EX-99 3 exhibit_99-2.htm 6-K

EXHIBIT 99.2

ATTUNITY REPORTS FIRST QUARTER 2009 RESULTS

Company posts Non-GAAP operational profitability

Burlington, MA, April 27th , 2009 – Attunity Ltd (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time event capture and data integration software, reported today its unaudited financial results for the first quarter ended March 31, 2009.

  Key financial metrics for the first quarter of 2009:

  Net Operating Profit – (Non GAAP): $80,000 net operating profit compared to $9,000 Non-GAAP net operating profit in the first quarter of 2008.Non-GAAP operating profit excludes equity based compensation expenses (see footnote 1 at the end of this release), software development costs capitalization and amortization (see footnote 2) and employment termination costs (see footnote 3).

  Net Operating Loss - (GAAP): $418,000, compared to $223,000 in the first quarter of 2008.

  Revenues: $2,213,000, a decrease of 32.4% compared to $3,276,000 in the first quarter of 2008.

  Net Profit (Loss) (Non-GAAP): $64,000 compared to ($68,000) net loss in the first quarter of 2008. Non-GAAP net profit (loss) excludes equity based compensation expenses (see footnote 1), software development costs capitalization and amortization (see footnote 2) and amortization of debt discount revaluation of warrants and deferred charges (see footnote 4).

  Net loss (GAAP): $593,000, compared to $554,000 in the first quarter of 2008

  Net Profit per Diluted Share (Non-GAAP): $0.00, in both the first quarters of 2008 and 2009.

  Net Loss per Diluted Share (GAAP): $0.03 in both the first quarters of 2008 and 2009.

See “Use of Non-GAAP Financial Information” below for more information regarding Attunity’s use of Non-GAAP financial measures.

“Despite the continued difficulties in the capital market, we were able to achieve our goal of attaining non-GAAP operational profitability in the first quarter of 2009", stated Shimon Alon, Attunity Chairman and CEO. “Our increased focus on creating a much tighter value proposition combined with our cautiousness around costs and expenses over the last few quarters helped us to achieve this goal. Furthermore, it is our intention to build upon this achievement, while the pending rights offering is designed to address the Company’s working capital and capital resource requirements, enabling us to be well positioned to meet the challenging market conditions in 2009.”



Highlights of the Quarter

Microsoft

  Launched into Beta testing the first tightly packaged change-data-capture (CDC) product – Attunity Oracle-CDC for SSIS – specifically engineered for the large Microsoft SQL and Integration Services (SSIS) community, amid positive industry support.

OEM agreements

  Renewed license agreement with business partner Consist covering Spain and South American territories.

Major customer and partner wins

  Major customer contracts across the world included Ministry of Water Resources (China), Shanghai Stock Exchange, International Atomic Energy Agency (Austria), Morgan Keegan and Fidelity National Financial.

  Announced new business partnership with open-source integration provider Talend.

Other Highlights

As previously announced, the Company has commenced a rights offering to raise up to $1.2 million in gross proceeds. The rights offering is designed to enable Attunity to complete its recent debt restructuring activities.

“Our tighter company focus around core competencies is now translating our offering and value proposition into new market opportunities. Our value proposition has always been one of delivering increased value from our customers’ information assets, and with the economic realities of today focusing everyone’s attention on costs, we believe the demand for real-time integration technologies such as our solutions, will grow” continued Shimon Alon. “We believe that our recent debt restructuring activities, including the pending rights offering, along with our refined cost structure, will continue to help drive us towards non-GAAP profitability and positive cash flows from operations this year”.

About Attunity

Attunity is a leading provider of real-time event capture and data integration software. Using our software solutions, 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 Boston, Attunity serves its customers via offices in North America, Europe, and Asia Pacific and through a network of local partners. For more information, please visit us at www.attunity.com, the content of which is not part of this press release.



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 loss, net operating profit (loss) and net 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, expenses related to employment termination and offices shutdown costs, 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. 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 profitability and cash flows, 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 December 31, 2008, 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 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.


© 2009 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

For more information:

Andy Bailey, VP Marketing Dror Elkayam, VP Finance
Attunity Attunity
+1 781-213-5204 +972 9-899-3000
andy.bailey@attunity.com dror.elkayam@attunity.com



ATTUNITY LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF March 31, 2009

U.S. DOLLARS IN THOUSANDS

INDEX

Page
 
Consolidated Balance Sheets 2-3
 
Consolidated Statements of Operations 4
 
Statements of Changes in Shareholders' Equity 5
 
Consolidated Statements of Cash Flows 6



CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

March 31,
2009

December 31,
2008

 
ASSETS            
  
CURRENT ASSETS:  
Cash and cash equivalents    798    480  
Restricted cash    187    206  
Trade receivables and unbilled revenues (net of allowance for doubtful accounts of $15 both at December 31, 2008 and March 31, 2009)    646    502  
Other accounts receivable and prepaid expenses    217    221  


  
Total current assets     1,848    1,409  


  
LONG-TERM ASSETS:  
Long-term prepaid expenses    107    106  
Severance pay fund    954    1,121  
Property and equipment, net    333    371  
Software development costs, net    3,143    3,585  
Goodwill    6,141    6,234  
Deferred charges, net    13    204  


  
Total long-term assets     10,691    11,621  


  
Total assets     12,539    13,030  



2



CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

March 31,
2008

December 31,
2008

 
LIABILITIES AND SHAREHOLDERS' EQUITY            
  
CURRENT LIABILITIES:  
Current maturities of long-term debt and short term loans    658    412  
  
Current maturities of long-term convertible debt    1,975    1,781  
Trade payables    314    389  
Deferred revenues    2,663    2,220  
Employees and payroll accruals    909    1,079  
Accrued expenses and other liabilities    856    718  


  
Total current liabilities     7,375    6,599  


  
LONG-TERM LIABILITIES:  
  
Long-term debt    1,870    2,063  
Accrued severance pay    1,346    1,546  


  
Total long-term liabilities     3,216    3,609  


  
SHAREHOLDERS' EQUITY:  
Share capital - Ordinary shares of NIS 0.1 par value -  
Authorized: 130,000,000 shares at December 31 2008 and 70,000,000 at December  
31, 2007; Issued and outstanding: 23,196,236 shares at December 31, 2008 and December 31, 2007    720    720  
Additional paid-in capital    104,338    104,279  
Accumulated other comprehensive loss    (474 )  (455 )
Accumulated deficit    (102,636 )  (101,722 )


  
Total shareholders' equity     1,948    2,822  


  
Total liabilities and shareholders' equity     12,539    13,030  



3



CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except share and per share data

3 months ended
Mar-31

2009
2008
 
Revenues:            
   
Software licenses    921    1,654  
Maintenance and services    1,292    1,622  


   
     2,213    3,276  


Operating expenses:  
   
Cost of revenues    721    632  
   
Research and development, net    520    710  
Selling and marketing    920    1,702  
General and administrative    470    455  
Employment termination and offices shutdown costs    -    -  


   
Total operating expenses     2,631    3,499  


   
Operating loss    (418 )  (223 )
   
Financial expenses, net    163    310  
Other expense (income)    (10 )  -  


   
Loss before income taxes    (571 )  (533 )
Taxes on income    22    21  


   
Net loss    (593 )  (554 )


   
Basic and diluted net loss per share   $ (0.03 ) $ (0.02 )


   
Weighted average number of shares used in computing basic and diluted net loss per share    23,196    23,196  



4



STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
U.S. dollars in thousands, except share data

Ordinary shares
Additional
paid-in
Capital

Accumulated Other
comprehensive
loss

Accumulate deficit
Total
comprehensive
loss

Total
shareholders'
equity

Shares
Amount
 
Balance as of December 31, 2006      23,166,931    720    102,772    (569 )  (90,914 )       12,009  
   
Exercise of employee stock options    29,305    *)    27    -              27  
Warrants issued in consideration of credit line    -    -    495    -              495  
Stock-based compensation    -    -    630    -              630  
Other comprehensive loss:  
Foreign currency translation adjustments    -    -    -    138         138    138  
Net loss    -    -    -    -         (6,936 )  (6,936 )
                         (6,996 )          







Total comprehensive loss                             (6,798 )     

   
Balance as of December 31, 2007    23,196,236    720    103,924    (431 )  (97,910 )       6,303  
                                   -  
Stock-based compensation    -    -    355    -              355  
Other comprehensive loss:                                  -  
Foreign currency translation adjustments    -    -    -    (24 )       (24 )  (24 )
Net loss    -    -    -    -    (3,812 )  (3,812 )  (3,812 )







Total comprehensive loss                             (3,836 )  2,822  

   
Balance as of December 31, 2008 (unaudited)    23,196,236    720    104,279    (455 )  (101,722 )          
   
Stock-based compensation    -    -    59         (321 )       (262 )
Other comprehensive loss:                                  -  
Foreign currency translation adjustments    -  -      2    2  2
Net loss    -    -    -    (21 )  (593 )  (593 )  (593 )







Total comprehensive loss                             (591 )  (853 )

   
Balance as of March 31, 2009 (unaudited)    23,196,236    720    104,338    (474 )  (102,636 )  1,948       

5



CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

3 months ended
March 31,

2009
2008
 
Cash flows from operating activities:            
Net loss from continued operations    (593 )  (3,812 )
Adjustments required to reconcile net loss to net cash provided by (used in) operating activities:  
Depreciation    39    243  
Stock based compensation    59    322  
Amortization of deferred expenses    12    219  
Amortization of debt discount    99    682  
Amortization of software development costs    571    1,659  
Increase (decrease) in accrued severance pay, net    (33 )  110  
Decrease (increase) in trade receivables    (147 )  373  
Decrease in other accounts receivable and prepaid expenses    3    255  
Increase in long-term prepaid expenses    (1 )  (34 )
Increase (decrease) in trade payables    (74 )  (64 )
Increase in deferred revenues    441    (2 )
Increase in employees and payroll accruals    (166 )  (142 )
Decrease in accrued expenses and other liabilities    93    (128 )
Increase (decrease)Long term liabilities    (26 )  63  


   
Net cash provided by (used in) operating activities from continued operations (reconciled from continuing operations)    276    (257 )
Net cash provided by operating activities from discontinued operations (reconciled from discontinued operations)          


   
Net cash provided by operating activating    276    (257 )


   
Cash flows from investing activities:   
Restricted cash, net    -    (47 )
Purchase of property and equipment    -    (38 )
Capitalization of software development costs    (126 )  (837 )
Proceeds from sale of property equipment    -    -  


   
Net cash used in investing activities    (126 )  (922 )


   
Cash flows from financing activities:   
Proceeds from exercise of employee stock options    -    -  
Receipt of Short -term debt, net    84    402  
Repayment of long-term debt    (5 )  (17 )
Repayment of short-term debt    -    -  


   
Net cash provided by (used in) financing activities    79    385  


   
Foreign currency translation adjustments on cash and cash equivalents    89    (47 )


   
DIecrease in cash and cash equivalents    318    (841 )
Cash and cash equivalents at the beginning of the period    480    1,321  


   
Cash and cash equivalents at the end of the period    798    480  


   
Supplemental disclosure of cash flow activities:   
Cash paid during the period for:  
Interest    49    175  


Supplemental disclosure of non-cash investing and financing activities:   
Stock-based compensation that was capitalized as part of capitalization of software development costs         35  


Issuance of warrant and extension of contractual period of warrants in consideration of long-term loan    -    -  



6



U.S. dollars in thousands, except per share data
USE OF NON-GAAP FINANCIAL INFORMATION

Three months ended
March 31,

2009
2008
 
   GAAP operating loss      (418 )  (223 )
   Stock based compensation (1)    56    92  
   Software development costs capitalization and amortization (2)    442    170  


   
Non-GAAP operating profit (loss)    80    39  


   
   GAAP net loss    (593 )  (554 )
   Stock based compensation (1)    56    92  
   Software development costs capitalization and amortization (2)    442    170  
   Financial expenses (3)    159    224  


   
Non-GAAP net profit (loss)    64    (68 )


   
GAAP basic and diluted net loss per share    (0.03 )  (0.02 )
   Stock based compensation (1)    0.00    0.00  
   Software development costs capitalization and amortization (2)    0.02    0.01  
   Financial expenses (3)    0.01    0.01  


   
   Non-GAAP basic and diluted net loss per share    0.00    (0.00 )


   Weighted average number of shares used in computing basic and diluted net loss per share    23,196    23,196  


   
   *) Less than $0.01 per share  
   
   (1) Equity-based compensation** expenses resulting under SFAS 123(R):  
    Equity-based compensation expense included in "Research and development"    11    31  
    Equity-based compensation expense included in "Selling and marketing"    28    48  
    Equity-based compensation expense included in "General and administrative"    18    13  


   
     56    92  


   
“Equity based compensation expenses” refer to the amortized fair value of all equity based awards granted to employees.  
   
   (2) Software development costs capitalization and amortization resulting under SFAS 86:  
    Capitalization    (129 )  (211 )
    Amortization    571    381  


   
     442    170  


   
   (3) Financial expenses:  
    Amortization of debt discount    99    170  
    Revaluation of warrants and embedded derivatives    48       
    Amortization of deferred charges    12    54  


   
     159    224  



7