CHELMSFORD, Mass., Nov. 19, 2014 /PRNewswire/ -- Datawatch
Corporation (NASDAQ-CM: DWCH), a leading global provider of visual
data discovery solutions, today announced that total revenue for
its fourth quarter ended September 30,
2014 was $9.05 million, an
increase of 3% from revenue of $8.82
million in the fourth quarter a year ago. License
revenue for the fourth quarter of fiscal 2014 was $5.24 million, a decrease of 10% from the
$5.80 million recorded in the
comparable quarter a year ago.
Net loss for the fourth quarter of fiscal 2014 was ($4.87) million, or ($0.44) per diluted share, compared to a net loss
of ($2.68), or ($0.37) 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, as well as non-cash stock compensation
costs and restructuring charges, the Company's non–GAAP net loss
for its fourth fiscal quarter of 2014 was ($1.93) million, or ($0.18) per diluted share, compared to a net loss
of ($572,000), or ($0.08) per diluted share in the fourth fiscal
quarter of 2013.
Total revenue for fiscal year 2014 was $35.08 million, a 16% increase from revenue of
$30.30 million in fiscal year
2013. License revenue for 2014 was $20.63 million, a 6% increase compared to
$19.43 million in 2013. Net
loss for 2014 was ($22.38) million,
or ($2.24) per diluted share, as
compared to a net loss of ($4.20)
million or ($0.63) per diluted
share, for 2013. The Company's non-GAAP net loss for fiscal
year 2014 was ($10.06) million, or
($1.01) per diluted share, as
compared to non-GAAP net income of $1.39
million, or $0.19 per diluted
share, for fiscal year 2013.
"While our expense trend in Q4 remained in line with our plan,
as it has throughout fiscal year 2014, our revenue performance in
Q4 fell short of our goals and expectations," said Michael A. Morrison, president and chief
executive officer of Datawatch. "As we have engaged in more
streaming data in motion use cases, including many in the capital
markets vertical and the Internet of Things arena, the relative
complexity of these sales opportunities has led to some increases
in the length of sales cycles, which provided a headwind to revenue
performance. We continued to improve sales execution, which
led to the largest number of discrete license transactions in the
history of the company during our fiscal fourth quarter.
These entry points establish a solid foundation for Datawatch to
expand and grow our footprint in these accounts in fiscal year
2015."
Mr. Morrison added, "During fiscal year 2014, our first full
year as a visual data discovery vendor, we made meaningful progress
with the integration of, and innovative enhancements to, our
technology stack, the refinement of our marketing message to a
visualization-led agenda and the leadership addition to our
worldwide sales organization. Key trends in market dynamics
play to Datawatch's strengths and differentiation – namely the
rapid rise of Internet of Things applications, which require
real-time visualization of streaming data in motion, and the
growing need for self-service data preparation capabilities as a
prerequisite for visual data discovery – something Datawatch has
been doing for nearly 20 years. Our progress in fiscal 2014,
our differentiated technology and these market trends give us
confidence in our strategy and plan as we enter fiscal year
2015."
Fourth Quarter Business Highlights
- Datawatch appointed John Judge
as Chief Revenue Officer on August 28,
2014 to lead the worldwide sales and field operations for
Datawatch.
- Datawatch executed a record number of transactions in Q4,
including agreements with organizations globally of every size such
as KPMG, Citigroup and Pharma Tech. Included in these
transactions were two key wins in the Internet of Things arena, one
with Worldsensing, a market leader in machine-to-machine
technologies, to manage and visualize traffic and parking
management operations, and the other with Avanti Gas Limited to
manage and visualize fleet logistics.
- Datawatch and Omnesys Technologies, a Thomson Reuters company
and leading provider of multi-venue trading systems, entered into
an OEM agreement to integrate Datawatch's visual data discovery
software into Omnesys' real-time trading solution to provide
brokers with a consolidated real-time order book and associated
risk information.
- Datawatch entered into partnerships with 10 new partners during
Q4FY14, including Hortonworks, QuickPivot, and Paladyne – a
subsidiary of Broadridge – and also Internet of Things integration
partners Eccella, an Informatica Vibe reseller, and Casne, a system
integrator focused on OSIsoft.
Fourth Quarter Financial Highlights
- Cash and short-term investments were $47.67 million at September 30, 2014, down 5% from $50.17 million at June 30,
2014 and up 362% from $10.31
million at September 30,
2013.
- Gross margin for the fourth fiscal quarter of 2014 was 79.1%,
compared to 78.6% for the third fiscal quarter of 2014 and 81.3%
for the fourth fiscal quarter of 2013.
- Days sales outstanding were 72 days at September 30, 2014, compared to 61 days at
June 30, 2014 and 60 days at
September 30, 2013.
- There were 10 six-figure deals in the fourth fiscal quarter
consistent with the fourth fiscal quarter of 2013.
- The average deal size in the fourth fiscal quarter was
$41,000, as compared to $63,000 in the fourth fiscal quarter of
2013.
Investor Conference Call and Webcast
The senior management of Datawatch will host a conference call
and webcast to discuss the fourth quarter results tomorrow,
Thursday, November 20, 2014 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=173290. 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 allows 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 93 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/free-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 a
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; 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 visual data discovery products in particular; Datawatch's
dependence on its principal products, proprietary software
technology and software licensed from third parties; risks
associated with third-party intellectual property rights and
claims, risks associated with international sales and operations;
risks associated with indirect distribution channels; 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, 2013 and Forms 10-Q for the
quarters ended December 31, 2013,
March 31, 2014 and June 30, 2014. 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
© 2014 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,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Software
licenses
|
|
$5,239
|
|
$5,796
|
|
$20,627
|
|
$19,430
|
|
Maintenance
|
|
3,489
|
|
2,658
|
|
12,845
|
|
9,700
|
|
Professional
services
|
|
323
|
|
363
|
|
1,615
|
|
1,166
|
|
Total revenue
|
|
9,051
|
|
8,817
|
|
35,087
|
|
30,296
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of
software licenses
|
|
1,000
|
|
904
|
|
4,013
|
|
2,505
|
|
Cost of
maintenance and services
|
|
889
|
|
743
|
|
3,351
|
|
2,440
|
|
Sales and
marketing
|
|
7,936
|
|
6,091
|
|
31,133
|
|
18,482
|
|
Engineering and
product development
|
2,243
|
|
1,531
|
|
9,074
|
|
3,893
|
|
General and
administrative
|
|
2,181
|
|
2,318
|
|
9,181
|
|
6,793
|
|
Total costs and expenses
|
|
14,249
|
|
11,587
|
|
56,752
|
|
34,113
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
(5,198)
|
|
(2,770)
|
|
(21,665)
|
|
(3,817)
|
Other
expense
|
|
75
|
|
(3)
|
|
(1,237)
|
|
(468)
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE
INCOME TAXES
|
|
(5,123)
|
|
(2,773)
|
|
(22,902)
|
|
(4,285)
|
Income tax
(benefit) provision
|
|
(249)
|
|
(90)
|
|
(519)
|
|
(88)
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS
|
|
$(4,874)
|
|
$(2,683)
|
|
$(22,383)
|
|
$(4,197)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share - Basic
|
|
$(0.44)
|
|
$(0.37)
|
|
$(2.24)
|
|
$(0.63)
|
Net loss per
share - Diluted
|
|
$(0.44)
|
|
$(0.37)
|
|
$(2.24)
|
|
$(0.63)
|
Weighted
Average Shares Outstanding - Basic
|
10,965
|
|
7,229
|
|
9,998
|
|
6,634
|
Weighted
Average Shares Outstanding - Diluted
|
10,965
|
|
7,229
|
|
9,998
|
|
6,634
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Disclosure - Reconciliation of Net Loss to Net Loss Excluding the
Effects of Certain Items:
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
|
$(4,874)
|
|
$(2,683)
|
|
$(22,383)
|
|
$(4,197)
|
Add-back Amortization of Intangibles & IP
|
870
|
|
606
|
|
3,479
|
|
2029
|
Add-back Share-Based Compensation
|
|
1,948
|
|
1,401
|
|
8,446
|
|
3,323
|
Add-back Severance & unamortized debt discount
|
126
|
|
104
|
|
399
|
|
231
|
|
Subtotal of
additions
|
|
2,944
|
|
2,111
|
|
12,324
|
|
5,583
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
Income (non-GAAP)
|
|
$(1,930)
|
|
$(572)
|
|
$(10,059)
|
|
$1,386
|
Net (loss)
income per share - Basic
|
|
$(0.18)
|
|
$(0.08)
|
|
$(1.01)
|
|
$0.21
|
Net (loss)
income per share - Diluted
|
|
$(0.18)
|
|
$(0.08)
|
|
$(1.01)
|
|
$0.19
|
Weighted
Average Shares Outstanding - Basic
|
10,965
|
|
7,229
|
|
9,998
|
|
6,634
|
Weighted
Average Shares Outstanding - Diluted
|
10,965
|
|
7,229
|
|
9,998
|
|
7,265
|
|
|
|
|
|
|
|
|
|
|
DATAWATCH
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
Amounts in
Thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$47,668
|
|
$10,312
|
Accounts
receivable, net
|
|
7,024
|
|
6,622
|
Prepaid
expenses and other current assets
|
1,872
|
|
984
|
Total current assets
|
|
56,564
|
|
17,918
|
|
|
|
|
|
Property and
equipment, net
|
|
400
|
|
289
|
Intangible and
other assets, net
|
|
46,633
|
|
51,114
|
|
|
|
|
|
|
|
$103,597
|
|
$69,321
|
|
|
|
|
|
|
|
|
|
|
Current portion
of long-term debt
|
|
$ -
|
|
$900
|
Current portion
of note payable
|
|
-
|
|
977
|
Accounts
payable and accrued expenses
|
3,809
|
|
4,914
|
Deferred
revenue - current portion
|
|
7,640
|
|
6,997
|
Total current liabilities
|
|
11,449
|
|
13,788
|
|
|
|
|
|
Long-term
debt
|
|
-
|
|
2,108
|
Other long-term
liabilities
|
|
1,238
|
|
2,050
|
Total long-term liabilities
|
|
1,238
|
|
4,158
|
|
|
|
|
|
Total shareholders' equity
|
|
90,910
|
|
51,375
|
|
|
|
|
|
|
|
$103,597
|
|
$69,321
|
|
|
|
|
|
Logo -
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SOURCE Datawatch Corporation