Datawatch Corporation (NASDAQ-CM:DWCH), a leader in data
intelligence to fuel your business, today announced that total
revenue for its third quarter of fiscal 2018 ended June 30, 2018
was $11.11 million on a GAAP basis, an increase of 23% from total
revenue of $9.07 million in the third quarter of fiscal 2017.
License revenue for the third quarter of fiscal 2018 was
$6.87 million on a GAAP basis, a 40% increase from the $4.91
million recorded in the same quarter a year ago.
Total revenue on a non-GAAP basis was $12.9 million for the
third quarter of fiscal 2018, an increase of 42% from the year ago
period. License revenue on a non-GAAP basis was $8.7 million
for the third quarter of fiscal 2018, an increase of 77% from the
year ago period.
A full reconciliation of GAAP reported results to non-GAAP is
included in Appendix A of this press release. Non-GAAP results
exclude the effects of the purchase accounting treatment of the
deferred revenue fair value adjustment associated with the
acquisition of Angoss, amortization associated with the purchase of
certain intellectual property and other intangible assets,
share-based compensation, transaction costs associated with the
acquisition of Angoss, and the payment received in respect of a
stockholder’s short-swing stock trading profits.
Net loss for the third quarter of fiscal 2018 was ($2.28)
million, or ($0.18) per diluted share, compared to a net loss of
($0.50) million, or ($0.04) per diluted share, for the year ago
period. The Company’s non–GAAP net income for its third
quarter of fiscal 2018 was $0.94 million, or $0.07 per diluted
share, compared to non-GAAP net income of $0.22 million, or $0.02
per diluted share, for the third quarter of fiscal 2017.
“We are pleased with our progress during this first full quarter
following the Angoss acquisition, which was highlighted by 23%
year-over-year total revenue growth, 40% year-over-year license
revenue growth and a 57% recurring revenue mix1,” said Michael A.
Morrison, president and chief executive officer of Datawatch.
“Customers have embraced the addition of Angoss to our portfolio,
our dedication to continuous innovation with the latest releases of
Swarm and Panopticon, and our unwavering focus on both the ease of
use and the breadth of our data intelligence platform
offering. We enter the fourth quarter of fiscal 2018 with
momentum and confidence that we can capture more opportunities in
an extremely vibrant segment of business analytics.”
James L. Eliason, chief financial officer, commented, “We
delivered record results for total bookings, subscription bookings,
total revenue and license revenue in our fiscal third
quarter. In addition, deferred revenue is at an all-time high
of $18.8 million and our overall balance sheet remains
strong. Finally, we completed the Angoss integration during
the quarter and have fully consolidated all back-office systems and
operations.”
1 Recurring revenue represents the sum of subscription revenue
plus maintenance revenue, divided by total revenue
Third Quarter Fiscal 2018 Business
Highlights
- Black Knight, a leading integrated technology, data and
analytics provider, selected the Monarch enterprise data
preparation and analytics platform to augment its end-to-end
platform that supports the entire mortgage and home equity loan
lifecycle to help lenders and servicers improve reporting and drive
better financial performance.
- Foxtel, an Australian pay television company operating in cable
television, direct broadcast satellite television and IPTV catch-up
services, selected Angoss as its data science platform to forecast
the success of programming packages, predict customer viewing
preferences and identify subscriber cross-sell and upsell
opportunities.
- ADP, a leading provider of human resources management software
and services, selected the Datawatch Monarch platform to help
accelerate the onboarding of new customers through agile data
preparation and migration.
- Jefferies, a full-service global investment firm, selected
Panopticon as a platform for fast analytics to monitor best
execution for compliance with MiFID II standards.
- The City of Florence, Alabama, reduced reporting and
reconciliation cycles from weeks to hours by deploying the Monarch
Swarm platform to enable team-based data preparation and
collaboration on mainframe-based data.
Third Quarter Fiscal 2018 Financial
Highlights
- Cash and short-term investments were $13.6 million at June 30,
2018, down from $14.8 million at March 31, 2018 and $29.4 million
at June 30, 2017, primarily reflecting the use of cash for the
Angoss acquisition.
- Gross margin (excluding IP amortization expense) for the third
quarter of fiscal 2018 was 88%, as compared to 91% for the third
quarter of fiscal 2017.
- Days sales outstanding were 65 days at June 30, 2018, compared
to 60 days at June 30, 2017.
- There were 12 six-figure license deals in the third quarter
this fiscal year, compared to four in the third quarter of fiscal
2017.
- The average deal size in the third quarter of fiscal 2018 was
approximately $50,000, an increase from approximately $39,000 in
the third quarter of fiscal 2017.
- Deferred revenue reached a record $18.8 million at June 30,
2018, a 71% increase from $11.0 million at June 30, 2017.
Conference Call
Datawatch’s third quarter of fiscal year 2018 earnings
conference call will take place today, Wednesday, July 18, 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/33745. 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. 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 1995Any 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 income (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 income (loss) in our quarterly earnings releases and
certain other communications as we believe non-GAAP net income
(loss) is an important measure that is not calculated according to
GAAP. We use non-GAAP net income (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 operating trends
in our operations. We believe that non-GAAP net income (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 income (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 income (loss).
|
|
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|
|
|
|
|
|
|
DATAWATCH CORPORATION |
|
|
Condensed Consolidated Statements of
Operations |
|
|
Amounts in Thousands (except per share
data) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
Software
licenses |
|
$ |
6,868 |
|
|
$ |
4,912 |
|
|
$ |
17,607 |
|
|
$ |
14,158 |
|
|
|
|
|
Maintenance |
|
|
3,888 |
|
|
|
3,728 |
|
|
|
11,425 |
|
|
|
10,844 |
|
|
|
|
|
Professional
services |
|
|
350 |
|
|
|
426 |
|
|
|
1,060 |
|
|
|
1,057 |
|
|
|
|
|
Total
revenue |
|
|
11,106 |
|
|
|
9,066 |
|
|
|
30,092 |
|
|
|
26,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS
AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of software
licenses |
|
|
354 |
|
|
|
230 |
|
|
|
929 |
|
|
|
1,666 |
|
|
|
|
|
Cost of
maintenance and services |
|
|
1,114 |
|
|
|
618 |
|
|
|
2,602 |
|
|
|
1,694 |
|
|
|
|
|
Sales and
marketing |
|
|
6,053 |
|
|
|
4,521 |
|
|
|
16,420 |
|
|
|
13,393 |
|
|
|
|
|
Engineering and
product development |
|
|
3,161 |
|
|
|
2,203 |
|
|
|
8,407 |
|
|
|
6,600 |
|
|
|
|
|
General and
administrative |
|
|
2,854 |
|
|
|
2,037 |
|
|
|
8,791 |
|
|
|
6,570 |
|
|
|
|
|
Total costs and
expenses |
|
|
13,536 |
|
|
|
9,609 |
|
|
|
37,149 |
|
|
|
29,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS
FROM OPERATIONS |
|
|
(2,430 |
) |
|
|
(543 |
) |
|
|
(7,057 |
) |
|
|
(3,864 |
) |
|
|
|
Other
income (expense) |
|
|
(13 |
) |
|
|
52 |
|
|
|
95 |
|
|
|
702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS
BEFORE INCOME TAXES |
|
|
(2,443 |
) |
|
|
(491 |
) |
|
|
(6,962 |
) |
|
|
(3,162 |
) |
|
|
|
Income tax benefit (expense) |
|
|
162 |
|
|
|
(8 |
) |
|
|
(17 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS |
|
$ |
(2,281 |
) |
|
$ |
(499 |
) |
|
$ |
(6,979 |
) |
|
$ |
(3,179 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share - Basic |
|
$ |
(0.18 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.26 |
) |
|
|
|
Net loss per share - Diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.26 |
) |
|
|
|
Weighted Average Shares Outstanding - Basic |
|
|
12,639 |
|
|
|
12,106 |
|
|
|
12,448 |
|
|
|
12,023 |
|
|
|
|
Weighted Average Shares Outstanding - Diluted |
|
|
12,639 |
|
|
|
12,106 |
|
|
|
12,448 |
|
|
|
12,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DATAWATCH CORPORATION |
|
|
Condensed Consolidated Balance Sheets |
|
|
Amounts in Thousands |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
September 30, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
13,584 |
|
$ |
30,451 |
|
|
Accounts
receivable, net |
|
|
8,040 |
|
|
7,306 |
|
|
Unbilled accounts
receivable |
|
|
3,390 |
|
|
- |
|
|
Prepaid expenses
and other current assets |
|
|
2,173 |
|
|
2,789 |
|
|
Total current
assets |
|
|
27,187 |
|
|
40,546 |
|
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
|
1,090 |
|
|
1,064 |
|
|
Intangible and
other assets, net |
|
|
32,628 |
|
|
8,795 |
|
|
|
|
|
|
|
|
|
|
|
$ |
60,905 |
|
$ |
50,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
and accrued expenses |
|
$ |
3,843 |
|
$ |
5,881 |
|
|
Long term debt -
current portion |
|
|
2,038 |
|
|
- |
|
|
Deferred revenue
- current portion |
|
|
16,448 |
|
|
11,303 |
|
|
Total current
liabilities |
|
|
22,329 |
|
|
17,184 |
|
|
|
|
|
|
|
|
|
Long term
debt |
|
|
7,065 |
|
|
- |
|
|
Deferred tax
liability |
|
|
848 |
|
|
- |
|
|
Deferred revenue
- long term portion |
|
|
2,337 |
|
|
302 |
|
|
Other long-term
liabilities |
|
|
394 |
|
|
390 |
|
|
Total long-term
liabilities |
|
|
10,644 |
|
|
692 |
|
|
|
|
|
|
|
|
|
Total
shareholders' equity |
|
|
27,932 |
|
|
32,529 |
|
|
|
|
|
|
|
|
|
|
|
$ |
60,905 |
|
$ |
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 |
|
Nine Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software licenses revenue (GAAP) |
|
$ |
6,868 |
|
|
$ |
4,912 |
|
|
$ |
17,607 |
|
|
$ |
14,158 |
|
|
|
|
Software licenses
deferred revenue fair value adjustment (1) |
|
|
1,784 |
|
|
|
- |
|
|
|
3,368 |
|
|
|
- |
|
|
|
Non-GAAP Software licenses revenue |
|
$ |
8,652 |
|
|
$ |
4,912 |
|
|
$ |
20,975 |
|
|
$ |
14,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional services revenue (GAAP) |
|
$ |
350 |
|
|
$ |
426 |
|
|
$ |
1,060 |
|
|
$ |
1,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional
services deferred revenue fair value adjustment (1) |
|
|
42 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP professional services revenue |
|
$ |
392 |
|
|
$ |
426 |
|
|
$ |
1,186 |
|
|
$ |
1,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue (GAAP) |
|
$ |
11,106 |
|
|
$ |
9,066 |
|
|
$ |
30,092 |
|
|
$ |
26,059 |
|
|
|
|
Software licenses
deferred revenue fair value adjustment (1) |
|
|
1,784 |
|
|
|
- |
|
|
|
3,368 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional
services deferred revenue fair value adjustment (1) |
|
|
42 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP total revenue |
|
$ |
12,932 |
|
|
$ |
9,066 |
|
|
$ |
33,586 |
|
|
$ |
26,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations (GAAP) |
|
$ |
(2,430 |
) |
|
$ |
(543 |
) |
|
$ |
(7,057 |
) |
|
$ |
(3,864 |
) |
|
|
|
Software licenses
deferred revenue fair value adjustment (1) |
|
|
1,784 |
|
|
|
- |
|
|
|
3,368 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional
services deferred revenue fair value adjustment (1) |
|
|
42 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles & IP (2) |
|
|
419 |
|
|
|
88 |
|
|
|
819 |
|
|
|
1,116 |
|
|
|
|
Share-based
compensation (3) |
|
|
794 |
|
|
|
633 |
|
|
|
2,225 |
|
|
|
1,515 |
|
|
|
|
Acquisition
transaction costs (4) |
|
|
185 |
|
|
|
- |
|
|
|
1,223 |
|
|
|
- |
|
|
|
Non-GAAP income (loss) from operations |
|
$ |
794 |
|
|
$ |
178 |
|
|
$ |
704 |
|
|
$ |
(1,233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss (GAAP) |
|
$ |
(2,281 |
) |
|
$ |
(499 |
) |
|
$ |
(6,979 |
) |
|
$ |
(3,179 |
) |
|
|
|
Software licenses
deferred revenue fair value adjustment (1) |
|
|
1,784 |
|
|
|
- |
|
|
|
3,368 |
|
|
|
- |
|
|
|
|
Professional
services deferred revenue fair value adjustment (1) |
|
|
42 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
|
Amortization of
intangibles & IP (2) |
|
|
419 |
|
|
|
88 |
|
|
|
819 |
|
|
|
1,116 |
|
|
|
|
Share-based
compensation (3) |
|
|
794 |
|
|
|
633 |
|
|
|
2,225 |
|
|
|
1,515 |
|
|
|
|
Acquisition
transaction costs (4) |
|
|
185 |
|
|
|
- |
|
|
|
1,223 |
|
|
|
- |
|
|
|
|
Payment received
from a stockholder's short-swing trading profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(707 |
) |
|
|
Non-GAAP net income (loss) |
|
$ |
943 |
|
|
$ |
222 |
|
|
$ |
782 |
|
|
$ |
(1,255 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share - Basic |
|
$ |
0.07 |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
(0.10 |
) |
|
|
Non-GAAP net loss per share - Diluted |
|
$ |
0.07 |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
(0.10 |
) |
|
|
Weighted Average Shares Outstanding - Basic |
|
|
12,639 |
|
|
|
12,106 |
|
|
|
12,448 |
|
|
|
12,023 |
|
|
|
Weighted Average Shares Outstanding - Diluted |
|
|
12,639 |
|
|
|
12,106 |
|
|
|
12,448 |
|
|
|
12,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Our
non-GAAP net income (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 |
|
$ |
173 |
|
|
$ |
67 |
|
|
$ |
379 |
|
|
$ |
1,053 |
|
|
|
|
Sales and
marketing |
|
|
246 |
|
|
|
21 |
|
|
|
440 |
|
|
|
63 |
|
|
|
|
Total amortization of
intangibles & IP |
|
$ |
419 |
|
|
$ |
88 |
|
|
$ |
819 |
|
|
$ |
1,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 income (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 |
|
$ |
19 |
|
|
$ |
13 |
|
|
$ |
45 |
|
|
$ |
22 |
|
|
|
|
Sales and
marketing |
|
|
221 |
|
|
|
190 |
|
|
|
633 |
|
|
|
386 |
|
|
|
|
Engineering and
product development |
|
|
152 |
|
|
|
130 |
|
|
|
444 |
|
|
|
297 |
|
|
|
|
General and
administrative |
|
|
402 |
|
|
|
300 |
|
|
|
1,103 |
|
|
|
810 |
|
|
|
|
Total share-based
compensation expense |
|
$ |
794 |
|
|
$ |
633 |
|
|
$ |
2,225 |
|
|
$ |
1,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
185 |
|
|
$ |
- |
|
|
$ |
1,223 |
|
|
$ |
- |
|
|
|
|
Total acquisition
transaction costs |
|
$ |
185 |
|
|
$ |
- |
|
|
$ |
1,223 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 income (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 income (loss) excluding these costs provides
meaningful supplemental information regarding our operational
performance. In addition, excluding these costs from non-GAAP net
income (loss) facilitates comparisons to our historical operating
results. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:Datawatch
Investor Relationsinvestor@datawatch.comPhone: (978) 441-2200 ext.
8323
Media Contact:Frank
MorenoDatawatch CorporationFrank_Moreno@datawatch.comPhone: (978)
441-2200 ext. 8322Twitter: @datawatch
Source: Datawatch
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