Attunity Reports First Quarter 2016 Results

BURLINGTON, Mass., May 5 — Attunity, Ltd., 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 $0.09per 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.

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.

Source: Attunity