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Attunity Issues 1Q 2013 Results [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) Attunity, a provider of information availability software solutions, reported its unaudited financial results for the three month period ended March 31. "While we continue to win new customers and experience strong demand for our solutions, our financial results for the first quarter of 2013 reflect certain short-term challenges. These challenges include weak sales and marketing execution, as well as lower than expected OEM revenues. We are taking steps to quickly overcome these challenges and we plan to return to strong growth in the second half of the year," said Shimon Alon, Chairman and Chief Executive Officer of Attunity, in a release dated May 2. "Some of these steps include a change in leadership of the marketing department, revamping the sales lead generation process, and a broad restructuring of our marketing efforts. In addition, we expect the recent expansion of our sales and business development team in North America and abroad to start making a positive impact on sales growth within the next few months. "The first quarter financial results were also negatively impacted by lower than expected revenues from one of our largest OEM customers. A new agreement with improved license and support terms was recently signed with this OEM customer for an additional 3-year period. We also experienced a temporary delay during the first quarter on our activities with EMC Greenplum, which we believe is related to its spin-off to become part of a new company, Pivotal. This spin-off, created by EMC Greenplum and VMware, is highly focused on Data Analytics and Cloud Computing. Consequently, we expect that, in the long-term, the spin-off and our partnership with Pivotal will actually have a positive impact on our growth as it creates even more new business opportunities for Attunity than previously expected. "With many of these events behind us now, we expect a return to strong growth during the second half of the year. We are now targeting full year revenue in the range of $27 million to $30 million, and expect non-GAAP operating profit margin to range between 13 percent and 18 percent." Recent Operational Highlights -Signed worldwide multi-year reselling agreement for Attunity Replicate with a leading Fortune 50 global technology company to expand the partner's heterogeneous data replication capabilities -Signed an OEM agreement with a global provider of data analytics solutions servicing thousands of customers worldwide -Projected to generate several million dollars of revenue for Attunity over the next three years based on the vendor's expectations -Closed two large deals with telecommunications companies -Named in CRN's "Big Data 100" list for most innovative data management products and services to help businesses manage Big Data -Introduced high-speed data loading solution for Amazon Redshift, AWS's new data warehouse in the Cloud -Introduced Turbo-Stream CDC, an innovative and proprietary technology for loading high transaction volumes into data warehouses including EMC Greenplum (now Pivotal) and Teradata Financial Results for Q1 2013 Total revenues for the first quarter of 2013 were $4.6 million, compared to $6.1 million for the same period of 2012. This decrease is primarily a result of a 52 percent decline in license revenues to $1.7 million, compared to $3.6 million for the same period of 2012. The decrease in license revenues was partially offset by an increase in maintenance and services revenue in the amount of $0.3 million, compared to the same period of 2012. Operating loss for the first quarter of 2013 was $1.3 million, compared to an operating income of $0.3 million for the same period of 2012. Non-GAAP operating loss for the first quarter of 2013 was $950,000, compared to non-GAAP operating income of $831,000 for the same period of 2012. Non-GAAP operating loss for the first quarter of 2013 excludes the impact of stock-based compensation expenses and amortization of software development costs totaling $166,000, compared to $220,000 for the same period last year; and $187,000 in amortization and expenses related to the acquisition of RepliWeb, compared to $268,000 for the same period of 2012. Net loss for the first quarter of 2013 was $1,355,000, or $0.12 per diluted share, compared to a net loss of $125,000, or $0.01 per diluted share (adjusted to reflect the recent reverse stock split) in the first quarter of 2012. Non-GAAP net loss for the first quarter of 2013 was $1,008,000, compared to non-GAAP net income of $504,000 for the same period of 2012. Non-GAAP net loss for the first quarter of 2013 excludes a total of $347,000 in expenses and amortization, which is comprised mainly of $181,000 in amortization and other expenses associated with acquisition of RepliWeb, compared to $252,000 for the same period last year; and $166,000 stock-based compensation expenses, compared to $164,000 for the same period last year. Cash and cash equivalents were $3.7 million as of March 31, compared to $3.8 million as of Dec. 31, 2012. Shareholders' equity decreased to $8.4 million as of March 31, compared to $9.6 million as of Dec. 31, 2012. 2013 Revised Guidance Following the results of the first quarter, the Company has revised its outlook for 2013 with revenues now expected to be in the range of $27 million to $30 million and non-GAAP operating margin of between 13 percent and 18 percent. The Company reaffirmed that the revenue growth is expected to occur primarily in the second half of 2013. Attunity is a provider of information availability software solutions. ((Comments on this story may be sent to [email protected])) (c) 2013 ProQuest Information and Learning Company; All Rights Reserved. |