My Application To Be Datawatch's CEO: A Review Of Operations And A Turnaround Plan
Dallas Salazar • 11 Comments
Dallas Salazar • 11 Comments
Wed, Jul. 20, 4:17 PM
Wed, Apr. 20, 4:09 PM
- Datawatch (NASDAQ:DWCH): FQ2 EPS of -$0.14 in-line.
- Revenue of $7.42M (-0.5% Y/Y) beats by $0.05M.
Tue, Mar. 8, 4:08 PM
- In a presentation titled "Time for Change at Datawatch," Potrero Capital (5.6% stake) assails the data preparation/visualization software firm's share performance, declining sales, low valuation, and "ballooning" sales/marketing spend.
- It also observes the SEC has noted inconsistencies between Datawatch's (DWCH +8.4%) sales targets and performance, and declared the company's efforts to compete against Tableau/Qlik (through the 2013 Panopticon acquisition), restructure its salesforce, and enter the self-service data prep market have fallen flat. Share dilution and negative opinions from Gartner and sell-side research firms are also mentioned.
- Declaring Datawatch's board "stale and in need of fresh, independent perspectives," Potrero plans to "solicit support to 'withhold' votes from Datawatch's incumbent directors at the Company's upcoming 2016 annual meeting." It calls on Datawatch to cut costs (esp. in sales/marketing), "realign" its sales/marketing strategy, create pay-for-performance compensation policies, and (perhaps most notably) hire a financial advisor to help pursue strategic alternatives.
Thu, Jan. 28, 12:45 PM
Thu, Jan. 28, 12:09 PM
- Datawatch (NASDAQ:DWCH) has plunged to new 52-week lows following its FQ1 miss. Like many enterprise software firms reporting sales shortfalls before it, the company blames deal timings. Datawatch notes "the business we typically see from our extensive Monarch [data preparation software] base was lower than usual due to the timing of a few of the larger forecasted opportunities."
- In response, Datawatch has "implemented specific programs and initiatives targeted at the Monarch installed base." The company notes it added 131 new Monarch customers in FQ1 and continues to "make significant progress" for its data visualization platform, while cautioning "the timing of larger visualization transactions can be difficult to predict."
- Software license revenue fell 1% Y/Y in FQ1 to $3.15M. Maintenance/services revenue rose 3% to $3.9M. Excluding a $32M year-ago impairment charge, GAAP costs/expenses fell 23% to $11.1M.
- Datawatch's FQ1 results, earnings release
Wed, Jan. 27, 4:16 PM
- Datawatch (NASDAQ:DWCH): FQ1 EPS of -$0.19 misses by $0.08.
- Revenue of $7.05M (+1.3% Y/Y) misses by $0.98M.
Nov. 4, 2015, 4:18 PM
- Datawatch (NASDAQ:DWCH): FQ4 EPS of -$0.13 beats by $0.04.
- Revenue of $8.02M (-11.4% Y/Y) misses by $0.28M.
Aug. 3, 2015, 12:46 PM
Jul. 22, 2015, 4:14 PM
- Datawatch (NASDAQ:DWCH): FQ3 EPS of -$0.18 beats by $0.02.
- Revenue of $7.8M (-15.5% Y/Y) beats by $0.01M.
Apr. 22, 2015, 3:18 PM
- Today's notable tech gainers include mobile game developer Glu Mobile (GLUU +8.2%), Chinese mobile app developer Cheetah Mobile (CMCM +8.1%), pico projector module developer MicroVision (MVIS +7.6%), Chinese analog/mixed-signal chipmaker Vimicro (VIMC +11.5%), IT services firm WidePoint (WYY +6.2%), mobile ad network owner Millennial Media (MM +5.6%), data discovery software vendor Datawatch (DWCH +15.7%), and RF backhaul hardware vendor Ceragon (CRNT +11.3%). The Nasdaq is up 0.4%.
- Notable decliners include Chinese solar module vendor/project developer Yingli (YGE -5.1%) and U.S. solar installer Solar Power, Inc. (OTCQB:SOPW -5.1%). Most solar peers are higher.
- Cheetah Mobile and Vimicro have joined several other Chinese tech firms in surging following an overnight rally in Shanghai. Glu's gains come ahead of the company's April 29 Q1 report. Datawatch's gains come after the company posted nearly in-line FQ2 results and stated has laid off almost 15% of its workforce; shares had tumbled in January thanks to an FQ1 warning.
- Previously covered: SolarCity, ASML, Cree, Broadcom, Angie's List, Yelp, Adtran, Novatel, SuperCom, Tremor Video, Dolby, Procera, Castlight, Zhone, CalAmp
Apr. 21, 2015, 4:12 PM
- Datawatch (NASDAQ:DWCH): FQ2 EPS of -$0.28 in-line.
- Revenue of $7.46M (-6.8% Y/Y) beats by $0.19M.
Jan. 28, 2015, 4:16 PM
- Datawatch (NASDAQ:DWCH): FQ1 EPS of -$0.38 misses by $0.11.
- Revenue of $6.96M (-21.0% Y/Y) misses by $2.08M.
- Shares -5.7%.
Jan. 14, 2015, 12:43 PM
Jan. 13, 2015, 4:40 PM
- Datawatch (NASDAQ:DWCH) expects FQ1 revenue of $6.9M-$7M, well below a $9.7M consensus, and down from $8.8M a year agi. Net loss is expected to rise to $4.5M-$4.6M from $1.98M a year ago.
- Datawatch, whose shares had already plunged in November following a revenue miss, says it implemented "strategic operational initiatives to improve sales execution, including the re-assessment and realignment of sales resources, which resulted in a 20% reduction in sales reps," among other things." The "level of disruption from the operational changes was much greater than anticipated, resulting in the quarter's shortfall."
- The company has also "taken steps to lower our expense structure by reducing our investment in legacy solutions and restructuring our international operations to align with local selling norms." The moves are expected to yield $3M/year in cost savings, and result in $800K worth of charges.
- Full FQ1 results arrive on Jan. 27.
Nov. 20, 2014, 12:46 PM
Nov. 19, 2014, 5:00 PM
- "While our expense trend in Q4 remained in line with our plan ... our revenue performance in Q4 fell short of our goals and expectations," says CEO Michael A. Morrison in Datawatch's (NASDAQ:DWCH) FQ4 report.
- Morrison: "As we have engaged in more streaming data in motion use cases, including many in the capital markets vertical and the Internet of Things arena, the relative complexity of these sales opportunities has led to some increases in the length of sales cycles, which provided a headwind to revenue performance."
- FQ4 software license revenue (drives future maintenance revenue) -8% Y/Y to $5.2M; maintenance +31% to $3.5M; professional services -11% to $323K.
- GAAP costs/expenses rose 23% Y/Y to $14.2M. In spite of the soft license revenue, Datawatch says it signed "the largest number of discrete license transactions in the history of the company" in FQ4.
- FQ4 results, PR