Welcome!

@BigDataExpo Authors: Scott Allen, Elizabeth White, ManageEngine IT Matters, Pat Romanski, Dan Potter

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 
[email protected]
Phone: (978) 441-2200 ext. 8323

Media Contact:
Sarah Bernardi
Datawatch Corporation
[email protected]
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.

@BigDataExpo Stories
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
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.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...