Attunity Ltd. (ATTU) research, news, and more from GeoInvesting

Company description

Thu, 11 Oct 2018 13:18:57 GMT

Attunity Ltd., together with its subsidiaries, develops, markets, sells, and supports data integration and Big Data management software solutions worldwide. It offers Attunity Replicate, a data replication software for delivering, sharing, and ensuring the availability of data for meeting business operations, analytics, and business intelligence needs; Attunity Gold Client, a replication software for data management within SAP environments; and Attunity Visibility, a software for data usage analytics in Big Data environments. The company also provides Attunity RepliWeb for EFR, a file system and storage replication solution for wide area network infrastructures, as well as an ARA and Web deployment solution for Windows applications, UNIX and Linux applications, and Web infrastructures; and Attunity CloudBeam, a data transfer software as a service-based platform to move data to, from, and between on-premises and cloud environments. In addition, it offers Attunity Compose, a data warehouse automation software to design, generate, and populate enterprise data warehouses and data marts; and change data capture and data connectivity software solutions, as well as support, training, and professional services. The company sells its products directly through sales force; and indirectly through original equipment manufacturers, distributors, and value-added resellers to financial services, healthcare, insurance, energy, telecommunications, manufacturing, retail, pharmaceuticals, and supply chain industries, as well as to governmental and public institutions. Attunity Ltd. has strategic relationships with Amazon Web Service; Google Inc.; Hortonworks, Inc.; HP Inc.; IBM; Microsoft; Oracle; SAP; and Teradata Corporation. The company was formerly known as ISG International Software Group Ltd. and changed its name to Attunity Ltd. in October 2000. Attunity Ltd. was founded in 1988 and is headquartered in Kfar Saba, Israel.

Research

Mon, 07 May 2018 04:00:00 GMT

Attunity Ltd. - Ordinary Shares (NASDAQ:ATTU) ($10.06, $208.6m market cap) - New product line and a transition to recurring revenue model is starting to stick.

Research

Thu, 16 Jun 2016 14:47:11 GMT

Watching ATTU Closely

ATTU ($10.00) helps companies process data so it can be quickly analyzed.

Between 2013 and 2014 we were very active looking for acquisition targets in the SaaS space ( MKTG, ET, VOCS, DTRM). 3 of the 4 companies (MKTG, ET, VOCS) we looked at were acquired at hefty premiums. $DTRM reports numbers after hours today, so we will be sure to have an update on it so see if it will remain as a GeoBargain based on the special situation “acquisition” angle.

When we are monitoring a potential takeover candidates in the SaaS sector we look for top tier characteristics which include revenue growth of 15% or more, gross margins of at least 70%, and profitability (or nearly so) with revenues exceeding $50 to $75 million and has an EV/Sales of less than 4.

This brings us to ATTU (we will have additional details tomorrow):

ATTU meets many of our acquisition checklists. Revenues have grown at a CAGR of 23.6% since 2012 and are expected to grow 16% and 22% in 2016 and 2017 respectively. The Company has been profitable since 2009. Gross margins of its software and maintenance revenues are 78% and 57% respectively. EV/Sales is 2.9.
Shares have been beaten up recently on what appears to be EPS results that missed estimates. However, the decline in shares has significantly depressed the Company’s EV/Sales multiple which forced the Company’s board of directors to a approve a stockholders rights plan to prevent a hostile takeover. This reminds us of a similar situation to one that attracted us to SaaS company MKTG, where we started building a position when management implemented its stockholder rights plan because shares were selling to a severely depressed valuation compared to its peers. The stock also sold off on an earnings miss. MKTG eventually got taken over for $27.00 per share, a 200% premium from when we first coded the stock as a GeoBargain on 4/10/2013 at $8.97.

MKTG Case Study

Caveats:

We need to contact management to find out why they are missing estimates by what appears to be a wide margin.
The environment in 2014 was an exceptional time were lots of publicly traded SaaS companies were being acquired.

Comments & Business Outlook

Mon, 26 Apr 2010 04:00:00 GMT

“We are pleased, as demonstrated by our financial results for the fourth quarter and for the full year 2009, that we turned into profitability and have generated a positive cash flow in 2009. During the year, we focused the turn-around on further developing our core leading products, introducing product lines for the real-time data integration market, extending our offerings into the operational data replication market, strengthening our partnerships with market leaders, and expanding our offering to the large open system market".

Liquidity Requirements

Mon, 26 Apr 2010 04:00:00 GMT

On March 25, 2010, Attunity Ltd, announced today that is has entered into an extension agreement with the holders of its Convertible Promissory Notes due November 4, 2010.

Dror Harel-Elkayam Attunity' s VP Finance, stated, "We are pleased with the confidence our holders of convertible notes have placed in the Company as evidenced by the extension of the maturity date. We believe that this agreement, along with previous financing activities we implemented during 2009, further improves our cash and working capital position."