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Commenting on the results, Shimon Alon, Attunity Chairman and CEO, stated "we are pleased that, as demonstrated by our financial results for the quarter, the fundamentals of our business continue to show quarter-by-quarter improvement. We are especially encouraged by the continued improvement in our non-GAAP operational profitability resulting in the generation of additional cash."
Financial Highlights of Q3 2009
- A Non-GAAP operating profit of $498K for Q3 2009, setting a quarterly
record for 2009.
- A Non-GAAP operating profit of $855K for the first nine months of 2009.
- Continuous improvement of Non-GAAP operating profit
quarter-over-quarter in 2009.
- Record quarterly revenues for 2009 of $2.4M.
- License revenues increased compared to both Q3 2008 and Q2 2009.
Q3 Financial Summary
- Net Operating Profit - (Non GAAP): $498,000 net operating profit,
compared to $485,000 net operating loss in the third quarter of 2008.
Non-GAAP operating profit (loss) excludes equity based compensation
expenses (see footnote 1 at the end of this release), and software
development costs capitalization and amortization (see footnote 2).
- Net Operating Loss - (GAAP): $73,000, compared to $659,000 in the third
quarter of 2008.
- Revenues: $2,400,000, compared to $2,570,000 in the third quarter of
2008 and $2,154,000 in the second quarter of 2009.
Net Profit (Non-GAAP): $411,000 net profit compared to net loss of $625,000 in the third quarter of 2008. Non-GAAP net profit (loss) excludes equity based compensation expenses (see footnote 1), software development costs capitalization and amortization (see footnote 2) and revaluation of conversion features related to its convertible debt and outstanding warrants (see footnote 3).
- Net Loss (GAAP): $432,000, compared to $1,022,000 in the third quarter
of 2008.
- Net Profit per Diluted Share (Non-GAAP): $0.01 net profit per diluted
share compared to net loss per diluted share of $0.03 in the third
quarter of 2008
- Net Loss per Diluted Share (GAAP): $0.01, compared to net loss per
diluted share of $0.04 in the third quarter of 2008.
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
Mr. Alon concluded, "After three consecutive quarters of improved Non-GAAP operating profit, we see the results of our focus on the real-time data integration market and the extension of our offerings into the operational data replication market. Consistent with this strategy, we intend to introduce additional new real-time data integration and replication products that focus on the large market of Oracle, Microsoft, IBM, SAP and HP and other leading Business Intelligence (BI) solutions, and strengthen our partnerships with these leading market players."
About Attunity
Attunity is a leading provider of real-time data integration and event capture software. Using our software solutions, such as Attunity Connect, a real-time connectivity software or Attunity Stream, our log-based, real-time change-data-capture software, 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.
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 and non cash financial expenses such as revaluation of conversion features related to its convertible debt and outstanding warrants in accordance with EITF 07-5 (affected ,among other factors, by changes in Attunity 's share price) . 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. 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 future introduction of new real-time data integration and replication products , 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, 2008, 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.
(c) 2009 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30, December 31,
2009 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,052 480
Restricted cash 209 206
Trade receivables and unbilled
revenues (net of allowance for
doubtful accounts of $15 at both
September 30 , 2009 and December 31,
2008) 699 502
Other accounts receivable and prepaid
expenses 197 221
Total current assets 2,157 1,409
LONG-TERM ASSETS:
Long-term prepaid expenses 89 106
Severance pay fund 1,086 1,121
Property and equipment, net 257 371
Software development costs, net 2,206 3,585
Goodwill 6,353 6,234
Deferred charges, net 204
Total long-term assets 9,991 11,621
Total assets 12,148 13,030
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
September 30, December 31,
2009 2008
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
short term loans 667 412
- 1,781
Trade payables 232 389
Deferred revenues 2,254 2,220
Employees and payroll accruals 695 1,079
Accrued expenses and other liabilities 797 718
Total current liabilities 4,645 6,599
LONG-TERM LIABILITIES:
Long-term convertible debt 2,000 -
Long-term debt 1,333 2,063
Revaluation of Liabilities presented at
fair value 342 -
Accrued severance pay 1,517 1,546
Total long-term liabilities 5,192 3,609
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.1
par value - 920 720
Authorized: 130,000,000 shares at September
30, 2009 and December 31, 2008. Issued and
outstanding: 31,506,499 shares at September
30, 2009 and 23,196,236 at December 31,
2008
Additional paid-in capital 102,033 104,279
Accumulated other comprehensive loss (402) (455)
Accumulated deficit (100,240) (101,722)
Total shareholders' equity 2,311 2,822
Total liabilities and shareholders' equity 12,148 13,030
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
9 months ended 3 months ended
September 30, September 30,
2009 2008 2009 2008
Software
licenses 2,815 4,483 1,002 983
Maintenance and
services 3,953 4,788 1,399 1,587
6,768 9,271 2,400 2,570
Operating
expenses:
Cost of revenues 2,256 1,876 808 592
Research and
development, net 1,397 2,144 485 695
Selling and
marketing 2,512 4,869 753 1,393
General and
administrative 1,262 1,466 426 549
Employment
termination and
offices shutdown
costs - -
Total operating
expenses 7,428 10,355 2,473 3,229
Operating loss (660) (1,084) (73) (659)
Financial
expenses, net 643 977 366 330
Other expense
(income) (10) 2
Loss before
income taxes (1,293) (2,061) (438) (991)
Taxes on income 20 57 (6) 31
Net loss (1,313) (2,118) (432) (1,022)
Basic and
diluted net loss
per share $ (0.05) $ (0.09) $ (0.01) $ (0.04)
Weighted average
number of shares
used in
computing basic
and diluted net
loss per share 27,463 23,196 31,460 23,196
(**) The above
items are
inclusive of the
following
equity-based
compensation
expenses
resulting under
SFAS 123(R):
Equity-based
compensation
expense included
in "Research and
development" 19 83 7 20
Equity-based
compensation
expense included
in "Selling and
marketing" 65 122 14 29
Equity-based
compensation
expense included
in "General and
administrative" 53 50 18 21
137 255 39 70
Net basic and
diluted
equity-based
compensation
expense, per
share $ (0.05) $ (0.09) $ (0.01) $ (0.04)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
9 months ended
September 30,
2009 2008
Cash flows from operating activities:
Net loss from continued operations (1,313) (2,118)
Adjustments required to reconcile net loss
to net cash provided by (used in) operating
activities:
Decrease (increase) in restricted cash (3)
Depreciation 124 189
Stock based compensation 142 256
Amortization of deferred expenses 25 164
Amortization of debt discount 126 511
Amortization of software development costs 1,730 1,094
Increase (decrease) in accrued severance
pay, net 6 22
Decrease (increase) in trade receivables (192) (50)
Decrease ( increase) in other accounts
receivable and prepaid expenses 26 75
Increase (decrease) in long-term prepaid
expenses 17 (28)
Increase (decrease) in trade payables (158) (65)
Increase (decrease) in deferred revenues (48) 222
Increase (decrease) in employees and
payroll accruals (388) (209)
Decrease(increase) in accrued expenses and
other liabilities 19 (52)
Increase (decrease) in Long term
liabilities (20)
Increase (decrease) in revaluation of
Liabilities presented at fair value 292 -
Net cash provided by (used in) operating
activities from continued operations
(reconciled from continuing operations) 385 10
Net cash provided by operating activities
from discontinued operations (reconciled
from discontinued operations)
Net cash provided (used) by operating
activating 385 10
Cash flows from investing activities:
Restricted cash, net - (69)
Purchase of property and equipment (9) (31)
Capitalization of software development
costs (352) (717)
Proceeds from sale of property equipment - -
Net cash used in investing activities (361) (817)
Cash flows from financing activities:
Proceeds from exercise of employee stock
options - -
Issuance of shares
Receipt of Short term debt, net - convert
to Capital 536 326
Repayment of long-term debt (10) (11)
Net cash provided by (used in) financing
activities 526 315
Foreign currency translation adjustments on
cash and cash equivalents 22 (16)
Decrease (increase) in cash and cash
equivalents 572 (508)
Cash and cash equivalents at the beginning
of the period 480 1,321
Cash and cash equivalents at the end of the
period 1,052 813
Supplemental disclosure of cash flow
activities:
Cash paid during the period for:
Interest 108 175
Supplemental disclosure of non-cash
investing and financing activities:
Stock-based compensation that was
capitalized as part of capitalization of
software development costs 5 30
Issuance of warrant and extension of
contractual period of warrants in
consideration of long-term loan - -
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except per share data
9 months ended 3 months ended
September 30, September 30,
2009 2008 2009 2008
GAAP operating loss (660) (1,084) (73) (659)
Stock based
compensation (1) 137 255 39 70
Software development costs
capitalization and
amortization (2) 1,378 406 532 104
Non-GAAP operating
profit (loss) 855 (423) 498 (485)
GAAP net loss (1,313) (2,118) (432) (1,022)
Stock based
compensation (1) 137 255 39 70
Software development costs
capitalization and
amortization (2) 1,378 406 532 104
Financial expenses (3) 438 672 273 223
Non-GAAP net profit (loss) 641 (785) 411 (625)
GAAP basic and diluted net
profit (loss) per share (0.05) (0.09) (0.01) (0.04)
Stock based compensation (1) 0.00 0.01 0.00 0.00
Software development costs
capitalization and
amortization (2) 0.05 0.02 0.02 0.00
Financial expenses (3) 0.02 0.03 0.01 0.01
Non-GAAP basic and diluted net
profit (loss) per share 0.02 (0.03) 0.01 (0.03)
Weighted average number
of shares used in computing
basic and diluted net
loss per share 27,463 23,196 31,460 23,196
*) Less than $0.01 per share
(1) Equity-based compensation**
expenses resulting under
SFAS 123(R):
Equity-based compensation
expense included in
"Research and development" 19 83 7 20
Equity-based compensation
expense included in
"Selling and marketing" 65 122 14 29
Equity-based compensation
expense included in
"General and administrative" 53 50 18 21
137 255 39 70
"Equity based compensation
expenses" refer to the
amortized fair value of all
equity based awards granted
to employees.
(2) Software development costs
capitalization and amortization
resulting under SFAS 86:
Capitalization (352) (688) (61) (236)
Amortization 1,730 1,094 593 340
1,378 406 532 104
(3) Financial expenses:
Amortization of debt discount 125 513 170
Revaluation of warrants and
conversion features of
long term debt 293 273
Amortization of deferred
charges 20 159 53
438 672 273 223
For more information, please contact:
Dror Elkayam, VP Finance
Attunity Ltd.
+972-9-899-3000
dror.elkayam@attunity.com
SOURCE Attunity
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