Welcome!

Recurring Revenue Authors: Elizabeth White, Pat Romanski, Yeshim Deniz, Carmen Gonzalez, Derek Weeks

News Feed Item

Datawatch Announces Fiscal First Quarter 2013 Financial Results

New Positioning and Expansion of Partner Ecosystem Pave the Way for Continued Growth

CHELMSFORD, Mass., Jan. 22, 2013 /PRNewswire/ -- Datawatch Corporation (NASDAQ-CM: DWCH), the leading global provider of information optimization solutions, today announced that total revenue for its first quarter ended December 31, 2012 was $6.82 million, an increase of 9% from revenue of $6.27 million in the first quarter a year ago.  License revenue for the first quarter of fiscal 2013 was $4.33 million, an increase of 3% from the $4.21 million recorded in the comparable quarter a year ago.  Net loss for the first quarter of fiscal 2013 was $222,000, or ($0.03) per diluted share, compared to net income of $603,000, or $0.09 per diluted share, for the year ago period.  Excluding the effects of the non-cash amortization associated with the purchase of the Monarch intellectual property in March 2012 as well as non-cash stock compensation costs, the Company's non–GAAP net income for its first fiscal quarter of 2013 was $786,000, or $0.11 per diluted share, compared to $751,000, or $0.12 per diluted share in the first fiscal quarter of 2012.

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

Michael A. Morrison, president and CEO of Datawatch, said, "The first quarter of fiscal 2013 represented a significant pivot point for Datawatch.  During the quarter, we re-introduced ourselves to the market with a clear and compelling message, more strategic positioning and a new brand.  We delivered an aggressive training and enablement program for our worldwide sales organization and our global alliance partners around this new messaging and positioning.  The early results from this important shift in messaging and positioning are promising.  As a result of our new approach, the opportunities we are pursuing are much more strategic to the enterprise.  The relative size of these opportunities is bigger and the contacts with whom we are working within these enterprises are higher level.  We have already secured several key new name customers pursuing this strategy, and this bodes well for our continued success in implementing our plans to build upon Datawatch's strengths for the long-term."

Mr. Morrison continued, "Our new messaging and positioning are also having a positive effect on our market awareness, as competitors, industry analysts, financial analysts and organizations of all sizes are beginning to recognize the value that can be achieved with Datawatch's Information Optimization solutions.  I am confident that the steps that we have taken thus far, along with our plans for the remainder of this fiscal year, make Datawatch more enterprise-ready from a sales, product and services perspective as we seek to showcase the importance of variety in Big Data and Business Intelligence applications.  Finally, our first fiscal quarter of 2013 also produced solid results as we executed on our newly launched partnership strategy, with the addition of 13 new partners to our global ecosystem.  These partners strengthen our domain expertise, increase our geographic coverage and enhance our ability to meet the complex needs of enterprise customers."

First Quarter Business Highlights

  • Datawatch entered into a master reseller agreement with Koncerndata in Sweden to represent Datawatch's Information Optimization solutions throughout the Nordic region.  Koncerndata, which will operate as Datawatch Nordics, has a long track record of success selling business analytic software solutions into the Nordic market, including as Hyperion Nordics, representing Hyperion Solutions (which was acquired by Oracle) and as Outlooksoft Nordics, representing Outlooksoft Corporation (which was acquired by SAP).
  • Datawatch entered into business alliances with 13 new partners, including Panorama Software, a global leader in Business Intelligence 3.0 solutions; Xerox in Canada; Reddot in Russia; Comesio in Austria; 2Quadrant in Czech, Slovakia and Hungary; Sky Solutions in North America; and Tricor in Japan.
  • The Methodist Hospital System in Houston, Texas bought Datawatch's denial management analytics solution for dashboard views of 835 EDI healthcare remittance data to assist in the revenue cycle management process.   Datawatch's denial management analytics solution provides out-of-the-box dashboards to analyze denied claims, denied claims by reason code, inpatient vs. outpatient claims history and more.
  • Datawatch released Datawatch Enterprise Server 11.5, which introduces Monarch Power Client for seamless connectivity and interaction with Datawatch Enterprise Server and which supports Japanese and simplified Chinese character sets.  With this new release, organizations throughout the world will be able to leverage existing investments in Monarch to enable self-service delivery and consumption of models, reports and analysis over the Web.

First Quarter Financial Highlights

  • Cash and short-term investments were $8.94 million at December 31, 2012, up 2% from $8.72 million at September 30, 2012 and down 7% from $9.65 million at December 31, 2011.  In March 2012, the company used $3.04 million in cash to partially fund the purchase of the Monarch intellectual property, and since that time used another $600,000 to partially pay down its $1.5 million working capital loan with Silicon Valley Bank.
  • Gross margin for the first fiscal quarter of 2013 was 84.6%, compared to 82.8% for the fourth fiscal quarter of 2012 and 80.2% for the first fiscal quarter of 2012. 
  • Days sales outstanding were 61 days at December 31, 2012, compared to 70 days at September 30, 2012 and 52 days at December 31, 2011.
  • There were 5 six-figure deals in the first fiscal quarter of 2013, the same number as in the first fiscal quarter of 2012.
  • The average deal size in the first fiscal quarter of 2013 was $49,000, as compared to $87,000 in the first fiscal quarter of 2012.  The average deal size in the first fiscal quarter of 2012 was positively impacted by a seven-figure license transaction in that quarter.

"We enter the second fiscal quarter of 2013 with our sales teams and partners effectively utilizing our new messaging and positioning, increased market awareness and credibility, and a strong and growing pipeline of activity for our Information Optimization solutions.  As a result, we are confident that we will see a re-acceleration of revenue growth in the next nine months of fiscal 2013 from the rate we saw in the first fiscal quarter of 2013," stated Mr. Morrison.

Investor Conference Call and Webcast

The senior management of Datawatch will host a conference call and webcast to discuss the first quarter results this afternoon, Tuesday, January 22, 2013 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=170375.  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, 2012.   Any forward-looking statements should be considered in light of those factors.

Investor Contact:
Datawatch Investor Relations
[email protected]
Phone: (978) 441-2200 ext. 8323

Media Contact:
Sarah Bernardi
Datawatch Corporation
[email protected]
Phone: (978) 441-2200 ext. 8387
Twitter: @datawatch

© 2013 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.

 

 DATAWATCH CORPORATION 

 Condensed Consolidated Statements of Operations 

 Amounts in Thousands (except per share data) 

 (Unaudited) 




Three Months Ended




 December 31, 




2012


2011







 REVENUE: 






 Software licenses  


$      4,330


$       4,208


 Maintenance 


2,333


1,717


 Professional services 


158


346


           Total revenue 


6,821


6,271







 COSTS AND EXPENSES: 






 Cost of software licenses  


521


575


 Cost of maintenance and services 


530


668


 Sales and marketing 


3,776


2,801


 Engineering and product development 


853


628


 General and administrative 


1,191


967


           Total costs and expenses 


6,871


5,639







 (LOSS) INCOME FROM OPERATIONS 


(50)


632

 Other (expense) income  


(163)


9







 (LOSS) INCOME BEFORE INCOME TAXES 


(213)


641

 Income tax provision  


9


38







 NET (LOSS) INCOME 


$        (222)


$         603













 Net (loss) income per share - Basic 


$       (0.03)


$        0.10







 Net (loss) income per share - Diluted 


$       (0.03)


$        0.09







 Weighted Average Shares Outstanding - Basic 


6,378


6,164







 Weighted Average Shares Outstanding - Diluted 


6,378


6,359













 Non-GAAP Disclosure - Reconciliation of Net Income to Net Income Excluding the  

   Effects of Certain Items: 











 GAAP Net (Loss) Income 


$        (222)


$         603







     Add-back Amortization of Monarch IP 


431


-

     Add-back Share-Based Compensation 


577


148







 Net income (non-GAAP) 


$         786


$         751







 Net income per share - Basic 


$        0.12


$        0.12







 Net income per share - Diluted 


$        0.11


$        0.12







 Weighted Average Shares Outstanding - Basic 


6,378


6,164







 Weighted Average Shares Outstanding - Diluted 


6,888


6,359







 

 DATAWATCH CORPORATION 

 Condensed Consolidated Balance Sheets 

 Amounts in Thousands  

 (Unaudited) 













 December 31, 


 September 30, 



2012


2012






 Cash and cash equivalents 


$         8,937


$          8,722

 Accounts receivable, net 


4,300


4,391

 Prepaid expenses and other current assets 


863


591

           Total current assets 


14,100


13,704






 Property and equipment, net 


264


281

 Intangible and other assets, net 


8,314


8,820








$       22,678


$        22,805











 Current portion of long-term debt 


$            900


$             900

 Accounts payable and accrued expenses 


2,163


2,468

 Deferred revenue - current portion 


5,983


6,295

           Total current liabilities 


9,046


9,663






 Note payable 


3,022


2,983

 Other long-term liabilities 


453


466

           Total long-term liabilities 


3,475


3,449






           Total shareholders' equity 


10,157


9,693








$       22,678


$        22,805






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.

@ThingsExpo Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...