WAND.L Regulatory News (WAND)

30 July 2015

WANdisco plc

2015 Q2 sales update

WANdisco Fusion brings record quarterly Big Data customer wins

Steps taken to improve sales focus

WANdisco (LSE: WAND), the leading provider of non-stop Big Data, reports on second quarter sales.

Highlights

· Revenue up 7% to $2.7m (Q2 2014: $2.5m)

· Sales bookings of $2.4m (Q2 2014: $3.4m)

· New Big Data product WANdisco Fusion brings eight Big Data customer wins and sales bookings of $1.0m

· Big Data sales integrated with key Hadoop platforms including Hortonworks, Cloudera and Oracle

Revenues were $2.7m (Q2 2014: $2.5m), up 7% on last year's second quarter, benefitting from the roll-out of deferred revenue from prior period sales bookings.

Sales bookings were $2.4m (Q2 2014: $3.4m). Big Data bookings increased compared with the previous quarter. During a period of rapid evolution in our products, partnerships and sales organisation we continue to expect volatility in quarterly bookings.

Costs were tightly controlled and were lower in the second quarter than in the first. Cost control will continue to be a focus throughout the rest of the year.

Big Data

Eight new Big Data customers - our highest ever - were added in the quarter, attracted by WANdisco Fusion in its first full quarter of sales. Big Data sales bookings were $1.0m (Q2 2014: $0.1m). Revenues rose to $0.5m (Q2 2014: $0.1m), reflecting the first significant revenues from previously booked sales.

Customer wins resulted from collaborations with Oracle, with partners from the Hadoop Open Data Platform including Hortonworks, and also from integrations with Cloudera customers.

New Big Data customers in the period, all of them large, global corporations, were drawn from all of our regions - EMEA, Americas and Asia-Pacific - and from a range of industries, most commonly financial services. All new customers from the quarter have intentions to scale up their subscriptions over time.

We continued the evolution of our new Big Data product, WANdisco Fusion, expanding its addressable market by enabling common data access across mixed Hadoop-compatible data storage providers, and adding support for more Hadoop analytics applications. During July we launched a free evaluation download version, and already prospective customers are evaluating the product by this means. Our first WANdisco Fusion customer went live during July, underlining the growing recognition of this product as essential for live production in mixed and evolving data storage environments.

 Application Lifecycle Management ("ALM")

$1.4m of sales bookings in the quarter came from our ALM products, (Q2 2014: $3.3m). Renewals were strong, confirming that our products continue to meet the needs of today's distributed software development teams. Sales to new customers are taking time to regain momentum after the steps taken to sharpen our focus on the ALM market and increase the productivity of our sales operations.

ALM revenue was $2.2m (Q2 2014: $2.5m), benefitting from the roll-out of deferred revenue from prior period sales bookings.

David Richards, WANdisco Chief Executive Officer, comments: 

"Our penetration of the Big Data market took a big step forward this quarter with a record eight contract wins and our first WANdisco Fusion customers starting to go into live production.

The recently launched WANdisco Fusion is gaining significant traction in the Big Data market. Our partners are increasingly viewing this product as crucial for their customers to go into production with new Big Data applications. We are working increasingly closely on go to market activities with selected partners such as Oracle and Hortonworks.

In ALM, the transition in our sales organisation impacted sales during the quarter. In this market, our offering remains highly relevant to today's increasingly distributed software development operations, and our live customer base of over 200 corporations offers ample sales opportunities."

For further information please contact:

About WANdisco

WANdisco (LSE: WAND) is a provider of enterprise-ready, non-stop software solutions that enable globally distributed organizations to meet today's data challenges of secure storage, scalability and continuous availability. WANdisco's products are differentiated by the company's patented, active-active data replication technology, serving crucial continuous availability requirements, including Hadoop Big Data and Application Lifecycle Management (ALM), including Apache Subversion and Git. Fortune Global 1000 companies, including Juniper Networks, Motorola, Intel and Halliburton, rely on WANdisco for performance, reliability, security and availability. For additional information, please visit www.wandisco.com.

Disclaimer

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on any such statements because they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and WANdisco's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. WANdisco undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.