ATTU Attunity Ltd. - Ordinary Shares

BURLINGTON, Mass., July 23, 2015 /PRNewswire/ -- Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of information availability software solutions, today reported its financial results for the three month period ended June 30, 2015.

Recent Operational Highlights:

• Closed approximately $1.0 million in Attunity Visibility (formerly Appfluent Visibility) deals:
  • $0.5 million deal with a Fortune 500 online travel company
  • $0.4 million deal with a large computer technology company
• Fully integrated the organization of Appfluent
• Launched Attunity CloudBeam for Microsoft Azure SQL Data Warehouse, strengthening Attunity's leadership position in the Cloud and Big Data markets
• Received expansion order from a large cloud services company
• Expanded Big Data offering for the fast-growing NoSQL market with the launch of Attunity Replicate for MongoDB

Financial Highlights for Q2 2015, compared with the Second Quarter of 2014:  

• Total revenue increased by 47% to $12.2 million
• Total non-GAAP revenue increased by 49% to $12.5 million*
• Total license revenue grew 53% to $6.8 million
• Net loss reduced by 31% to $0.8 million
• Non-GAAP net income of $1.1 million, compared with a non-GAAP net loss of $0.4 million for the second quarter of 2014*
• Generated positive cash flow from operations of $1.5 million
• Secured a $5.0 million credit line

"The expansion of Attunity's Big Data management platform, our strong offering for the cloud and the ongoing investments in the sales and marketing teams, resulted in another quarter of record revenue," said Shimon Alon, Chairman and CEO of Attunity. "Looking ahead, we plan to keep investing in strategic partnerships with leading Cloud and Big Data providers to capitalize on the large opportunity within these rapidly growing markets."

Big Data Management

In the second quarter, Attunity further broadened its Big Data platform, which now provides a comprehensive end-to-end data management solution - from data collection and aggregation, to data movement and automation, to the optimization of different data warehouses. As a result, enterprise customers and strategic partners alike have recognized the value that Attunity and each of its products provides, as well as the synergies they offer in a complete solution.

During the second quarter, Attunity started to monetize Attunity Visibility by securing several large orders, including one from a large computer technology company. We believe that the traction secured to date is a strong testament to the quality and demand for a solution that enables customers to analyze data utilization levels to improve efficiency.

Attunity Replicate continues to drive revenues with key orders. The solution's strong performance amounts to over 50% of the Company's license revenue and we expect it to drive revenue growth throughout fiscal year 2015.

Sales and Marketing

Attunity continues to invest in its sales and marketing teams to drive consistent growth, which has yielded substantially increased productivity, enabling the business to close larger deals in higher volumes. Since the end of the 2014 fiscal year, Attunity has continued to grow the number of its quota-carrying sales people. This progress reflects the Company's long-term strategy to achieve sustainable growth through the addition of sales, business development, lead development and inside sales personnel to garner new customers and expand the footprint within existing accounts.

Sales management produced improved results across all geographical regions and business lines, including the first major deal in Japan.

"In the fast-pace world of Big Data, we are uniquely positioned to take advantage of new opportunities to further grow our business as customers' needs evolve and expand. This includes leveraging our highly scalable solutions and distribution channels," concluded Mr. Alon.

Financial Results for Q2 2015

Total revenues for the second quarter of 2015 increased 47% to $12.2 million, compared with $8.3 million for the same period in 2014. This included license revenues for the second quarter of 2015, which increased 53% to $6.8 million, compared with $4.4 million for the same period in 2014. It also includes maintenance and service revenue, which grew 41% to $5.4 million compared with $3.9 million for the same period in 2014.

Total non-GAAP revenue for the second quarter of 2015 was $12.5 million, compared with $8.4 million for the same period in 2014. This includes non-GAAP maintenance and service revenue of $5.8 million, which grew 46% from the same period in 2014.*

The growth in total revenue is primarily due to the sales team's increased productivity and the procurement of several key deals during the quarter, including revenue from a major cloud services company.

Operating loss for the second quarter of 2015 was $0.7 million, compared with $1.0 million for the same period in 2014. This decrease was primarily due to the increase in revenue.

Non-GAAP operating income was $1.4 million for the second quarter of 2015, compared with an operating loss of $0.2 million for the second quarter of 2014. Non-GAAP operating income for the second quarter of 2015 excludes $2.1 million in expenses and amortization associated with acquisitions and equity-based compensation expenses, compared with $0.8 million of similar expenses, for the same period in 2014.*

Net loss for the second quarter of 2015 was $0.8 million, or $0.05 per diluted share, compared with $1.2 million, or $0.08 per diluted share in the second quarter of 2014.

Non-GAAP net income for the second quarter of 2015 was $1.1 million, compared with a non-GAAP net loss of $0.4 million for the same period in 2014. Non-GAAP net income for the second quarter of 2015 excludes a total of $1.9 million in expenses mostly associated with acquisitions and equity-based compensation expenses, compared with $0.7 million of similar expenses for the same period in 2014.*

Cash and cash equivalents, including restricted cash, remained at the same level as compared to March 31, 2015, and were $11.3 million as of June 30, 2015. Shareholders' equity remained at the same level as compared to March 31, 2015, and was $37.2 million as of June 30, 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, July 23 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 +1-888-510-1765 (U.S. Toll Free), +1 80 924 5906 (Israel), or +1-719-325-2484 (International). All dial-in participants must use the following code to access the call: 8583909.  

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 the Events section of Attunity's website, http://www.attunity.com/events, and http://www.kcsa.com.  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 August 6, 2015 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: 8583909. The online archive of the webcast will be available on http://www.attunity.com/events or http://www.kcsa.com 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 flow management, test data management, change data capture (CDC), data connectivity, enterprise file replication (EFR), managed-file-transfer (MFT), data warehouse automation, data usage analytics 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 http://www.attunity.com or our In Tune blog and join our community on Twitter, Facebook, LinkedIn and YouTube.

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.

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,  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, 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 are uniquely positioned to take advantage of new opportunities to further grow our business, 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: 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;  risks and uncertainties relating to 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 Maestro and Attunity Visibility; risks and uncertainties relating to 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.

© 2015 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

For more information, please contact:
Garth Russell / Allison Monat
KCSA Strategic Communications
P: + 1 212-682-6300
grussell@kcsa.com  / amonat@kcsa.com  

Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
dror.elkayam@attunity.com

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SOURCE Attunity, Ltd.