CHELMSFORD, Mass., Nov. 18, 2013 /PRNewswire/ -- Datawatch
Corporation (NASDAQ-CM: DWCH), the leading global provider of
visual data discovery solutions, today announced that total revenue
for its fourth quarter ended September 30,
2013 was a record $8.82
million, an increase of 47% from revenue of $6.02 million in the fourth quarter a year
ago. License revenue for the fourth quarter of fiscal 2013
was $5.80 million, an increase of 60%
from the $3.62 million recorded in
the comparable quarter a year ago.
(Logo:
http://photos.prnewswire.com/prnh/20121015/NE92833LOGO)
Net loss for the fourth quarter of fiscal 2013 was ($2.68) million, or ($0.37) per diluted share, compared to a net loss
of ($277,000), or ($0.04) per diluted share, for the year ago
period. Results for the fourth quarter of 2013 include a
one-time $435,000 expense associated
with Datawatch's acquisition of Panopticon Software AB, which was
completed in late August 2013, and a
$250,000 expense related to a
one-time resale of third party software. Excluding the
effects of the non-cash amortization associated with the purchase
of certain intellectual property and other intangible assets, as
well as non-cash stock compensation costs and restructuring
charges, the Company's non–GAAP net loss for its fourth fiscal
quarter of 2013 was ($606,000), or
($0.08) per diluted share, compared
to net income of $526,000, or
$0.08 per diluted share in the fourth
fiscal quarter of 2012.
Total revenue for fiscal year 2013 was $30.30 million, a 16% increase from revenue of
$26.01 million in fiscal year
2012. License revenue for 2013 was $19.43 million, a 16% increase compared to
$16.80 million in 2012. Net
loss for 2013 was ($4.20) million, or
($0.63) per diluted share, as
compared to net income of $1.03
million or $0.15 per diluted
share, for 2012. The Company's non-GAAP net income for fiscal
year 2013 was $1.06 million, or
$0.15 per diluted share, as compared
to non-GAAP net income of $3.02
million, or $0.45 per diluted
share, for fiscal year 2012.
"We had solid execution in the fiscal fourth quarter of 2013,
closing a good percentage of our pipeline opportunities while also
finalizing the Panopticon acquisition on August 28, 2013," said Michael A. Morrison, president and chief
executive officer of Datawatch. "The combination of
Panopticon and Datawatch provides a uniquely compelling next
generation analytics solution – enabling organizations to visually
analyze any variety of data at the speed of business, and I believe
we have hit the ground running in terms of our ability to attract
and expand customer relationships with our combined offering.
The integration of Panopticon with Datawatch is moving forward
rapidly in the key areas of product, marketing and sales. I
am pleased with the effectiveness and collaboration of the
Panopticon and Datawatch teams in making this strategic acquisition
a seamless event."
Mr. Morrison added, "We enter fiscal year 2014 with strong
business momentum in the market for next generation business
analytics. Additionally, there are several favorable secular
trends that highly differentiate Datawatch's solutions from our
competitors. Datawatch's unique ability to deliver high
velocity real-time information and our ability to incorporate any
variety of information into visualizations position us in a
leadership position in both Big Data and operational analytics.
Our continued investment in expanding our partner
ecosystem, especially global strategic alliances, and delivering
more industry-ready solutions, will be key drivers to help us
capitalize on this large and expanding market opportunity.
The pipeline we have built in 2013 is larger than ever, and we are
laser focused on enhancing Datawatch's visibility with customers
and prospects in the rapidly growing visualization market and
increasing awareness for our real-time visual data discovery
solutions. We are confident that today, we have one of the
most valuable and disruptive solutions in the market, and we intend
to move aggressively to ensure that the marketplace is well aware
of the differentiated and timely advantages we offer."
Fourth Quarter Business Highlights
- One of the world's largest investment banks selected Datawatch
as the standard for enterprise-wide real-time visual data discovery
analytics against all of its risk management systems. This
leading financial services company will deploy Datawatch
visualization technology for intraday risk analysis across more
than 40 in-house built and commercial risk management
systems. The Datawatch solution will enable greater
transparency of aggregated risk data in order to reduce operational
and investment risks, detect anomalies and identify opportunities
for growth.
- Datawatch and Xerox, the world's leading enterprise for
business and document management, partnered to close a significant
initial transaction with the Canadian division of one of the
largest American multinational retail corporations. Datawatch
and Xerox will automate and digitalize print and document
management processes across nearly 400 retail stores throughout
Canada, leading to the elimination
of 50 million pages of annual print and enabling next generation
analytics on the semi-structured document data generated by these
400 stores.
- Datawatch and Thomson Reuters entered into a global agreement
pursuant to which Thomson Reuters will resell Datawatch's
technology as a general purpose visual data discovery solution and
as a real-time visualization front end for its Elektron Analytics
platform for standardizing data analytics and tick data management
capabilities across the enterprise. Thomson Reuters will
provide its customers with worldwide support and professional
services for the Datawatch visual data discovery solution.
- Datawatch, through its partner iGEN Technology, closed an
innovative visual data discovery deal in Southeast Asia with the campaign of a major
political candidate to provide near real-time analytics of voter
profiles and preferences. The Datawatch visualization
solution was installed in the political candidate's "War Room" and
enabled next generation analytics on data gathered from a wide
variety of sources, including polling agents, party workers and
press reports.
Fourth Quarter Financial Highlights
- Cash and short-term investments were $10.31 million at September 30, 2013, down 1% from $10.42 million at June 30,
2013 and up 18% from $8.72
million at September 30,
2012.
- Gross margin for the fourth fiscal quarter of 2013 was 81.5%,
compared to 85.3% for the third fiscal quarter of 2013 and 82.8%
for the fourth fiscal quarter of 2012. Gross margin in the
most recent period was negatively impacted by a one-time resale of
third party software.
- Days sales outstanding were 61 days at September 30, 2013, compared to 60 days at
June 30, 2013 and 70 days at
September 30, 2012.
- There were 10 six-figure deals in the fourth fiscal quarter, as
compared to 3 six-figure deals in the fourth fiscal quarter of
2012.
- The average deal size in the fourth fiscal quarter was
$63,000, as compared to $54,000 in the fourth fiscal quarter of
2012.
"Datawatch generated more than $1.5
million in cash during fiscal year 2013, despite incurring
nearly $1 million in one-time
transaction costs related to the Panopticon acquisition in the
second half of the fiscal year," said James
Eliason, chief financial officer of Datawatch. "In
August, we took advantage of the opportunity to refinance our
existing debt, which will result in savings of nearly $600,000 in interest costs over the life of the
loans. We continue to manage our balance sheet in a
disciplined manner as we make the investments in the business to
fully exploit the large opportunity we see in the visual data
discovery market."
Investor Conference Call and Webcast
The senior management of Datawatch will host a conference call
and webcast to discuss the fourth quarter results tomorrow,
Tuesday, November 19, 2013 at
8:30 am 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=171788. 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) provides visual data
discovery software that optimizes any data – regardless of its
variety, volume, or velocity – delivering next generation analytics
to reveal valuable insights for improving business. Its unique
ability to integrate structured, unstructured, and semi-structured
sources like reports, PDF files and EDI streams with real-time
streaming data into visually rich analytic applications allow users
to dynamically discover key factors that impact any operational
aspect of their business. This ability to perform visual discovery
against any data sets Datawatch apart in the big data and
visualization markets. Organizations of every size, worldwide use
Datawatch products, including 99 of the Fortune 100. Datawatch is
headquartered in Chelmsford,
Massachusetts with offices in New
York, London, Munich, Stockholm, Singapore, Sydney and Manila, and with partners and customers in
more than 100 countries worldwide. See the Whole Story for
yourself by downloading the free trial at
www.datawatch.com/trial.
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; risks associated with acquisitions, including the
recent acquisition of intellectual property from Math Strategies
and the acquisition of Panopticon; 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 next generation analytics in particular;
Datawatch's dependence on its principal products, proprietary
software technology and software licensed from third parties; 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 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, Form 10-Q for the quarters
ended December 31, 2012, March 31, 2013 and June
30, 2013, and Definitive Proxy Statement on Schedule 14A
filed with the SEC on August 5, 2013.
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 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.
DATAWATCH
CORPORATION
|
Condensed
Consolidated Statements of Operations
|
Amounts in
Thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Software
licenses
|
|
$
5,796
|
|
$
3,618
|
|
$
19,430
|
|
$
16,800
|
|
Maintenance
|
|
2,658
|
|
2,219
|
|
9,700
|
|
7,902
|
|
Professional
services
|
|
363
|
|
178
|
|
1,166
|
|
1,304
|
|
Total revenue
|
|
8,817
|
|
6,015
|
|
30,296
|
|
26,006
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of
software licenses
|
|
904
|
|
526
|
|
2,505
|
|
2,270
|
|
Cost of
maintenance and services
|
|
743
|
|
511
|
|
2,440
|
|
2,530
|
|
Sales and
marketing
|
|
6,091
|
|
3,222
|
|
18,482
|
|
12,263
|
|
Engineering and
product development
|
|
1,531
|
|
742
|
|
3,893
|
|
2,790
|
|
General and
administrative
|
|
2,317
|
|
1,141
|
|
6,793
|
|
4,610
|
|
Total costs and expenses
|
|
11,586
|
|
6,142
|
|
34,113
|
|
24,463
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME
FROM OPERATIONS
|
|
(2,769)
|
|
(127)
|
|
(3,817)
|
|
1,543
|
Other
expense
|
|
(3)
|
|
(174)
|
|
(468)
|
|
(459)
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME
BEFORE INCOME TAXES
|
|
(2,772)
|
|
(301)
|
|
(4,285)
|
|
1,084
|
Income tax
(benefit) provision
|
|
(89)
|
|
(24)
|
|
(88)
|
|
50
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
$
(2,683)
|
|
$
(277)
|
|
$
(4,197)
|
|
$
1,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share - Basic
|
|
$
(0.37)
|
|
$
(0.04)
|
|
$
(0.63)
|
|
$
0.17
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share - Diluted
|
|
$
(0.37)
|
|
$
(0.04)
|
|
$
(0.63)
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding - Basic
|
|
7,229
|
|
6,334
|
|
6,634
|
|
6,252
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding - Diluted
|
|
7,229
|
|
6,334
|
|
6,634
|
|
6,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Disclosure - Reconciliation of Net (Loss) Income to Net Income
Excluding the Effects of Certain Items:
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
(Loss) Income
|
|
$
(2,760)
|
|
$
(277)
|
|
$
(4,274)
|
|
$
1,034
|
Add-back Amortization of Intangibles & IP
|
|
609
|
|
431
|
|
1,859
|
|
871
|
Add-back Share-Based Compensation
|
|
1,411
|
|
319
|
|
3,333
|
|
879
|
Add-back Restructuring Severance Charges
|
|
57
|
|
53
|
|
67
|
|
235
|
|
|
|
|
|
|
|
|
|
|
Net income
(non-GAAP)
|
|
$
(606)
|
|
$
526
|
|
$
1,062
|
|
$
3,019
|
|
|
|
|
|
|
|
|
|
|
Net income
per share - Basic
|
|
$
(0.08)
|
|
$
0.08
|
|
$
0.16
|
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
Net income
per share - Diluted
|
|
$
(0.08)
|
|
$
0.08
|
|
$
0.15
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding - Basic
|
|
7,229
|
|
6,334
|
|
6,634
|
|
6,252
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding - Diluted
|
|
7,229
|
|
6,858
|
|
7,265
|
|
6,730
|
DATAWATCH
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
Amounts in
Thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
10,312
|
|
$
8,722
|
Accounts
receivable, net
|
|
6,622
|
|
4,391
|
Prepaid
expenses and other current assets
|
|
984
|
|
591
|
Total current assets
|
|
17,918
|
|
13,704
|
|
|
|
|
|
Property and
equipment, net
|
|
288
|
|
281
|
Intangible and
other assets, net
|
|
51,115
|
|
8,820
|
|
|
|
|
|
|
|
$
69,321
|
|
$
22,805
|
|
|
|
|
|
|
|
|
|
|
Current portion
of long-term debt
|
|
$
900
|
|
$
900
|
Current portion
of note payable
|
|
1,133
|
|
-
|
Accounts
payable and accrued expenses
|
|
4,915
|
|
2,468
|
Deferred
revenue - current portion
|
|
6,997
|
|
6,295
|
Total current liabilities
|
|
13,945
|
|
9,663
|
|
|
|
|
|
Note
payable
|
|
1,951
|
|
2,983
|
Other long-term
liabilities
|
|
2,050
|
|
465
|
Total long-term liabilities
|
|
4,001
|
|
3,448
|
|
|
|
|
|
Total shareholders' equity
|
|
51,375
|
|
9,694
|
|
|
|
|
|
|
|
$
69,321
|
|
$
22,805
|
|
|
|
|
|
SOURCE Datawatch Corporation