Datawatch Reports Revenue of US$11.11 Million

Datawatch (NASDAQCM:DWCH), a leader in data intelligence announced that total revenue for its third quarter of fiscal ended June 30, 2018 was US$11.11 million.

The company said that the revenue represented an 23 percent increase from the prior-year quarter revenue of US$9.07 million.

As quoted in the press release:

License revenue for the third quarter of fiscal 2018 was $6.87 million on a GAAP basis, a 40% increase from the $4.91 million recorded in the same quarter a year ago.

Total revenue on a non-GAAP basis was $12.9 million for the third quarter of fiscal 2018, an increase of 42% from the year ago period.  License revenue on a non-GAAP basis was $8.7 million for the third quarter of fiscal 2018, an increase of 77% from the year ago period.

A full reconciliation of GAAP reported results to non-GAAP is included in Appendix A of this press release. Non-GAAP results exclude the effects of the purchase accounting treatment of the deferred revenue fair value adjustment associated with the acquisition of Angoss, amortization associated with the purchase of certain intellectual property and other intangible assets, share-based compensation, transaction costs associated with the acquisition of Angoss, and the payment received in respect of a stockholder’s short-swing stock trading profits.

Net loss for the third quarter of fiscal 2018 was ($2.28) million, or ($0.18) per diluted share, compared to a net loss of ($0.50) million, or ($0.04) per diluted share, for the year ago period.  The Company’s non–GAAP net income for its third quarter of fiscal 2018 was $0.94 million, or $0.07 per diluted share, compared to non-GAAP net income of $0.22 million, or $0.02 per diluted share, for the third quarter of fiscal 2017.

“We are pleased with our progress during this first full quarter following the Angoss acquisition, which was highlighted by 23% year-over-year total revenue growth, 40% year-over-year license revenue growth and a 57% recurring revenue mix¹,” said Michael A. Morrison, president and chief executive officer of Datawatch.  “Customers have embraced the addition of Angoss to our portfolio, our dedication to continuous innovation with the latest releases of Swarm and Panopticon, and our unwavering focus on both the ease of use and the breadth of our data intelligence platform offering.  We enter the fourth quarter of fiscal 2018 with momentum and confidence that we can capture more opportunities in an extremely vibrant segment of business analytics.”

James L. Eliason, chief financial officer, commented, “We delivered record results for total bookings, subscription bookings, total revenue and license revenue in our fiscal third quarter.  In addition, deferred revenue is at an all-time high of $18.8 million and our overall balance sheet remains strong.  Finally, we completed the Angoss integration during the quarter and have fully consolidated all back-office systems and operations.”

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