3 Sep 2018 07:00
3 September 2018
WANdisco plc
("WANdisco," the "Company" or the "Group")
Trading Update
IBM expands OEM agreement and increases royalty to WANdisco
Accelerating momentum in Cloud, underscored by three new Microsoft deals in H1
WANdisco (LSE: WAND), the LiveData company, provides the following trading update for the six months ended 30 June 2018.
Key financial highlights
· Total bookings secured in H1 2018 of $9 million (H1 2017: $10.2 million)
o Big Data bookings secured for WANdisco Fusion ("Fusion") of $6.2 million (H1 2017: $7.0 million)
· Source Code Management bookings of $2.8 million (H1 2017: $3.2 million)
· Cash on balance sheet of $18 million
· Robust and strengthening sales pipeline underpins the Board's continued confidence in achieving full year market expectations
Key operational highlights
· Significantly expanded relationship with IBM
o OEM royalty increases to 50% (previously 30%)
o Guaranteed annual minimum royalty commitment
o Deeper integration including joint engineering work to support IBM BigSQL and other products, significantly expanding addressable market
o New customers in insurance, banking, telecommunications and US Government
· Momentum in Cloud with Microsoft
o Gained Co-Sell Status allowing WANdisco Fusion® Live Data Platform to be sold as a standard packaged offering with Microsoft Azure (Cloud)
o Three strategic deals with high profile Microsoft customers in banking, semiconductors and retail:
§ Major bank introduces WANdisco Fusion to enable hybrid cloud
§ Semiconductor company unlocks potential of cloud with WANdisco Fusion
§ Major retailer migrates from Amazon to Microsoft
§ All of these deals have annual recurring revenues with significant growth potential
· Announced OEM sales partnership with Alibaba Cloud and first product now integrated with its cloud solution
· Filed new Blockchain Patent to potentially open a significant new market for WANdisco's unique technology
· Dr. Sakthi Subramanian joins WANdisco as VP of Engineering
David Richards, Chief Executive Officer and Interim Chairman of WANdisco, commented:
"We are delighted to deepen and broaden our relationship with IBM. We have increased the royalty payable to WANdisco and agreed to joint development that significantly expands our opportunities to leverage the IBM Channel.
In the first half we began the transition toward predictable, annual recurring cloud revenue and away from large and difficult to forecast on-premise transactions. This is an expected and extremely positive evolution for our business. It opens up a significantly larger addressable market in the cloud and will enable us to generate a more predictable- recurring revenue base.
The early traction we are seeing with Microsoft clearly demonstrates that Fusion is the only solution capable of enabling organisations to seamlessly move large volumes of critical data to the cloud, without any downtime or service disruption. Unlike on-premise deals, these cloud deals are initially smaller in revenue terms but are expected to scale materially over time as is common with cloud deployments."
The Company has a robust and strengthening sales pipeline which underpins the Board's continued confidence in achieving full year market expectations.
The Company will announce its first half results on Tuesday 25th September.
For further information please contact:
WANdisco plc via FTI Consulting
David Richards, Chief Executive Officer and Chairman
Erik Miller, Chief Financial Officer
FTI Consulting +44 (0)20 3727 1137
Matt Dixon / Harry Staight / Leah Dudley / Kwaku Aning
Stifel (Joint Broker and Nomad) +44 (0)20 7710 7600
Fred Walsh / Neil Shah / Alex Price / Rajpal Padam
Peel Hunt (Joint Broker)
Edward Knight / Nick Prowting +44 (0)20 7418 8900
WH Ireland Limited (Joint Broker)
Adam Pollock / Tim Feather +44 (0)20 7220 1666
About WANdisco
WANdisco is shaping the future of data infrastructure with its groundbreaking Live Data platform, enabling companies to put all their data to work for the business - all the time, at any scale.
WANdisco makes data always available, always accurate, and always protected, delivering hyperscale economics to support exponential data growth with the same IT budget. With significant OEM relationships with IBM and Dell EMC and go-to-market partnerships with Amazon Web Services, Cisco, Microsoft Azure, Google Cloud, Hewlett Packard Enterprise, Oracle and other industry titans - as well as hundreds of customers among the Global 2000 - WANdisco is igniting a Live Data movement worldwide.