Attunity Reports First Quarter 2016 Results

BURLINGTON, Mass., May 5, 2016 /PRNewswire/ -- Attunity, Ltd. (NasdaqCM: ATTU), a leading provider of Big Data management software solutions, today reported its unaudited financial results for the three-month period ended March 31, 2016.

"We are pleased with the progress of our enhanced sales and marketing strategy to engage larger customers for the implementation of our Big Data management platform. During the first quarter, this strategy contributed to the closing of notable new customer engagements, as well as the rapid growth of our sales pipeline with larger transactions in both size and scope than in previous periods. We expect this growth to have a greater impact on our financial results over the coming quarters," said Shimon Alon, Chairman and CEO of Attunity.

"With this strategy we are aligning with changing market dynamics driven by the bourgeoning Hadoop market that raised customer demand from point solutions to enterprise-wide and unified replication platforms. These market dynamics have enhanced our competitive positioning, and large enterprises are now selecting our innovative and broad platform to support their large-scale implementation needs.

In the first quarter, we won and on boarded new customer accounts that strategically selected our platform – including Ford Motor Company, a leading Fortune 100 automobile manufacturer, and Autodesk, a leader in 3D Design, Engineering & Entertainment software. Looking ahead, we are investing additional resources in our sales, marketing and consulting teams in order to effectively drive and monitor this strategy and capitalize on the opportunity we see in the data warehousing and Hadoop markets," continued Mr. Alon.

"Revenue in the first quarter grew 13% to $11.7 million, despite it being seasonally our slowest quarter of the year. Looking ahead, we have a solid pipeline for new licensing agreements, as our strategy significantly impacts potential growth. We believe this is the right time for our business to invest in larger market opportunities in order to scale the company going forward," concluded Mr. Alon.

Recent Operational Highlights

• Won several Hadoop customers in the quarter, continuously selected over competing solutions, including wins with Ford Motor Company and Autodesk
• Launched Attunity Compose, a data warehouse automation platform fully integrated with Attunity Replicate, following a successful pilot program
• Enhanced our Big Data ingest solution with real-time streaming into Apache Kafka, including partnership with Confluent
• Expanded Attunity CloudBeam solution for Google Cloud Dataproc
• Recognized as one of the 20 Most Promising SAP Solution Providers in 2016 by CIOReview Magazine

Financial Highlights for Q1 2016, compared with Q1 2015  

• Total revenue increased 13% to $11.7 million
• Total non-GAAP revenue increased 13% to $11.8 million*
• Operating expenses increased to $14.9 million compared with $11.2 million for the first quarter of 2015
  • Increase in expenses reflects our global expansion, with total headcount increasing by 40 people over the past year - including 30 additions to the sales, sales support, marketing and consulting services teams
• Total non-GAAP operating expenses increased to $12.8 million compared with $9.7 million for the first quarter of 2015*
• Net loss of $3.6 million, compared with net loss of $1.3 million for the first quarter of 2015
• Non-GAAP net loss of $1.7 million, compared with non-GAAP net income of $0.2 million for the first quarter of 2015*

Big Data Management and Cloud Solutions

Attunity continues to expand the capabilities of its Big Data management platform in response to strong market demand by offering strategic enterprise-wide solutions that address the growing needs of organizations. The Company's enhanced platform accelerates data delivery and availability, automates data readiness for analytics and optimizes data management with insight and intelligence. There are currently three revenue pipelines contributing to our growth: direct sales, strategic OEMs and global resellers, and referrals from partners, such as system integrators, technology partners and the leading Cloud vendors.

In the first quarter of 2016, the Company completed its commercial launch of Attunity Compose, a new and innovative data warehouse automation software. Attunity Compose was piloted in the fourth quarter of 2015 and garnered a 100% adoption rate. All of the Attunity Compose pilot customers have purchased the software over the past several months. The Company also expanded its product portfolio to support cloud databases for Google Cloud Dataproc.

Attunity Visibility is being chosen by customers as their preferred solution to improve optimization of data warehouses for large scale enterprises in various industries, including financial services, telecommunications and health care. The major benefits that Attunity Visibility offers customers are operational efficiencies, strategic cost-performance efficiencies, and the ability to better manage the rapidly escalating hardware upgrade costs associated with managing more data. As a result, the addressable market for Attunity Visibility is expanding as many enterprises are in the process of upgrading their large data warehouses for their critical business analytics in order to handle massive data volume growth.

Consulting Services

The ramp of our consulting group is being driven by demand from customers requiring these services for larger scale and enterprise-wide implementations. Attunity continues to make investments in building out the consulting group in order to address this market demand.                    

Financial Results for Q1 2016
Total revenue for the first quarter of 2016 increased 13% to $11.7 million, compared with $10.4 million for the same period in 2015. License revenue of $5.6 million for the first quarter of 2016 was flat compared with the same period in 2015. License revenue includes $0.8 million from a multi-million dollar, multi-stage strategic Hadoop deal signed during the quarter. Maintenance and service revenue grew 28% to $6.2 million, compared with $4.8 million for the same period in 2015.

Total non-GAAP revenue for the first quarter of 2016 was $11.8 million, compared with $10.4 million for the same period in 2015. This includes non-GAAP maintenance and service revenue of $6.2 million, which grew 28% from the same period in 2015.*

Operating expenses for the quarter increased to $14.9 million compared with $11.2 million for the first quarter of 2015. The increase in expenses mostly reflects the Company's global expansion of the sales, sales support, consulting and marketing teams over the past year to accommodate growing demand; as well as the acquisition of Appfluent in March 2015.

Non-GAAP operating expenses for the quarter increased to $12.8 million compared with $9.7 million for the first quarter of 2015.*

Operating loss for the first quarter of 2016 was $3.2 million, compared with $0.8 million for the same period in 2015.

Non-GAAP operating loss was $1.1 million for the first quarter of 2016, compared with operating income of $0.8 million for the first quarter of 2015. Non-GAAP operating loss for the first quarter of 2016 excludes a total of $2.1 million in expenses and amortization associated with acquisitions and equity-based compensation expenses, compared with $1.5 million of similar expenses for the same period in 2015.*

Net loss for the first quarter of 2016 was $3.6 million, or $0.22 per diluted share, compared with net loss of $1.3 million, or $0.09 per diluted share in the first quarter of 2015.

Non-GAAP net loss for the first quarter of 2016 was $1.7 million, or ($0.10) per diluted share, compared with non-GAAP net income of $0.2 million, or $0.01 per diluted share for the same period in 2015. Non-GAAP net loss for the first quarter of 2016 excludes a total of $1.8 million in expenses and amortization associated with acquisitions and equity-based compensation expenses, compared with $1.5 million of similar expenses for the same period in 2015.*

Cash and cash equivalents were $10.0 million as of March 31, 2016, compared with $12.5 million as of December 31, 2015. Cash and cash equivalents at the end of the first quarter of 2016 was impacted by an increase in accounts receivable and the additional investments in sales, sales support, consulting services and marketing teams.

Shareholders' equity as of March 31, 2016 decreased to $36.4 million, compared with $38.3 million as of December 31, 2015.

 * See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

Conference Call and Webcast Information

The Company will host a conference call with the investment community on Thursday, May 5 at 10:00 a.m. Eastern Time featuring remarks by Shimon Alon, Chairman and CEO of Attunity, and Dror Harel-Elkayam, CFO of Attunity. The dial-in numbers for the conference call are +1-888-438-5448 (U.S. Toll Free), +1 80 924 5906 (Israel), or +1-719-325-2315 (International). All dial-in participants must use the following code to access the call: 4550053.  

Please call at least five minutes before the scheduled start time. The conference call will also be available via webcast, which can be accessed through http://public.viavid.com/index.php?id=119023 or the Investor Relations section of Attunity's website, http://www.attunity.com/investor-relations.  Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.

For interested individuals unable to join the conference call, a replay of the call will be available through May 19, 2016, 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: 4550053. 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 Big Data management software solutions that enable access, management, sharing and distribution of data across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication and distribution, test data management, data connectivity, enterprise file replication (EFR), managed file transfer (MFT), data warehouse automation, data usage analytics, and cloud data delivery.

Attunity has supplied innovative software solutions to its enterprise-class customers for over 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 Hewlett Packard Enterprise. 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 blog and join our community on Twitter, Facebook, LinkedIn, and YouTube.

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, net of related tax, stock-based compensation expenses in accordance with ASC 718, acquisition-related compensation expense and non-cash financial expenses such as the effect of a revaluation of liabilities presented at fair value and accretion of payment obligations. 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 Supplemental Non-GAAP Financial Information 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 expect this growth to have a greater impact on our financial results over the coming quarters, we use forward-looking statements. 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, risks and uncertainties relating to: our history of operating losses and ability to achieve profitability; 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 manage our growth effectively; acquisitions, including costs and difficulties related to integration of acquired businesses; our ability to expand our business into the SAP market and the success of our Gold Client offering; timely availability and customer acceptance of Attunity's new and existing products, including Attunity Compose and Attunity Visibility; fluctuations in our quarterly operating results, which may not necessarily be indicative of future periods; 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 as well as cyber-attacks; 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.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

© 2016 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

For more information, please contact:
Garth Russell / Allison Soss
KCSA Strategic Communications
P: + 1 212-682-6300
[email protected]  / [email protected]

Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
[email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/attunity-reports-first-quarter-2016-results-300263546.html

SOURCE Attunity, Ltd.

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