EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm


Exhibit 99.1
 
January 27, 2010

ATTUNITY REPORTS FOURTH QUARTER AND FULL YEAR
2009 RESULTS

Achieved $1.6 million of Non-GAAP operating profit in FY 2009 and posts a record
quarterly Non-GAAP operating profit for 2009
 
Burlington, MA January 27, 2010 – Attunity Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of real-time data integration and event capture software, reported today its financial results for the fourth quarter and full year ended December 31, 2009.

Commenting on the results, Shimon Alon, Attunity's Chairman and CEO, stated, “We are pleased, as demonstrated by our financial results for the fourth quarter and for the full year 2009, that we turned into profitability and have generated a positive cash flow in 2009. During the year, we focused the turn-around on further developing our core leading products, introducing product lines for the real-time data integration market, extending our offerings into the operational data replication market, strengthening our partnerships with market leaders, and expanding our offering to the large open system market".

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 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.




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 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.

# # #
 
© 2010 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
 
For more information, please contact:
 
Dror Elkayam, VP Finance
Attunity Ltd.
Tel. +972 9-899-3000
dror.elkayam@attunity.com
 

 
 
ATTUNITY LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF December 31, 2009
 
U.S. DOLLARS IN THOUSANDS
 
INDEX
 


 
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  
 
2

 
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  
 
3

 
U.S. dollars in thousands, except share and per share data
 
   
12 months ended
December 31,
   
3 months ended
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 )
                                 
 
4

 
U.S. dollars in thousands, except share data
 
               
Additional
   
Accumulated Other
         
Total
   
Total
 
   
Ordinary shares
   
paid-in
   
comprehensive
   
Accumulated
   
comprehensive
   
shareholders'
 
   
Shares
   
Amount
   
Capital
   
loss
     deficit    
loss
   
equity
 
                                           
Balance as of December 31, 2007
    23,196,236       720       103,924       (431 )     (98,155 )           6,058  
                                                    -  
Stock-based compensation
    -       -       355       -                     355  
Other comprehensive loss:
                                                  -  
Foreign currency translation adjustments
    -       -       -       (24 )             (24 )     (24 )
Net loss
    -       -       -       -       (3,857 )     (3,857 )     (3,857 )
Total comprehensive loss
                                            (3,881 )     2,532  
                                                         
Balance as of December 31, 2008
    23,196,236       720       104,279       (455 )     (102,012 )             2,532  
                                                         
Stock-based compensation
    -               196                               196  
Other comprehensive loss:
                    (3,117 )             2,795               (322 )
Foreign currency translation adjustments
    -       -               2                       2  
conversion of short term loan
    3,276,396       79       314                               393  
issuance of shares (rights offering)
    4,982,358       119       410                               529  
Exercise of warrants
    116,160       2       12                               14  
Net loss
    -       -                       (1,303 )     (1,303 )     (1,303 )
Total comprehensive loss
                                                       
Balance as of  December 31, 2009
    31,571,150       920       102,095       (453 )     (100,520 )     (1,303 )     2,042  
 
 
5

 
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
    -       -  
 
 
6

 
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  
 
7