Datawatch Announces First Quarter 2015 Financial Results

CHELMSFORD, Mass., Jan. 29 — Datawatch Corporation, a leading global provider of visual data discovery solutions, today announced that total revenue for its first fiscal quarter of 2015 ended December 31, 2014 was $6.96 million, a decrease of 21% from revenue of $8.81 million in the first quarter a year ago. License revenue for the first quarter of fiscal 2015 was $3.18 million, a decrease of 42% from the $5.43 million recorded in the comparable quarter a year ago. Net loss for the first quarter of fiscal 2015 was ($7.28) million, or ($0.65) per diluted share, compared to a net loss of ($5.61) million, or ($0.66) per diluted share, for the year ago period. Excluding the effects of the non-cash amortization associated with the purchase of certain intellectual property and other intangible assets, non-cash stock compensation costs, and severance costs, the Company’s non–GAAP net loss for its first fiscal quarter of 2015 was ($4.25) million, or ($0.38) per diluted share, compared to net loss of ($1.94) million, or ($0.23) per diluted share in the first fiscal quarter of 2014.

Due to the size of the revenue shortfall and resulting net loss for the quarter, Management has determined that a “triggering event” had occurred with regards to a potential impairment of the Company’s goodwill and related intangible assets, which total approximately $46.0M as of December 31, 2014. Accordingly, the Company is working through an analysis with its financial advisors to determine if such impairment exists and, if so, to quantify the amount. This analysis is expected to be completed over the next few weeks and the Company will record any non-cash charge (if applicable) in its unaudited financial statements to be included in its first quarter Form 10-Q, which is anticipated to be filed on or before February 10, 2015.

On January 13, 2015, Datawatch announced preliminary results for the first quarter of 2015, and these final results are consistent with those preliminary expectations.

First Quarter 2015 Business Highlights

• Datawatch was recognized for the second year in a row as the “Best Big Data Technology Provider to the Buy-Side” by Waters Technology in its annual awards competition.
• Datawatch furthered its enterprise presence with important wins at CVS Caremark, Discover Financial Services, US Foods, Woods Hole Oceanographic Institution and Brown Brothers Harriman.

First Quarter 2015 Financial Highlights