Datawatch Announces Second Quarter Fiscal 2017 Financial Results
(Thomson Reuters ONE) -
Total revenue increases 18% year-over-year; license revenue up 34%
BEDFORD, Mass., April 19, 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 second quarter of fiscal 2017 ended March 31, 2017 was $8.76
million, an increase of 18% from total revenue of $7.42 million in the second
quarter of fiscal 2016. License revenue for the second quarter of fiscal 2017
was $4.89 million, a 34% increase from the $3.64 million recorded in the same
quarter a year ago. Deferred revenue as of March 31, 2017 was $10.10 million, a
16% increase compared to $8.70 million as of March 31, 2016, and near the
highest level ever attained by the company. Total bookings for the second
quarter of fiscal 2017 were $10.03 million, a 24% increase from the $8.13
million of bookings recorded in the same quarter a year ago.
Net loss for the second quarter of fiscal 2017 was ($0.45) million, or ($0.04)
per diluted share, compared to a net loss of ($3.36) million, or ($0.29) per
diluted share, for the year ago period. Excluding the effects of the
amortization associated with the purchase of certain intellectual property and
other intangible assets, share-based compensation and a payment received in
respect of a stockholder's short-swing stock trading profits, the Company's non-
GAAP net loss for its second quarter of fiscal 2017 was ($0.20) million, or
($0.02) per diluted share, compared to a non-GAAP net loss of ($1.79) million,
or ($0.15) per diluted share, for the second quarter of fiscal 2016.
"The self-service data preparation and analytics market continues to build
momentum, and as the diversity of data types and formats rapidly increases, we
are finding a more significant opportunity for our Monarch self-service data
analytics platform," said Michael A. Morrison, president and chief executive
officer of Datawatch. "Our Monarch solution is being deployed at an increasing
number of global organizations that are seeing dramatic improvements in business
outcomes and the productivity of their business analysts. Our improved
financial results in the first half of fiscal 2017 and our positive outlook on
the second half of fiscal 2017 give us confidence that we will achieve our
financial and operational targets for the year."
He added, "Our controlled transition to a subscription licensing model continues
on a positive trend. Subscription license bookings of $1.3 million in the
second fiscal quarter represent the highest quarterly total to date, and
recognized subscription revenue in the second fiscal quarter was nearly $1
million, up 89% year-over-year, and the highest quarterly total to date. In our
core Monarch data analytics business, total revenue and license revenue
increased by 31% and 62% year-over-year, respectively, reflecting growing demand
by customers and partners alike for our differentiated technology platform in
this expanding market."
Mr. Morrison concluded, "During the quarter, we were particularly excited to
unveil Monarch Swarm, our next generation cloud offering that extends our self-
service data preparation and analytics platform with capabilities for data
cataloguing, collaboration and gamification. The Monarch Swarm platform also
enables data socialization, which is the next step in the evolution of data
accessibility and self-service analytics. With Monarch Swarm, users can search
for, access, share and re-use prepared data, as well as leverage user ratings,
recommendations, discussions, comments and popularity to gain actionable
insights and make better strategic business decisions. Monarch Swarm also meets
the needs of IT departments by providing comprehensive governance features,
including data masking, data retention, data lineage and role-based permissions
to support corporate and regulatory compliance requirements. We demonstrated
the beta version of Monarch Swarm to a wide variety of customers, partners,
prospects and analysts during the past quarter, and the reaction and feedback
were overwhelmingly positive. We look forward to more broadly introducing the
powerful capabilities of this next generation Monarch cloud platform to the
market in the coming months."
James L. Eliason, chief financial officer, commented, "We achieved an important
goal in our second fiscal quarter by producing positive operating cash flow for
the first time in nearly four years, two quarters ahead of when we targeted to
achieve this milestone. We accomplished this while recording deferred revenue
balances, subscription bookings and subscription revenue all at or near historic
highs. Furthermore, our renewal rates are the best recorded in our history and
our accounts receivables are nearly 90% current. Thus, by virtually every key
financial measure, we are operating very effectively as we enter the second half
of fiscal 2017."
Second Quarter Fiscal 2017 Business Highlights
* Navy Federal Credit Union, a long-time customer of Datawatch, upgraded its
heritage Monarch deployment to an enterprise-wide agreement to take
advantage of the self-service data preparation and analytics capabilities of
the current Monarch platform.
* HCA bought the Monarch data preparation platform to streamline the pre-
registration process by automating the extraction of patient data from a
secure repository and populating registration forms for delivery to local
doctors' offices, eliminating manual data entry, freeing up IT resources and
enhancing the patient experience.
* Datawatch and Credit Agricole entered an agreement to roll out the Monarch
data preparation and self-service analytics platform to more than two dozen
banks throughout France to transform document-based content to analytics-
ready data.
* At the Gartner Data & Analytics Summit in March, Datawatch unveiled the next
generation of its Monarch platform for the cloud, Monarch Swarm, that
extends the value of data preparation and self-service analytics to include
data socialization, data cataloguing, governance, collaboration and
gamification.
* Datawatch and AquaQ, a leading provider of kdb+ analytic services to global
capital markets organizations, announced a strategic partnership to provide
advanced trading analytics to banks, brokers and fund managers to meet the
stringent regulatory and compliance demands from MiFID and MiFIR.
Second Quarter Fiscal 2017 Financial Highlights
* Cash and short-term investments were $27.8 million at March 31, 2017, up
from $26.3 million at December 31, 2016 and down from $31.5 million at March
31, 2016. The higher cash balance reflects the receipt in the second
quarter of a settlement payment, included in Other Income, of approximately
$700,000 from a stockholder related to such stockholder's short-swing stock
trading profits.
* Gross margin (excluding IP amortization expense) for the second quarter of
fiscal 2017 was 91%, as compared to 92% for the second quarter of fiscal
2016.
* Days sales outstanding were 66 days at March 31, 2017, compared to 63 days
at March 31, 2016.
* There were three six-figure deals in the second quarter this fiscal year,
compared to eight in the second quarter of fiscal 2016.
* The average deal size in the second quarter of fiscal 2017 was $36,000, a
decrease from $43,000 in the second quarter of fiscal 2016.
* Deferred revenue reached $10.1 million at March 31, 2017, near the highest
in the company's history, and a 16% increase from $8.7 million at March
31, 2016.
Conference Call
Datawatch's second quarter of fiscal year 2017 earnings conference call will
take place on Thursday, April 20, 2017 at 8:30 a.m. Eastern Time. The toll-free
number to access the conference call is (866) 682-6100. Internationally, the
call may be accessed by dialing (862) 255-5401. The conference call will be
broadcast live on the Internet
at: http://www.investorcalendar.com/IC/CEPage.asp?ID=175823. 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 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 (i) amortization associated with the purchase of certain
intellectual property and other intangible assets and (ii) share-based
compensation, minus the payment received in respect of a stockholder's short-
swing stock trading profits. 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 Six Months Ended
March 31, March 31,
2017 2016 2017 2016
-------------- -------------- -------------- --------------
REVENUE:
Software
licenses $ 4,889 $ 3,645 $ 9,246 $ 6,792
Maintenance 3,560 3,480 7,116 7,082
Professional
services 311 299 631 605
-------------- -------------- -------------- --------------
Total revenue 8,760 7,424 16,993 14,479
COSTS AND
EXPENSES:
Cost of software
licenses 733 499 1,436 1,188
Cost of
maintenance and
services 545 610 1,077 1,208
Sales and
marketing 4,125 5,100 8,872 10,848
Engineering and
product
development 2,194 2,066 4,397 3,893
General and
administrative 2,318 2,626 4,534 4,860
-------------- -------------- -------------- --------------
Total costs and
expenses 9,915 10,901 20,316 21,997
-------------- -------------- -------------- --------------
LOSS FROM
OPERATIONS (1,155 ) (3,477 ) (3,323 ) (7,518 )
Other income
(expense) 712 9 651 (15 )
-------------- -------------- -------------- --------------
LOSS BEFORE
INCOME TAXES (443 ) (3,468 ) (2,672 ) (7,533 )
Income tax
(expense)
benefit (6 ) 106 (8 ) 207
-------------- -------------- -------------- --------------
NET LOSS $ (449 ) $ (3,362 ) $ (2,680 ) $ (7,326 )
-------------- -------------- -------------- --------------
Net loss per
share - Basic $ (0.04 ) $ (0.29 ) $ (0.22 ) $ (0.63 )
-------------- -------------- -------------- --------------
Net loss per
share - Diluted $ (0.04 ) $ (0.29 ) $ (0.22 ) $ (0.63 )
-------------- -------------- -------------- --------------
Weighted Average
Shares
Outstanding -
Basic 12,014 11,701 11,982 11,669
-------------- -------------- -------------- --------------
Weighted Average
Shares
Outstanding -
Diluted 12,014 11,701 11,982 11,669
-------------- -------------- -------------- --------------
Non-GAAP Disclosure - Reconciliation of Net Loss to Net Loss Excluding the
Effects of Certain Items:
GAAP Net Loss $ (449 ) $ (3,362 ) $ (2,680 ) $ (7,326 )
Add-back
Amortization of
Intangibles &
IP 509 568 1,028 1,140
Add-back Share-
Based
Compensation 451 1,001 882 2,024
Exclude payment
received from a
stockholder's
short-swing
stock trading
profit (707 ) - (707 ) -
-------------- -------------- -------------- --------------
Subtotal of
adjustments 253 1,569 1,203 3,164
Net (Loss)
Income (non-
GAAP) $ (196 ) $ (1,793 ) $ (1,477 ) $ (4,162 )
-------------- -------------- -------------- --------------
Net (loss)
income per share
- Basic $ (0.02 ) $ (0.15 ) $ (0.12 ) $ (0.36 )
-------------- -------------- -------------- --------------
Net (loss)
income per share
- Diluted $ (0.02 ) $ (0.15 ) $ (0.12 ) $ (0.36 )
-------------- -------------- -------------- --------------
Weighted Average
Shares
Outstanding -
Basic 12,014 11,701 11,982 11,669
-------------- -------------- -------------- --------------
Weighted Average
Shares
Outstanding -
Diluted 12,014 11,701 11,982 11,669
-------------- -------------- -------------- --------------
DATAWATCH CORPORATION
Condensed Consolidated Balance Sheets
Amounts in Thousands
(Unaudited)
March September
31, 30,
2017 2016
---------- ------------
Cash and cash equivalents $ 27,771 $ 28,034
Accounts receivable, net 5,855 6,932
Prepaid expenses and other current assets 2,343 2,265
---------- ------------
Total current assets 35,969 37,231
Property and equipment, net 1,171 1,210
Intangible and other assets, net 8,968 9,990
---------- ------------
$ 46,108 $ 48,431
---------- ------------
Accounts payable and accrued expenses $ 3,347 $ 4,077
Deferred revenue - current portion 9,918 9,630
---------- ------------
Total current liabilities 13,265 13,707
Other long-term liabilities 639 766
---------- ------------
Total long-term liabilities 639 766
Total shareholders' equity 32,204 33,958
---------- ------------
$ 46,108 $ 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: 19.04.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 537177
Anzahl Zeichen: 25135
contact information:
Town:
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Kategorie:
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