CHELMSFORD, Mass., Jan. 22, 2013 /PRNewswire/ -- Datawatch
Corporation (NASDAQ-CM: DWCH), the leading global provider of
information optimization solutions, today announced that total
revenue for its first quarter ended December
31, 2012 was $6.82 million, an
increase of 9% from revenue of $6.27
million in the first quarter a year ago. License
revenue for the first quarter of fiscal 2013 was $4.33 million, an increase of 3% from the
$4.21 million recorded in the
comparable quarter a year ago. Net loss for the first quarter
of fiscal 2013 was $222,000, or
($0.03) per diluted share, compared
to net income of $603,000, or
$0.09 per diluted share, for the year
ago period. Excluding the effects of the non-cash
amortization associated with the purchase of the Monarch
intellectual property in March 2012
as well as non-cash stock compensation costs, the Company's
non–GAAP net income for its first fiscal quarter of 2013 was
$786,000, or $0.11 per diluted share, compared to $751,000, or $0.12
per diluted share in the first fiscal quarter of 2012.
(Logo: http://photos.prnewswire.com/prnh/20121015/NE92833LOGO
)
Michael A. Morrison, president
and CEO of Datawatch, said, "The first quarter of fiscal 2013
represented a significant pivot point for Datawatch. During
the quarter, we re-introduced ourselves to the market with a clear
and compelling message, more strategic positioning and a new
brand. We delivered an aggressive training and enablement
program for our worldwide sales organization and our global
alliance partners around this new messaging and positioning.
The early results from this important shift in messaging and
positioning are promising. As a result of our new approach,
the opportunities we are pursuing are much more strategic to the
enterprise. The relative size of these opportunities is
bigger and the contacts with whom we are working within these
enterprises are higher level. We have already secured several
key new name customers pursuing this strategy, and this bodes well
for our continued success in implementing our plans to build upon
Datawatch's strengths for the long-term."
Mr. Morrison continued, "Our new messaging and positioning are
also having a positive effect on our market awareness, as
competitors, industry analysts, financial analysts and
organizations of all sizes are beginning to recognize the value
that can be achieved with Datawatch's Information Optimization
solutions. I am confident that the steps that we have taken
thus far, along with our plans for the remainder of this fiscal
year, make Datawatch more enterprise-ready from a sales, product
and services perspective as we seek to showcase the importance of
variety in Big Data and Business Intelligence applications.
Finally, our first fiscal quarter of 2013 also produced solid
results as we executed on our newly launched partnership strategy,
with the addition of 13 new partners to our global ecosystem.
These partners strengthen our domain expertise, increase our
geographic coverage and enhance our ability to meet the complex
needs of enterprise customers."
First Quarter Business Highlights
- Datawatch entered into a master reseller agreement with
Koncerndata in Sweden to represent
Datawatch's Information Optimization solutions throughout the
Nordic region. Koncerndata, which will operate as Datawatch
Nordics, has a long track record of success selling business
analytic software solutions into the Nordic market, including as
Hyperion Nordics, representing Hyperion Solutions (which was
acquired by Oracle) and as Outlooksoft Nordics, representing
Outlooksoft Corporation (which was acquired by SAP).
- Datawatch entered into business alliances with 13 new partners,
including Panorama Software, a global leader in Business
Intelligence 3.0 solutions; Xerox in Canada; Reddot in Russia; Comesio in Austria; 2Quadrant in Czech, Slovakia and Hungary; Sky Solutions in North America; and Tricor in Japan.
- The Methodist Hospital System in Houston, Texas bought Datawatch's denial
management analytics solution for dashboard views of 835 EDI
healthcare remittance data to assist in the revenue cycle
management process. Datawatch's denial management
analytics solution provides out-of-the-box dashboards to analyze
denied claims, denied claims by reason code, inpatient vs.
outpatient claims history and more.
- Datawatch released Datawatch Enterprise Server 11.5, which
introduces Monarch Power Client for seamless connectivity and
interaction with Datawatch Enterprise Server and which supports
Japanese and simplified Chinese character sets. With this new
release, organizations throughout the world will be able to
leverage existing investments in Monarch to enable self-service
delivery and consumption of models, reports and analysis over the
Web.
First Quarter Financial Highlights
- Cash and short-term investments were $8.94 million at December
31, 2012, up 2% from $8.72
million at September 30, 2012
and down 7% from $9.65 million at
December 31, 2011. In
March 2012, the company used
$3.04 million in cash to partially
fund the purchase of the Monarch intellectual property, and since
that time used another $600,000 to
partially pay down its $1.5 million
working capital loan with Silicon Valley Bank.
- Gross margin for the first fiscal quarter of 2013 was 84.6%,
compared to 82.8% for the fourth fiscal quarter of 2012 and 80.2%
for the first fiscal quarter of 2012.
- Days sales outstanding were 61 days at December 31, 2012, compared to 70 days at
September 30, 2012 and 52 days at
December 31, 2011.
- There were 5 six-figure deals in the first fiscal quarter of
2013, the same number as in the first fiscal quarter of 2012.
- The average deal size in the first fiscal quarter of 2013 was
$49,000, as compared to $87,000 in the first fiscal quarter of
2012. The average deal size in the first fiscal quarter of
2012 was positively impacted by a seven-figure license transaction
in that quarter.
"We enter the second fiscal quarter of 2013 with our sales teams
and partners effectively utilizing our new messaging and
positioning, increased market awareness and credibility, and a
strong and growing pipeline of activity for our Information
Optimization solutions. As a result, we are confident that we
will see a re-acceleration of revenue growth in the next nine
months of fiscal 2013 from the rate we saw in the first fiscal
quarter of 2013," stated Mr. Morrison.
Investor Conference Call and Webcast
The senior management of Datawatch will host a conference call
and webcast to discuss the first quarter results this afternoon,
Tuesday, January 22, 2013 at
4:30 pm ET. To access the call,
please dial 1-877-407-0782. Internationally, the call may be
accessed by dialing +1-201-689-8567. The conference call will be
broadcast live on the Internet at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=170375. It
is recommended that listeners register to participate and download
any necessary audio software from the website 15 minutes prior to
the scheduled call. The webcast will be available as a replay
starting one hour after the call is completed at the same
location.
ABOUT DATAWATCH CORPORATION
Datawatch Corporation
(NASDAQ-CM: DWCH) is a leader in providing information optimization
products and solutions that allow organizations to deliver the
greatest data variety possible into their big data and analytic
applications. Datawatch provides organizations the ability to
integrate structured, unstructured, and semi-structured sources
like reports, PDF files, and EDI streams into these applications to
provide a 360 degree perspective of the issues and opportunities
that exist in their businesses. More than 40,000 organizations
worldwide use Datawatch's products and services, including 99 of
the Fortune 100, and businesses of every type can benefit from the
power and flexibility of Datawatch's industry leading solutions.
Datawatch is headquartered in Chelmsford,
Massachusetts with offices in London, Munich, Singapore, Sydney and Manila, and with partners and customers in
more than 100 countries worldwide. For more information, visit
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 size and timing of large customer orders; the
volatility of Datawatch's stock price; limitations on the
effectiveness of internal controls; rapid technological change;
Datawatch's dependence on the introduction of new products and
possible delays in those introductions; competition in the software
industry generally, and in the markets for information optimization
in particular; Datawatch's dependence on its principal products,
proprietary software technology and software licensed from third
parties; risks associated with international sales; risks
associated with indirect distribution channels; the adequacy of
Datawatch's sales returns reserve; risks associated with a
subscription sales model; risks associated with acquisitions,
including the recent acquisition of intellectual property from Math
Strategies; 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 or other catastrophic event; 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, 2012. Any
forward-looking statements should be considered in light of those
factors.
Investor Contact:
Datawatch Investor Relations
investor@datawatch.com
Phone: (978) 441-2200 ext. 8323
Media Contact:
Sarah
Bernardi
Datawatch Corporation
Sarah_Bernardi@datawatch.com
Phone: (978) 441-2200 ext. 8387
Twitter: @datawatch
© 2013 Datawatch Corporation. Datawatch, Monarch and their
respective logos 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.
Use of Non-GAAP Financial Information
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), this press release
and the accompanying tables contain certain non-GAAP financial
measures that we believe are helpful in understanding our past
financial performance and future results. Our non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read in
conjunction with our consolidated financial statements prepared in
accordance with GAAP. Our management regularly uses our
supplemental non-GAAP financial measures internally to understand
and manage our business and make operating decisions. Our non-GAAP
financial measures include adjustments based on the following
items, as well as the related income tax effects and adjustments to
the valuation allowance:
Amortization of purchased software: We have excluded the effect
of amortization of the Monarch software and related intellectual
property that we acquired from Math Strategies on March 30, 2012 from our non-GAAP operating
expenses and net income measures. Amortization of this
purchased software resulted from a material transaction that is not
likely to occur in the foreseeable future. Investors should
note that the use of the purchased software will contribute to
future period revenues. Amortization of the purchased
software will recur in future periods.
Share-based compensation expenses: We have excluded the effect
of share-based compensation expenses from our non-GAAP operating
expenses and net income measures. Although share-based compensation
is a key incentive offered to our employees, we continue to
evaluate our business performance excluding share-based
compensation expenses. Share-based compensation expenses will recur
in future periods.
DATAWATCH CORPORATION
|
Condensed Consolidated Statements of
Operations
|
Amounts in Thousands (except per share
data)
|
(Unaudited)
|
|
|
|
Three
Months Ended
|
|
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Software licenses
|
|
$
4,330
|
|
$
4,208
|
|
Maintenance
|
|
2,333
|
|
1,717
|
|
Professional services
|
|
158
|
|
346
|
|
Total revenue
|
|
6,821
|
|
6,271
|
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
Cost
of software licenses
|
|
521
|
|
575
|
|
Cost
of maintenance and services
|
|
530
|
|
668
|
|
Sales and marketing
|
|
3,776
|
|
2,801
|
|
Engineering and product
development
|
|
853
|
|
628
|
|
General and administrative
|
|
1,191
|
|
967
|
|
Total costs and expenses
|
|
6,871
|
|
5,639
|
|
|
|
|
|
|
(LOSS) INCOME FROM OPERATIONS
|
|
(50)
|
|
632
|
Other (expense) income
|
|
(163)
|
|
9
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE INCOME
TAXES
|
|
(213)
|
|
641
|
Income tax provision
|
|
9
|
|
38
|
|
|
|
|
|
|
NET
(LOSS) INCOME
|
|
$
(222)
|
|
$
603
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per share - Basic
|
|
$
(0.03)
|
|
$
0.10
|
|
|
|
|
|
|
Net
(loss) income per share - Diluted
|
|
$
(0.03)
|
|
$
0.09
|
|
|
|
|
|
|
Weighted Average Shares Outstanding -
Basic
|
|
6,378
|
|
6,164
|
|
|
|
|
|
|
Weighted Average Shares Outstanding -
Diluted
|
|
6,378
|
|
6,359
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Disclosure - Reconciliation of Net
Income to Net Income Excluding the
|
Effects of Certain
Items:
|
|
|
|
|
|
|
|
|
|
|
GAAP Net (Loss) Income
|
|
$
(222)
|
|
$
603
|
|
|
|
|
|
|
Add-back Amortization of
Monarch IP
|
|
431
|
|
-
|
Add-back Share-Based
Compensation
|
|
577
|
|
148
|
|
|
|
|
|
|
Net income (non-GAAP)
|
|
$
786
|
|
$
751
|
|
|
|
|
|
|
Net income per share -
Basic
|
|
$
0.12
|
|
$
0.12
|
|
|
|
|
|
|
Net income per share -
Diluted
|
|
$
0.11
|
|
$
0.12
|
|
|
|
|
|
|
Weighted Average Shares Outstanding -
Basic
|
|
6,378
|
|
6,164
|
|
|
|
|
|
|
Weighted Average Shares Outstanding -
Diluted
|
|
6,888
|
|
6,359
|
|
|
|
|
|
|
DATAWATCH CORPORATION
|
Condensed Consolidated Balance
Sheets
|
Amounts in Thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
|
2012
|
|
2012
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
8,937
|
|
$
8,722
|
Accounts receivable, net
|
|
4,300
|
|
4,391
|
Prepaid expenses and other current
assets
|
|
863
|
|
591
|
Total current assets
|
|
14,100
|
|
13,704
|
|
|
|
|
|
Property and equipment, net
|
|
264
|
|
281
|
Intangible and other assets,
net
|
|
8,314
|
|
8,820
|
|
|
|
|
|
|
|
$
22,678
|
|
$
22,805
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term
debt
|
|
$
900
|
|
$
900
|
Accounts payable and accrued
expenses
|
|
2,163
|
|
2,468
|
Deferred revenue - current
portion
|
|
5,983
|
|
6,295
|
Total current liabilities
|
|
9,046
|
|
9,663
|
|
|
|
|
|
Note
payable
|
|
3,022
|
|
2,983
|
Other long-term liabilities
|
|
453
|
|
466
|
Total long-term liabilities
|
|
3,475
|
|
3,449
|
|
|
|
|
|
Total shareholders' equity
|
|
10,157
|
|
9,693
|
|
|
|
|
|
|
|
$
22,678
|
|
$
22,805
|
|
|
|
|
|
SOURCE Datawatch Corporation