ATTUNITY LTD.
|
|
By: /s/ Dror Harel-Elkayam
|
|
Dror Harel-Elkayam
Chief Financial Officer and Secretary
|
· |
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.
|
● |
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*
|
● |
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*
|
· |
Total revenue is estimated to grow to between $73 and $75 million.
|
· |
Non-GAAP operating margin is estimated to be between 6% and 9%.
|
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
|
%
|
INDEX
|
|
Page
|
|
F-2 - F-3
|
|
F-4
|
|
F-5
|
|
F-6 - F-7
|
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
|
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
|
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
|
|
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
|
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
|
(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
|