Datawatch Announces First Quarter Fiscal 2017 Financial Results
(Thomson Reuters ONE) -
Total revenue increases 17% year over year; license revenue up 38%
BEDFORD, Mass., Jan. 25, 2017 (GLOBE NEWSWIRE) -- Datawatch Corporation (NASDAQ-
CM:DWCH), a leading global provider of self-service data preparation and fast
data analytics solutions, today announced that total revenue for its first
quarter of fiscal 2017 ended December 31, 2016 was $8.23 million, an increase of
17% from total revenue of $7.06 million in the first quarter of fiscal 2016.
License revenue for the first quarter of fiscal 2017 was $4.36 million, a 38%
increase from the $3.15 million recorded in the same quarter a year ago.
Deferred revenue as of December 31, 2016 was $10.20 million, a 20% increase
compared to $8.54 million as of December 31, 2015, and the highest level ever
attained by the company. Total bookings for the first fiscal quarter of 2017
were $9.40 million, a 22% increase from the $7.73 million of bookings recorded
in the same quarter a year ago.
Net loss for the first quarter of fiscal 2017 was ($2.23) million, or ($0.19)
per diluted share, compared to a net loss of ($3.96) million, or ($0.34) per
diluted share, for the year ago period. Excluding the effects of the non-cash
amortization associated with the purchase of certain intellectual property and
other intangible assets, and non-cash stock compensation costs, the Company's
non-GAAP net loss for its first quarter of fiscal 2017 was ($1.28) million, or
($0.11) per diluted share, compared to a non-GAAP net loss of ($2.37) million,
or ($0.20) per diluted share, for the first quarter of fiscal 2016.
"Our updated strategy to focus our efforts on the data preparation needs and
requirements of our extensive customer base, while continuing the controlled
transition to a subscription pricing model, is gaining steam and providing us
with greater confidence that we can achieve our financial and business goals in
fiscal 2017," said Michael A. Morrison, president and chief executive officer of
Datawatch. "Our total bookings, the improvement in our bottom line results,
important new customer wins and accelerating successes in our existing Monarch
customer base, all serve to validate our business model and go-to-market
approach."
He added, "We focus on our subscription license bookings on a quarterly basis,
as we believe this metric is the best indicator of the underlying strength of
our business over the long term, especially as we continue to move more license
sales to a subscription pricing model. Total subscription bookings in the first
fiscal quarter of 2017 increased a healthy 74% from the year ago quarter,
reflecting fundamental improvement in both our sales execution and our go-to-
market strategy. Importantly, excluding the contributions from our Panopticon
and legacy businesses, we delivered 44% year-over-year license growth in our
core Monarch data preparation business - a testament to our unique product
differentiation and our more focused strategy centered on gaining a leadership
position in the growing data preparation market."
Mr. Morrison concluded, "During the quarter, we added 188 new 'lands' of our
Monarch self-service data preparation platform, reflecting a growth rate of
almost 50% as compared to the prior year first quarter, with a good mixture of
both heritage Monarch customers and new name logos across a variety of
industries. We are particularly encouraged by the growing number of long time
Monarch customers that have been off support for several years - and sometimes
many years - who now see the value in our new Monarch data preparation platform
and are investing in this new platform to take advantage of its added
capabilities and benefits. We expect the momentum in adding new 'lands' to
continue throughout fiscal year 2017, and we see a larger opportunity with all
these customers to penetrate the user community more extensively and deliver
additional capabilities with our self-service data preparation platform.
Specifically, we believe that the data socialization and collaboration
capabilities of our latest Monarch server offering exposes the capabilities of
this platform to a much wider audience of users in any data preparation
deployment, and our field personnel are aggressively pursuing this opportunity."
James L. Eliason, chief financial officer, commented, "We continue to make
strong progress in steadily reducing our quarterly expense run-rate, and this
gives us heightened confidence in our ability to meet our target of achieving
operating profitability by the end of this fiscal year. We have taken the
necessary steps to align our expense structure to our expected revenue
performance and are where we expected to be at this point on that path. We
finished the quarter with approximately $26.3 million of cash on hand,
reflecting a quarterly cash burn of $1.7 million, which was lower than the cash
burn of $2.2 million in Q1 of fiscal 2016. Approximately $0.9 million of the
cash burn for the quarter was our non-GAAP operating loss, which was slightly
more than the loss in the fourth fiscal quarter of 2016 and continues to trend
downward. The remaining cash burn reflects working capital shifts on our
balance sheet of $0.7 million, which are primarily due to timing, and severance
costs of $0.2 million."
First Quarter Fiscal 2017 Business Highlights
* Datawatch continued to penetrate the middle office and back office of
leading financial services organizations with its self-service data
preparation solution, including U.S. Bank, Wells Fargo, Capital One, Visa,
Scotiabank, State Bank of India and HSBC.
* Credit Agricole and Bank of Tokyo Mitsubishi joined the roster of leading
financial institutions in selecting Datawatch Panopticon for fast analytics
and real-time visualizations to improve effectiveness in front office
trading operations.
* Datawatch and the Hyland, a leading provider of enterprise content
management solutions, announced a new technology partnership to leverage the
value of the integrated Monarch data preparation and Hyland OnBase content
management platform.
* Datawatch announced the promotion of Ken Tacelli to the role of Chief
Operating Officer, responsible for global sales and marketing. Mr. Tacelli
was previously senior vice president of worldwide sales.
* Datawatch was recognized by Dresner Advisory Services as a leading vendor in
End User Data Preparation and presented with a Technology Innovation Award
for its technology leadership.
First Quarter Fiscal 2017 Financial Highlights
* Cash and short-term investments were $26.3 million at December 31, 2016,
down from $28.0 million at September 30, 2016 and $33.0 million at December
31, 2015.
* Gross margin (excluding IP amortization expense) for the first quarter of
fiscal 2017 was 91%, as compared to 89% for the first quarter of fiscal
2016.
* Days sales outstanding were 77 days at December 31, 2016, compared to 78
days at December 31, 2015.
* There were 7 six-figure deals in the first quarter this fiscal year,
compared to 4 in the first quarter of fiscal 2016.
* The average deal size in the first quarter of fiscal 2017 was $40,000, an
increase from $29,000 in the first quarter of fiscal 2016.
* Deferred revenue reached $10.2 million at December 31, 2016, the highest in
the company's history, and a 20% increase from $8.5 million at December
31, 2015.
Conference Call
Datawatch's first quarter of fiscal year 2017 earnings conference call will take
place on Thursday, January 26, 2017 at 8:30 a.m. Eastern Time. To access the
conference call, the toll-free dial in number is (800) 362-0574.
Internationally, the call may be accessed by dialing (785) 424-1226. The
conference call will be broadcast live on the Internet at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=175532. It is recommended that
listeners register to participate and download any necessary audio software from
the website 15 minutes prior to the scheduled call. An archived replay of the
broadcast will be available for 90 days at the same location.
About Datawatch Corporation
Datawatch Corporation (NASDAQ-CM:DWCH) enables ordinary users to deliver
extraordinary results with all their data. Only Datawatch can unlock data from
the widest variety of sources and prepare it for use with visualization tools or
other business processes. When real-time visibility to rapidly changing data is
critical, Datawatch enables you to visualize streaming data for the most
demanding business environments such as capital markets. Organizations of every
size worldwide use Datawatch products including 93 of the Fortune 100. Datawatch
is headquartered in Bedford, Massachusetts with offices in New York, London,
Frankfurt, Stockholm, Singapore, and Manila, and with partners and customers in
more than 100 countries worldwide. See how Datawatch can help you by
downloading a free version at www.datawatch.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Any statements contained in this press release that do not describe historical
facts may constitute forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Any such statements, including
but not limited to those relating to results of operations, contained herein are
based on current expectations, but are subject to a number of risks and
uncertainties that may cause actual results to differ materially from
expectations. The factors that could cause actual future results to differ
materially from current expectations include the following: risks associated
with the continuing weak global economy; risks associated with fluctuations in
quarterly operating results due, among other factors, to the long sales cycle
with enterprise customers and the size and timing of large customer orders;
risks associated with acquisitions; the risk that our goodwill resulting from
acquisitions may become impaired and require a write-down; limitations on the
effectiveness of internal controls; rapid technological change; Datawatch's
dependence on the introduction of new products and product enhancements and
possible delays in those introductions; competition in the software industry
generally, and in the markets for next generation analytics in particular;
Datawatch's dependence on its principal products, proprietary software
technology and software licensed from third parties; Datawatch's concentration
of customers in the financial sector; risks associated with international sales
and operations; risks associated with indirect distribution channels and co-
marketing arrangements, many of which were only recently established; the
adequacy of Datawatch's sales returns reserve; risks associated with a
subscription sales model; Datawatch's dependence on its ability to hire and
retain skilled personnel; disruption or failure of Datawatch's technology
systems that may result from a natural disaster, cyber-attack, security breach
or other catastrophic event; risks related to actions by activist stockholders,
including the amount of related costs incurred by Datawatch and the disruption
caused to Datawatch's business activities by these actions; and uncertainty and
additional costs that may result from evolving regulation of corporate
governance and public disclosure. Further information on factors that could
cause actual results to differ from those anticipated is detailed in various
publicly-available documents, which include, but are not limited to, filings
made by Datawatch from time to time with the Securities and Exchange Commission,
including but not limited to, those appearing in the Company's Annual Report on
Form 10-K for the year ended September 30, 2016 and its subsequently filed Form
10-Q reports. Any forward-looking statements should be considered in light of
those factors.
Use of Non-GAAP Financial Information
We define non-GAAP net loss as U.S. Generally Accepted Accounting Principles
("GAAP") net loss plus goodwill and long-lived assets non-cash impairment
charges, non-cash amortization associated with the purchase of certain
intellectual property and other intangible assets, non-cash stock compensation
costs and Swedish non-cash deferred tax valuation allowance. We discuss non-GAAP
net loss in our quarterly earnings releases and certain other communications as
we believe non-GAAP net loss is an important measure that is not calculated
according to GAAP. We use non-GAAP net loss in internal forecasts and models
when establishing internal operating budgets, supplementing the financial
results and forecasts reported to our Board of Directors and evaluating short-
term and long-term operating trends in our operations. We believe that non-GAAP
net loss assists in providing an enhanced understanding of our underlying
operational measures to manage the business, to evaluate performance compared to
prior periods and the marketplace, and to establish operational goals. We
believe that these non-GAAP financial adjustments are useful to investors
because they allow investors to evaluate the effectiveness of the methodology
and information used by management in our financial and operational decision-
making.
Non-GAAP net loss is a non-GAAP financial measure and should not be considered
in isolation or as a substitute for financial information provided in accordance
with GAAP. This non-GAAP financial measure may not be computed in the same
manner as similarly titled measures used by other companies. We expect to
continue to incur expenses similar to the non-GAAP net loss financial
adjustments described above, and investors should not infer from our
presentation of this non-GAAP financial measure that these costs are unusual,
infrequent or non-recurring.
The table below entitled "Non-GAAP Disclosure - Reconciliation of Net Loss to
Non-GAAP Net Loss" reconciles the Company's GAAP net loss to the Company's non-
GAAP net loss.
DATAWATCH CORPORATION
Condensed Consolidated Statements of Operations
Amounts in Thousands (except per share data)
(Unaudited)
Three Months Ended
December 31
2016 2015
REVENUE:
Software licenses $ 4,357 $ 3,147
Maintenance 3,555 3,602
Professional services 321 306
Total revenue 8,233 7,055
COSTS AND EXPENSES:
Cost of software licenses 703 689
Cost of maintenance and services 532 598
Sales and marketing 4,747 5,748
Engineering and product development 2,203 1,827
General and administrative 2,215 2,234
Total costs and expenses 10,400 11,096
LOSS FROM OPERATIONS (2,167 ) (4,041 )
Other income (expense) (62 ) (24 )
LOSS BEFORE INCOME TAXES (2,229 ) (4,065 )
Income tax (expense) benefit (2 ) 101
NET LOSS $ (2,231 ) $ (3,964 )
Net loss per share - Basic $ (0.19 ) $ (0.34 )
Net loss per share - Diluted $ (0.19 ) $ (0.34 )
Weighted Average Shares Outstanding - Basic 11,951 11,635
Weighted Average Shares Outstanding - 11,951 11,635
Diluted
Non-GAAP Disclosure - Reconciliation of Net Loss to Net Loss Excluding the
Effects of Certain Items:
GAAP Net Loss $ (2,231 ) $ (3,964 )
Add-back Amortization of Intangibles & IP 519 572
Add-back Share-Based Compensation 431 1,023
Add-back Swedish Deferred Tax Valuation - -
Allowance
Subtotal of additions 950 1,595
Net (Loss) Income (non-GAAP) $ (1,281 ) $ (2,369 )
Net (loss) income per share - Basic $ (0.11 ) $ (0.20 )
Net (loss) income per share - Diluted $ (0.11 ) $ (0.20 )
Weighted Average Shares Outstanding - Basic 11,951 11,635
Weighted Average Shares Outstanding - 11,951 11,635
Diluted
DATAWATCH CORPORATION
Condensed Consolidated Balance Sheets
Amounts in Thousands
(Unaudited)
December September
31 30,
2016 2016
Cash and cash equivalents $ 26,285 $ 28,034
Accounts receivable, net 7,040 6,932
Prepaid expenses and other current assets 2,397 2,265
Total current assets 35,722 37,231
Property and equipment, net 1,211 1,210
Intangible and other assets, net 9,470 9,990
$ 46,403 $ 48,431
Accounts payable and accrued expenses $ 3,506 $ 4,077
Deferred revenue - current portion 10,038 9,630
Deferred tax liability- current portion - -
Total current liabilities 13,544 13,707
Other long-term liabilities 661 766
Total long-term liabilities 661 766
Total shareholders' equity 32,198 33,958
$ 46,403 $ 48,431
© 2017 Datawatch Corporation. Datawatch and the Datawatch logo are trademarks or
registered trademarks of Datawatch Corporation in the United States and/or other
countries. All other names are trademarks or registered trademarks of their
respective companies.
Source: Datawatch
Investor Contact:
Datawatch Investor Relations
investor(at)datawatch.com
Phone: (978) 441-2200 ext. 8323
Media Contact:
Amanda Beaupre
Datawatch Corporation
Amanda_beaupre(at)datawatch.com
Phone: (978) 441-2200 ext. 8322
Twitter: (at)datawatch
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Datawatch Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.01.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 520012
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