Welcome!

Cloud Expo Authors: Michelle Drolet, Kevin Benedict, Pat Romanski, Elizabeth White, Paige Leidig

News Feed Item

Datawatch Reports Fiscal Fourth Quarter 2012 Results, Announces New Brand And Positioning To Support Growth In Fiscal 2013

Full Year Revenue Up 45% and License Revenue Rises 70% as Company Closes Out a Successful Fiscal Year 2012

CHELMSFORD, Mass., Nov. 27, 2012 /PRNewswire/ -- Datawatch Corporation (NASDAQ-CM: DWCH), the leading global provider of information optimization solutions, today announced that total revenue for its fourth quarter ended September 30, 2012 was $6.02 million, an increase of 24% from revenue of $4.84 million in the fourth quarter a year ago.  License revenue for the fourth quarter of fiscal 2012 was $3.62 million, a 29% increase over the $2.80 million recorded in the comparable quarter a year ago.  Net loss for the fourth quarter of fiscal 2012 was $277,000, or ($0.04) per diluted share, compared to net income of $201,000, or $0.03 per diluted share, for the year ago period.  Datawatch continues to engage in larger enterprise opportunities and in the fourth quarter of fiscal 2012 closed another seven-figure license transaction with a worldwide information technology company.  Due to the structure of the transaction, the license revenue associated with this deal was not recognized in the fourth quarter of 2012, but instead will be recognized ratably over the 12 months of fiscal year 2013.  The increase in deferred revenue on Datawatch's balance sheet as of September 30, 2012 is largely related to this significant transaction.   

(Logo: http://photos.prnewswire.com/prnh/20121015/NE92833LOGO )

Total revenue for fiscal year 2012 was $26.01 million, a 45% increase from revenue of $17.89 million in fiscal year 2011.  License revenue for 2012 was $16.80 million, a 70% increase compared to $9.86 million in 2011.  Net income for 2012 was $1,034,000 or $0.15 per diluted share, as compared to net income of $132,000 or $0.02 per diluted share, for 2011.  Excluding the effects of the non-cash amortization associated with the acquisition of the intellectual property underlying the Monarch software in March 2012, as well as non-cash stock compensation costs and severance expenses, the Company's non–GAAP net income for the fourth quarter of 2012 was $526,000, or $0.08 per diluted share, as compared to non-GAAP net income of $319,000, or $0.05 per diluted share, for the fourth quarter of 2011.  The Company's non-GAAP net income for fiscal year 2012 was $3,019,000, or $0.45 per diluted share, as compared to non-GAAP net income of $1,037,000, or $0.17 per diluted share, for fiscal year 2011.

"Datawatch closed a very productive fiscal 2012 and is entering fiscal 2013 with strong momentum.  With increased sales capacity, key additions to the executive management team and a new and powerful cloud-based complement to our award-winning technology portfolio, we are better positioned than ever to capture the growing demand among companies of all sizes for information optimization solutions," said Michael A. Morrison, president and CEO of Datawatch.  "Datawatch is setting new standards for reporting and analytics, especially in the area of Big Data applications where harnessing a greater variety of data is as important as the volume and velocity of data in understanding the complete 360 degree view of the business.  We continue to benefit from these Big Data market dynamics that increasingly recognize the analytic value of all types of information - structured, semi-structured and unstructured – and that this information often comes from both inside and outside an organization.  Our newly revitalized messaging and branding are already enhancing our market awareness and providing us with access to new opportunities arising from these market dynamics.  We expect that our focus on expanding global alliances, selling domain-specific applications of our information optimization solutions and increased efforts to promote brand awareness with industry analysts and financial analysts will all serve to build our momentum and drive accelerated performance for Datawatch in fiscal 2013."

Fourth Quarter Business Highlights

  • Datawatch entered into an agreement with Unisys Belgium to extend Datawatch's information optimization solutions in support of an outsourcing arrangement between Unisys Belgium and one of Belgium's largest banking and insurance companies.  The Datawatch solution is being used to archive, manage, share and retrieve hundreds of millions of documents and Big Data artifacts for use by employees throughout the organization.    
  • Datawatch entered into new business partnerships in Japan, Korea, Thailand and the Philippines with several premier resellers and implementation partners, including Xlsoft, Synetcom, Brainchild, WorkCentric and Tricor that greatly expand Datawatch's channels in the Asia Pacific region.  Datawatch also added automotive leader Audi Japan as a customer to deliver a key performance indicator dashboard application to senior management and stakeholders throughout Japan.
  • Datawatch announced the appointment of three new executives to drive company growth and enhance market visibility:  Ben Plummer, Chief Marketing Officer and Senior Vice President of Strategic Alliances; Jon Pilkington, Vice President of Products; and Mike Carroll, Vice President of Worldwide Sales Support.
  • Datawatch launched its new Information Optimization messaging focused on the company's ability to provide data variety to Big Data, business intelligence and business process improvement applications and introduced new branding to support this messaging through the launch of a newly designed website, updated sales materials, improved product positioning and redesigned collateral.

Fourth Quarter Financial Highlights

  • Cash and short-term investments were $8.72 million at September 30, 2012, up 11% from $7.84 million at June 30, 2012 and up 4% from $8.38 million a year ago.  In Q2 of FY12, the company used $3.04 million in cash to partially fund the purchase of the Monarch intellectual property.
  • Gross margin for the fourth quarter of 2012 was 82.8%, compared to 83.6% for the third quarter of 2012. 
  • Days sales outstanding were 70 days at September 30, 2012, compared to 65 days at June 30, 2012 and 59 days at September 30, 2011.
  • Deferred revenue was $6.30 million as of September 30, 2012, a 65% increase over deferred revenue of $3.82 million as of September 30, 2011, with the increase in large part reflecting the seven-figure license transaction signed in the fourth quarter of 2012 that will be recognized ratably over the course of fiscal year 2013.

"During our fiscal fourth quarter, we generated approximately $1.5 million in cash, and we used a portion of that cash to pay down $600,000 of our $1.5 million working capital loan with Silicon Valley Bank.  We continue to invest in the growth of our business in a disciplined manner, and this has positioned us to enter fiscal 2013 with a strong foundation upon which to further build out our product platform and sales organization in order to achieve our 2013 objectives," stated Mr. Morrison.

Investor Conference Call and Webcast
The senior management of Datawatch will host a conference call and webcast to discuss the fourth quarter results this afternoon, Tuesday, November 27, 2012 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=169892.  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, 2011 and Form 10-Q for the quarters ended December 31, 2011, March 31, 2012 and June 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:
Kellee McGolpin
Datawatch Corporation
Kellee_McGolpin@datawatch.com
Phone: (978) 441-2200 ext. 8238
Twitter: @datawatch

© 2012 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.

Restructuring: We incurred significant expenses with the restructuring of our sales and marketing operations in fiscal 2011 and other restructuring actions taken in fiscal 2012, principally related to selected headcount reductions. We believe it is useful for investors to understand the effects of these items on our total operating expenses and net income.

 

 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, 




2012


2011


2012


2011











 REVENUE: 










 Software licenses  


$         3,618


$         2,795


$       16,800


$         9,858


 Maintenance 


2,219


1,649


7,902


6,219


 Professional services 


178


394


1,304


1,808


           Total revenue 


6,015


4,838


26,006


17,885











 COSTS AND EXPENSES: 










 Cost of software licenses  


526


576


2,270


2,237


 Cost of maintenance and services 


511


595


2,530


2,537


 Sales and marketing 


3,222


2,049


12,263


6,268


 Engineering and product development 


742


619


2,790


2,502


 General and administrative 


1,141


838


4,610


4,274


           Total costs and expenses 


6,142


4,677


24,463


17,818











 INCOME (LOSS) FROM OPERATIONS 


(127)


161


1,543


67

 Other income (expense) 


(174)


42


(459)


100











 INCOME (LOSS) BEFORE INCOME TAXES 


(301)


203


1,084


167

 Income tax provision (benefit) 


(24)


2


50


35











 NET INCOME (LOSS) 


$           (277)


$             201


$         1,034


$             132











 Net Income (loss) per share - Basic 


$          (0.04)


$            0.03


$            0.17


$            0.02











 Net Income (loss) per share - Diluted 


$          (0.04)


$            0.03


$            0.15


$            0.02











 Weighted Average Shares Outstanding - Basic 


6,334


6,161


6,252


6,039











 Weighted Average Shares Outstanding - Diluted 


6,334


6,341


6,730


6,235





















 Non-GAAP Disclosure - Reconciliation of GAAP Net Income to Net Income Excluding the Effects of Certain Items: 











 Net Income 


$          (277)


$            201


$         1,034


$            132











      Add-back Amortization of Monarch IP 


431


-


871


-

      Add-back Share-Based Compensation 


319


118


879


264

      Add-back Restructuring Severance Charges 


53


-


235


641











 Net income (non-GAAP) 


$            526


$            319


$         3,019


$         1,037











 Non-GAAP net income per share - Basic 


$           0.08


$           0.05


$           0.48


$           0.17











 Non-GAAP net income per share - Diluted 


$           0.08


$           0.05


$           0.45


$           0.17











 Weighted Average Shares Outstanding - Basic 


6,334


6,161


6,252


6,039











 Weighted Average Shares Outstanding - Diluted 


6,858


6,341


6,730


6,235

 

 DATAWATCH CORPORATION 

 Condensed Consolidated Balance Sheets 

 Amounts in Thousands  

 (Unaudited) 








 September 30, 


 September 30, 



2012


2011






 Cash and cash equivalents 


$         8,722


$          8,384

 Accounts receivable, net 


4,391


2,966

 Prepaid expenses and other current assets 


591


577

           Total current assets 


13,704


11,927






 Property and equipment, net 


281


270

 Intangible and other assets, net 


8,820


937








$       22,805


$        13,134











 Current portion of long-term debt 


$           900


$                 -

 Accounts payable and accrued expenses 


2,468


2,681

 Deferred revenue - current portion 


6,295


3,823

           Total current liabilities 


9,663


6,504






 Note payable 


2,983


-

 Other long-term liabilities 


466


288

           Total long-term liabilities 


3,449


288






           Total shareholders' equity 


9,693


6,342








$       22,805


$        13,134

 

 

SOURCE Datawatch Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Cloud Expo Breaking News
Cloud backup and recovery services are critical to safeguarding an organization’s data and ensuring business continuity when technical failures and outages occur. With so many choices, how do you find the right provider for your specific needs? In his session at 14th Cloud Expo, Daniel Jacobson, Technology Manager at BUMI, will outline the key factors including backup configurations, proactive monitoring, data restoration, disaster recovery drills, security, compliance and data center resources. Aside from the technical considerations, the secret sauce in identifying the best vendor is the level of focus, expertise and specialization of their engineering team and support group, and how they monitor your day-to-day backups, provide recommendations, and guide you through restores when necessary.
SYS-CON Events announced today that SherWeb, a long-time leading provider of cloud services and Microsoft's 2013 World Hosting Partner of the Year, will exhibit at SYS-CON's 14th International Cloud Expo®, which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. A worldwide hosted services leader ranking in the prestigious North American Deloitte Technology Fast 500TM, and Microsoft's 2013 World Hosting Partner of the Year, SherWeb provides competitive cloud solutions to businesses and partners around the world. Founded in 1998, SherWeb is a privately owned company headquartered in Quebec, Canada. Its service portfolio includes Microsoft Exchange, SharePoint, Lync, Dynamics CRM and more.
The world of cloud and application development is not just for the hardened developer these days. In their session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, will pull back the curtain of the architecture of a fun demo application purpose-built for the cloud. They will focus on demonstrating how they leveraged compute, storage, messaging, and other cloud elements hosted at SoftLayer to lower the effort and difficulty of putting together a useful application. This will be an active demonstration and review of simple command-line tools and resources, so don’t be afraid if you are not a seasoned developer.
You use an agile process; your goal is to make your organization more agile. What about your data infrastructure? The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver on new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for application developers and slow performance for end users. Further, as data sizes grow into the Big Data realm, this problem is exacerbated and becomes even more difficult to address. A seemingly simple schema change can take hours (or more) to perform, and as requirements evolve the disconnect between existing data structures and actual needs diverge.
Cloud scalability and performance should be at the heart of every successful Internet venture. The infrastructure needs to be resilient, flexible, and fast – it’s best not to get caught thinking about architecture until the middle of an emergency, when it's too late. In his interactive, no-holds-barred session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will dive into how to design and build-out the right cloud infrastructure.
SYS-CON Events announced today that BUMI, a premium managed service provider specializing in data backup and recovery, will exhibit at SYS-CON's 14th International Cloud Expo®, which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. Manhattan-based BUMI (Backup My Info!) is a premium managed service provider specializing in data backup and recovery. Founded in 2002, the company’s Here, There and Everywhere data backup and recovery solutions are utilized by more than 500 businesses. BUMI clients include professional service organizations such as banking, financial, insurance, accounting, hedge funds and law firms. The company is known for its relentless passion for customer service and support, and has won numerous awards, including Customer Service Provider of the Year and 10 Best Companies to Work For.
Chief Security Officers (CSO), CIOs and IT Directors are all concerned with providing a secure environment from which their business can innovate and customers can safely consume without the fear of Distributed Denial of Service attacks. To be successful in today's hyper-connected world, the enterprise needs to leverage the capabilities of the web and be ready to innovate without fear of DDoS attacks, concerns about application security and other threats. Organizations face great risk from increasingly frequent and sophisticated attempts to render web properties unavailable, and steal intellectual property or personally identifiable information. Layered security best practices extend security beyond the data center, delivering DDoS protection and maintaining site performance in the face of fast-changing threats.
From data center to cloud to the network. In his session at 3rd SDDC Expo, Raul Martynek, CEO of Net Access, will identify the challenges facing both data center providers and enterprise IT as they relate to cross-platform automation. He will then provide insight into designing, building, securing and managing the technology as an integrated service offering. Topics covered include: High-density data center design Network (and SDN) integration and automation Cloud (and hosting) infrastructure considerations Monitoring and security Management approaches Self-service and automation
In his session at 14th Cloud Expo, David Holmes, Vice President at OutSystems, will demonstrate the immense power that lives at the intersection of mobile apps and cloud application platforms. Attendees will participate in a live demonstration – an enterprise mobile app will be built and changed before their eyes – on their own devices. David Holmes brings over 20 years of high-tech marketing leadership to OutSystems. Prior to joining OutSystems, he was VP of Global Marketing for Damballa, a leading provider of network security solutions. Previously, he was SVP of Global Marketing for Jacada where his branding and positioning expertise helped drive the company from start-up days to a $55 million initial public offering on Nasdaq.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 14th Cloud Expo, Marc Jones, Vice President of Product Innovation for SoftLayer, will explain how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Are you interested in accelerating innovation, simplifying deployments, reducing complexity, and lowering development costs? The cloud is changing the face of application development and deployment, with enterprise-grade infrastructure and platform services making it possible for you to build and rapidly scale enterprise applications. In his session at 14th Cloud Expo, Gene Eun, Sr. Director, Oracle Cloud at Oracle, will discuss the latest solutions and strategies for application developers and enterprise IT organizations to leverage Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to build and deploy modern business applications in the cloud.
Hybrid cloud refers to the federation of a public and private cloud environment for the purpose of extending the elastic and flexibility of compute, storage and network capabilities, in an on-demand, pay-as-you go basis. The hybrid approach allows a business to take advantage of the scalability and cost-effectiveness that a public cloud computing environment offers without exposing mission-critical applications and data to third-party vulnerabilities. Hybrid cloud environments involve complex management challenges. First, organizations struggle to maintain control over the resources that lie outside of their managed IT scope. They also need greater infrastructure visibility to help reduce maintenance costs and ensure that their company data and resources are properly handled and secured.
As more applications and services move "to the cloud" (public or on-premise), cloud environments are increasingly adopting and building out traditional enterprise features. This in turn is enabling and encouraging cloud adoption from enterprise users. In many ways the definition is blurring as features like continuous operation, geo-distribution or on-demand capacity become the norm. At NuoDB we're involved in both building enterprise software and using enterprise cloud capabilities. In his session at 14th Cloud Expo, Seth Proctor, CTO of NuoDB, Inc., will cover experiences from building, deploying and using enterprise services and suggest some ways to approach moving enterprise applications into a cloud model.
Understanding the future of Big Data is crucial in the early stages of decision making around Big Data architectures. In the enterprise, what stands out is the need to integrate Hadoop smoothly into your existing data warehouse architecture, while taking advantage of existing skills and investments. In his General Session at 14th Cloud Expo, Marty Gubar, Director of Product Management at Oracle, will present a strategy for enabling integrated data management using both Hadoop and relational technologies. In particular, he'll look at how SQL, long the standard for the data warehouse, is increasingly being used on Hadoop. The real prize, though, is Smart SQL processing, seamlessly integrating the data warehouse and Hadoop into a single, Big Data Management System.
The time has come for humanity’s first interstellar trek to Terranuvem, the cloud planet, and Chief Engineer Cyrus Agarwal has been chosen to ready a ship for the voyage. He must make the right architectural choices to transform the ship for the long journey and be prepared for the unknown. He will be tested and overcome challenges during the mission. Join Cyrus and the crew of the Stratus at Oracle VP Rex Wang’s Day 2 Keynote at 14th Cloud Expo for a unique, sci-fi movie experience while learning key success factors for your own journey to cloud.