Attunity (ATTU) Tops Q2 EPS by 8c, Revenues Beat; Offers FY18 Revenue Outlook Above Consensus

Attunity (NASDAQ: ATTU) reported Q2 EPS of $0.08, $0.08 better than the analyst estimate of $0.00. Revenue for the quarter came in at $19.8 million versus the consensus estimate of $17.43 million.

\"We are pleased to report record results for the second quarter of 2018. We continued to accelerate our business, and achieved license revenue growth of 86% year-over-year and total revenue growth of 47% year-over-year for the quarter. The momentum has been building over the past several quarters, driven by the shift in the analytics market to the next level of data lake adoption, the fast growth of the Cloud as an enterprise data platform, and our strong execution. With the combination of our innovative solutions and strategic partnerships with key industry leaders, we are strongly positioned to capitalize on this growing market opportunity,\" stated Shimon Alon, Chairman and CEO of Attunity.

\"The introduction of our recurring revenue pricing model has quickly resulted in strong customer adoption, with the majority of Replicate direct license deals in the quarter being term-based. We anticipate this trend to continue in the second half of 2018 and beyond. As a result of our strong first half of 2018 and the momentum we see for the full year, we determined to raise our guidance,\" concluded Mr. Alon.

Recent Operational Highlights

Approximately 60% of the number of Replicate direct license deals in the second quarter were term-based, which represents approximately 70% of Replicate direct license revenue
Closed two large term-based deals, one for a total of $2.8 million and one for a total of $2.3 million
Closed first large GDPR solution sale for a total of $0.9 million
Introduced new Gold Client solution to enable GDPR compliance for SAP® environments
Conducted a strategic customer advisory board with representatives from 20 large companies
Hired a new EVP of North America Sales Operations, who previously served as a sales executive of Oracle\'s data integration business, including GoldenGate

Financial Highlights for the Second Quarter of 2018 compared with the Second Quarter of 2017

• Total revenue was $19.8 million, compared with $13.5 million*
• Operating profit was $0.9 million, compared with an operating loss of $2.5 million*
• Non-GAAP operating profit was $2.1 million, compared with an operating loss of $1.4 million**
• Net income was $0.3 million, compared with a net loss of $3.2 million*
• Non-GAAP net income was $1.7 million, compared with a non-GAAP net loss of $2.0 million**
• Generated cash flow from operations of $4.0 million, compared with cash used in operations of $1.7 million

Updated Outlook for Full Year 2018

The Company increased its outlook for the full year 2018 as follows:

• Total revenue is estimated to grow to between $78 and $81 million, compared with prior (updated) guidance of $75 to $78 million.
• Non-GAAP operating margin is estimated to be between 7% and 10%, compared with prior (updated) guidance of 6% to 10%.

"We are pleased to report record results for the second quarter of 2018. We continued to accelerate our business, and achieved license revenue growth of 86% year-over-year and total revenue growth of 47% year-over-year for the quarter. The momentum has been building over the past several quarters, driven by the shift in the analytics market to the next level of data lake adoption, the fast growth of the Cloud as an enterprise data platform, and our strong execution. With the combination of our innovative solutions and strategic partnerships with key industry leaders, we are strongly positioned to capitalize on this growing market opportunity," stated Shimon Alon, Chairman and CEO of Attunity.

"The introduction of our recurring revenue pricing model has quickly resulted in strong customer adoption, with the majority of Replicate direct license deals in the quarter being term-based. We anticipate this trend to continue in the second half of 2018 and beyond. As a result of our strong first half of 2018 and the momentum we see for the full year, we determined to raise our guidance," concluded Mr. Alon.

GUIDANCE:

Attunity sees Q3 2018 revenue of $78-81 million, versus the consensus of $77.09 million.

For earnings history and earnings-related data on Attunity (ATTU) click here.

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