UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2018

Commission file number: 001-20892
 
ATTUNITY LTD.
(Name of registrant)
 
16 Atir Yeda Street, Atir Yeda Industrial Park, Kfar Saba, 4464321, Israel
 (Address of principal executive office)
_____________________

        Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.  
 
Form 20-F S           Form 40-F £

        Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): £

        Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): £
 
____________________
 
The GAAP financial statements included in the press release attached hereto as Exhibit 99.1 are hereby incorporated by reference into: Form F-3 Registration Statements File Nos. 333-205799, 333-205798, 333-173205, 333-138044, 333-122937 and 333-119157 and Form S-8 Registration Statements File Nos. 333-122302, 333-142284, 333-164656, 333-184136, 333-193783 and 333-219792.


 
CONTENTS
 
Exhibits
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
ATTUNITY LTD.
 
 
By: /s/ Dror Harel-Elkayam
 
Dror Harel-Elkayam
Chief Financial Officer and Secretary
 
Date: February 1, 2018
 


 

 
Exhibit 99.1
 


Attunity Reports Fourth Quarter and Full Year 2017 Results
- - -
Record Quarterly Revenue of $18.3 Million
Estimated Full Year 2018 Revenue of $73 – $75 Million
- - -
Burlington, MA – February 1, 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 and year ended December 31, 2017.

“We had a strong close to the year. In the fourth quarter, we achieved record total revenue, record license revenue, positive cash flow from operations and significantly enhanced our balance sheet through a successful public offering. We reported total quarterly revenue of $18.3 million, an increase of 17% year-over-year, and $62.1 million for the full year 2017, in line with our annual guidance. Revenue in the quarter was driven by a combination of an increase in new customer engagements as well as existing customers’ expansion,” stated Shimon Alon, Chairman and CEO of Attunity. “Customers successfully using the Attunity platform are now looking to expand their current environments to accommodate additional data sources, driving return business. For example, during the fourth quarter, we closed two large expansion deals with existing customers, each for approximately $1.0 million.”

“The strong momentum we experienced in the second half of 2017 is carrying into 2018. In 2017, we continued to close large customer engagements, partnered with key players in the IT industry, enhanced our technology platform, increased term-license bookings (which is growing in demand among customers) and expanded our senior management team with the new hire of a COO. With these achievements, we believe we are well positioned to accelerate our revenue growth, penetrate additional Fortune 1000 companies, and continue to replace traditional vendors. We plan to further expand and ramp up our sales and marketing investments and anticipate our pipeline will further grow in 2018 and for years to come,” concluded Mr. Alon.

Recent Operational Highlights
 
·
Raised approximately $21.0 million in total net proceeds from public offering in December 2017.
·
Closed multiple agreements for Attunity Replicate, including one with a leading global manufacturing company.
·
Closed an aggregate of more than $2.0 million of additional business with two existing Fortune 100 clients, a healthcare company and a pharmacy benefit management company.
·
Launched new service offering on Amazon Web Services (AWS) Marketplace, enabling universal migration and hybrid data replication for on-premises data sources to AWS.

Financial Highlights for the Fourth Quarter of 2017 compared with the Fourth Quarter of 2016
 
Total revenue was $18.3 million, compared with $15.6 million
Operating profit was $0.2 million, similar to the same period in 2016
Non-GAAP operating profit was $1.6 million, similar to the same period in 2016*
 

 
Net loss of $1.6 million, compared with a net loss of $0.2 million
Non-GAAP net loss of $0.04 million, compared with non-GAAP net income of $1.1 million*

Financial Highlights for the Full Year 2017, compared with the Full Year 2016
 
Total revenue was $62.1 million, compared with $54.5 million
Operating loss was $2.9 million, compared with an operating loss of $11.4 million
Non-GAAP operating profit was $2.2 million, compared with an operating loss of $0.1 million*
Net loss of $6.7 million, compared with a net loss of $10.7 million
Non-GAAP net loss of $1.7 million, compared with a non-GAAP net loss of $2.2 million*

Financial Results for Fourth Quarter of 2017
Total revenue for the fourth quarter of 2017 was $18.3 million, compared with $15.6 million for the same period in 2016. This includes license revenue of $10.3 million, which grew 17% compared with $8.8 million for the same period in 2016, and maintenance and service revenue, which grew 18% to $8.0 million, compared with $6.8 million for the same period in 2016.

Operating expenses for the fourth quarter of 2017 increased 18% to $18.1 million, compared with $15.4 million for the same period in 2016.

Non-GAAP operating expenses for the fourth quarter of 2017 increased 20% to $16.7 million, compared with $14.0 million for the same period in 2016. Non-GAAP operating expenses exclude approximately $1.4 million in equity-based compensation expenses and amortization associated with acquisitions, similar to the same period in 2016.*

Operating profit for the fourth quarter of 2017 was $0.2 million, similar to the same period in 2016.

Non-GAAP operating profit was $1.6 million for the fourth quarter of 2017, similar to the same period in 2016. Non-GAAP operating profit excludes approximately $1.4 million in equity-based compensation expenses and amortization associated with acquisitions, similar to the same period in 2016.*

Net loss for the fourth quarter of 2017 was $1.6 million, or ($0.09) per diluted share, compared with a net loss of $0.2 million, or ($0.01) per diluted share, in the fourth quarter of 2016.

Non-GAAP net loss for the fourth quarter of 2017 was $0.04 million, or ($0.00) per diluted share, compared with a non-GAAP net income of $1.1 million, or $0.07 per diluted share, for the same period in 2016. Non-GAAP net loss excludes approximately $1.6 million in equity-based compensation expenses, amortization associated with acquisitions and the effect of changes in deferred taxes related to non-GAAP adjustments, compared with approximately $1.3 million of similar expenses for the same period in 2016.*


 
Cash and cash equivalents were $29.1 million as of December 31, 2017, compared with $7.3 million as of September 30, 2017. Cash and cash equivalents at the end of the fourth quarter of 2017 were mainly impacted by approximately $21.0 million in net proceeds raised from a public offering closed in December 2017.

Shareholders' equity as of December 31, 2017 increased to $51.2 million, compared with $30.5 million as of September 30, 2017.

Financial Results for Full Year 2017
 
Total revenue for the full year 2017 was $62.1 million, compared with $54.5 million for the same period in 2016. This includes license revenue of $32.6 million, which grew 14% compared with $28.7 million for the same period in 2016, and maintenance and service revenue, which grew 14% to $29.5 million, compared with $25.8 million for the same period in 2016.

Operating expenses for the full year 2017 slightly decreased to $65.0 million, compared with $65.9 million for the same period in 2016.

Non-GAAP operating expenses for the full year 2017 increased 10% to $59.9 million, compared with $54.6 million for the same period in 2016. Non-GAAP operating expenses exclude approximately $5.1 million in equity-based compensation expenses and amortization associated with acquisitions, compared with (1) an approximately $4.1 million charge for partial impairment of acquired intangible assets associated with the acquisition of Appfluent in 2015 and (2) $7.1 million in equity-based compensation expenses and costs associated with acquisitions for the same period in 2016.*

Operating loss for the full year 2017 was $2.9 million, compared with $11.4 million for the same period in 2016.

Non-GAAP operating profit was $2.2 million for the full year 2017, compared with a non-GAAP operating loss of $0.1 million for the same period in 2016. Non-GAAP operating profit excludes approximately $5.1 million in equity-based compensation expenses and amortization associated with acquisitions, compared with (1) an approximately $4.1 million charge for partial impairment of acquired intangible assets associated with the Appfluent acquisition and (2) $7.1 million in equity-based compensation expenses and costs associated with acquisitions for the same period in 2016.*

Net loss for the full year 2017 was $6.7 million, or ($0.39) per diluted share, compared with a net loss of $10.7 million, or ($0.64) per diluted share, for the same period in 2016.

Non-GAAP net loss for the full year 2017 was $1.7 million, or ($0.10) per diluted share, compared with $2.2 million, or ($0.13) per diluted share, for the same period in 2016. Non-GAAP net loss excludes approximately $5.1 million in equity-based compensation expenses, amortization associated with acquisitions and the effect of changes in deferred taxes related to non-GAAP adjustments, compared with (1) an approximately $4.1 million charge for partial impairment of acquired intangible assets associated with the Appfluent acquisition, and (2) $4.3 million in equity-based compensation expenses and costs associated with acquisitions, including the effect of changes in deferred taxes related to non-GAAP adjustments, for the same period in 2016.*


 
Cash and cash equivalents were $29.1 million as of December 31, 2017, compared with $9.2 million as of December 31, 2016.

Shareholders' equity as of December 31, 2017 increased to $51.2 million, compared with $32.7 million as of December 31, 2016.

Outlook for Full Year 2018
 
The Company is introducing its outlook for the full year 2018 as follows:
 
·
Total revenue is estimated to grow to between $73 and $75 million.
·
Non-GAAP operating margin is estimated to be between 6% and 9%.

Financial Reconciliation to non-GAAP figures for 2018 Outlook:

   
From
   
To
 
GAAP Operating Profit (Loss) Margin
   
(1)
%
   
2
%
Equity-based compensation
   
(6)
%
   
(6)
%
Amortization associated with acquisitions
   
(1)
%
   
(1)
%
Non-GAAP Operating Profit margin (1)
   
6
%
   
9
%
 
(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, February 1st 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 80 940 6247 (Israel), or +1-201-689-8470 (International). All dial-in participants must use the following code to access the call: 13675269.


 
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 February 15, 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: 13675269. 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. For more information, visit http://www.attunity.com or our blog and join our communities on TwitterFacebookLinkedIn and YouTube.

(*) 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 (loss), operating expenses, operating profit (loss), and diluted net income (loss) per share, which are adjusted from results based on GAAP to exclude amortization and impairment charges associated with acquisitions, equity-based compensation expenses, acquisition-related compensation expenses, non-cash financial expenses, such as the effect of a revaluation of liabilities presented at fair value and accretion of payment obligations, and the effect of changes in deferred taxes related to non-GAAP adjustments. 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 within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other applicable 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 the demand for our products, expectations regarding our pipeline and our outlook for 2018, we are using forward-looking statements. In addition, announced results for the fourth quarter and full year of 2017 are preliminary, unaudited and subject to year-end audit adjustment. 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 or sustain profitability; our ability to manage our growth effectively; our business and operating results dependency on the successful and timely implementation of our third party partner solutions; the lengthy sales cycle of our products; competition; acquisitions, including costs and difficulties related to integration of acquired businesses and impairment charges; global economic conditions; the potential loss of one or more of our significant customers or a decline in demand from one or more of these customers; timely availability and customer acceptance of Attunity's new and existing products; international operations; our need and ability to raise capital; 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 (as amended) 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.

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.
 
© Attunity 2018. All Rights Reserved. Attunity is a registered trademark of Attunity Inc. All other product and company names herein may be trademarks of their respective owners.

For more information, please contact:

Todd Fromer / Allison Soss
KCSA Strategic Communications
P: +1-212-682-6300
tfromer@kcsa.com / asoss@kcsa.com 

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



 
CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF DECEMBER 31, 2017
 
UNAUDITED
 
U.S. DOLLARS IN THOUSANDS
 
INDEX
   
   
 
Page
   
F-2 - F-3
   
F-4
   
F-5
   
F-6 - F-7


ATTUNITY LTD. AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
December 31,
   
December 31,
 
   
2017
   
2016
 
   
Unaudited
   
Audited
 
ASSETS
           
             
CURRENT ASSETS:
           
             
Cash and cash equivalents
 
$
29,087
   
$
9,166
 
Trade receivables (net of allowance for doubtful accounts of $15 at December 31, 2017, 2016)
   
10,609
     
7,031
 
Other accounts receivable and prepaid expenses
   
1,074
     
663
 
                 
Total current assets
 
$
40,770
   
$
16,860
 
                 
LONG-TERM ASSETS:
               
Other assets
   
152
     
155
 
Deferred taxes
   
1,209
     
2,340
 
Severance pay fund
   
4,378
     
3,770
 
Property and equipment, net
   
1,287
     
1,214
 
Intangible assets, net
   
1,431
     
2,778
 
Goodwill
   
30,929
     
30,929
 
Total long-term assets
 
$
39,386
   
$
41,186
 
                 
Total assets
 
$
80,156
   
$
58,046
 
 
F-2

 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
 
   
December 31,
   
December 31,
 
   
2017
   
2016
 
   
Unaudited
   
Audited
 
LIABILITIES AND SHAREHOLDERS' EQUITY
           
CURRENT LIABILITIES:
           
             
Trade payables
 
$
666
   
$
375
 
Payment obligation related to acquisitions
   
-
     
271
 
Deferred revenues
   
11,066
     
10,676
 
Employees and payroll accruals
   
5,730
     
4,741
 
Accrued expenses and other current liabilities
   
3,066
     
2,021
 
                 
Total current liabilities
   
20,528
     
18,084
 
                 
LONG-TERM LIABILITIES:
               
Other liabilities
   
321
     
277
 
Deferred revenues
   
2,163
     
1,438
 
Liability presented at fair value
   
-
     
512
 
Accrued severance pay
   
5,941
     
5,027
 
                 
Total long-term liabilities
   
8,425
     
7,254
 
                 
SHAREHOLDERS' EQUITY:
               
Share capital - Ordinary shares of NIS 0.4 par value -
   
2,361
     
1,921
 
Authorized: 32,500,000 shares at December 31, 2017 and 2016; Issued and outstanding 20,718,468 shares at December 31, 2017 and 16,841,238 shares at December 31, 2016
               
Additional paid-in capital
   
174,693
     
149,716
 
Accumulated other comprehensive loss
   
(1,222
)
   
(1,013
)
Accumulated deficit
   
(124,629
)
   
(117,916
)
                 
Total shareholders' equity
   
51,203
     
32,708
 
                 
Total liabilities and shareholders' equity
 
$
80,156
   
$
58,046
 

F-3

 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars and shares in thousands, except per share data
 
   
Three months ended
   
Year ended
 
   
December 31,
   
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Unaudited
   
Audited
 
Revenues:
                       
Software licenses
 
$
10,251
   
$
8,791
   
$
32,604
   
$
28,653
 
Maintenance and services 
   
8,024
     
6,779
     
29,494
     
25,841
 
Total revenues
   
18,275
     
15,570
     
62,098
     
54,494
 
Operating expenses:
                               
Cost of revenues 
   
2,627
     
2,109
     
9,855
     
8,780
 
Research and development
   
3,537
     
3,207
     
14,010
     
13,283
 
Selling and marketing
   
10,711
     
9,065
     
35,893
     
35,089
 
General and administrative
   
1,231
     
993
     
5,196
     
4,594
 
Impairment of acquisition-related intangible assets
   
-
     
-
     
-
     
4,122
 
Total operating expenses
   
18,106
     
15,374
     
64,954
     
65,868
 
                                 
Operating profit (loss)
   
169
     
196
     
(2,856
)
   
(11,374
)
                                 
Financial expenses, net
   
(64
)
   
(59
)
   
(101
)
   
(54
)
                                 
Profit (loss) before income taxes
   
105
     
137
     
(2,957
)
   
(11,428
)
                                 
Income tax benefit (taxes on income)
   
(1,725
)
   
(382
)
   
(3,756
)
   
735
 
                                 
Net loss
 
$
(1,620
)
 
$
(245
)
 
$
(6,713
)
 
$
(10,693
)
 
                               
Basic and diluted net loss per share
 
$
(0.09
)
 
$
(0.01
)
 
$
(0.39
)
 
$
(0.64
)
Weighted average number of shares used in computing basic net and diluted loss per share
   
18,052
     
16,818
     
17,264
     
16,739
 

F-4

 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
U.S. dollars in thousands 
 
 
 
Year ended December 31,
 
 
 
2017
   
2016
 
 
 
Unaudited
 
Cash flows activities:
           
Net loss
 
$
(6,713
)
   
(10,693
)
Adjustments required to reconcile net loss to net cash used in operating activities:
               
Depreciation
   
491
     
493
 
Stock based compensation
   
3,711
     
3,880
 
Retention plan associated with acquisition and other compensation in shares
   
-
     
370
 
Amortization of intangible assets
   
1,347
     
2,372
 
Impairment of acquisition-related intangible assets
   
-
     
4,122
 
Accretion of payment obligation
   
-
     
(8
)
Changes in fair value of payment obligation
   
-
     
35
 
Change in:
               
   Accrued severance pay, net
   
306
     
24
 
   Trade receivables
   
(3,514
)
   
(2,544
)
   Other accounts receivable and prepaid expenses
   
(392
)
   
(29
)
   Other long term assets
   
8
     
14
 
   Trade payables
   
107
     
(279
)
   Deferred revenues
   
823
     
1,570
 
   Employees and payroll accruals
   
973
     
1,101
 
   Accrued expenses and other liabilities
   
1,025
     
594
 
Liabilities presented at fair value
   
(212
)
   
(185
)
Tax deficiencies related to exercise of stock options
   
-
     
171
 
Change in deferred taxes, net
   
1,131
     
(1,833
)
Net cash used in operating activities
   
(909
)
   
(825
)
Cash flows from investing activities:
               
Purchase of property and equipment
   
(556
)
   
(456
)
Net cash used in investing activities
   
(556
)
   
(456
)
Cash flows from financing activities:
               
Proceeds from exercise of options
   
881
     
289
 
Issuance of shares, net
   
21,048
     
-
 
Payment of contingent consideration
   
(271
)
   
(1,990
)
Repayment of contingent payment right
   
(300
)
   
-
 
Tax deficiencies related to exercise of stock options
   
-
     
(171
)
Net cash provided by (used in) financing activities
   
21,358
     
(1,872
)
Foreign currency translation adjustments on cash and cash equivalents
   
28
     
(203
)
 
               
Increase (decrease) in cash and cash equivalents
   
19,921
     
(3,356
)
Cash and cash equivalents at the beginning of the year
   
9,166
     
12,522
 
Cash and cash equivalents at the end of the period
 
$
29,087
     $
9,166
 
                 
Cash paid during the year for taxes
 
$
1,740
     $
653
 
Supplemental disclosure of non- cash investing activities:
         
Issuance of shares related to acquisition
 
$
-
     $
224
 
 
F-5

 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
RECONCILIATION OF SUPPLEMENTAL, NON-GAAP FINANCIAL INFORMATION
 
U.S. dollars and shares in thousands, except per share data
 
 
   
Three months ended
   
Year ended
 
   
December 31,
   
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Unaudited
 
GAAP revenues
 
$
18,275
   
$
15,570
   
$
62,098
   
$
54,494
 
Valuation adjustment on acquired deferred service revenue
   
-
     
8
     
-
     
43
 
Non-GAAP revenues
   
18,275
     
15,578
     
62,098
     
54,537
 
     
-
                         
GAAP operating expenses
   
18,106
     
15,374
     
64,954
     
65,868
 
Cost of revenues (1)
   
(47
)
   
(26
)
   
(162
)
   
(148
)
Research and development (1) (2)
   
(227
)
   
(266
)
   
(805
)
   
(1,210
)
Sales and marketing (1) (2)
   
(538
)
   
(448
)
   
(1,817
)
   
(2,379
)
General and administrative (1)
   
(245
)
   
(254
)
   
(927
)
   
(993
)
Amortization of acquired intangible assets
   
(337
)
   
(424
)
   
(1,347
)
   
(2,372
)
Impairment of acquisition-related intangible assets
   
-
     
-
     
-
     
(4,122
)
Non-GAAP operating expenses
   
16,712
     
13,956
     
59,896
     
54,644
 
                                 
GAAP operating income (loss)
   
169
     
196
     
(2,856
)
   
(11,374
)
Operating loss adjustments
   
(1,394
)
   
(1,426
)
   
(5,058
)
   
(11,267
)
Non-GAAP operating income (loss)
   
1,563
     
1,622
     
2,202
     
(107
)
                                 
GAAP financial expenses, net
   
(64
)
   
(59
)
   
(101
)
   
(54
)
Revaluation of liabilities presented at fair value
   
-
     
6
     
(212
)
   
(207
)
Accretion of payment obligations
   
-
     
(6
)
   
-
     
(8
)
Non -GAAP financial expense, net
   
(64
)
   
(59
)
   
(313
)
   
(269
)
                                 
GAAP income tax benefit (taxes on income)
   
(1,725
)
   
(382
)
   
(3,756
)
   
735
 
Taxes on income (tax benefits) related to non-GAAP adjustments
   
184
     
(84
)
   
206
     
(2,587
)
Non-GAAP taxes on income
   
(1,541
)
   
(466
)
   
(3,550
)
   
(1,852
)
                                 
GAAP net loss
   
(1,620
)
   
(245
)
   
(6,713
)
   
(10,693
)
Valuation adjustment on acquired deferred revenue
   
-
     
8
     
-
     
43
 
Amortization of acquired intangible assets
   
337
     
424
     
1,347
     
2,372
 
Impairment of acquisition-related intangible assets
   
-
     
-
     
-
     
4,122
 
Acquisition related expenses
   
-
     
-
     
-
     
779
 
Stock-based compensation
   
1,057
     
994
     
3,711
     
3,951
 
Revaluation of liabilities presented at fair value
   
-
     
6
     
(212
)
   
(207
)
Accretion of payment obligations
   
-
     
(6
)
   
-
     
(8
)
Taxes on income (tax benefits) related to non-GAAP adjustments
   
184
     
(84
)
   
206
     
(2,587
)
Non-GAAP net income (loss)
 
$
(42
)
 
$
1,097
   
$
(1,661
)
 
$
(2,228
)
                             
GAAP basic and diluted net loss per share
 
$
(0.09
)
 
$
(0.01
)
 
$
(0.39
)
 
$
(0.64
)
Non-GAAP diluted net income (loss) per share
 
$
0.00
   
$
0.07
   
$
(0.10
)
 
$
(0.13
)
                                 
Shares used in computing GAAP basic and diluted net loss per share
   
18,052
     
16,818
     
17,264
     
16,739
 
                                 
Shares used in computing Non-GAAP diluted net income (loss) per share
   
18,052
     
16,790
     
17,264
     
16,739
 
 
 

 
 
 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
(1) Stock-based compensation expenses (*):
                               
   
Three months ended
   
Year ended
 
   
December 31,
   
December 31,
 
     
2017
     
2016
     
2017
     
2016
 
Cost of revenues
 
$
47
   
$
26
   
$
162
   
$
148
 
Research and development
   
227
     
266
     
805
     
1,024
 
Sales and marketing
   
538
     
448
     
1,817
     
1,715
 
General and administrative
   
245
     
254
     
927
     
993
 
   
$
1,057
   
$
994
   
$
3,711
   
$
3,880
 
(*) Retention bonus paid in Attunity shares constitute part of (2) below
 
                                 
(2) Acquisition related expenses:
                               
Research and development
   
-
     
-
     
-
   
$
186
 
Sales and marketing
   
-
     
-
     
-
     
664
 
     
-
     
-
     
-
   
$
850
 
 
 
F-7