Use access key #2 to skip to page content.

gnulaw (52.06)

(Attunity:ATTU) Q2 2013 Numbers. Back on Track? Big Time? Big Data Monopoly?

Recs

2

July 26, 2013 – Comments (14) | RELATED TICKERS: ATTU , AMZN , EMC

 

 

It appears CEO Shimon Alon has got Attunity back on track and arguably Attunity is in a better position than they were when trading in the $7-$8 range prior to announcing Q1 ending March 31 numbers.  Attunity Replicate/MFT/CloudBeam almost appears to be a potential monopoly in their #BigData space. They appear to be the unanimously recognized enabling Big Data technology which breathes life into (Amazon:AMZN) AWS Redshift, S3 (EMC) Greenplum Pivotal, (Teradata:TDC) click-2-load. Q3/Q4 2013, Q1 Q2 2014 will definitively confirm this. Shimon Alon also cannot afford another earnings hiccup nor inexcusable guidance failures. Attunity must now pull the trigger on their "in-place" $20M Secondary as their shares become justifiably fully valued. This simply must occur. Attunity accordingly will never have to look back for some time...

 

Q2 Ending June 30 2013 announced July 25, 2013

 

SEC Form 6-K filed July 25, 2013

 

Earnings Call Transcript (Note: the quality of the analysts/Institutional Investors during Q&A and the fact they are new). 

 

“We are pleased to have effectively executed on several sales and marketing initiatives which generated strong demand for our big data and cloud solutions, resulting in revenue growth and profits in the second quarter, as compared with the first quarter of 2013. These activities have already made a material impact on our financial performance, and the momentum is expected to continue building into the second half of 2013, allowing us to meet our goals for the year,” stated Shimon Alon, Chairman and Chief Executive Officer of Attunity.                         

“We continue to benefit from our strong partnerships with market leaders. Our strategic relationship with Pivotal Greenplum has experienced increased activity since they completed their spinoff from EMC at the end of the first quarter of 2013 and we expect this to continue, going forward. In addition, through our relationship with Teradata, several data warehouse customers have tested our solutions, resulting in our first customer win in this environment.

“Through expanded marketing efforts, we have begun to build a growing customer base and we are driving greater awareness for our Amazon Web Services (AWS) solutions, as we increase our joint promotional activities. We believe this momentum will continue to increase as the newly launched AWS Redshift gains broader market adoption and is recognized as the premier data warehousing solution in the cloud.

“The appointment of new leadership within our marketing division and a ramped up sales force enabled us to focus on identifying and closing a greater number of deals with large scale data warehousing customers. The result has been strong direct sales growth compared with the first quarter of this year, mainly attributable to the U.S. market.

“These activities have allowed us to rapidly close the year over year gap. Our second quarter of 2013 total revenues are 5% lower compared to the same quarter in 2012, showing significant progress over the gap in the first quarter of 2013,” Mr. Alon concluded.

 

Recent Financial and Operational Highlights

"...License revenues for the second quarter grew 92%, compared with the first quarter of 2013 Total revenues for the second quarter grew 33%, compared with the first quarter of 2013   Non-GAAP operating income for the second quarter was $434,000, compared with a loss of $950,000 for the first quarter of 2013 Appointed Lawrence Schwartz as Vice President of Marketing, with a focus on positioning Attunity as the leader in data replication and cloud computing markets Closed two deals with new Pivotal Greenplum customers    Closed deal with first customer that utilizes Attunity’s click-2-load solution for Teradata’s Big Data warehouse New Latin America sales team closed first deal with a large financial institution..."

 

 

 

14 Comments – Post Your Own

#1) On July 29, 2013 at 6:42 PM, gnulaw (52.06) wrote:

The case for a pending Actian Corp Acquisition offer for (Attunity:ATTU)

 

1.  (April 11, 2013)  Actian Corporation and Pervasive Software Unite to Take Action on Big Data

Note: This was first announced by gnulaw August 13, 2012 pursuant to a hostile takeover announcement. gnulaw continued to follow this takeover through its conclusion here on this Motley Fool Blog.

2.  (April 25, 2013)  Actian buys Amazon database partner ParAccel

"...Database vendor Actian has acquired ParAccel, a scale-out, analytic database company whose technology underpins part of the Amazon Web Services Redshift data warehouse service..."

Note:  ATTU has a substantive relationship with (Amazon:AMZN) in re: AWS RedShift and S3 as previously covered by gnulaw.

3.  (July 11, 2013)  Actian Launches New Platforms For “The Age Of Data”

"...With its acquisition of ParAccel, also in April, Actian developed the ParAccel Big Data Analytics Platform, which moves data into an analytics pipeline where it is analyzed at scale. It uses its parallel computing capability and a Hadoop file system to store the data.

ParAccel made a mark with its analytics database. Used by Amazon Redshift..."

Note:  Actian CTO, Mike Hoskins, was formerly CTO of (Pervasive:PVSW), again, whom gnulaw meticulously covered here on Motley Fool.

4.  Appx. 21:59* into ATTUs Q2 ending June 30 CC CEO Shimon Alon mentions Actian as one of their key Data Warehouse Partners. The CC Transcript incorrectly refers to Actian as "Exion". Also here.

Actian driven by Garnett & Helfrich Capital has a raging hardon to be Wall Street's Big Data darling IPO. Attunity represents a HUGE piece to their BigData dominance objective and to enhance their own arguably pending IPO see (Splunk:SPLK), (Tableau:DATA), pending DataStax IPO.

Again, ATTU needs to close BIG deals semimonthly over the next six months concomitantly increasing shareholder value to $7-$8 range and pull the trigger on their "in-place" $20M Registration. But that will just cost Actian more if they will even be able to get them by then...so time/timing seems to be of the essence for both Actian and ATTU.

 

* CC actually begins 14:01 into the connection with this CC. First 14:00 is music.

Report this comment
#2) On July 29, 2013 at 7:14 PM, gnulaw (52.06) wrote:

Note: A Garnett & Helfrich (Actian)-led takeover/acquisition of Attunity was first suggested in the January 31, 2013 blog "(Attunity:ATTU) Q4/FY 2012 Numbers/Conference Call #BIGDATA" Parting Comment section.

Report this comment
#3) On August 01, 2013 at 9:24 AM, gnulaw (52.06) wrote:

Note: The below comment is taken from July 07, 2013 comment #4 from a previous ATTU blog when ATTU closed at $5.54 (closed at $6.83 July 31, +23.3%), which has now earned the right and is more appropriately aligned to appear here.

'...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
#4) On August 16, 2013 at 8:19 PM, gnulaw (52.06) wrote:

So, on August 9th PoisedToTriple.com published an article entitled "Datawatch & Attunity: The Next Big Data Acquisitions?". PTT suggested (Datawatch:DWCH) would be a good candidate to acquire ATTU

"...Acquiring ATTU would give DWCH the ability to provide real-time data integration and replication across heterogeneous databases. We also believe it would be highly accretive. The direct and indirect sales channels would be consolidated while simultaneously enjoying the benefits of an expanded product set. Operating costs would also be consolidated, leading to greater operating margins for the combined entity..."

I believe privately-held Actian would be the more likely acquiror of ATTU (see comments 1,2 above). On June 25th ATTU announced the hiring of Lawrence Schwartz, as its new Vice President of Marketing pursuant to its epic fail Q1 numbers ending March 30, 2013. This hiring arguably represented the most critical hiring in ATTUs existence given Attunity just came off an almost fatal earnings miss with inverted working capital and unequivocally cannot afford [one] mistake going forward, esp marketing, revenue miss(es). They have everything to lose and conversely gain with the hiring of Lawrence Schwartz.

Schwartz comes from Tokutek. Tokutek’s mission is to transform the way data is stored and retrieved and deliver a quantum leap in the performance of databases and file systems. As of this writing he is still listed as Tokutek's Vice President of Marketing. Tokutek?! ATTU in its press release pointed out "...During his tenure with the company, Tokutek’s customer base doubled in size...".  Even a new hire ANYWHERE has to produce numbers and dollars...hard numbers that can be readily validated. What does "doubled its customer base" mean? 7 to 15? And who is Tokutek? On first assessment, not impressive. Let's dig deeper. MIT, Harvard Business, and owns several patents. Very impressive from an [academic] perspective.  Schwartz also served on the Steering Committee for Big Data for MassTLC (where ATTU met Schwartz?). Schwartz knows data, open-source databases...really well (at Tokutek from Jan 2011-May 2013, during the birth of the Big Data revolution), which suggests to me that Schwartz's hiring more dovetails with a takeover of ATTU by Actian, specifically pursuant to their April 25, 2013 acquisition of Amazon-funded ParAccel.

"...ParAccel made a mark with its analytics database. Used by Amazon Redshift, the service acts as a data warehouse in the cloud and is designed to help companies keep pace with the endless data stream that continues to increase in volume and come in all shapes and varieties. ParAccel uses parallel computing to process and analyze the information as it pours in from different sources..." 

Schwartz accordingly is arguably the most qualified person to optimize Actian's ParAccel acquisition while acquiring an arguably crown-jewel Big Data growth company with > 2,000 customers with Attunity. (Attunity:ATTU) is arguably a much more strategic fit for Actian than (Datawatch:DWCH) esp assuming a pending Actian IPO...simply a superior scenario to maximize the pricing of said IPO. ATTU is currently profitable and is conservatively projecting 30% annual growth. Recent news (Attunity IP alliances) have been exceptional. If ATTU can continue securing similar alliances (Equifax, Kongsberg, HP Vertica, Infor, AWS, EMC Pivotal...) and delivers strong revenues and earnings over the next three quarters the price any acquisition would command could go up geometrically so execution and timing in this revolutionary Big Data space is now critical. For all players.

Report this comment
#5) On August 18, 2013 at 7:00 AM, gnulaw (52.06) wrote:

>>Note: A Garnett & Helfrich (Actian)-led takeover/acquisition of Attunity was first suggested in the January 31, 2013 blog "(Attunity:ATTU) Q4/FY 2012 Numbers/Conference Call #BIGDATA" Parting Comment section. (from comment #2 above)

Another substantive reference to Actian viz-a-viz acquiring Attunity also appears in comment #10 (same blog).

 

Report this comment
#6) On August 22, 2013 at 8:07 PM, gnulaw (52.06) wrote:

An observation in re: Actian's acquisition of Pervasive.

Actian acquired Pervasive and made Pervasive's CTO, Mike Hoskins the CTO of the acquiror, Actian. This said a lot. It said that Actian did not have a qualified CTO, to date, to lead Actian's Big Data initiative/Corporate Mission Statement. And Mike Hoskins' Big Data responsibilities at Pervasive* accounted for less than 3% of PVSWs revenues.

Note: as documented on this blog Mike Hoskins' PVSW failed to increase revenues since 2004 * which begs the question Is Actian more about perception than reality?

Report this comment
#7) On August 30, 2013 at 4:37 PM, gnulaw (52.06) wrote:

[CORRECTION] Bad link

 

An observation in re: Actian's acquisition of Pervasive.

Actian acquired Pervasive and made Pervasive's CTO, Mike Hoskins the CTO of the acquiror, Actian. This said a lot. It said that Actian did not have a qualified CTO, to date, to lead Actian's Big Data initiative/Corporate Mission Statement. And Mike Hoskins' Big Data responsibilities at Pervasive* accounted for less than 3% of PVSWs revenues.

Note: as documented on this blog Mike Hoskins' PVSW failed to increase revenues since 2004 * which begs the question Is Actian more about perception than reality?

 

Report this comment
#8) On September 06, 2013 at 7:18 PM, gnulaw (52.06) wrote:

Datawatch up 18.04% today on 7.17X ADV (3 mo) appears to be teaching Attunity how to increase shareholder value...textbook execution of marketing and maximization of shareholder value. And they are solvent vs Attunity's inverted working capital . DWCH is now in a superior position to engage a secondary offering of 2M shares at $30/share and still have less than 10M shares outstanding with a war chest to fund aggressive growth.

Attunity is hobbled by its capital structure where it simply cannot grow significantly without a secondary offering but after an epic fail q1 and still *questionable marketing/sales capabilities can they even reach critical mass to pull one off?

Datawatch is on a very impressive roll having acquired Panopticon in June, major new product releases (Data Pump) in late July,  and Septermber 5th announced Datawatch's Data Pump Awarded 2013 Trend-Setting Product by KMWorld. 

A very interesting situation is emerging between Datawatch, Actian, Actuate, Attunity, Talend...

*Attunity has still failed to close deals with Azure, Rackspace, Cloudera, Tableau...and imploded q1 ending March 31. And is Lawrence Schwartz the right person? (see comment #4 above).

It's all coming down to delivering very impressive Q3 numbers (sales and earnings), in addition, to a flawlessly executed and timed secondary offering for Attunity. This all must happen within 60 (q3 numbers) - 120 days (on the heels of superior q4 numbers) worst case.

 

 

 

Report this comment
#9) On September 12, 2013 at 6:27 PM, gnulaw (52.06) wrote:

See Comment #4 above re: "Datawatch & Attunity: The Next Big Data Acquisitions?".

Based on today's close (September 12) and the respective market caps of ATTU and DWCH, ATTU arguably should be trading at $17.30 where both market caps would equal appx. $191M or equal to DWCHs close today at $29.17. Both company's are at annual revenue run rates of appx. $30M.

Q3 numbers are simply critical for ATTU. Still very concerned about lack of alliances/formal public announcements re: RAX, MSFT Azure, Tableau DATA, INFA, Cloudera, and IBM, in general, and the seemingly lack of critical mass of alliances ($ revenues/pipeline) announced since late July, early August. 

I would recommend paying attention to Mark Gomes' PoisedToTriple.com. Also on twitter. Pay attention to his PTT insider weekly updates. One was released today.

Mark is on a roll but I just wish he would be a little more humble. That being said, one simply cannot argue with his early, peerless and spot on analysis and call on HIMX.

Report this comment
#10) On September 14, 2013 at 3:53 PM, gnulaw (52.06) wrote:

Forbes September 13, 2013 "Sunny Skies For Cloud Companies In Merger A-Go-Go"

"The merger, acquisition and spin-off business is heating up, and it doesn’t get any hotter than in the technology sector...One area that is sizzling is the cloud...I’ve been sifting through the cloud sector, and have found several companies that look appealing.

One that I have my eye on is Datawatch Corporation (DWCH)..."

September 11, 2013 "Info-Tech Research Group Names Attunity as ‘Top Innovator’ and Awards it the ‘Trend Setter Award’ for Managed File Transfer (MFT)" Attunity selected for pioneering the integration of cloud and Big Data connectors within an MFT solution

 

Comment

Foiks, it doesn't get better than this. The word synergy comes to mind to best describe this scenario. A double potentiating effect on stock price/market capitalization/acquisition price viz-a-viz Cloud M&A heating up, Attunity nailed and cited by its peers as top pioneer and innovator with the integration of cloud and another revolutionary technology, Big Data.

ATTU and DWCH. ATTU CEO Shimon Alon has successfully navigated Attunity to be at the right place at the right time. It's all timing now. The success of this navigation all comes down to Shimon Alon meeting Q3  (ending Sep 30) and Q4 (ending Dec 31) numbers concommitantly maximizing ATTU shareholder value to exact the maximum acquisition price and or Secondary offering (or successive secondary offerings assuming continually increasing share price)  which appears must [continue to be] engineered over the next six months.

If ATTU does not pull the trigger on a secondary offering of greater than $20-$50M over the next 0-9 months and do not optimize an acquisition of themselves they arguably will not survive in the end. 

ATTU's existing and potential shareholders must be very aware of all permutations of this scenario/Decision Theory Matrix i.e. of all said above ATTU acts, events, outcomes, and payoffs.

 

Report this comment
#11) On September 15, 2013 at 7:26 AM, gnulaw (52.06) wrote:

Forbes September 13, 2013 "Sunny Skies For Cloud Companies In Merger A-Go-Go"

 

Note:  For those not familiar with ATTU, in addition to ATTU's September 11th* announcement their Cloud presence/accomplishments are also cited her in the main Blog above ** and again in comment 3 *** above.

* September 11, 2013 "Info-Tech Research Group Names Attunity as ‘Top Innovator’ and Awards it the ‘Trend Setter Award’ for Managed File Transfer (MFT)" Attunity selected for pioneering the integration of cloud and Big Data connectors within an MFT solution

** They appear to be the unanimously recognized enabling Big Data technology which breathes life into (Amazon:AMZN) AWS Redshift, S3 (EMC) Greenplum Pivotal, (Teradata:TDC) click-2-load.

 

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

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!..."

 

 

Report this comment
#12) On September 18, 2013 at 5:59 PM, gnulaw (52.06) wrote:

Per comments #8 and #9 above still very concerned about lack of alliances/formal public announcements re: RAX, MSFT Azure, Tableau DATA, INFA, Cloudera, and IBM, in general, and the seemingly lack of critical mass of alliances ($ revenues/pipeline) announced since July 17th

For some perspective Q3 numbers ending September 30, 2012 are here.  Q3 ending September 30 2013 simply MUST be a blowout. 

 

Report this comment
#13) On November 21, 2013 at 5:04 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
#14) On March 04, 2014 at 9:51 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