
Change in operating assets and liabilities:
 Accrued severance pay, net                    174           120
 Trade receivables                             127           430
 Other accounts receivable and prepaid         (50)          (118)
expenses
 Other assets                                  (12)          3
 Trade payables                                (102)         44
 Deferred revenues                             1,486         977
 Employees and payroll accruals                349           (322)
 Accrued expenses and other liabilities        (145)         (413)
Liabilities presented at fair value and other    (251)         (69)
long-term liabilities
Change in deferred taxes, net                    (165)         (174)
Net cash provided by operating activities        1,269         162
Cash flows from investing activities:
Purchase of property and equipment               (314)         (484)
Net cash used in investing activities            (314)         (484)
Cash flows from financing activities:
Proceeds from exercise of stock options,         695           151
warrants and rights
Receipts on account of shares                    -             133
Payment of contingent consideration              -             (2,000)
Net cash provided by (used in) financing         695           (1,716)
activities
Foreign currency translation adjustments on      (12)          32
cash and cash equivalents
Increase (decrease) in cash and cash             1,638         (2,006)
equivalents
Cash and cash equivalents at the beginning of    16,481        3,778
the period
Cash and cash equivalents at the end of the      18,119        1,772
period
Supplemental disclosure of cash flow
activities:
Cash paid during the period for taxes            $    382   $     389
Non cash activities:
Purchase of property and equipment               -             $      36



RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
U.S. dollars in thousands, except share and per share data
                      Three months ended June 30,  Three months ended June 30,
                      2014                         2013
                      Unaudited                   Unaudited
                      GAAP    Adj.         NON-    GAAP    Adj.         NON-
                                           GAAP                         GAAP
Software licenses     4,442                4,442   3,313                3,313
Maintenance and       3,850   95      (a)  3,945   2,789   -            2,789
services
Total revenue         8,292                8,387   6,102                6,102
Operating expenses:
Cost of revenues      776     215     (b)  561     512     128    (b)   384
Research and          2,542   108     (c)  2,434   1,884   64     (c)   1,820
development
Selling and marketing 4,892   271     (b), 4,621   2,805   93     (b),  2,712
                                      (c)                         (c)
General and           1,076   104     (c)  972     793     41     (c)   752
administrative
Total operating       9,286                8,588   5,994                5,668
expenses
Operating income      (994)                (201)   108                  434
(loss)
Financial expenses,   109     45      (d)  64      (28)    (63)   (d)   35
net
Income (loss) before
taxes on income       (1,103)              (265)   136                  399
(benefit)
Taxes on income       55      (98)    (e)  153     (44)    (72)   (e)   28
(benefit)
Net income (loss)     (1,158)              (418)   180                  371
Basic net income      (0.08)               (0.03)  0.02                 0.03
(loss) per share
Weighted average
number of shares used
in computing basic    14,970               14,970  11,026               11,026
net income (loss) per
share
Diluted net income    (0.08)               (0.03)  0.01                 0.03
(loss) per share
Weighted average
number of shares used
in computing diluted  14,970               14,970  12,397               12,507
net income (loss) per
share
(a) Valuation adjustment on acquired deferred
services revenue
(b) Operating acquisition-related expenses and
amortization:
                              Three months ended
                              June         June
                              30,          30,
                              2014         2013
Cost of revenues -
amortization of               215          128
technology
Selling and marketing -
amortization of customers     81           58
relationship
                              296          186
(c) Stock-based compensation expenses under ASC
718 included in:
                              Three months ended,
                              June         June
                              30,          30,
                              2014         2013
Research and                  108          64
development
Selling and marketing         190          35
General and                   104          41
administrative
                              402          140
(d) Acquisition-related financial expenses and revaluation
of liabilities presented at fair value:
                              Three months ended,
                              June         June
                              30,          30,
                              2014         2013
Revaluation of liabilities    (126)        (63)
presented at fair value
Acquisition-related financial 171          -
expenses
                              45           (63)
(e) Taxes related to acquisitions



RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
U.S. dollars in thousands, except share and per share data
                     Six months ended June 30, 2014  Six months ended June 30,
                                                     2013
                     Unaudited                      Unaudited
                     GAAP     Adj.          NON-     GAAP    Adj.       NON-
                                            GAAP                        GAAP
Software licenses    7,929                  7,929    5,043              5,043
Maintenance and      7,446    190     (a)   7,636    5,644   -          5,644
services
Total revenue        15,375                 15,565   10,687             10,687
Operating expenses:
Cost of revenues     1,472    429     (b)   1,043    1,046   257   (b)  789
Research and         4,837    191     (c)   4,646    3,869   132   (c)  3,737
development
Selling and          8,861    460     (b),  8,401    5,456   203   (b), 5,253
marketing                             (c)                          (c)
General and          1,888    188     (c)   1,700    1,511   87    (c)  1,424
administrative
Total operating      17,058                 15,790   11,882             11,203
expenses
Operating loss       (1,683)                (225)    (1,195)            (516)
Financial expenses,  189      88      (d)   101      85      3     (d)  82
net
Loss before taxes on (1,872)                (326)    (1,280)            (598)
income
Taxes on income      42       (178)   (e)   220      (105)   (144) (e)  39
(benefit)
Net loss             (1,914)                (546)    (1,175)            (637)
Basic and diluted    (0.13)                 (0.04)   (0.11)             (0.06)
net loss per share
Weighted average
number of shares
used in computing    14,834                 14,834   10,994             10,994
basic and diluted
net loss per share
(a) Valuation adjustment on acquired
deferred services revenue
(b) Operating acquisition-related expenses
and amortization:
                              Six months ended
                              June          June
                              30,           30,
                              2014          2013
Cost of revenues -            429           257
amortization of technology
Selling and marketing -
amortization of customers     162           116
relationship
                              591           373
(c) Stock-based compensation expenses under ASC
718 included in:
                              Six months ended
                              June          June
                              30,           30,
                              2014          2013
Research and                  191           132
development
Selling and                   298           88
marketing
General and                   188           86
administrative
                              677           306
(d) Acquisition-related financial expenses and revaluation
of liabilities presented at fair value:
                              Six months ended
                              June          June
                              30,           30,
                              2014          2013
Revaluation of liabilities
presented at fair             (253)         (63)
value
Acquisition-related financial 341           66
expenses
                              88            3
(e) Taxes related to
acquisitions



SOURCE Attunity, Ltd.

Website: http://www.attunity.com
 
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