Attunity Ltd (ATTU)
Q2 2013 Earnings Call
July 25, 2013 10:00 AM ET
Garth Russell - KCSA Strategic Communications
Shimon Alon - Chairman and CEO
Dror Elkayam - CFO
Chad Cooper - Ascendiant Capital
Josh Goldberg - G2 Investment Partners
Ben Rogoff - Polar Capital
Mark Gomez - Poised To Triple Research
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Thank you. Before turning the call over to management, I would like to make the following remarks concerning forward looking statements. All statements in this conference call other than historical facts are forward looking statements. The words anticipate, believe, estimate, expect, intent, guidance, confidence, target, project and other similar expressions typically are used to identify forward-looking statements.
These forward looking statements are not guarantees of future performances and may involve and are subject to risks and uncertainties and other factors that may affect Attunity’s business, financial condition, and other operating results which include but are not limited to the risk factors, another qualifications contained in Attunity’s Annual Report on Form 20-F, quarterly reports that are filed in a 6-K, and other reports filed by Attunity with the SEC which are Attunity’s directive. Therefore, actual outcomes and results may different materially from what is expressed or implied by these forward looking statements. Attunity’s express or disclaims any intent or obligation to update these forward-looking statements.
During this call, we may also present certain non-GAAP financial measures such as non-GAAP net income and certain ratios that are used with these measures. In our press release, and in the financial tables issued earlier today which is located on our website at www.attunity.com, you’ll find our definitions of these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures with the closest GAAP financial measure as well as the discussion of why these non-GAAP financial measures are relevant to our results. These financial measures are included for the benefit of investors and should not be considered instead of the GAAP measures.
At this time, it is now my pleasure to turn the call over to Shimon Alon, Chairman and Chief Executive Officer of Attunity. Shimon, the floor is yours.
Thank you, Garth and thank you everyone for joining our call today. Since the first quarter, we have made significant progress in growing our revenues, generating profits, and building momentum in order to meet our goals for the year. With me today is Dror Elkayam, our Chief Financial Officer. We would be providing an overview of our financial results and then some details regarding our performance during the quarter. After our prepared remarks, Dror and I would be happy to answer any questions you may have. With that said let’s get started.
As we announced this morning we grew license revenue by 92% and total revenue by 33% compared with the first quarter of 2013. This revenue growth is attributed to effective marketing activities, accelerated sale performance and increased activities with our partners. With respect to sales execution we have engaged in growing number of prospects and customers through our direct sales activity. We have seen stronger performance for our U.S. sales force both quarter to quarter and year-over-year.
I am pleased to say that these growths can be mostly attributed to increased contribution from our new sales people as well as strength of our flagship product Attunity Replicate, which now makes up the majority of our license revenue.
Later I will discuss how our replication technologies are used to enable big data analytics by customers using data warehouses, such as Pivotal Greenplum, Teradata and Amazon Redshift. Extending into new territories is an important part of our overall growth strategy.
As part of these efforts we stand stable as new resellers in Mexico and Brazil and started to seeing increased activity in the region where we already closed the deal with a major financial institution, these activities complement the work that we're already doing to expand our business in Asia and Europe.
Moving on to our marketing activities, we're strengthening our brand and have been consistently recognized for the values that our data and file replication products provide, for big data and for the cloud market. Attunity solutions were highlighted by some of the leading industry publication, which includes being selected as one of the most important companies in big data by Database Trends and Application magazine, Attunity was also named to the CRM big data 100 list. We also accelerate our marketing initiatives.
We have hired a new VP of Marketing, Mr. Lawrence Schwartz. Under his leadership we are focused on generating new (inaudible) by investing our marketing approach. This includes growing overall awareness and inbound traffic by using customers to directly promote our message in a variety of forms including webinars and social outlets. We're extending our telemarketing effort in Europe. We're exposing Attunity to wider range of big data industry analyst and media, and we're working very close with our partners to develop a series of webinars that are jointly promoted to much larger audience. These activities have complemented and increased number of programs for both prospective and existing customers.
We expect to follow activity in the quarter, we have seen an increased activity with Greenplum, following the spinout of EMC and Pivotal. We went and collaborated more closely with the sales organization and closed very several deals for Greenplum data warehousing customers .With several more of these in the pipeline, for example Pivotal introduced us to one of the largest financial services institution in North America. This particular customer needed to load data into Greenplum to support analytics on strategic investment products. The customer saw the immediate benefit of our click to load solution that accelerated data loading process and selected Attunity within just few weeks. We are also starting to experience growth in selling our solutions for Teradata which has the target the largest which is the largest sale of enterprise data warehousing market. I'm pleased to say that we have successfully closed our first deal with the Teradata customer, this U.S based customer is using big data analytics and needed to use in time data to enable supply chain management intelligence, high performance integration with Teradata and a complete automation made Attunity the perfect solution. We are also seeing more Teradata customers who are evaluating our solutions with favorable results, we expect this partnership to contribute our growth in the future quarters.