TIDMWAND
RNS Number : 8816Z
WANdisco Plc
23 September 2015
23 September 2015
WANdisco plc
Interim unaudited results for the six months ended 30 June
2015
Big Data customer wins gather further momentum
First Big Data customers go live
Financial highlights
-- Revenue up 13% to $5.7m (2014 H1: $5.0m)
-- Deferred revenue from booked sales up 16% to $18.0m (30 June 2014: $15.5m)
-- Sales bookings $4.4m (2014 H1: $7.4m)
-- Adjusted EBITDA(1) loss reduced to $9.2m (2014 H1: $9.5m loss)
-- Net cash of $15.2m (30 December 2014: $2.5m) and a currently
unused $10.0m HSBC credit facility, making total cash and credit
resources of $25.2m
Operational and strategic highlights
Big Data
* Revenue $0.8m (2014 H1: $0.1m)
* Sales bookings $1.4m (2014 H1: $0.3m)
* New WANdisco Fusion ("Fusion") product accelerated
new customer wins to eight in the second quarter
* Customer wins with integrations to both Hadoop
distributors and non-Hadoop storage platforms
including HP, Teradata and Oracle
* First three Big Data customers into live production
Application Lifecycle Management ("ALM")
* Revenue $4.9m (2014 H1: $4.9m)
* Sales bookings $3.0m (2014 H1: $7.1m)
* Nine new ALM subscriptions
* 24 upgraded or expanded ALM subscriptions
(1) EBITDA loss excluding equity-settled share-based payment,
capitalised product development costs, acquisition-related items
and exceptional items.
David Richards, WANdisco Chief Executive, comments:
"Our penetration of the Big Data market has taken a big step
forward in the first half of this year. We added eight new
customers in the second quarter alone and the first three Big Data
customers went into live production with our new WANdisco Fusion
product.
Our partners increasingly view WANdisco as crucial in enabling
their customers to go into live production with new Big Data
applications. We are working increasingly closely on go to market
activities and product integration with selected partners such as
Oracle, IBM and Hortonworks.
In our ALM business, as previously highlighted, the transition
in our sales organisation impacted sales during the period. Our
offering remains highly relevant to today's increasingly
distributed software development operations, and our live customer
base of over 200 corporations offers ample sales opportunities. We
have increased our focus on our core ALM offering and devoted more
sales resource to this business.
With a compelling new Big Data product, increasing engagement of
high-quality partners and a well-established ALM product, we expect
to build momentum through the rest of this year."
Notes
An audio webcast recording of the analyst presentation will be
available on the company website after the event.
All Group announcements and news can be found at
http://www.wandisco.com
For further information please contact:
via FTI Consulting
WANdisco plc LLP
David Richards
Paul Harrison
Phil Branston
+44 (0)203 727
FTI Consulting 1000
Matt Dixon / Rob Mindell /
Harry Staight
Investec (Joint Broker and +44 (0)207 597
Nominated Adviser) 4000
Christopher Baird / Dominic
Emery
UBS (Joint Broker) +44 (0)207 567
Rahul Luthra / Sandip Dhillon 8000
About WANdisco plc
WANdisco (LSE: WAND) is a provider of enterprise-ready, non-stop
software that enables globally distributed organisations to meet
today's data challenges of secure storage, scalability and
continuous availability. WANdisco's products are differentiated by
the company's patented, active-active data replication technology,
serving crucial continuous availability requirements, including
Hadoop Big Data and Application Lifecycle Management ("ALM"),
including Apache Subversion and Git. Fortune Global 1000 companies,
including Juniper Networks, Motorola, Intel and Halliburton, rely
on WANdisco for performance, reliability, security and
availability. For additional information, please visit
www.wandisco.com.
BUSINESS REVIEW
During the first half we achieved an increase in momentum in our
Big Data business, with our highest quarterly volume of contract
wins coming in the second quarter.
Our ALM business was impacted, as previously highlighted, by a
transition in our sales force as we establish the appropriate
balance between our Big Data and ALM sales efforts.
Big Data
The Big Data marketplace has evolved significantly this year.
Storage vendors are bringing to market Hadoop-compatible offerings,
responding to their customers' requirements to store and process
data both on Hadoop and on more traditional platforms, and to move
and replicate data between the different platforms.
To address this emerging market for mixed storage, we evolved
our product from Non-Stop Hadoop, which replicated data within
single Hadoop distributions, to Fusion, which replicates data
across multiple storage platforms. Fusion performs this mixed
replication without the need for invasive access to the host
platforms, making it easy for customers to install. We have
integrated Fusion with our partners' Big Data offerings and have
now achieved certification on both the Oracle Big Data Appliance
and the IBM BigInsights appliance, for managing and analyzing big
data.
Fusion ensures continuous data availability, high levels of
processing performance to meet demanding service level
requirements, and above all, cost savings from high utilisation of
computing resource. Amongst our Fusion customers, the majority were
taking Big Data into live production rather than running trial
projects or non-critical operations. New enterprise features in
Fusion include two features that were granted new US patents,
relating to addition and removal of servers, without downtime, from
replicated data networks. This enables hardware and software
upgrades, addition of new locations, data migrations and rollouts
of new applications - all without interruption of service.
In the short time since the release of Fusion, we secured eight
new customers, all during the second quarter. Our new Fusion
customers were drawn from all regions - EMEA, Americas and
Asia-Pacific. They are all large organisations in our key industry
segments of financial services, government agencies, consumer
products and telecommunications. Their business requirements
combined regulatory compliance, customer analysis and storage cost
efficiencies - typified by Compare The Market in the UK insurance
sector and by other new customers in financial services. Our
first-half sales included collaborations with Oracle, Teradata,
Hortonworks and HP, and also integrations with Cloudera and Amazon
data platforms.
At the end of the first half we had 20 Big Data customers, all
of which have intentions to scale up significantly their WANdisco
solutions, once their implementations are in live production, as
they take more data into their mission-critical applications. The
first three of our Big Data customers went into live production
after the end of the first half.
Application Lifecycle Management ("ALM")
The ALM business, as previously highlighted, was impacted during
the period by our transition to a greater sales focus as we
establish the appropriate balance of sales resources between Big
Data and ALM.
We continue to see strong potential in the source code
management segment of the ALM market that we focus on. Software
development continues to become more geographically and
organisationally distributed, bringing greater challenges in
control and efficiency, both amongst software publishers and in
industry more generally.
Our core ALM product Subversion Multisite Plus has been upgraded
to include support for the new version 1.9 of the open source
Subversion code management system that most of our customers use.
Our new August release incorporated improvements in performance,
resource utilisation and administration.
Our assessment of the ALM market confirms that we have the right
products for the market at this stage in its evolution. The
devotion of new sales and marketing resource to ALM prospecting in
traditional industry segments where open source adoption is strong,
and a renewed focus on up-selling to our installed base of 200
customers, both under senior direction, are starting to bring
momentum back into our sales pipeline.
FINANCE REVIEW
Sales bookings were $4.4m (2014 H1: $7.4m). Sales bookings are
total subscription contract values, subsequently recognised as
revenue over the life of the contract. During this period of rapid
evolution in our products, partnerships and sales organisation we
continue to expect volatility in quarterly bookings.
Revenue grew 13% to $5.7m (2014 H1: $5.0m). This growth includes
revenue deferred from previous periods.
Deferred revenue from sales booked during the first half and in
previous periods (and not yet recognised as revenue) was $18.0m at
30 June 2015 (30 June 2014: $15.5m), reflecting future revenue from
new and renewed contracts, many of them spanning multiple
years.
Revenue growth and strong cost control, with cash costs held at
approximately the same level as in the prior year period, resulted
in the adjusted EBITDA loss narrowing to $9.2m (2014 H1:
$9.5m).
Quarterly sales results are largely unrepresentative of our
underlying commercial progress. Therefore, we intend to cease
publishing quarterly sales updates, whilst continuing, though
Regulatory News Statements, to provide updates on our business
performance, key customer wins and other relevant developments.
Big Data
Sales bookings were $1.4m (2014 H1: $0.3m). Revenues were $0.8m
(2014 H1: $0.1m). Both bookings and revenues showed significant
growth on last year's first half as we saw for the first time a
consistent revenue stream from our contract wins.
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Contract pricing was encouragingly strong, particularly in those
cases where we combined with global established storage vendors
such as Oracle, demonstrating added value as part of pre-engineered
stack.
ALM
$3.0m of sales bookings in the period came from our ALM
products, (2014 H1: $7.1m). Sales to new customers are taking time
to regain momentum after the steps taken to sharpen our focus on
the ALM market and increase the productivity of our sales
operations. Growth in renewals confirmed that our products continue
to meet the needs of today's distributed software development
teams.
ALM revenue was $4.9m (2014 H1: $4.9m), benefitting from the
rollout of deferred revenue from prior period sales bookings.
Based on its operating scale and revenue potential, it remains
our intention to advance the ALM business towards profitability in
2015.
Profit and loss
Our headcount was 162 as at 30 June 2015 (31 December 2014:
182). Headcount reductions in the period resulted from efficiencies
in IT administration and in ALM product engineering and
testing.
The adjusted EBITDA loss for the period (excluding
equity-settled share-based payment, capitalised product
development, acquisition-related items and exceptional items) was
$9.2m (2014 H1: $9.5m loss). We continued to invest significantly
in products and in go-to-market activities, while at the same time
making cost savings across a number of functions.
Product development expenditure for the period was $4.3m (2014
H1: $4.2m). All of this expenditure was devoted to new product
features and was capitalised.
Total cash costs of $19.2m were approximately in line with the
prior year period (2014 H1: $18.7m) and also with the preceding
half (2014 H2: $19.4m). Cost control will continue to be a
focus.
Balance sheet and cash flow
Trade and other receivables at 30 June 2015 were $13.0m (31
December 2014: $14.5m). $2.7m of receivables was billed by the
period end (31 December 2014: $4.4m), $8.6m comprised contractual
payments not yet billed (31 December 2014: $8.0m), largely from
multi-year contracts, and $1.7m related to non-trade receivables
(31 December 2014: $2.1m).
Net cash stood at $15.2m at 30 June 2015 (31 December 2014:
$2.5m). This includes the benefit of $26.1m of new equity funds
(net of fees) raised from UK and US investors and announced on 23
January 2015. In addition, we retain a revolving credit facility
with HSBC Bank plc, announced on 5 August 2014, which remained
undrawn at 30 June 2015. The funds available will be used to
finance continued expansion in the Big Data market, including
product development and go-to-market activities.
OUTLOOK
We now have 20 Big Data customers, all of them large or global
organisations with intentions to scale up their Big Data operations
once in live production. With our first three Fusion customers
having gone live, we expect to expand progressively the solutions
of many of our existing customers.
It is encouraging that many of our sales in the first half
resulted from collaborations with global storage and data
management partners such as Oracle, HP and Teradata. We are
deepening these relationships and expect growth in the sales we
achieve with these and other Big Data partners.
In our ALM business, we have restored our focus on our core
product, in use by over 200 customers. We have made changes in
sales and marketing, continuing after the end of the first half,
which we believe will bring a greater focus to our sales to both
new and existing customers.
As we continue our investment in our markets, we have at the
same time exerted strong cost discipline, and will continue to do
so.
At this stage in the company's growth we are experiencing
variability in quarterly sales bookings, and expect that to
continue as we progress through a period of rapid change in our
operations and in the Big Data market. Nevertheless, with a
compelling new Big Data product, increasing engagement of
high-quality partners, and a well-established ALM product, we
expect to build momentum through the rest of this year.
Condensed consolidated statement of profit and loss and other
comprehensive income
for the six months ended 30 June 2015
Six months ended Six months ended Year ended
31 December
30 June 2015 30 June 2014 2014
(Unaudited) (Unaudited) (Audited)
Pre- Exceptional Pre- Exceptional Pre- Exceptional
exceptional items Total exceptional items Total exceptional items Total
Continuing
operations Note $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Revenue 3 5,669 - 5,669 5,013 - 5,013 11,218 - 11,218
Cost of sales (387) - (387) (1,029) - (1,029) (2,165) - (2,165)
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Gross profit 5,282 - 5,282 3,984 - 3,984 9,053 - 9,053
Operating
expenses 4 (22,384) (711) (23,095) (21,991) (536) (22,527) (47,529) (1,441) (48,970)
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Loss from
operations 5 (17,102) (711) (17,813) (18,007) (536) (18,543) (38,476) (1,441) (39,917)
Finance income 519 - 519 34 - 34 584 - 584
Finance costs (439) - (439) (36) - (36) (27) - (27)
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Net finance
income/
(costs) 6 80 - 80 (2) - (2) 557 - 557
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Loss before
tax (17,022) (711) (17,733) (18,009) (536) (18,545) (37,919) (1,441) (39,360)
Income tax 7 (72) - (72) - - - 1,053 - 1,053
-------------- ---- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Loss for
the period (17,094) (711) (17,805) (18,009) (536) (18,545) (36,866) (1,441) (38,307)
-------------- ---- ----------- ----------- -------- =========== =========== ======== ============ =========== ========
Other comprehensive income
Items that are or may be
reclassified to profit or
loss:
Foreign operations
- foreign currency
translation
differences (111) - (111) 543 - 543 (444) - (444)
-------------------- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Other comprehensive
income for
the period,
net of tax (111) - (111) 543 - 543 (444) - (444)
-------------------- ----------- ----------- -------- ----------- ----------- -------- ------------ ----------- --------
Total
comprehensive
income for
the period (17,205) (711) (17,916) (17,466) (536) (18,002) (37,310) (1,441) (38,751)
============== ==== =========== =========== ======== =========== =========== ======== ============ =========== ========
Loss per
share
Basic and
diluted
loss per
share 8 $0.64 $0.78 $1.59
============== ==== =========== =========== ======== =========== =========== ======== ============ =========== ========
The notes on pages 10 to 16 form an integral part of this
condensed consolidated half yearly financial report.
Condensed consolidated balance sheet
as at 30 June 2015
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Note $'000 $'000 $'000
--------------------------------------- ---- ------------ ------------ -----------
Assets
Intangible assets 9 9,338 9,682 9,814
Property, plant and equipment 326 382 410
Trade and other receivables 10 5,150 5,089 4,895
--------------------------------------- ---- ------------ ------------ -----------
Non-current assets 14,814 15,153 15,119
--------------------------------------- ---- ------------ ------------ -----------
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Trade and other receivables 10 7,825 5,334 9,557
Cash and cash equivalents 15,205 14,994 2,481
--------------------------------------- ---- ------------ ------------ -----------
Current assets 23,030 20,328 12,038
--------------------------------------- ---- ------------ ------------ -----------
Total assets 37,844 35,481 27,157
--------------------------------------- ---- ------------ ------------ -----------
Liabilities
Borrowings - finance lease liabilities - (19) (8)
Trade and other payables (3,349) (2,664) (3,195)
Deferred income 11 (8,442) (7,141) (8,477)
Deferred government grant (35) (119) (81)
Current tax liabilities - - (2)
--------------------------------------- ---- ------------ ------------ -----------
Current liabilities (11,826) (9,943) (11,763)
--------------------------------------- ---- ------------ ------------ -----------
Deferred income 11 (9,509) (8,362) (10,792)
Deferred income tax liabilities (5) (5) (5)
--------------------------------------- ---- ------------ ------------ -----------
Non-current liabilities (9,514) (8,367) (10,797)
--------------------------------------- ---- ------------ ------------ -----------
Total liabilities (21,340) (18,310) (22,560)
--------------------------------------- ---- ------------ ------------ -----------
Net assets 16,504 17,171 4,597
======================================= ==== ============ ============ ===========
Equity
Share capital 4,655 3,767 3,879
Share premium 81,964 54,201 56,587
Shares to be issued - 2,364 -
Translation reserve (413) 685 (302)
Merger reserve 1,247 1,247 1,247
Retained earnings (70,949) (45,093) (56,814)
--------------------------------------- ---- ------------ ------------ -----------
Total equity 16,504 17,171 4,597
======================================= ==== ============ ============ ===========
The notes on pages 10 to 16 form an integral part of this
condensed consolidated half yearly financial report.
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2015
Shares
to
Share Share be Translation Merger Retained
capital premium issued reserve reserve earnings Total
Six months ended 30
June 2015 (unaudited) $'000 $'000 $'000 $'000 $'000 $'000 $'000
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Balance at 1 January
2015 3,879 56,587 - (302) 1,247 (56,814) 4,597
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Total comprehensive
income for the period
Loss for the period - - - - - (17,805) (17,805)
Other comprehensive
income - - - (111) - - (111)
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Total comprehensive
income for the period - - - (111) - (17,805) (17,916)
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Transactions with
owners of the Company
Contributions and
distributions
Equity-settled share-based
payment - - - - - 3,670 3,670
Proceeds from share
placing 737 25,341 - - - - 26,078
Share options exercised 39 36 - - - - 75
Total transactions
with owners of the
Company 776 25,377 - - - 3,670 29,823
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Balance at 30 June
2015 4,655 81,964 - (413) 1,247 (70,949) 16,504
=========================== ======== ======== ======= =========== ======== ========= ========
Shares
to
Share Share be Translation Merger Retained
capital premium issued reserve reserve earnings Total
Six months ended 30
June 2014 (unaudited) $'000 $'000 $'000 $'000 $'000 $'000 $'000
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Balance at 1 January
2014 3,755 53,882 - 142 1,247 (30,353) 28,673
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Total comprehensive
income for the period
Loss for the period - - - - - (18,545) (18,545)
Other comprehensive
income - - - 543 - - 543
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Total comprehensive
income for the period - - - 543 - (18,545) (18,002)
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Transactions with
owners of the Company
Contributions and
distributions
Shares to be issued
as part of OhmData,
Inc. acquisition - - 2,364 - - (1,518) 846
Equity-settled share-based
payment - - - - - 5,323 5,323
Share options exercised 12 319 - - - - 331
Total transactions
with owners of the
Company 12 319 2,364 - - 3,805 6,500
--------------------------- -------- -------- ------- ----------- -------- --------- --------
Balance at 30 June
2014 3,767 54,201 2,364 685 1,247 (45,093) 17,171
=========================== ======== ======== ======= =========== ======== ========= ========
The notes on pages 10 to 16 form an integral part of this
condensed consolidated half yearly financial report.
Condensed consolidated statement of cash flows
for the six months ended 30 June 2015
Six Six
months months
ended ended
Year
30 June 30 June ended
31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
----------------------------------------------------- ------------ ------------ -------------
Cash flows from operating activities
Loss for the period (17,805) (18,545) (38,307)
Adjustments for:
* Depreciation of property, plant and equipment 166 134 267
* Amortisation of intangible assets 4,759 3,573 8,283
* Net finance costs/(income) 23 (19) (31)
* Income tax 72 - (1,053)
* Foreign exchange (127) 184 156
* Equity-settled share-based payment 3,670 5,323 13,348
--------------------------------------------------------- ------------ ------------ -------------
(9,242) (9,350) (17,337)
-------------------------------------------------------- ------------ ------------ -------------
Change in:
* Trade and other receivables 823 118 (2,938)
* Trade and other payables 154 128 737
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* Deferred income (1,318) 2,378 6,145
* Deferred government grant (46) (130) (147)
Net working capital change (387) 2,494 3,797
--------------------------------------------------------- ------------ ------------ -------------
Cash used in operating activities (9,629) (6,856) (13,540)
Interest paid (13) (15) (11)
Income tax received/(paid) 513 - (3)
--------------------------------------------------------- ------------ ------------ -------------
Net cash used in operating activities (9,129) (6,871) (13,554)
--------------------------------------------------------- ------------ ------------ -------------
Cash flows from investing activities
Purchase of property, plant and
equipment and computer software (83) (300) (475)
Development expenditure (4,282) (4,206) (9,040)
Interest received 73 34 58
--------------------------------------------------------- ------------ ------------ -------------
Net cash used in investing activities (4,292) (4,472) (9,457)
--------------------------------------------------------- ------------ ------------ -------------
Cash flows from financing activities
Net proceeds from share issues 26,153 331 465
Payment of finance lease liabilities (8) (16) (27)
--------------------------------------------------------- ------------ ------------ -------------
Net cash from financing activities 26,145 315 438
--------------------------------------------------------- ------------ ------------ -------------
Net increase/(decrease) in cash
and cash equivalents 12,724 (11,028) (22,573)
Cash and cash equivalents at the
start of the period 2,481 25,673 25,673
Effect of movements in exchange
rates on cash and cash equivalents - 349 (619)
--------------------------------------------------------- ------------ ------------ -------------
Cash and cash equivalents at the
end of the period 15,205 14,994 2,481
========================================================= ============ ============ =============
The notes on pages 10 to 16 form an integral part of this
condensed consolidated half yearly financial report.
Notes to the condensed consolidated half yearly financial
statements
for the six months ended 30 June 2015
1. Reporting entity
WANdisco plc (the "Company") is a public limited company
incorporated and domiciled in Jersey. The Company's ordinary shares
are traded on AIM. These condensed consolidated half yearly
financial statements ("Half yearly financial statements") as at and
for the six months ended 30 June 2015 comprise the Company and its
subsidiaries (together referred to as the "Group"). The Group is
primarily involved in the development and provision of global
collaboration software.
2. Basis of preparation
Basis of accounting
These half yearly financial statements have been prepared in
accordance with AIM rules for Companies and IAS 34 "Half yearly
Financial Reporting" as adopted by the European Union ("EU"). They
do not include all the information required for a complete set of
International Financial Reporting Standards ("IFRS") financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and
performance since the last annual consolidated financial statements
as at and for the year ended 31 December 2014.
These half yearly financial statements were authorised for issue
by the Company's Board of Directors on 14 September 2015.
The annual financial statements of the Group are prepared in
accordance with IFRSs as endorsed by the EU, IFRIC ("IFRS
Interpretations Committee) interpretations, under the historical
cost accounting convention, and with those parts of Jersey Law
(1991) applicable to companies under IFRS. The half yearly
financial statements have, other than in respect of the matters
referred to below, been prepared applying the accounting policies
and presentation that were applied in the preparation of the
Group's published Consolidated financial statements for the year
ended 31 December 2014. Accordingly, these half yearly financial
statements should be used in conjunction with the Group's published
annual financial statements for the year ended 31 December
2014.
There are no new standards or amendments to standards that are
effective for the first time for the financial year beginning 1
January 2015, that have had a material impact on the half yearly
financial statements.
Going concern
As at 30 June 2015 the Group had net assets of $16,504,000 (30
June 2014: $17,171,000; 31 December 2014: $4,597,000) as set out in
the Condensed consolidated balance sheet above. The Directors have
prepared detailed forecasts of the Group's performance. As a
consequence, the Directors believe that WANdisco plc and the Group
are well placed to manage their business risks successfully despite
the current uncertain economic outlook. After making enquiries the
Directors have a reasonable expectation that WANdisco plc and the
Group have sufficient working capital available for its present
requirements that is for the next twelve months from the date of
this report. Accordingly, they continue to adopt the going concern
basis in preparing the half yearly financial statements.
Functional and presentational currency
The half yearly financial statements are presented in US
dollars, which is also the presentational currency of the Group.
Billings to the Group's customers during the period were all made
in US dollars by WANdisco, Inc. with certain costs being incurred
by WANdisco International Limited in sterling and WANdisco, Pty Ltd
in Australian dollar. All financial information has been rounded to
the nearest thousand US dollars unless otherwise stated.
Use of judgements and estimates
In preparing these half yearly financial statements, management
has made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the Group's
consolidated financial statements as at and for the year ended 31
December 2014.
3. Segmental analysis
Operating segments
The Directors consider there to be one operating segment, being
that of development and sale of licences for software and related
maintenance.
Geographical segments
The Group recognises revenue in three geographical regions based
on the location of customers, as set out in the following
table:
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Revenue by segment: $'000 $'000 $'000
-------------------- ------------- ------------ ------------
North America 4,821 4,592 9,414
Europe 648 288 1,376
Rest of the world 200 133 428
-------------------- ------------- ------------ ------------
Total revenue 5,669 5,013 11,218
==================== ============= ============ ============
Management makes no allocation of costs, assets or liabilities
between these segments since all trading activities are operated as
a single business unit.
The Group has no customers representing individually over 10% of
revenue (2014: Nil).
4. Exceptional items
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Exceptional items comprise the following: $'000 $'000 $'000
------------------------------------------ ------------- ------------ ------------
Equity-settled share-based payment
charge in relation to acquisitions
* OhmData, Inc. 474 11 492
* AltoStor, Inc. 150 329 659
* TortoiseSVN.net 87 196 290
Exceptional items 711 536 1,441
========================================== ============= ============ ============
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5. Reconciliation of loss from operations to adjusted earnings
before interest, taxation, depreciation and amortisation ("Adjusted
EBITDA")
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Reconciliation of loss from operations
to Adjusted EBITDA: $'000 $'000 $'000
----------------------------------------- ------------- ------------ ------------
Loss from operations (17,813) (18,543) (39,917)
Adjusted for:
Amortisation and depreciation 4,925 3,707 8,550
Acquisition-related items - - 145
Exceptional items within operating
expenses (see Note 4) 711 536 1,441
----------------------------------------- ------------- ------------ ------------
EBITDA before exceptional items (12,177) (14,300) (29,781)
Equity-settled share-based payment
(excluding exceptional item) 2,959 4,787 11,907
----------------------------------------- ------------- ------------ ------------
Adjusted EBITDA before exceptional
items (9,218) (9,513) (17,874)
Development expenditure capitalised (4,282) (4,206) (9,040)
----------------------------------------- ------------- ------------ ------------
Adjusted EBITDA before exceptional
items including development expenditure (13,500) (13,719) (26,914)
========================================= ============= ============ ============
6. Net finance income/(costs)
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
------------------------------------- ------------- ------------ ------------
Interest receivable - bank 73 34 58
Exchange gain 446 - 526
------------------------------------- ------------- ------------ ------------
Finance income 519 34 584
------------------------------------- ------------- ------------ ------------
Unwind of discount on pledged shares (16) - (16)
Exchange loss (343) (21) -
Interest payable on bank borrowings (12) - (2)
Bank charges (1) (15) (9)
Amortisation of loan costs (67) - -
------------------------------------- ------------- ------------ ------------
Finance costs (439) (36) (27)
------------------------------------- ------------- ------------ ------------
Net finance income/(costs) 80 (2) 557
===================================== ============= ============ ============
7. Taxation
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
--------------------------- ------------- ------------ ------------
Current tax expense
Current period - - 478
Adjustment for prior years (72) - 575
--------------------------- ------------- ------------ ------------
Income tax (72) - 1,053
=========================== ============= ============ ============
8. Loss per share
Basic loss per share
Basic loss per share is calculated based on the loss
attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding:
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
--------------------------------------------- ------------- ------------ ------------
Loss for the period attributable to ordinary
shareholders 17,805 18,545 38,307
============================================= ============= ============ ============
Number Number Number
of shares of shares of shares
Weighted average number of ordinary shares '000 '000 '000
--------------------------------------------- ------------- ------------ ------------
At the start of the period 24,435 23,693 23,693
Effect of shares issued in the period 3,604 48 325
--------------------------------------------- ------------- ------------ ------------
Weighted average number of ordinary
shares during the period 28,039 23,741 24,018
============================================= ============= ============ ============
Basic loss per share $0.64 $0.78 $1.59
===================== ===== ===== =====
Adjusted loss per share
Adjusted loss per share is calculated based on the loss
attributable to ordinary shareholders before exceptional items,
acquisition-related items and the cost of equity-settled
share-based payment, and the weighted average number of ordinary
shares outstanding:
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Adjusted loss for the period: $'000 $'000 $'000
--------------------------------------------- ------------- ------------ ------------
Loss for the period attributable to ordinary
shareholders 17,805 18,545 38,307
Add back:
Exceptional items (711) (536) (1,441)
Acquisition-related items - - (161)
Equity-settled share-based payment
(excluding exceptional item) (2,959) (4,787) (11,907)
--------------------------------------------- ------------- ------------ ------------
Adjusted basic loss for the period 14,135 13,222 24,798
============================================= ============= ============ ============
Adjusted loss per share $0.50 $0.56 $1.03
======================== ===== ===== =====
Diluted loss per share
Due to the Group having losses in all periods presented, the
fully diluted loss per share for disclosure purposes, as shown in
the Condensed consolidated statement of profit and loss and other
comprehensive income, is the same as for the basic loss per
share.
8. Intangible assets
Other
Intangible Development Computer
assets costs software Total
At 30 June 2015 (unaudited) $'000 $'000 $'000 $'000
---------------------------- ----------- ----------- --------- -----------------
Cost
At 1 January 2015 3,154 22,787 1,189 27,130
Additions - own work
capitalised - 4,282 - 4,282
Disposals - - (1,000) (1,000)
Effect of movement in
exchange rates - - (20) (20)
At 30 June 2015 3,154 27,069 169 30,392
(MORE TO FOLLOW) Dow Jones Newswires
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----------------------------- ----------- ----------- --------- -----------------
Amortisation
At 1 January 2015 (1,795) (14,375) (1,146) (17,316)
Amortisation charge
for the period (549) (4,199) (11) (4,759)
Disposals - - 1,000 1,000
Effect of movement in
exchange rates - - 21 21
At 30 June 2015 (2,344) (18,574) (136) (21,054)
----------------------------- ----------- ----------- --------- -----------------
Net book value - At
30 June 2015 810 8,495 33 9,338
============================= =========== =========== ========= =================
At 30 June 2014 (unaudited)
---------------------------- ----------- ----------- --------- -----------------
Cost
At 1 January 2014 2,308 13,747 1,030 17,085
Acquisitions through
business combinations 846 - - 846
Additions - externally
purchased - - 98 98
Additions - own work
capitalised - 4,206 - 4,206
Effect of movement in
exchange rates - - (21) (21)
At 30 June 2014 3,154 17,953 1,107 22,214
----------------------------- ----------- ----------- --------- -----------------
At 1 January 2014 (860) (7,520) (613) (8,993)
Amortisation charge
for the period (383) (2,932) (258) (3,573)
Effect of movement in
exchange rates - - 34 34
At 30 June 2014 (1,243) (10,452) (837) (12,532)
----------------------------- ----------- ----------- --------- -----------------
Net book value - At
30 June 2014 1,911 7,501 270 9,682
============================= =========== =========== ========= =================
The carrying amount of the intangible assets is allocated across
cash-generating units ("CGUs"). A CGU is defined as the smallest
group of assets that generate cash inflows from continuing use that
are largely independent of the cash inflows of other assets or
groups thereof. The recoverable amount of the CGUs are determined
using value in use ("VIU") calculations. As at 30 June 2015 the
Group had one CGU, the DConE CGU. The Group's patented DConE
replication technology forms the basis of the Group's products for
the ALM market. This technology also underpins the enterprise-ready
Apache-Hadoop products the Group has developed for the Big Data
market.
Development costs are predominantly capitalised staff costs
associated with new products and services. Development costs are
allocated to the DConE CGU. There was no indication of impairment
at either 30 June 2015, 30 June 2014 or 31 December 2014.
Other intangibles arose as part of the acquisitions of AltoStor,
Inc. in November 2012 and OhmData, Inc. in June 2014. The
intangibles arising as part of these acquisitions are allocated to
the DConE CGU. The recoverable amount of which has been determined
on a VIU basis as described above.
Software primarily relates to an item of software purchased from
Syntevo GmBH for consideration of $1 million in September 2012.
This software was fully amortised at 31 December 2014 and was
disposed of on 20 February 2015 to SmartSVN GmbH for consideration
of EUR1.
The above amortisation charge forms part of operating expenses
in the Condensed consolidated statement of profit or loss.
9. Trade and other receivables
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Due in more than a year: $'000 $'000 $'000
---------------------------- ------------ ------------ -----------
Other receivables
* Unbilled receivables 5,150 5,089 4,895
5,150 5,089 4,895
============================ ============ ============ ===========
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Due within a year: $'000 $'000 $'000
---------------------------- ------------ ------------ -----------
Trade receivables 2,714 2,340 4,440
Other receivables
* Unbilled receivables 3,418 2,060 3,110
* Other receivables 526 348 556
---------------------------- ------------ ------------ -----------
Total other receivables 3,944 2,408 3,666
---------------------------- ------------ ------------ -----------
Corporation tax 469 - 1,056
Prepayments 698 586 395
---------------------------- ------------ ------------ -----------
7,825 5,334 9,557
============================ ============ ============ ===========
10. Deferred income
Deferred income represents contracted sales for which services
to customers will be provided in future periods.
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
The movement on the deferred income balance
is as follows: $'000 $'000 $'000
-------------------------------------------- ------------ ------------ -----------
At 1 January 19,269 13,124 13,124
Customer bookings 4,351 7,392 17,363
Released to revenue (5,669) (5,013) (11,218)
-------------------------------------------- ------------ ------------ -----------
At end of period 17,951 15,503 19,269
============================================ ============ ============ ===========
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Deferred income which falls due: $'000 $'000 $'000
--------------------------------- ------------ ------------ -----------
Within a year 8,442 7,141 8,477
In more than a year 9,509 8,362 10,792
--------------------------------- ------------ ------------ -----------
17,951 15,503 19,269
================================= ============ ============ ===========
11. Share-based payment
WANdisco plc operates share option plans for qualifying
employees of the Group. Options in the plans are settled in equity
in the Company and are normally subject to a vesting schedule but
not conditional on any performance criteria being achieved.
The terms and conditions of the share option grants are detailed
in the Group annual financial statements for the year ended 31
December 2014.
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Analysis of equity-settled share-based
payment charge: $'000 $'000 $'000
------------------------------------------- ------------- ------------ ------------
Total equity-settled share-based payment
charge in relation to acquisitions
(see Note 4) 711 536 1,441
Non-exceptional equity-settled share-based
payment charge (see Note 5) 2,959 4,787 11,907
------------------------------------------- ------------- ------------ ------------
Total equity-settled share-based payment
charge 3,670 5,323 13,348
=========================================== ============= ============ ============
Six Six
months months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Exceptional equity-settled share-based
payment charge in relation to acquisitions: $'000 $'000 $'000
--------------------------------------------- ------------- ------------ ------------
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