@BigDataExpo Authors: Andreas Grabner, Elizabeth White, Steven Lamb, William Schmarzo, Pat Romanski

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.

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.



 Condensed Consolidated Statements of Operations 

 Amounts in Thousands (except per share data) 


Three Months Ended

 December 31, 




 Software licenses  

$      4,330

$       4,208




 Professional services 



           Total revenue 




 Cost of software licenses  



 Cost of maintenance and services 



 Sales and marketing 



 Engineering and product development 



 General and administrative 



           Total costs and expenses 






 Other (expense) income  






 Income tax provision  




$        (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 



 Weighted Average Shares Outstanding - Diluted 



 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 



     Add-back Share-Based Compensation 



 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 



 Weighted Average Shares Outstanding - Diluted 





 Condensed Consolidated Balance Sheets 

 Amounts in Thousands  


 December 31, 

 September 30, 



 Cash and cash equivalents 

$         8,937

$          8,722

 Accounts receivable, net 



 Prepaid expenses and other current assets 



           Total current assets 



 Property and equipment, net 



 Intangible and other assets, net 



$       22,678

$        22,805

 Current portion of long-term debt 

$            900

$             900

 Accounts payable and accrued expenses 



 Deferred revenue - current portion 



           Total current liabilities 



 Note payable 



 Other long-term liabilities 



           Total long-term liabilities 



           Total shareholders' equity 



$       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.

@BigDataExpo Stories
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
As cloud adoption continues to transform business, today’s global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...