Exhibit 99.1
November 4, 2015
ATTUNITY REPORTS RECORD REVENUES FOR
THIRD QUARTER 2015
36% REVENUE GROWTH FOR THE QUARTER
Burlington, MA – November 4, 2015 – Attunity, Ltd. (NASDAQ CM: ATTU), a leading provider of big data management software solutions, today reported its unaudited financial results for the three month period ended September 30, 2015.
“The record revenue we reported for the quarter was driven by scaling our direct sales force, expanding our big data solutions for enterprise and cloud environments, and delivering on effective marketing and business development programs. Each of these factors is continually feeding a pipeline of customer orders that are becoming larger in scope and value, and across a wider base of new customers than ever before,” said Shimon Alon, Chairman and CEO of Attunity. “We are experiencing strong activity and increasing interest from customers, partners and other vendors across all of our product offerings, geographies and business lines. As we further extend our portfolio of innovative Big Data management solutions, we are able to support a larger number of different environments, such as data warehouses, clouds, Hadoop, open source, and others.”
Recent Operational Highlights:
| · | Signed a strategic global resell agreement with Teradata, expanding distribution to the large data warehousing and fast-growing Big Data markets |
| · | Introduced Attunity Replicate Express to drive market awareness and demand generation for the expansive mainstream database market, as well as the rapidly expanding Hadoop market |
| · | Won a strategic deal for Attunity Compose (formerly “BIReady”), the new Data Warehouse Automation offering, with one of the world’s largest global insurance companies |
| · | Closed first Microsoft Azure customer order for the recently launched Attunity CloudBeam for Azure SQL data warehouse |
| · | Expanded offerings for the cloud with a new solution for loading data into Hadoop running on AWS |
| · | Introduced Attunity Visibility for enterprise data usage analytics and monitoring for Hadoop |
| · | Launched Attunity Replicate for PostgreSQL, a leading open-source database with rapidly growing market adoption |
Financial Highlights for Q3 2015, compared with Q3 2014:
| · | Total non-GAAP revenue increased 37% to $13.0 million |
| · | Total revenue increased 36% to $12.7 million |
| · | Non-GAAP net income of $0.4 million, compared with non-GAAP net income of $1.1 million for the third quarter of 2014 |
| · | Generated positive cash flow from operations of $0.4 million |
“Our strong partnerships with the major Big Data vendors have resulted in an extension of the OEM agreements we have with Microsoft and another leading global provider of business software and hardware systems. These agreements enable us to continue to generate leads and revenue, enhancing our brand. Working closely together with the Amazon Web Services (AWS) and Microsoft Azure teams, we are becoming a critical enabler of database migration services that facilitate data transfers between on-premises and cloud environments,” continued Mr. Alon.
Big Data Management and Cloud Solutions
Attunity enhanced its replication platform for the cloud “CloudBeam,” with the launch of a version for Microsoft Azure, as well as an expanded portfolio for AWS Cloud with support for Hadoop. The Company has already closed the first CloudBeam solution order for the Microsoft Azure SQL Data Warehouse and is building a growing pipeline working jointly with the Microsoft cloud team.
Attunity Visibility has become a trusted solution for enterprises, optimizing performance and balancing workloads from traditional data warehouses to Hadoop. Now, as enterprises look to adopt Hadoop at scale, they need to prioritize investments and make more informed decisions to optimize the value to business users. To accommodate this growing market need, Attunity enhanced Visibility with the launch of “Attunity Visibility 7.0” in order to enable data usage analytics in large Hadoop clusters. With these capabilities, Attunity Visibility is the market’s only Big Data Management solution offering users business insights on the utilization of both Hadoop and data warehouses.
Sales and Marketing
The Company continued to expand its sales, marketing and business development teams, having grown the total headcount nearly 40% compared with the same period in 2014. These investments in sales and marketing, along with an expanded presence in the Big Data space at events and with analysts, have resulted in steady new customer acquisition and a strong sales pipeline. More importantly, we believe they will enable us to position the Company for sustainable long-term growth through the remainder of the year.
“By working closely with the AWS and Microsoft Azure teams, we are now widely recognized as a keystone for database migration services that facilitate data transfers between on-premises and cloud environments. The strong partnership with the major Big Data vendors resulted in extending the OEM agreements we have with Microsoft and another leading global provider of business software and hardware systems,” concluded Mr. Alon.
Financial Results for Q3 2015
Total revenues for the third quarter of 2015 increased 36% to $12.7 million, compared with $9.4 million for the same period in 2014. This includes license revenues for the third quarter of 2015, which increased 26% to $7.0 million, compared with $5.5 million for the same period in 2014. It also includes maintenance and service revenue, which grew 49% to $5.8 million compared with $3.9 million for the same period in 2014.
Total non-GAAP revenue for the third quarter of 2015 was $13.0 million, compared with $9.5 million for the same period in 2014. This includes non-GAAP maintenance and service revenue of $6.0 million, which grew 52% from the same period in 2014.*
Operating loss for the third quarter of 2015 was $1.3 million, compared with an operating income of $0.4 million for the same period in 2014.
Non-GAAP operating income was $1.0 million for the third quarter of 2015, compared with operating income of $1.2 million for the third quarter of 2014.*
Net loss for the third quarter of 2015 was $1.9 million, or $0.12 per diluted share, compared with net income of $0.3 million, or $0.02 per diluted share in the third quarter of 2014.
Non-GAAP net income for the third quarter of 2015 was $0.4 million, compared with non-GAAP net income of $1.1 million for the same period in 2014. Non-GAAP net income for the third quarter of 2015 excludes a total of $2.3 million in expenses and amortization associated with acquisitions and equity-based compensation expenses, compared with $0.8 million of similar expenses for the same period in 2014.*
Cash and cash equivalents were $11.8 million as of September 30, 2015.
Shareholders' equity as of September 30, 2015 increased to $36.3 million, compared to $31.2 as of December 31, 2014.
* 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 Wednesday, November 4th at 10:00 a.m. Eastern Time featuring remarks by Shimon Alon, Chairman and CEO of Attunity, and Dror Harel-Elkayam, CFO of Attunity. The dial-in numbers for the conference call are +1-888-539-3679 (U.S. Toll Free), +1 80 924 6042 (Israel), or +1-719-325-2138 (International). All dial-in participants must use the following code to access the call: 1144915.
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 Events section of Attunity's website, http://www.attunity.com/events. 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 November 18, 2015 at +1-877-870-5176 (U.S. Toll Free) or 1-858-384-5517 (International). Participants must use the following code to access the replay of the call: 1144915. The online archive of the webcast will be available on http://www.attunity.com/events for 30 days following the call.
About Attunity
Attunity is a leading provider of big data management software solutions that enable access, management, sharing and distribution of data, including Big Data, across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication, data flow management, test data management, change data capture (CDC), data connectivity, enterprise file replication (EFR), managed file transfer (MFT), data warehouse automation, data 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 HP. 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 In Tune blog and join our community on Twitter, Facebook, LinkedIn 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, operating income, operating profit margin and net income per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisitions, net of related tax, stock-based compensation expenses in accordance with ASC 718, acquisition-related compensation expense and non-cash financial expenses such as the effect of a revaluation of liabilities presented at fair value and accretion of payment obligations. 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, including statements regarding the anticipated features and benefits of Replicate Solutions, 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 say that [investments in sales and marketing will enable to position the Company for sustainable long-term growth through the remainder of the year], we use a forward-looking statement. 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 profitability; our reliance on strategic relationships with our distributors, OEM, VAR and "go-to-market" and other business partners, and on our other significant customers; risks and uncertainties relating to acquisitions, including costs and difficulties related to integration of acquired businesses; our ability to expand our business into the SAP market and the success of our Gold Client offering; timely availability and customer acceptance of Attunity's new and existing products, including Attunity Maestro and Attunity Visibility; risks and uncertainties relating to fluctuations in our quarterly operating results, which may not necessarily be indicative of future periods; 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 products; 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 as well as cyber-attacks; 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 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.
© 2015 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.
For more information, please contact:
Garth Russell / Allison Monat
KCSA Strategic Communications
P: + 1 212-682-6300
grussell@kcsa.com / amonat@kcsa.com
Dror Harel-Elkayam, CFO
Attunity Ltd.
P: +972 9-899-3000
dror.elkayam@attunity.com
ATTUNITY LTD. AND ITS SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS of September 30, 2015
U.S. DOLLARS IN THOUSANDS
Unaudited
INDEX
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| | | September 30, | | | December 31, | |
| | | 2015 | | | 2014 | |
| | | Unaudited | | | Audited | |
| | | | | | | |
| ASSETS | | | | | | |
| | | | | | | |
| CURRENT ASSETS: | | | | | | |
| Cash and cash equivalents | | | 11,786 | | | | 18,959 | |
| Restricted cash | | | - | | | | 430 | |
| Trade receivables (net of allowance for doubtful accounts of $15 at September 30, 2015 and December 31, 2014) | | | 4,656 | | | | 5,991 | |
| Other accounts receivable and prepaid expenses | | | 1,448 | | | | 453 | |
| | | | | | | | | |
Total current assets | | | 17,890 | | | | 25,833 | |
| | | | | | | | | |
| Severance pay fund | | | 3,427 | | | | 3,247 | |
| Property and equipment, net | | | 1,174 | | | | 980 | |
| Goodwill and intangible assets, net | | | 41,004 | | | | 22,869 | |
| Other assets | | | 159 | | | | 577 | |
| | | | | | | | | |
Total long-term assets | | | 45,764 | | | | 27,673 | |
| | | | | | | | | |
Total assets | | | 63,654 | | | | 53,506 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| | | September 30, | | | December 31, | |
| | | 2015 | | | 2014 | |
| | | Unaudited | | | Audited | |
| | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| | | | | | | |
| CURRENT LIABILITIES: | | | | | | |
| | | | | | | |
| Trade payables | | $ | 478 | | | $ | 322 | |
| Payment obligation related to acquisitions | | | 2,526 | | | | 2,278 | |
| Deferred revenues | | | 9,532 | | | | 7,091 | |
| Employees and payroll accruals | | | 4,361 | | | | 3,023 | |
| Accrued expenses and other current liabilities | | | 1,197 | | | | 1,551 | |
| | | | | | | | | |
| Total current liabilities | | | 18,094 | | | | 14,265 | |
| | | | | | | | | |
| LONG-TERM LIABILITIES: | | | | | | | | |
| | | | | | | | | |
| Long-term deferred revenue | | | 776 | | | | 576 | |
| Liabilities presented at fair value and other long-term liabilities | | | 1,959 | | | | 1,004 | |
| Payment obligation related to acquisitions | | | 1,899 | | | | 2,208 | |
| Accrued severance pay | | | 4,604 | | | | 4,296 | |
| | | | | | | | | |
| Total long-term liabilities | | | 9,238 | | | | 8,084 | |
| | | | | | | | | |
| SHAREHOLDERS' EQUITY: | | | | | | | | |
| Share capital - Ordinary shares of NIS 0.4 par value - | | | | | | | | |
| Authorized: 32,500,000 shares at September 30, 2015 and December 31, 2014; Issued and outstanding: 16,471,460 shares at September 30, 2015 and 15,375,716 shares at December 31, 2014 | | | 1,868 | | | | 1,772 | |
| Additional paid-in capital | | | 143,286 | | | | 133,931 | |
| Accumulated other comprehensive loss | | | (1,125 | ) | | | (871 | ) |
| Accumulated deficit | | | (107,707 | ) | | | (103,675 | ) |
| | | | | | | | | |
Total shareholders' equity | | | 36,322 | | | | 31,157 | |
| | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 63,654 | | | $ | 53,506 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
| | | Nine months ended | | | Three months ended | |
| | | September 30, | | | September 30, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | Unaudited | | | Unaudited | |
| | | | | | | | | | | | | |
| Software licenses | | $ | 19,328 | | | $ | 13,459 | | | $ | 6,968 | | | $ | 5,530 | |
| Maintenance and services | | | 16,026 | | | | 11,312 | | | | 5,778 | | | | 3,868 | |
| Total revenue | | | 35,354 | | | | 24,771 | | | | 12,746 | | | | 9,398 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Cost of revenues | | | 5,155 | | | | 2,315 | | | | 1,912 | | | | 843 | |
| Research and development | | | 7,983 | | | | 7,102 | | | | 3,090 | | | | 2,265 | |
| Selling and marketing | | | 21,146 | | | | 13,743 | | | | 7,861 | | | | 4,883 | |
| General and administrative | | | 3,787 | | | | 2,924 | | | | 1,151 | | | | 1,036 | |
Total operating expenses | | | 38,071 | | | | 26,084 | | | | 14,014 | | | | 9,027 | |
| | | | | | | | | | | | | | | | | |
| Operating loss | | | (2,717 | ) | | | (1,313 | ) | | | (1,268 | ) | | | 371 | |
| Financial expenses, net | | | 744 | | | | 316 | | | | 509 | | | | 127 | |
| Loss before taxes on income | | | (3,461 | ) | | | (1,629 | ) | | | (1,777 | ) | | | 244 | |
| Taxes on income | | | 571 | | | | 8 | | | | 130 | | | | (34 | ) |
| Net loss | | $ | (4,032 | ) | | $ | (1,637 | ) | | $ | (1,907 | ) | | $ | 278 | |
| | | | | | | | | | | | | | | | | |
| Basic and diluted net loss per share | | $ | (0.25 | ) | | $ | (0.11 | ) | | $ | (0.12 | ) | | $ | 0.02 | |
| Weighted average number of shares used in computing basic and diluted net loss per share | | | 16,075 | | | | 14,950 | | | | 16,421 | | | | 15,179 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| | | Nine months ended September 30, | |
| | | 2015 | | | 2014 | |
| | | Unaudited | |
| Cash flows activities: | | | | | | |
| Net loss | | $ | (4,032 | ) | | $ | (1,637 | ) |
| Adjustments required to reconcile net loss to net cash provided by operating activities: | | | | | | | | |
| Depreciation | | | 300 | | | | 255 | |
| Stock based compensation | | | 1,832 | | | | 1,083 | |
| Amortization of intangible assets | | | 2,073 | | | | 887 | |
| Accretion of payment obligations | | | 377 | | | | 512 | |
| Change in: | | | | | | | | |
| Accrued severance pay, net | | | 128 | | | | 63 | |
| Trade receivables | | | 1,335 | | | | 1,347 | |
| Other accounts receivable and prepaid expenses | | | (698 | ) | | | 161 | |
| Other long term assets | | | (28 | ) | | | (1 | ) |
| Trade payables | | | 113 | | | | 87 | |
| Deferred revenues | | | 2,132 | | | | 1,318 | |
| Employees and payroll accruals | | | 1,286 | | | | (1,130 | ) |
| Accrued expenses and other liabilities | | | (373 | ) | | | 91 | |
| Change in liabilities presented at fair value and other long-term liabilities | | | 156 | | | | (391 | ) |
| Tax benefits related to exercise of stock options | | | (135 | ) | | | - | |
| Change in deferred taxes, net | | | (204 | ) | | | (203 | ) |
| | | | | | | | | |
| Net cash provided by operating activities | | | 4,262 | | | | 2,442 | |
| | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Purchase of property and equipment | | | (427 | ) | | | (395 | ) |
| Decrease (Increase) in restricted cash | | | 430 | | | | (850 | ) |
| Acquisition of company, net of cash acquired | | | (10,402 | ) | | | - | |
| Net cash used in investing activities | | | (10,399 | ) | | | (1,245 | ) |
| | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from exercise of stock options, warrants and rights | | | 885 | | | | 695 | |
| Tax benefits related to exercise of stock options | | | 135 | | | | - | |
| Payment of contingent consideration | | | (2,054 | ) | | | - | |
| | | | | | | | | |
| Net cash provided by (used in) financing activities | | | (1,034 | ) | | | 695 | |
| | | | | | | | | |
| Foreign currency translation adjustments on cash and cash equivalents | | | (2 | ) | | | 51 | |
| | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | (7,173 | ) | | | 1,943 | |
| Cash and cash equivalents at the beginning of the period | | | 18,959 | | | | 16,481 | |
| | | | | | | | | |
| Cash and cash equivalents at the end of the period | | | 11,786 | | | | 18,424 | |
| | | | | | | | | |
| Supplemental disclosure of cash flow activities: | | | | | | | | |
| Cash paid during the period for taxes | | $ | 1,327 | | | $ | 417 | |
| | | | | | | | | |
| Non cash activities: | | | | | | | | |
| Issuance of shares related to acquisition | | $ | 6,599 | | | | - | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands, except share and per share data
| | | Three months ended September 30, 2015 | | | Three months ended September 30, 2014 | |
| | | Unaudited | | | Unaudited | |
| | | GAAP | | | Adj. | | | | NON-GAAP | | | GAAP | | | Adj. | | | | NON-GAAP | |
| Software licenses | | | 6,968 | | | | | | | | 6,968 | | | | 5,530 | | | | | | | | 5,530 | |
| Maintenance and services | | | 5,778 | | | | 240 | | (a) | | | 6,018 | | | | 3,868 | | | | 94 | | (a) | | | 3,962 | |
| Total revenue | | | 12,746 | | | | | | | | | 12,986 | | | | 9,398 | | | | | | | | | 9,492 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenues | | | 1,912 | | | | 696 | | (b) | | | 1,216 | | | | 843 | | | | 215 | | (b) | | | 628 | |
| Research and development | | | 3,090 | | | | 333 | | (b), (c) | | | 2,757 | | | | 2,265 | | | | 119 | | (c) | | | 2,146 | |
| Selling and marketing | | | 7,861 | | | | 825 | | (b), (c) | | | 7,036 | | | | 4,883 | | | | 257 | | (b), (c) | | | 4,626 | |
| General and administrative | | | 1,151 | | | | 196 | | (c) | | | 955 | | | | 1,036 | | | | 110 | | (c) | | | 926 | |
Total operating expenses | | | 14,014 | | | | | | | | | 11,964 | | | | 9,027 | | | | | | | | | 8,326 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | (1,268 | ) | | | | | | | | 1,022 | | | | 371 | | | | | | | | | 1,166 | |
| Financial expenses net | | | 509 | | | | 362 | | (d) | | | 147 | | | | 127 | | | | 31 | | (d) | | | 96 | |
| Income (loss) before taxes on income | | | (1,777 | ) | | | | | | | | 875 | | | | 244 | | | | | | | | | 1,070 | |
| Taxes on income | | | 130 | | | | (320 | ) | (e) | | | 450 | | | | (34 | ) | | | (46 | ) | (e) | | | 12 | |
| Net income (loss) | | | (1,907 | ) | | | | | | | | 425 | | | | 278 | | | | | | | | | 1,058 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Diluted net income (loss) per share | | | (0.12 | ) | | | | | | | | 0.02 | | | | 0.02 | | | | | | | | | 0.07 | |
| Weighted average number of shares used in computing diluted net income (loss) per share | | | 16,421 | | | | | | | | | 17,278 | | | | 15,837 | | | | | | | | | 15,862 | |
| (a) Valuation adjustment on acquired deferred maintenance revenue | | | | | |
| | | | | | | | | | | |
| (b) Acquisition-related compensation expenses and amortization of intangible assets: | | | | | |
| | | Three months ended September 30, | |
| | | 2015 | | | 2014 | |
| Cost of revenues | | | 696 | | | | 215 | |
| Research and development | | | 100 | | | | - | |
| Selling and marketing | | | 393 | | | | 81 | |
| | | | 1,189 | | | | 296 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except share and per share data
| (c) Stock-based compensation expenses under ASC 718 included in: | |
| | | Three months ended, September 30, | |
| | | 2015 | | | 2014 | |
| Research and development | | | 233 | | | | 119 | |
| Selling and marketing | | | 432 | | | | 176 | |
| General and administrative | | | 196 | | | | 110 | |
| | | | 861 | | | | 405 | |
| (d) Accretion of payment obligations and revaluation of liabilities presented at fair value: | | | |
| | | Three months ended, September 30, | |
| | | 2015 | | | 2014 | |
| Revaluation of liabilities presented at fair value | | | 116 | | | | (140 | ) |
| Accretion of payment obligations | | | 246 | | | | 171 | |
| | | | 362 | | | | 31 | |
| (e) Taxes related to acquisitions | | | | | | | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except share and per share data
| | | Nine months ended September 30, 2015 | | | Nine months ended September 30, 2014 | |
| | | Unaudited | | | Unaudited | |
| | | GAAP | | | Adj. | | | | NON-GAAP | | | GAAP | | | Adj. | | | | NON-GAAP | |
| Software licenses | | | 19,328 | | | | | | | | 19,328 | | | | 13,459 | | | | | | | | 13,459 | |
| Maintenance and services | | | 16,026 | | | | 586 | | (a) | | | 16,612 | | | | 11,312 | | | | 284 | | (a) | | | 11,596 | |
| Total revenue | | | 35,354 | | | | | | | | | 35,940 | | | | 24,771 | | | | | | | | | 25,055 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenues | | | 5,155 | | | | 1,823 | | (b) | | | 3,332 | | | | 2,315 | | | | 643 | | (b) | | | 1,672 | |
| Research and development | | | 7,983 | | | | 667 | | (b), (c) | | | 7,316 | | | | 7,102 | | | | 311 | | (c) | | | 6,791 | |
| Selling and marketing | | | 21,146 | | | | 1,771 | | (b), (c) | | | 19,375 | | | | 13,743 | | | | 717 | | (b), (c) | | | 13,026 | |
| General and administrative | | | 3,787 | | | | 1,062 | | (b), (c) | | | 2,725 | | | | 2,924 | | | | 299 | | (c) | | | 2,625 | |
Total operating expenses | | | 38,071 | | | | | | | | | 32,748 | | | | 26,084 | | | | | | | | | 24,114 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | (2,717 | ) | | | | | | | | 3,192 | | | | (1,313 | ) | | | | | | | | 941 | |
| Financial expenses, net | | | 744 | | | | 554 | | (d) | | | 190 | | | | 316 | | | | 119 | | (d) | | | 197 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before taxes on income | | | (3,461 | ) | | | | | | | | 3,002 | | | | (1,629 | ) | | | | | | | | 744 | |
| Taxes on income | | | 571 | | | | (702 | ) | (e) | | | 1,273 | | | | 8 | | | | (225 | ) | (e) | | | 233 | |
| Net income (loss) | | | (4,032 | ) | | | | | | | | 1,729 | | | | (1,637 | ) | | | | | | | | 511 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Diluted net income (loss) per share | | | (0.25 | ) | | | | | | | | 0.10 | | | | (0.11 | ) | | | | | | | | 0.03 | |
| Weighted average number of shares used in computing diluted net income (loss) per share | | | 16,075 | | | | | | | | | 16,834 | | | | 14,950 | | | | | | | | | 15,832 | |
| (a) Valuation adjustment on acquired deferred maintenance revenue | | | | | | |
| | | | | | | | | | |
| (b) Acquisition-related costs, compensation expenses and amortization of intangible assets: | | | | | | |
| | | Nine months ended September 30, | |
| | | 2015 | | | 2014 | |
| Cost of revenues | | | 1,823 | | | | 643 | |
| Research and development | | | 214 | | | | - | |
| Selling and marketing | | | 893 | | | | 244 | |
| General and administrative | | | 561 | | | | - | |
| | | | 3,491 | | | | 887 | |
ATTUNITY LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. dollars in thousands, except share and per share data
| (c) Stock-based compensation expenses under ASC 718 included in: | |
| | | Nine months ended September 30, | |
| | | 2015 | | | 2014 | |
| Research and development | | | 453 | | | | 311 | |
| Selling and marketing | | | 878 | | | | 473 | |
| General and administrative | | | 501 | | | | 299 | |
| | | | 1,832 | | | | 1,083 | |
| (d) Accretion of payment obligations and revaluation of liabilities presented at fair value: | | | |
| | | Nine months ended September 30, | |
| | | 2015 | | | 2014 | |
| Revaluation of liabilities presented at fair value | | | 175 | | | | (393 | ) |
| Accretion of payment obligations | | | 379 | | | | 512 | |
| | | | 554 | | | | 119 | |
| | | | | | | | | |
| (e) Taxes related to acquisitions | | | | | | | | |
9
