Datawatch Corporation (NASDAQ-CM: DWCH), a leader in data
intelligence to fuel business growth and efficiency, today
announced that total revenue for its second quarter of fiscal 2018
ended March 31, 2018 was $9.40 million, an increase of 7% from
total revenue of $8.76 million in the second quarter of fiscal
2017. License revenue for the second quarter of fiscal 2018
was $5.18 million, a 6% increase from the $4.89 million recorded in
the same quarter a year ago. Total revenue and license
revenue both include results for Angoss Software Corporation
(“Angoss”) from the date of its acquisition by an affiliate of
Datawatch on January 30, 2018 through March 31, 2018.
Deferred revenue as of March 31, 2018 was $18.07 million, a 79%
increase compared to $10.11 million as of March 31, 2017.
Total bookings for the second quarter of fiscal 2018 were $10.20
million, a 2% increase from the $10.03 million of bookings recorded
in the same quarter a year ago. The majority of Angoss’
transactions are sold on a subscription basis, thereby adding more
meaningfully to deferred revenue than total revenue in the current
period.
Net loss for the second quarter of fiscal 2018 was ($3.87)
million, or ($0.31) per diluted share, which includes approximately
$3.63 million of costs related to amortization associated with the
purchase of certain intellectual property, other intangible assets
and share-based compensation, as well as the effects of purchase
accounting treatment of the deferred revenue fair value adjustments
and acquisition costs associated with our recent purchase of Angoss
in January 2018, compared to a net loss of ($0.45) million, or
($0.04) per diluted share, for the year ago period.
“We formed a solid foundation for the long-term health of our
business in the first half of our fiscal year, highlighted by the
strategic acquisition of Angoss, and we believe we are
well-positioned to achieve our revenue and expense goals for fiscal
year 2018,” said Michael A. Morrison, president and chief executive
officer of Datawatch. “In the first half of fiscal 2018, we
strengthened our partner value proposition, launching new programs
and tools to better engage with and enable our partners.
Partner contribution to license revenue in the second quarter this
year was the highest in recent years. We also introduced our
cloud-ready Monarch Swarm platform to many enterprise customers and
strategic partners during the quarter and have since continued to
develop a promising Monarch Swarm pipeline for the second half of
the fiscal year. I remain very comfortable with our path
forward and our ability to continue to execute the long-term
strategic vision we embarked upon 18 months ago.”
Mr. Morrison continued, “The initial reactions to the Angoss
acquisition are universally positive. Angoss gives us more
scale, a broader product portfolio, competitive advantage, new
customers and meaningful cross-sell opportunities. The
acquisition is an important building block to helping us achieve
our intermediate goal of improving our critical mass and scale to
become a $100 million annual revenue company. The business
integration is progressing well and ahead of schedule. By
integrating the capabilities of Angoss with our platform, we can
stay ahead of competition by offering differentiated and innovative
capabilities that provide our customers with more intuitive, visual
interfaces to quickly and easily acquire, prepare and build
predictive analytic applications.”
James L. Eliason, chief financial officer, commented, “We had a
record quarter for subscription bookings in our fiscal second
quarter and, with the addition of Angoss, which provides licenses
exclusively on a subscription basis, we expect recurring revenue as
a percentage of total revenue to continue to increase, as we
continue to target achieving non-GAAP operating profitability by
the end of this fiscal year. We have included a full
reconciliation of our GAAP reported results to non-GAAP in Appendix
A as part of this press release in order to show the financial
results of the combined businesses excluding the effects of the
purchase accounting treatment of the deferred revenue fair value
adjustment, transaction costs related to the Angoss acquisition,
amortization associated with the purchase of certain intellectual
property and other intangible assets and share-based
compensation.”
Second Quarter Fiscal 2018 Business
Highlights
- Datawatch acquired Angoss, a privately held data science
platform provider, to augment Datawatch’s data intelligence
offering with expanded capabilities that enable data scientists to
rapidly build predictive and prescriptive analytic
applications.
- Dresner Advisory Services selected Datawatch as the winner of
two Technology Innovation Awards, one in the Data Catalog category
and one in the End User Data Preparation category, for its ability
to empower individuals and teams to create, find, access, validate
and share governed datasets for fast decision-making and improved
operational processes.
- Datawatch highlighted its innovation leadership with the latest
releases of Monarch Swarm, with advanced individualized machine
learning capabilities, multi-structured data capture and improved
connectivity; and Panopticon, with new connectivity to real-time
streams, order book reconstruction visualizations from historic
data and enhanced visual screening of intra-day and historic
trading flows.
- Circulo de Credito, a credit scoring agency based in Mexico
City, selected Angoss for its segmentation and strategy development
capabilities under a three-year subscription agreement to formulate
personal credit scores for its clients.
- Navy Federal Credit Union, the largest retail credit union in
the world by members and assets, expanded its deployment of Monarch
to more analysts and citizen data scientists to analyze member
enrollments, sales trends and marketing program effectiveness.
Second Quarter Fiscal 2018 Financial
Highlights
- Cash and short-term investments were $14.8 million at March 31,
2018, down from $29.8 million at December 31, 2017 and $27.8
million at March 31, 2017. During the quarter, the Company
used $14.5 million of cash to partially fund the acquisition of
Angoss, along with a $10.0 million secured term loan facility from
Silicon Valley Bank.
- Gross margin (excluding IP amortization expense) for the second
quarter of fiscal 2018 was 92%, as compared to 91% for the second
quarter of fiscal 2017.
- Days sales outstanding were 62 days at March 31, 2018, compared
to 66 days at March 31, 2017.
- There were two six-figure license deals in the second quarter
this fiscal year, compared to three in the second quarter of fiscal
2017.
- The average deal size in the second quarter of fiscal 2018 was
approximately $43,000, an increase from approximately $36,000 in
the second quarter of fiscal 2017.
- Deferred revenue reached a record $18.1 million at March 31,
2018, a 79% increase from $10.1 million at March 31, 2017.
Conference Call
Datawatch’s second quarter of fiscal year 2018 earnings
conference call will take place today, Wednesday, April 25, 2018 at
5:00 p.m. Eastern Time. The toll-free number to access the
conference call is (877) 407-0782. Internationally, the call
may be accessed by dialing (201) 689-8567. The conference call will
be broadcast live on the Internet
at: http://www.investorcalendar.com/event/27466. 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) Datawatch Corporation is
the data intelligence solutions provider that will fuel your
business. Only Datawatch can confidently position individuals and
organizations to master all data – no matter the origin, format or
narrative – resulting in faster time to insight. Datawatch
solutions are architected to drive the use of more data, foster
more trust and incorporate more minds into analytics and reporting
projects. With over 25 years in business, organizations of all
sizes in more than 100 countries worldwide use Datawatch products,
including 93 of the Fortune 100. The company is headquartered
in Bedford, Massachusetts, with offices in Toronto, New York,
London, Stockholm, Singapore and Manila. To learn more about
Datawatch or download a free version of its enterprise software,
please 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 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; 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, 2017.
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) the effects of
purchase accounting treatment of the deferred revenue fair value
adjustment associated with the acquisition of Angoss, (ii)
amortization associated with the purchase of certain intellectual
property and other intangible assets, (iii) share-based
compensation and (iv) transaction costs associated with the
acquisition of Angoss, 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 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 “Reconciliation of GAAP to Non-GAAP
Financial Measures” 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, |
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
Software
licenses |
|
$ |
5,181 |
|
|
$ |
4,889 |
|
|
$ |
10,739 |
|
|
$ |
9,246 |
|
|
|
Maintenance |
|
|
3,886 |
|
|
|
3,560 |
|
|
|
7,537 |
|
|
|
7,116 |
|
|
|
Professional services |
|
|
335 |
|
|
|
311 |
|
|
|
711 |
|
|
|
631 |
|
|
|
Total
revenue |
|
|
9,402 |
|
|
|
8,760 |
|
|
|
18,987 |
|
|
|
16,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
Cost of
software licenses |
|
|
336 |
|
|
|
733 |
|
|
|
575 |
|
|
|
1,436 |
|
|
|
Cost of
maintenance and services |
|
|
885 |
|
|
|
545 |
|
|
|
1,489 |
|
|
|
1,077 |
|
|
|
Sales and
marketing |
|
|
5,670 |
|
|
|
4,125 |
|
|
|
10,367 |
|
|
|
8,872 |
|
|
|
Engineering and product development |
|
|
2,748 |
|
|
|
2,194 |
|
|
|
5,246 |
|
|
|
4,397 |
|
|
|
General
and administrative |
|
|
3,512 |
|
|
|
2,318 |
|
|
|
5,937 |
|
|
|
4,534 |
|
|
|
Total
costs and expenses |
|
|
13,151 |
|
|
|
9,915 |
|
|
|
23,614 |
|
|
|
20,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
|
(3,749 |
) |
|
|
(1,155 |
) |
|
|
(4,627 |
) |
|
|
(3,323 |
) |
|
|
Other income |
|
|
48 |
|
|
|
712 |
|
|
|
108 |
|
|
|
651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES |
|
|
(3,701 |
) |
|
|
(443 |
) |
|
|
(4,519 |
) |
|
|
(2,672 |
) |
|
|
Income tax expense |
|
|
(170 |
) |
|
|
(6 |
) |
|
|
(179 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(3,871 |
) |
|
$ |
(449 |
) |
|
$ |
(4,698 |
) |
|
$ |
(2,680 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - Basic |
|
$ |
(0.31 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.22 |
) |
|
|
Net loss
per share - Diluted |
|
$ |
(0.31 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.22 |
) |
|
|
Weighted
Average Shares Outstanding - Basic |
|
|
12,409 |
|
|
|
12,014 |
|
|
|
12,353 |
|
|
|
11,982 |
|
|
|
Weighted
Average Shares Outstanding - Diluted |
|
|
12,409 |
|
|
|
12,014 |
|
|
|
12,353 |
|
|
|
11,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DATAWATCH CORPORATION |
|
Condensed Consolidated Balance Sheets |
|
Amounts in Thousands |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
14,842 |
|
$ |
30,451 |
|
Accounts receivable,
net |
|
|
7,382 |
|
|
7,306 |
|
Unbilled
receivable |
|
|
3,851 |
|
|
- |
|
Prepaid expenses and
other current assets |
|
|
2,700 |
|
|
2,789 |
|
Total
current assets |
|
|
28,775 |
|
|
40,546 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
1,177 |
|
|
1,064 |
|
Intangible and other
assets, net |
|
|
33,372 |
|
|
8,795 |
|
|
|
|
|
|
|
|
|
$ |
63,324 |
|
$ |
50,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses |
|
$ |
4,495 |
|
$ |
5,881 |
|
Long term debt -
current portion |
|
|
2,102 |
|
|
- |
|
Deferred revenue -
current portion |
|
|
12,428 |
|
|
11,303 |
|
Total
current liabilities |
|
|
19,025 |
|
|
17,184 |
|
|
|
|
|
|
|
Long term debt |
|
|
7,690 |
|
|
- |
|
Deferred tax
liability |
|
|
1,033 |
|
|
- |
|
Deferred revenue - long
term portion |
|
|
5,643 |
|
|
302 |
|
Other long-term
liabilities |
|
|
409 |
|
|
390 |
|
Total
long-term liabilities |
|
|
14,775 |
|
|
692 |
|
|
|
|
|
|
|
Total
shareholders' equity |
|
|
29,524 |
|
|
32,529 |
|
|
|
|
|
|
|
|
|
$ |
63,324 |
|
$ |
50,405 |
|
|
|
|
|
|
|
APPENDIX
A |
|
|
|
|
|
|
|
|
|
|
|
|
DATAWATCH CORPORATION |
|
Reconciliation of GAAP to Non-GAAP Financial
Measures |
|
Amounts in Thousands (except per share data) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software licenses
revenue (GAAP) |
|
$ |
5,181 |
|
|
$ |
4,889 |
|
|
$ |
10,739 |
|
|
$ |
9,246 |
|
|
|
Software
licenses deferred revenue fair value adjustment (1) |
|
|
1,584 |
|
|
|
- |
|
|
|
1,584 |
|
|
|
- |
|
|
|
Non-GAAP Software
licenses revenue |
|
$ |
6,765 |
|
|
$ |
4,889 |
|
|
$ |
12,323 |
|
|
$ |
9,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional services
revenue (GAAP) |
|
$ |
335 |
|
|
$ |
311 |
|
|
$ |
711 |
|
|
$ |
631 |
|
|
|
Professional services deferred revenue fair value adjustment
(1) |
|
|
84 |
|
|
|
- |
|
|
|
84 |
|
|
|
- |
|
|
|
Non-GAAP professional
services revenue |
|
$ |
419 |
|
|
$ |
311 |
|
|
$ |
795 |
|
|
$ |
631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(GAAP) |
|
$ |
9,402 |
|
|
$ |
8,760 |
|
|
$ |
18,987 |
|
|
$ |
16,993 |
|
|
|
Software
licenses deferred revenue fair value adjustment (1) |
|
|
1,584 |
|
|
|
- |
|
|
|
1,584 |
|
|
|
- |
|
|
|
Professional services deferred revenue fair value adjustment
(1) |
|
|
84 |
|
|
|
- |
|
|
|
84 |
|
|
|
- |
|
|
|
Non-GAAP total
revenue |
|
$ |
11,070 |
|
|
$ |
8,760 |
|
|
$ |
20,655 |
|
|
$ |
16,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
(GAAP) |
|
$ |
(3,749 |
) |
|
$ |
(1,155 |
) |
|
$ |
(4,627 |
) |
|
$ |
(3,323 |
) |
|
|
Software
licenses deferred revenue fair value adjustment (1) |
|
|
1,584 |
|
|
|
- |
|
|
|
1,584 |
|
|
|
- |
|
|
|
Professional services deferred revenue fair value adjustment
(1) |
|
|
84 |
|
|
|
- |
|
|
|
84 |
|
|
|
- |
|
|
|
Amortization of intangibles & IP (2) |
|
|
312 |
|
|
|
509 |
|
|
|
400 |
|
|
|
1,028 |
|
|
|
Share-based compensation (3) |
|
|
758 |
|
|
|
451 |
|
|
|
1,431 |
|
|
|
882 |
|
|
|
Acquisition transaction costs (4) |
|
|
892 |
|
|
|
- |
|
|
|
1,038 |
|
|
|
- |
|
|
|
Non-GAAP loss from
operations |
|
$ |
(119 |
) |
|
$ |
(195 |
) |
|
$ |
(90 |
) |
|
$ |
(1,413 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
(GAAP) |
|
$ |
(3,871 |
) |
|
$ |
(449 |
) |
|
$ |
(4,698 |
) |
|
$ |
(2,680 |
) |
|
|
Software
licenses deferred revenue fair value adjustment (1) |
|
|
1,584 |
|
|
|
- |
|
|
|
1,584 |
|
|
|
- |
|
|
|
Professional services deferred revenue fair value adjustment
(1) |
|
|
84 |
|
|
|
- |
|
|
|
84 |
|
|
|
- |
|
|
|
Amortization of intangibles & IP (2) |
|
|
312 |
|
|
|
509 |
|
|
|
400 |
|
|
|
1,028 |
|
|
|
Share-based compensation (3) |
|
|
758 |
|
|
|
451 |
|
|
|
1,431 |
|
|
|
882 |
|
|
|
Acquisition transaction costs (4) |
|
|
892 |
|
|
|
- |
|
|
|
1,038 |
|
|
|
- |
|
|
|
Payment
received from a stockholder's short-swing trading profit |
|
|
- |
|
|
|
(707 |
) |
|
|
- |
|
|
|
(707 |
) |
|
|
Non-GAAP net loss |
|
$ |
(241 |
) |
|
$ |
(196 |
) |
|
$ |
(161 |
) |
|
$ |
(1,477 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net loss per share - Basic |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.12 |
) |
|
|
Non-GAAP
net loss per share - Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.12 |
) |
|
|
Weighted
Average Shares Outstanding - Basic |
|
|
12,409 |
|
|
|
12,014 |
|
|
|
12,353 |
|
|
|
11,982 |
|
|
|
Weighted
Average Shares Outstanding - Diluted |
|
|
12,409 |
|
|
|
12,014 |
|
|
|
12,353 |
|
|
|
11,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our
non-GAAP net loss eliminates the impact of the Angoss deferred
revenue purchase accounting adjustments required by U.S. GAAP. U.S.
GAAP requires an adjustment to the liability for acquired deferred
revenue such that the liability approximates how much we, the
acquirer, would have to pay a third party to assume the liability.
We believe that eliminating the effects of purchase accounting
treatment of the deferred revenue fair value adjustment associated
with the acquisition of Angoss improves the comparability of
revenues between periods. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Amortization of intangibles & IP included in these amounts is
as follows: |
|
|
Cost of
software licenses |
|
$ |
139 |
|
|
$ |
488 |
|
|
$ |
206 |
|
|
$ |
986 |
|
|
|
Sales and
marketing |
|
|
173 |
|
|
|
21 |
|
|
|
194 |
|
|
|
42 |
|
|
|
Total
amortization of intangibles & IP |
|
$ |
312 |
|
|
$ |
509 |
|
|
$ |
400 |
|
|
$ |
1,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A portion of the purchase price of our acquisitions is
generally allocated to intangible assets, such as intellectual
property, and is subject to amortization. However, we do not
acquire businesses on a predictable cycle. Additionally, the amount
of an acquisition’s purchase price allocated to intangible assets
and the term of its related amortization can vary significantly and
are unique to each acquisition. Therefore, we believe that the
presentation of non-GAAP net loss that adjusts for the amortization
of intangible assets provides our investors and others with a
consistent basis for comparison across accounting periods. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Share-based compensation expense included in these amounts is as
follows: |
|
|
|
|
|
|
|
|
Cost of
maintenance and services |
|
$ |
9 |
|
|
$ |
5 |
|
|
$ |
26 |
|
|
$ |
9 |
|
|
|
Sales and
marketing |
|
|
216 |
|
|
|
117 |
|
|
|
412 |
|
|
|
196 |
|
|
|
Engineering and product development |
|
|
157 |
|
|
|
86 |
|
|
|
292 |
|
|
|
167 |
|
|
|
General
and administrative |
|
|
376 |
|
|
|
243 |
|
|
|
701 |
|
|
|
510 |
|
|
|
Total
amortization of intangibles & IP |
|
$ |
758 |
|
|
$ |
451 |
|
|
$ |
1,431 |
|
|
$ |
882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation is generally fixed at the time the
stock-based instrument is granted and amortized over a period of
several years. Although share-based compensation is an important
aspect of the compensation of our employees and executives, the
expense for the fair value of the stock-based instruments we
utilize may bear little resemblance to the actual value realized
upon the vesting or future exercise of the related stock-based
awards. We believe that eliminating share-based compensation allows
our investors to better understand the long-term performance of our
core business. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Acquisition transaction costs included in these amounts is as
follows: |
|
|
|
|
|
|
|
|
General
and administrative |
|
$ |
892 |
|
|
$ |
- |
|
|
$ |
1,038 |
|
|
$ |
- |
|
|
|
Total
acquisition transaction costs |
|
$ |
892 |
|
|
$ |
- |
|
|
$ |
1,038 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
These acquisition costs include all incremental expenses
incurred to effect the acquisition of Angoss. Acquisition costs
include advisory, legal, accounting, valuation, and other
professional or consulting fees. We exclude the transaction and
integration expenses from our non-GAAP net loss as they are related
to the acquisition of Angoss and thus have no direct correlation to
the operation of our business, and because we believe that the
non-GAAP net loss excluding these costs provides meaningful
supplemental information regarding our operational performance. In
addition, excluding these costs from non-GAAP net loss facilitates
comparisons to our historical operating results. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact: Datawatch
Investor Relations investor@datawatch.comPhone: (978)
441-2200 ext. 8323
Media Contact: Frank
MorenoDatawatch CorporationFrank_Moreno@datawatch.com Phone:
(978) 441-2200 ext. 8322Twitter: @datawatch
©2018 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
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