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May 4, 2018

Attunity Reports First Quarter 2018

BURLINGTON, Mass., May 4, 2018 — Attunity Ltd. (NasdaqCM: ATTU), a leading provider of data integration and Big Data management software solutions, today reported its unaudited financial results for the three-month period ended March 31, 2018.

“We are excited to report that we achieved 45% year-over-year license revenue growth and 32% year-over-year total revenue growth for the first quarter of 2018. Our success was primarily driven by our strong execution and the increased market demand for our solutions enabling modern analytics and cloud migrations. We continue to see that the demand in the market for big data integration is greater than ever before and growing,” stated Shimon Alon, Chairman and CEO of Attunity.

“This is the third consecutive quarter where we have exceeded our own expectations. In addition to seeing continued strong sales momentum, we are particularly excited to report that during this quarter approximately 40% of new Attunity Replicate deals were term-based. This ramping of recurring revenue is becoming an important element of our business model that we expect will also give us greater visibility,” concluded Mr. Alon.

Recent Operational Highlights

  • Entered into a new technology license agreement with an existing OEM partner for $3.5 million in total licensing fees and additional recurring annual support fees of $0.3 million
  • Closed several substantial agreements for Attunity Replicate, including one with a Fortune 500 leading investment and financial advisory services company

Financial Highlights for the First Quarter of 2018 compared with the First Quarter of 2017

  • Total revenue was $18.2 million, compared with $13.8 million*
  • Operating profit was $0.8 million, compared with an operating loss of $0.6 million*
  • Non-GAAP operating profit was $2.0 million, compared with $0.5 million**
  • Net income was $2 million, compared with a net loss of $1.5 million*
  • Non-GAAP net income was $1.5 million, compared with a non-GAAP net loss of $4 million**

Financial Results for First Quarter of 2018

Total revenue for the first quarter of 2018 was $18.2 million, compared with $13.8 million for the same period in 2017. This includes license revenue of $10.1 million, which grew 45% compared with $7.0 million for the same period in 2017, and maintenance and service revenue, which grew 18% to $8.1 million, compared with $6.9 million for the same period in 2017.*

Operating expenses for the first quarter of 2018 increased 21% to $17.5 million, compared with $14.5 million for the same period in 2017.*

Non-GAAP operating expenses for the first quarter of 2018 increased 22% to $16.2 million, compared with $13.3 million for the same period in 2017. Non-GAAP operating expenses exclude approximately $1.3 million in equity-based compensation expenses and amortization associated with acquisitions, compared with $1.2 million of similar expenses for the same period in 2017.**

Operating profit for the first quarter of 2018 was $0.8 million, compared with an operating loss of $0.6 million for the same period in 2017.*

Non-GAAP operating profit was $2.0 million for the first quarter of 2018, compared with $0.5 million for the same period in 2017. Non-GAAP operating profit excludes approximately $1.3 million in equity-based compensation expenses and amortization associated with acquisitions, compared with $1.2 million of similar expenses for the same period in 2017.**

Net income for the first quarter of 2018 was $0.2 million, or $0.01 per diluted share, compared with a net loss of $1.5 million, or ($0.09) per diluted share, in the same period in 2017.*

Non-GAAP net income for the first quarter of 2018 was $1.5 million, or $0.07 per diluted share, compared with a non-GAAP net loss of $0.4 million, or ($0.02) per diluted share, for the same period in 2017. Non-GAAP net loss excludes approximately $1.3 million in equity-based compensation expenses and amortization associated with acquisitions, compared with approximately $1.1 million of similar expenses for the same period in 2017.**

Cash and cash equivalents and short-term deposits were $28.8 million as of March 31, 2018, compared with $29.1 million as of December 31, 2017. Cash used in operations was $0.1 million, compared to cash flow from operations of $2.9 million in the same period in 2017.

Shareholders’ equity as of March 31, 2018 increased to $59.4 million from $51.2 million as of December 31, 2017.

Updated Outlook for Full Year 2018

The Company increased its outlook for the full year 2018 as follows:

  • Total revenue is estimated to grow to between $75 and $78 million, compared with prior guidance of $73 to $75 million.
  • Non-GAAP operating margin is estimated to be between 6% and 10%, compared with prior guidance of 6% to 9%.

Financial Reconciliation to non-GAAP figures for the updated 2018 outlook:

From To
GAAP Operating Profit (Loss) Margin (1%) 4%
Equity-based compensation (6%) (5%)
Amortization associated with acquisitions (1%) (1%)
Non-GAAP Operating Profit Margin (1) 6% 10%

(1) Non-GAAP Operating Profit Margin is calculated by dividing the non-GAAP Operating Profit by the total non-GAAP revenues for the period.

These estimates for 2018 reflect the Company’s current and preliminary views, which are subject to change (see below under “Safe Harbor Statement”). The Company clarified that it does not expect to provide or update guidance more often than on an annual basis.

** 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 3rd at 8:30 a.m. Eastern Time featuring remarks by Shimon Alon, Chairman and CEO, Dror Harel-Elkayam, CFO, and Itamar Ankorion, CMO of Attunity. The dial-in numbers for the conference call are +1-877-407-9039 (U.S. Toll Free), +1 809 406 247 (Israel), or +1-201-689-8470 (International). All dial-in participants must use the following code to access the call: 13678294.

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 Investor Relations section of Attunity’s website, ir.attunity.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 May 17, 2018, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13678294. The online archive of the webcast will be available on ir.attunity.com/events for 30 days following the call.

About Attunity

Attunity is a leading provider of data integration and Big Data management software solutions that enable availability, delivery, and management of data across heterogeneous enterprise platforms, organizations, and the Cloud. Our software solutions include data replication and distributiontest data managementchange data capture (CDC)data connectivityenterprise file replication(EFR), managed file transfer (MFT), data warehouse automationdata 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.


Source: Attunity

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