Use access key #2 to skip to page content.

gnulaw (52.06)

(Attunity:ATTU) Q1 2013 Numbers. CEO/Company Epic Fail. NASDAQ Delisting or Acquisition?

Recs

1

May 05, 2013 – Comments (6) | RELATED TICKERS: ATTU , SPLK , EMC

 

We started out cautiously bullish on (Attunity:ATTU) per our January 18th blog "Attunity (NASDAQ:ATTU) Best Big Data Investment?" (including all comments 1-9). Our caution was based on pending Q1 numbers being reported January 30 when the first smoking gun made its blunt-force trauma appearance providing the impetus for our January 31 Blog "(Attunity:ATTU) Q4/FY 2012 Numbers/Conference Call #BIGDATA" (including comments 1 - 11).

Everything that needs to be said is basically covered in these two blogs including all comments so there is no need to repeat it here, however, you are highly encouraged to review these two blogs thoroughly if you are interested in (Attunity:ATTU) as an investment. 

Attunity released their arguably fatal May 2nd smoking gun Q1 numbers along with their SEC Form 6-K

Why fatal?

1.  CEO Shimon Alon failed to pull the trigger on a badly needed in-place $20M Secondary q3 2012 (Actual first smoking gun)

2.  Attunity's Jan 30 Conference Call (one month into q1 2013 ending March 31) CEO Shimon Alon advised everyone he was providing guidance for fiscal 2013 revenues of 20% growth after announcing 68% growth in revenues fiscal 2012 v 2011. There was no mention of q1 ending March 31 guidance.

3. March 29 ATTU filed Form 20-F for year-ended 12/31/2012 (equivalent to a Foreign 10-K). 

Note: It has already been noted that ATTU has inverted Working Capital

"...B. Liquidity and Capital Resources...Currently, our principal commitments consist of liability for the payment obligation due to RepliWeb former shareholders in the amount of $2.0 million (presented in the consolidated financial statements at present value of approximately $1.9 million), expected to be paid in April 2013 by using our internal cash resources..." Source: ATTU 20-F filed March 29. 2013. Note: No one mentioned this in the Conference Call held May 2nd.

 

4. Heading into the May 2nd q1 2013 numbers announcement Institutional Ownership in (Attunity:ATTU) was confirming another smoking gun despite consistent investor conferences held over the previous 12-months with the likes of Needham Growth, B Riley, Roth, et al.

5. On May 2nd CEO Shimon Alon (Attunity:ATTU) announced "...Total revenues for the first quarter of 2013 were $4.6 million, compared to $6.1 million for the same period of 2012..." and "...Net loss for the first quarter of 2013 was $1,355,000, or $0.12 per diluted share..." effectively wiping out all eps for the trailing twelve months (ttm). 

6. The Conference Call Transcripts provided by Seeking Alpha were a train wreck. They were almost unintelligible and where [none] of the analysts on the call were mentioned by name/company. 

7. (Attunity:ATTU) closed at $5.32 Friday May 3rd giving up all gains achieved since its July 2012 NASDAQ listing. We still have Q2 numbers which were, again, not addressed during the May 2 CC. Given all the above what is the most likely scenario for the price of (Attunity:ATTU) shares over the next 12-months? And what if there is another miss or consecutive misses...?

 

All things equal at this point:

 

1. Given the above issues of fact, CEO Shimon Alon has no credibility.

2. The Street is unforgiving and accordingly could arguably take these shares to NASDAQ delisting. Again, CEO Shimon Alon failed to pull the trigger on a critical $20M offering which would have allowed (Attunity:ATTU) to effectively negotiate these crises. If CEO Shimon Alon was honest with his shareholders and was precisely the CEO (Attunity:ATTU) required for such a small company navigating the Big Data revolution among better funded competition, start-ups, and incumbents, the shareholders would have embraced him for anticipaitng the q1 shortfall and having pulled off a $20M Secondary.  But CEO Shimon Alon did not.

Again, given points 1 and 2, CEO Shimon Alon's only? option is to set (Attunity:ATTU) up for a short-term acquisition [2] or it will be too late for (Attunity:ATTU)...all things equal. But will Shimon Alon, or more importantly, is Shimon Alon even capable of entertaining that thought-process given CEO Shimon Alon effectively created a textbook scenario to create maximum shareholder value destruction of (Attunity:ATTU)  shares?

 

References

[1] January 18th blog "Attunity (NASDAQ:ATTU) Best Big Data Investment?" (including all comments 1-9)

[2] January 31 Blog "(Attunity:ATTU) Q4/FY 2012 Numbers/Conference Call #BIGDATA" (including comments 1 - 11)

 

6 Comments – Post Your Own

#1) On May 06, 2013 at 1:19 PM, Mega (99.96) wrote:

In order to have shareholder value destruction, shareholder value would have to exist in the first place.

Report this comment
#2) On May 08, 2013 at 4:48 AM, gnulaw (52.06) wrote:

Who knew what, when did they know it and who did they tell?

from the above main blog

2.  Attunity's Jan 30 Conference Call (one month into q1 2013 ending March 31) CEO Shimon Alon advised everyone he was providing guidance for fiscal 2013 revenues of 20% growth after announcing 68% growth in revenues fiscal 2012 v 2011. There was no mention of q1 ending March 31 guidance.

In light of point 2 from the main blog above, ATTU shareholder(s) allege(s) violations of SEC Rule 10b-5 in re: causation, reliance, omissions, violations of the Insider Trading Sanctions Act of 1984 and criminal gross negligence pursuant to all trading between January 30 2013 and May 2 2013 and accordingly urge the respective State and Federal Securities Agencies to accordingly pursue with all legal recourse including analysis of all trades made between January 30, 2013 and May 2, 2013.

Report this comment
#3) On June 22, 2013 at 9:55 AM, gnulaw (52.06) wrote:

>>1. Given the above issues of fact, CEO Shimon Alon has no credibility.

[Correction] CEO Shimon Alon nor CFO Dror Harel-Elkayam have [any] credibility. Zero tolerance. Q2 ending June 30 numbers pending...

 

Report this comment
#4) On July 07, 2013 at 8:44 AM, gnulaw (52.06) wrote:

This could be a separate Blog but not until CEO Shimon Alon and CFO Dror Harel-Elkayam restore their credibility. That being said, there are substantive indications that ATTU is a BUY, as follows:

Listen to Attunity's 2013 Analyst & Investor Day (Presentation and Recording )

This 3+ hour recording and slide presentation provides a lot of information supportive of a BUY REC [BUT] Again, the only problem, which is currently the elephant in the room is that this presentation was held on January 31, 2013, one-third into ATTUs q1 2013 where ATTU shareholders were blind-sided by an unforgiveable epic fail Q1 revenue miss, in real-time, AS this Analyst & Investor Day was being held and Shimon Alon and Dror Harel-Elkayam were relaying glowing Q4/FY 2012 numbers per the referenced slide presentation. ????? Key points in this presentation are ATTUs "Go To Market" partners with EMC, AMZN, HPQ, SAP...and OEM partners (MSFT, ORCL, IBM).

That being said...some substantive information/deals...

1.  June 25, 2013 Attunity Appoints Lawrence Schwartz as Vice President of Marketing

2.  May 21, 2013 Equifax Adopts Attunity Replicate to Load Data Warehouse and Enable Big Data Analytics

3.  December 5, 2012 At AWS re:Invent, Attunity CloudBeam Gets Shout Out as a Critical Enabler of Information Availability (for AWS/RedShift/Glaxier...)

Dec 4, 2012 [Replicating between regions 4:28/43:28] AWS re:Invent MED 201: Media Ingest and Storage Solutions with AWS

December 4, 2012  Back from AWS re:Invent & We’re Just Cloud Beaming!

Q2 2013 ending June 30 should be announced around Wednesday, July 24. 

 

Report this comment
#5) On November 21, 2013 at 5:00 PM, gnulaw (52.06) wrote:

#12) On November 20, 2013 at 11:01 PM, gnulaw (52.63) wrote:

(Nov 20, 2013)  ATTUNITY LTD. ANNOUNCES PROPOSED PUBLIC OFFERING OF ORDINARY SHARES

"...Roth Capital Partners is acting as sole book-running manager. Craig-Hallum Capital Group is acting as co-lead manager for the offering..."

As we have consistently been urging ATTU should have pulled the trigger on this Q3 20[12] but lacked the bandwidth. That being said, this is a superior move and represents a superior buy concomitant with Q3 ending Sep 30 conference call in re Q4 guidance and (NASDAQ:AMZN) AWS re:Invent (Nov 12-15) strategic allliance/superior competitive advantage.

Report this comment
#6) On March 04, 2014 at 9:45 AM, gnulaw (52.06) wrote:

ATTU sustains negative annual growth. On January 30, 2014 ATTU reported FY2013 Revenues of $25.3M for year ending December 31, 2013 v $25.5M FY 2012.  Net loss for 2013 was $412,000, or $(0.04) per diluted share. 

Report this comment

Featured Broker Partners


Advertisement