Welcome!

Big Data Journal Authors: Liz McMillan, Andreas Grabner, Elizabeth White, Kevin Benedict, Michelle Drolet

News Feed Item

Datawatch Announces Fiscal First Quarter 2014 Financial Results

Total Revenue Up 29% and License Revenue Up 25% over First Quarter of 2013

CHELMSFORD, Mass., Jan. 27, 2014 /PRNewswire/ -- Datawatch Corporation (NASDAQ-CM: DWCH), the leading global provider of visual data discovery solutions, today announced that total revenue for its first fiscal quarter ended December 31, 2013 was $8.81 million, an increase of 29% from revenue of $6.82 million in the first quarter a year ago.  License revenue for the first quarter of fiscal 2014 was $5.43 million, an increase of 25% from the $4.33 million recorded in the comparable quarter a year ago. 

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

Net loss for the first quarter of fiscal 2014 was ($5.61) million, or ($0.66) per diluted share, compared to a net loss of ($222,000), or ($0.03) per diluted share, for the year ago period.  Excluding the effects of the non-cash amortization associated with the purchase of certain intellectual property and other intangible assets, as well as non-cash stock compensation costs, the Company's non–GAAP net loss for its first fiscal quarter of 2014 was ($1.98) million, or ($0.23) per diluted share, compared to net income of $786,000, or $0.11 per diluted share in the first fiscal quarter of 2013.

"In our first full quarter since closing the acquisition of Panopticon in late August 2013, we delivered solid revenue growth while simultaneously completing the full integration of Panopticon into Datawatch in the key areas of product, marketing and sales," said Michael A. Morrison, president and chief executive officer of Datawatch.  "We continued to advance our growth agenda with strategic partners as reflected by the reselling agreement we announced with IBM in our first quarter as well as the expansion of our relationships with Tibco, NASDAQ and Thomson Reuters during the quarter.  This meaningful progress with our partners will not only accelerate revenue opportunities for Datawatch but will also provide us with invaluable visibility in the visual data discovery market."

Mr. Morrison continued, "Our view of the long-term market opportunity in real-time visual data discovery and Big Data analytics remains as robust as ever.  Our rapidly growing pipelines, which are more than double where they were at the beginning of our first fiscal quarter in October 2013, give us the confidence that our operating plans and business strategy are sound and aligned to the market opportunity, and that we are, in the quarters ahead, poised to capture a growing share of this market, which has been estimated at more than $14 billion by industry analysts."

First Quarter Business Highlights

  • Datawatch and IBM entered into a global agreement for IBM to promote and resell Datawatch Report Mining Server with IBM Content Manager OnDemand.  Pursuant to this agreement, Datawatch Report Mining Server is now included on IBM's price list and available for sale by both IBM direct sales and its global channel partners on a worldwide basis.
  • After an extensive multi-year evaluation of the leading visual data discovery vendors, Datawatch was selected by Fujitsu Limited and the Tokyo Stock Exchange (TSE) to be the real time visualization solution for Arrowhead, the TSE's next generation trading system developed in collaboration with Fujitsu.  The first phase of deployment of the Datawatch visualization solution will be for trade surveillance and will enable regulatory organizations to identify irregularities in trading activities, in real time, and act on these irregularities to mitigate risk and improve compliance.
  • Datawatch was selected as the "2013 Best Big Data Technology Provider to the Buy Side" by Waters Technology in its annual awards competition. The awards recognize the leading technologies and vendors in their areas of expertise underpinned by the input and experience of seven judges - five buy-side-focused technology consultants and two Buy-Side Technology editors.  Datawatch customers on the buy-side include Blackrock, the world's largest asset manager, Citadel, one of the largest hedge funds in the world, and J.P. Morgan. They use Datawatch visualization solutions to analyze real-time market activity and perform in depth analysis of historical trading and risk data.
  • Datawatch and Splunk entered into a Technology Partner Agreement to collaborate in the development of API-level integration between Datawatch's real-time visualization solution and Splunk's enterprise platform. 
  • Datawatch formally launched its "land and expand" strategy to accelerate market awareness and increase sales for Datawatch's real-time visual data discovery solution.  Initial results from the program include a 200%+ quarter over quarter increase in trial downloads and dozens of new name visualization customers in the first fiscal quarter, including Cern in Switzerland, Commerz Finanz in Germany, Standard Charter Bank in Hong Kong, HSBC in Australia, Deutsch Bank in Thailand and in the U.S., M&T Bank, Virginia Credit Union, Phelps County Medical Center, Kirby Medical Center and Memorial Healthcare.
  • Datawatch released phase two of the product integration between the heritage Datawatch platform and the Panopticon visualization product, resulting in a new, comprehensive desktop and server based solution for customers that offers real-time functionality in an easy to use and easy to implement manner.

First Quarter Financial Highlights

  • Cash and short-term investments were $7.97 million at December 31, 2013, down 23% from $10.31 million at September 30, 2013 and down 11% from $8.94 million at December 31, 2012.
  • Gross margin (excluding IP amortization expense) for the first fiscal quarter of 2014 was 87%, compared to 87% for the fourth fiscal quarter of 2013 and 91% for the first fiscal quarter of 2013.
  • Days sales outstanding were 57 days at December 31, 2013, compared to 61 days at both September 30, 2013 and December 31, 2012.
  • The percentage of license revenue from partners in the first fiscal quarter of 2014 was 10%, as compared to a low single digit percentage in the first fiscal quarter of 2013.
  • Average deal size was $58,000 in the first fiscal quarter of 2014 and $49,000 in the first fiscal quarter of 2013.

Investor Conference Call and Webcast

The senior management of Datawatch will host a conference call and webcast to discuss the first quarter results tomorrow, Tuesday, January 28, 2014 at 8:30 am 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=172098.  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) provides visual data discovery software that optimizes any data – regardless of its variety, volume, or velocity – delivering next generation analytics to reveal valuable insights for improving business. Its unique ability to integrate structured, unstructured, and semi-structured sources like reports, PDF files and EDI streams with real-time streaming data into visually rich analytic applications allows users to dynamically discover key factors that impact any operational aspect of their business. This ability to perform visual discovery against any data sets Datawatch apart in the big data and visualization markets. Organizations of every size, worldwide use Datawatch products, including 99 of the Fortune 100. Datawatch is headquartered in Chelmsford, Massachusetts with offices in New York, London, Munich, Stockholm, Singapore, Sydney and Manila, and with partners and customers in more than 100 countries worldwide. See the Whole Story for yourself by downloading the free trial at www.datawatch.com/trial.

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; risks associated with acquisitions, including the recent acquisition of intellectual property from Math Strategies and the acquisition of Panopticon; 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 next generation analytics in particular; Datawatch's dependence on its principal products, proprietary software technology and software licensed from third parties; risks associated with international sales and operations; risks associated with indirect distribution channels and co-marketing arrangements, many of which were only recently established; the adequacy of Datawatch's sales returns reserve; 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 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, 2013. 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:
Sarah Bernardi
Datawatch Corporation
Sarah_Bernardi@datawatch.com
Phone: (978) 441-2200 ext. 8387
Twitter: @datawatch

© 2014 Datawatch Corporation. Datawatch and the Datawatch logo are trademarks or registered trademarks of Datawatch Corporation in the United States and/or other countries. All other names are trademarks or registered trademarks of their respective companies.

DATAWATCH CORPORATION


 Condensed Consolidated Statements of Operations


 Amounts in Thousands (except per share data)


 (Unaudited)



Three Months Ended


 December 31,


2013


2012


 REVENUE:







 Software licenses 


$         5,433


$         4,330



 Maintenance


2,993


2,333



 Professional services


383


158



           Total revenue


8,809


6,821









 COSTS AND EXPENSES:







 Cost of software licenses 


990


521



 Cost of maintenance and services


849


530



 Sales and marketing


7,384


3,776



 Engineering and product development


2,375


853



 General and administrative


2,668


1,191



           Total costs and expenses


14,266


6,871









 (LOSS) INCOME FROM OPERATIONS


(5,457)


(50)


 Other expense


(157)


(163)









 (LOSS) INCOME BEFORE INCOME TAXES


(5,614)


(213)


 Income tax (benefit) provision


-


9









 NET (LOSS) INCOME


$        (5,614)


$           (222)








 Net (loss) income per share - Basic


$          (0.66)


$          (0.03)


 Net (loss) income per share - Diluted


$          (0.66)


$          (0.03)


 Weighted Average Shares Outstanding - Basic


8,533


6,378


 Weighted Average Shares Outstanding - Diluted


8,533


6,888








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








 GAAP Net (Loss) Income


$       (5,614)


$          (222)


    Add-back Amortization of Intangibles & IP 


870


431


    Add-back Share-Based Compensation


2,719


577


    Add-back Restructuring Severance Charges


46


-



 Subtotal of additions


3,635


1,008









 Net income (non-GAAP)


$       (1,979)


$            786


 Net income per share - Basic


$         (0.23)


$           0.12


 Net income per share - Diluted


$         (0.23)


$           0.11


 Weighted Average Shares Outstanding - Basic


8,533


6,378


 Weighted Average Shares Outstanding - Diluted


8,533


6,888


 

DATAWATCH CORPORATION

 Condensed Consolidated Balance Sheets

 Amounts in Thousands 

 (Unaudited)













 December 31,


 September 30,



2013


2013






 Cash and cash equivalents


$         7,967


$       10,312

 Accounts receivable, net


5,347


6,622

 Prepaid expenses and other current assets


978


984

           Total current assets


14,292


17,918






 Property and equipment, net


316


289

 Intangible and other assets, net


50,182


51,114








$       64,790


$       69,321











 Current portion of long-term debt


$            900


$            900

 Current portion of note payable


1,177


977

 Accounts payable and accrued expenses


3,572


4,914

 Deferred revenue - current portion


6,940


6,997

           Total current liabilities


12,589


13,788






 Note payable


1,780


2,108

 Other long-term liabilities


1,878


2,050

           Total long-term liabilities


3,658


4,158






           Total shareholders' equity


48,543


51,375








$       64,790


$       69,321











 

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
More and more enterprises today are doing business by opening up their data and applications through APIs. Though forward-thinking and strategic, exposing APIs also increases the surface area for potential attack by hackers. To benefit from APIs while staying secure, enterprises and security architects need to continue to develop a deep understanding about API security and how it differs from traditional web application security or mobile application security. In his session at 14th Cloud Expo, Sachin Agarwal, VP of Product Marketing and Strategy at SOA Software, will walk you through the various aspects of how an API could be potentially exploited. He will discuss the necessary best practices to secure your data and enterprise applications while continue continuing to support your business’s digital initiatives.
Web conferencing in a public cloud has the same risks as any other cloud service. If you have ever had concerns over the types of data being shared in your employees’ web conferences, such as IP, financials or customer data, then it’s time to look at web conferencing in a private cloud. In her session at 14th Cloud Expo, Courtney Behrens, Senior Marketing Manager at Brother International, will discuss how issues that had previously been out of your control, like performance, advanced administration and compliance, can now be put back behind your firewall.
Next-Gen Cloud. Whatever you call it, there’s a higher calling for cloud computing that requires providers to change their spots and move from a commodity mindset to a premium one. Businesses can no longer maintain the status quo that today’s service providers offer. Yes, the continuity, speed, mobility, data access and connectivity are staples of the cloud and always will be. But cloud providers that plan to not only exist tomorrow – but to lead – know that security must be the top priority for the cloud and are delivering it now. In his session at 14th Cloud Expo, Kurt Hagerman, Chief Information Security Officer at FireHost, will detail why and how you can have both infrastructure performance and enterprise-grade security – and what tomorrow's cloud provider will look like.
The social media expansion has shown just how people are eager to share their experiences with the rest of the world. Cloud technology is the perfect platform to satisfy this need given its great flexibility and readiness. At Cynny, we aim to revolutionize how people share and organize their digital life through a brand new cloud service, starting from infrastructure to the users’ interface. A revolution that began from inventing and designing our very own infrastructure: we have created the first server network powered solely by ARM CPU. The microservers have “organism-like” features, differentiating them from any of the current technologies. Benefits include low consumption of energy, making Cynny the ecologically friendly alternative for storage as well as cheaper infrastructure, lower running costs, etc.
The revolution that happened in the server universe over the past 15 years has resulted in an eco-system that is more open, more democratically innovative and produced better results in technically challenging dimensions like scale. The underpinnings of the revolution were common hardware, standards based APIs (ex. POSIX) and a strict adherence to layering and isolation between applications, daemons and kernel drivers/modules which allowed multiple types of development happen in parallel without hindering others. Put simply, today's server model is built on a consistent x86 platform with few surprises in its core components. A kernel abstracts away the platform, so that applications and daemons are decoupled from the hardware. In contrast, networking equipment is still stuck in the mainframe era. Today, networking equipment is a single appliance, including hardware, OS, applications and user interface come as a monolithic entity from a single vendor. Switching between different vendor'...
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.
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.
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.
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.
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.