ATTUNITY LTD 
By
Commenting on the results,
Financial Highlights of Q4 2009 and FY 2009
- A Non-GAAP operating profit of $1.6 million in 2009 compared to $1.4
million loss in 2008.
- A Non-GAAP operating profit of $0.7 million for Q4 2009, setting a
quarterly record for 2009.
- Continuous improvement of Non-GAAP operating profit
quarter-over-quarter in 2009.
- Record quarterly revenues in 2009 of $2.7 million, compared to $2.2
million in Q4 2008
- License revenues of $1.3 million in Q4 2009 compared to $0.9 million in
Q4 2008
Q4 2009 Financial Summary
- Revenues: $2,685,000, compared to $2,200,000 in the fourth quarter of
2008.
- Net Operating Profit/Loss - (Non GAAP): $725,000 profit, compared to
$970,000 net operating loss in the fourth quarter of 2008. Non-GAAP
Operating profit (loss) excludes software development costs,
capitalization and amortization (see footnote 1 at the end of this
release) and equity based compensation expenses (see footnote 2).
- Net Operating Profit/Loss - (GAAP): $79,000 profit, compared to
$1,452,000 net operating loss in the fourth quarter of 2008.
- Net Profit/Loss (Non-GAAP): $649,000 net profit compared to net loss of
$1,000,000 in the fourth quarter of 2008. Non-GAAP net profit (loss)
excludes software development costs, capitalization and amortization
(see footnote 1), equity- based compensation expenses (see footnote 2)
and revaluation of conversion features related to our convertible debt
and outstanding warrants (in 2008, non-cash financial expenses such as
amortization of beneficial conversion features related to the
convertible debt and deferred charges related to warrants granted in
connection with a long term loan) - see footnote 3.
- Net Profit/Loss (GAAP): $41,000, compared to $1,705,000 net loss in the
fourth quarter of 2008.
- Net Profit/Loss per Diluted Share (Non-GAAP): $0.02 net profit per
diluted share compared to net loss per diluted share of $0.04 in the
fourth quarter of 2008.
- Net Profit/Loss per Diluted Share (GAAP): $0.00 net profit per diluted
share, compared to net loss per diluted share of $0.07 in the fourth
quarter of 2008.
FY 2009 Financial Summary
- Revenues: $9,453,000, compared to $11,472,000 in 2008.
- Net Operating Profit/Loss - (Non GAAP): $1,578,000 net operating
profit, compared to $1,402,000 net operating loss in 2008. Non-GAAP
operating profit (loss) excludes software development costs,
capitalization and amortization (see footnote 1 at the end of this
release), and equity-based compensation expenses (see footnote 2).
- Net Operating Profit /Loss - (GAAP): $588,000 net operating loss,
compared to $2,547,000 net operating loss in 2008.
- Net Profit/Loss (Non-GAAP): $1,263,000 net profit compared to net loss
of $2,040,000 in 2008. Non-GAAP net profit (loss) excludes software
development costs, capitalization and amortization (see footnote 1),
and equity-based compensation expenses (see footnote 2), and
revaluation of conversion features related to its convertible debt and
outstanding warrants and non-cash financial expenses such as
amortization of beneficial conversion features related to the
convertible debt and deferred charges related to warrants granted in
connection with a long-term loan, (see footnote 3).
- Net Loss (GAAP): $1,303,000, compared to $3,857,000 in 2008.
- Net Profit/Loss per Diluted Share (Non-GAAP): $0.04 net profit per
diluted share compared to net loss per diluted share of $0.09 in 2008.
- Net Loss per Diluted Share (GAAP): $0.05 net loss per diluted share,
compared to net loss per diluted share of $0.17 in 2008.
See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.
Mr. Alon concluded, "We are looking forward to 2010, as we plan to focus on growth of revenues. Responding to market demand, we intend to continue to introduce new products for the real-time data integration market to meet the requirements of our users and partners. We will also continue our focus on the large markets of Oracle, Microsoft, IBM, SAP and HP as well as other leading Business Intelligence (BI) solutions, while strengthening our partnerships with these leading market players."
About Attunity
Attunity is a leading provider of real-time data integration and event capture software. Using our software solutions such as Attunity Connect, a real-time connectivity software, or Attunity Stream, our log-based, real-time change-data-capture software, Attunity's customers enjoy dramatic business benefits by driving down the cost of managing their operational systems, creating flexible, service-based architectures for increased business agility, and by detecting critical actionable business events, as they happen, for faster business execution.
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 strategic and OEM agreements with partners
such as Microsoft, Oracle, IBM, HP and SAP/Business Objects. Headquartered in
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of net profit (loss), net operating profit (loss) and net profit (loss) per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation charges in accordance with SFAS 123(R), non-cash capitalization and amortization of software development costs in accordance with SFAS 86 and non-cash financial expenses such as revaluation of conversion features related to its convertible debt and outstanding warrants in accordance with EITF 07-5 (affected, among other factors, by changes in Attunity 's share price). 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 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.
Safe Harbor Statement
This press release contains forward-looking statements 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 discuss future introduction of new real-time data
integration products, we are using a forward-looking statement. Because such
statements deal with future events, they are subject to various risks and
uncertainties and actual results could differ materially from Attunity's
current expectations. Factors that could cause or contribute to such
differences include, but are not limited to: 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; our liquidity challenges and the need to raise additional capital
in the near future; any unforeseen developmental or technological
difficulties with regard to Attunity's products; 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; unknown factors
affecting third parties with which Attunity has formed business alliances;
timely availability and customer acceptance of Attunity's new and existing
products; 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 Annual Report on Form 20-F for the year ended
(c) 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of
Attunity Inc.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, December 31,
2009 2008
ASSETS ---------- ----------
CURRENT ASSETS:
Cash and cash equivalents 1,428 480
Restricted cash 208 206
Trade receivables and unbilled revenues
(net of allowance for doubtful accounts
of $15 at both December 31 , 2009 and
December 31, 2008) 761 502
Other accounts receivable and prepaid
expenses 145 221
---------- ----------
Total current assets 2,542 1,409
---------- ----------
LONG-TERM ASSETS:
Long-term prepaid expenses 86 106
Severance pay fund 1,098 1,121
Property and equipment, net 241 371
Software development costs, net 1,615 3,585
Goodwill 6,313 6,234
Deferred charges, net 204
---------- ----------
Total long-term assets 9,353 11,621
---------- ----------
Total assets 11,895 13,030
========== ==========
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
December 31, December 31,
2009 2008
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
short term loans 917 412
Current maturities of long-term
convertible debt 333 1,781
Trade payables 204 389
Deferred revenues 1,991 2,220
Employees and payroll accruals 819 1,079
Accrued expenses and other liabilities 988 1,008
---------- ----------
Total current liabilities 5,252 6,889
---------- ----------
LONG-TERM LIABILITIES:
Long-term convertible debt 1,667
Long-term debt 1,083 2,063
Revaluation of Liabilities presented at
fair value 303
Accrued severance pay 1,548 1,546
---------- ----------
Total long-term liabilities 4,601 3,609
---------- ----------
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS
0.1 par value - 920 720
Authorized: 130,000,000 shares at
December 31 , 2009 and December 31,
2008. Issued and outstanding: 31,571,150
shares at December 31, 2009 and
23,196,236 at December 31, 2008
Additional paid-in capital 102,095 104,279
Accumulated other comprehensive loss (453) (455)
Accumulated deficit (100,520) (102,012)
---------- ----------
Total shareholders' equity 2,042 2,532
---------- ----------
Total liabilities and shareholders'
equity 11,895 13,030
========== ==========
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
12 months ended 3 months ended
December 31, December 31,
---------- ----------
2009 2008 2009 2008
--------------------------------------------------
--------------------------------------------------
Software licenses 4,126 5,373 1,311 889
Maintenance and
services 5,327 6,099 1,374 1,311
---------- ---------- ---------- ----------
9,453 11,472 2,685 2,200
---------- ---------- ---------- ----------
Operating expenses:
Cost of revenues 3,070 2,624 814 748
Research and
development, net 1,894 2,916 489 763
Selling and marketing 3,469 6,341 957 1,470
General and
administrative 1,608 2,138 346 671
Total operating ---------- ---------- ---------- ----------
expenses 10,041 14,019 2,605 3,652
---------- ---------- ---------- ----------
Operating profit
(loss) (588) (2,547) 79 (1,452)
Financial expenses,
net 697 1,250 42 263
Other expense
(income) (10) -
---------- ---------- ---------- ----------
Profit (Loss) before
income taxes (1,275) (3,797) 37 (1,716)
Taxes on income 28 60 (4) (11)
---------- ---------- ---------- ----------
Net profit (loss) (1,303) (3,857) 41 (1,705)
========== ========== ========== ==========
Basic net and diluted
loss per share $ (0.05) $ (0.17) $ 0.00 $ (0.07)
========== ========== ========== ==========
(**) The above items
are inclusive of the
following
equity-based
compensation expenses
resulting under SFAS
123(R):
Equity-based
compensation expense
included in "Research
and development" 40 94 21 11
Equity-based
compensation expense
included in "Selling
and marketing" 83 149 18 26
Equity-based
compensation expense
included in "General
and administrative" 74 79 21 29
---------- ---------- ---------- ----------
196 322 60 66
========== ========== ========== ==========
Net basic and diluted
equity-based
compensation expense,
per share $ (0.05) $ (0.17) $ 0.00 $ (0.07)
========== ========== ========== ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
12 months ended
December 31,
--------------------
2009 2008
-------- --------
--------------------
Cash flows from operating activities:
Net loss from continued operations (1,303) (3,857)
Adjustments required to reconcile net
loss to net cash provided by (used
in) operating activities:
Decrease (increase) in restricted cash (2)
Depreciation 149 243
Stock based compensation 196 322
Amortization of deferred expenses 25 219
Amortization of debt discount 126 682
Amortization of software development costs 2,348 1,658
Increase (decrease) in accrued
severance pay, net 25 110
Decrease (increase) in trade receivables (255) 373
Decrease ( increase) in other accounts
receivable and prepaid expenses 79 255
Increase (decrease) in long-term
prepaid expenses 20 (34)
Increase (decrease) in trade payables (186) (64)
Increase (decrease) in deferred revenues (327) (2)
Increase (decrease) in employees
and payroll accruals (265) (142)
Decrease(increase) in accrued expenses
and other liabilities (77) (83)
Increase (decrease) in Long term liabilities (20) 63
Increase (decrease) in revaluation of
Liabilities presented at fair value 253 -
-------- --------
Net cash provided by (used in) operating
activities from continued operations
(reconciled from continuing operations) 787 (257)
Net cash provided by operating activities -------- --------
from discontinued operations
(reconciled from discontinued operations)
Net cash provided (used) by operating activating 787 (257)
-------- --------
Cash flows from investing activities:
Restricted cash, net - (47)
Purchase of property and equipment (19) (38)
Capitalization of software development costs (378) (837)
Proceeds from sale of property equipment - -
-------- --------
Net cash used in investing activities (397) (922)
-------- --------
Cash flows from financing activities:
Proceeds from exercise of employee stock options - -
Issuance of shares
Receipt of Short term debt, net -
converted to Capital 543 402
Repayment of long-term debt (10) (17)
Net cash provided by (used in) -------- --------
financing activities 533 385
-------- --------
Foreign currency translation adjustments
on cash and cash equivalents 25 (47)
-------- --------
Decrease (increase) in
cash and cash equivalents 948 (841)
Cash and cash equivalents at
the beginning of the period 480 1,321
-------- --------
Cash and cash equivalents at
the end of the period 1,428 480
========= ========
Supplemental disclosure of
cash flow activities:
Cash paid during the period for:
Interest 153 175
Supplemental disclosure of non-cash ========= ========
investing and financing activities:
Stock-based compensation that was
capitalized as part of capitalization
of software development costs 6 35
Issuance of warrant and extension of ========= ========
contractual period of warrants in
consideration of long-term loan - -
========= ========
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except per share data
12 months ended 3 months ended
December 31, December 31,
---------------------------------------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
---------------------------------------------------
GAAP operating
profit (loss) (588) (2,547) 79 (1,452)
Software
development
costs
capitalization
and
amortization
(1) 1,970 823 586 416
Stock based
compensation
(2) 196 322 60 66
Non-GAAP
operating ---------- ---------- ---------- ----------
profit (loss) 1,578 (1,402) 725 (970)
========== ========== ========== ==========
GAAP net profit
(loss) (1,303) (3,857) 41 (1,705)
Software
development
costs
capitalization
and
amortization
(1) 1,970 823 586 416
Stock based
compensation
(2) 196 322 60 66
Financial
expenses (3) 400 672 (38) 223
Non-GAAP net ---------- ---------- ---------- ----------
profit (loss) 1,263 (2,040) 649 (1,000)
========== ========== ========== ==========
GAAP basic and
diluted net
profit (loss)
per share (0.05) (0.17) 0.00 (0.07)
Software
development
costs
capitalization
and
amortization
(1) 0.07 0.04 0.02 0.02
Stock based
compensation
(2) 0.01 0.01 0.00 0.00
Financial
expenses (3) 0.01 0.03 (0.00) 0.01
Non-GAAP and
diluted net
profit (loss) ---------- ---------- ---------- ----------
per share 0.04 (0.09) 0.02 (0.04)
========== ========== ========== ==========
(1) Software
development
costs
capitalization
and
amortization
resulting under
SFAS 86:
Capitalization (378) (836) (32) (148)
Amortization 2,348 1,659 618 564
---------- ---------- ---------- ----------
1,970 823 586 416
========== ========== ========== ==========
(2)
Equity-based
compensation
expenses
resulting under
SFAS 123(R):
Equity-based
compensation
expense
included in
"Research and
development" 40 94 21 11
Equity-based
compensation
expense
included in
"Selling and
marketing" 83 149 18 26
Equity-based
compensation
expense
included in
"General and
administrative" 74 79 21 29
---------- ---------- ---------- ----------
196 322 60 66
========== ========== ========== ==========
"Equity based
compensation
expenses" refer
to the
amortized fair
value of all
equity based
awards granted
to employees.
`
(3) Financial
expenses:
Amortization of
debt discount 125 513 170
Revaluation of
warrants and
conversion
features of
long term debt 255 (38)
Amortization of
deferred
charges 20 159 53
---------- ---------- ---------- ----------
400 672 (38) 223
========== ========== ========== ==========
For more information, please contact:
Dror Elkayam, VP Finance
Attunity Ltd.
Tel. +972-9-899-3000
dror.elkayam@attunity.com
SOURCE Attunity Ltd
