Executives
Todd Fromer - KCSA Strategic Communications, IR
Shimon Alon - Chairman and CEO
Dror Elkayam - Chief Financial Officer
Analysts
Richard Baldry - ROTH Capital Partners
Chad Bennett - Craig-Hallum
Ed Schneider - Quan
Michael Needleman – Fusion
Attunity, Ltd. (ATTU) Q4 2013 Results Earnings Call January 30, 2014 10:00 AM ET
Operator
Good day. And welcome to the Attunity Fourth Quarter 2013 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Todd Fromer of KCSA Strategic Communications. Please go ahead, sir.
Todd Fromer
Thank you. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call other than historical facts are forward-looking statements.
The words anticipate, believe, estimate, expect, intent, guidance, confidence, target, project and other similar expressions typically are used to identify forward-looking statements.
These forward-looking statements are not guarantees of future performances and may involve and are subject to risks and uncertainties and other factors that may affect Attunity’s business, financial condition and other operating results, which include but are not limited to the risk factors and other qualifications contained in Attunity’s annual report on Form 20-F, quarterly reports that are filed in a 6-K and other reports filed by Attunity with the SEC to which your attention is directed.
Therefore, actual outcomes and results may different materially from what is expressed or implied by these forward-looking statements. Attunity’s expressly disclaims any intent or obligation to update these forward-looking statements.
During this call, we may also present certain non-GAAP financial measures such as non-GAAP net income and certain ratios that are used with these measures. In our press release and the financial tables issued earlier today which is located on our website at www.attunity.com, you’ll find our definitions of these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures with the closest GAAP financial measure, as well as the discussion about why we think these non-GAAP financial measures are relevant to our results. These financial measures are included for the benefit of investors and should not be considered instead of the GAAP measures.
At this time, it is now my pleasure to turn the call over to Shimon Alon, Chairman and Chief Executive Officer of Attunity. Shimon, the floor is yours.
Shimon Alon
Thank you, Todd. Thank you very much. And thank you everyone for joining our call today. With me today is Dror Elkayam, our Chief Financial Officer. We will be providing an overview of our financial results and adding some detail regarding our performance during the quarter and a full year of 2013. After our prepared remark, Dror and I will be happy to answer any questions you may have.
With this said, let get started. The fourth quarter of 2013 marks the high point in Attunity history, with the record results across several metrics. We achieved record quarterly revenue of $8.1 million, record license revenue of $4.9 million and record non-GAAP operating income of $1.4 million. And in addition, I am very excited to announce that we close record number of Attunity Replicate deals during the quarter.
The demand for Big Data analytic is growing rapidly, while according to McKinsey only 17% of organizations are satisfied with the performance of the data warehouse loading process.
With the launch of the new Attunity Replicate 3.0 during the third quarter of 2013 we have continued to the tremendous job of overcoming this thing and addressing this market. In fact, during the fourth quarter, Attunity Replicate grew at 140% quarter-over-quarter, drastically outpacing the market and make up the lion share of our revenue.
We are getting many new customers leaving against our competitors and even better replacing their solution in some cases. Also we have experienced the opening of additional software licenses from existing Replicate users. By employing this strategy we are ultimately gaining market share in the Big Data market.
For example, one U.S bank with global presence selected Attunity for the Big Data project due to Attunity empowering performance and (inaudible) support, low overhead and a quick time to value. This bank replaced the current replication product with Attunity Replicate in order to simplify and improve its data sourcing strategy.
The existing solution was so overly complex in managing multiple software installation and it place unnecessary burden across the company at (inaudible) environment. It proved in educate to meet the essential Big Data need.
In another instance, the Fortune 50 global corporation choose Attunity Replicate as their solution for loading data into [third] data launching Big Data warehouse for the Big Data analytics.
Just they were about to make the final selection in favor of the competitor, they selected Attunity instead as a result of our unmatched automation and overall performance. This particular customer requires high volume of data and high-speed at very low latency and Attunity was the solution of chose to deliver such optimized requirement.
Many customers experienced the efficiency of Attunity Replicate after their initial purchase, preferred to expand the use of product to accommodate additional Big Data operations within the company. The success of our length and expense strategy demonstrates how the adoption of Attunity Replicate drives upward mobility to support additional areas of the customer businesses.
For example, one of the most dynamic providers in European mobile telecom market implemented our Replicate product during 2013 to address the specific need in the business. After using the product for several months, they saw how effective it could be for additional applications for the Big Data processes and choose to extend the solutions with Attunity.
In order to capitalize on the positive momentum and accelerated profile growth, we have taken a strategic approach to grow our operation and meet the increased demand. Recently, we have appointed a new VP of Sales in the EMEA region who has been effective in deploying sales resources in high cost areas such as the Nordic region, France and Germany.
In addition to this people, we also hired a number of highly specialized sales people in other key markets in the U.S., bringing the total number of sales people to 25 from 15 at the end of the third quarter this year in 2013. And plan to hire several additional sales people through 2014, actively increasing our global footprint in the more uncapped regions.
Marketing activities continued to extend to keep pace with the sales expansion efforts. To support and increase the flow through the funnel, we implemented an inside sales function, resulting in quickly adoption of our product and new business that are ready in Q4.
U.S. also made to extend our (inaudible) and online presence to get closer to the prospects and customers, so industry form such as CloudBeam and online Big Data Cloud chat, the New York Big Data month and the Massachusetts Technology Leadership Council Conference in Boston. Our footprint as industry shows also including Amazon web services reinvent where several of our joint customers recorded video testimonials on CloudBeam performance with Amazon Redshift.
The impact of extended inbound and outbound effort included Trend Setter Award from Database Trends and Applications as well as increased web traffic and 75% growth in quarterly cash flow year-over-year. As a result, we enter 2014 with a significantly stronger pipeline.
At the end of December, we acquired Hayes Technology Group, a leading provider of Data Replication Software for the SAP market. In fact, Gartner selected Hayes to be part of (inaudible) in the SAP selective data. Going into 2014, we are positioned to immediately establish our presence in the SAP and SAP HANA ecosystem, which was strong at 50,000 global customers, make us the largest business software provider.
Given the synergies between Attunity and Hayes for replication solutions providers to Big Data market, we anticipate that this acquisition will contribute to our accelerated growth. With growth driving Hayes SAP certified product, we anticipate that we will be able to calculate additional growth by cross-selling and up-selling into each of the existing customer base.
Following this, we expect to launch the respective technology and expand the breadth of our offering on even larger scale. In order to support our growth initiatives and enhance our balance sheet, we had approximately $18 million in net losses through the secondary public offering during the fourth quarter.
This capital raise gave us an opportunity to add new group of sophisticated and committed shareholders, while increasing liquidity and exposure to the investment community. We are actively investing to support future growth by expanding our sales and marketing teams and using innovative technology. We plan to continue to use this capital to execute on our growth strategy and drive shareholder value.
As delivering, enabling, lead time Big Data analytics and data loading to inform the cloud, we have big and a reserve suite of solutions for structured and unstructured data. Our offerings are platform independent to ensure optimization across heterogeneous environment, while also delivering greater performance and scalability.
We kept a unique approach, different from the traditional replication solution. This traditional replication solutions, provided by some of our competitors, employee complex product that require heavy customization, lengthy implementation, specialized staffing on site and we will develop before the era of Big Data and real-time analytics.
At Attunity, we strive to provide automation, high performance, ease of use, unique technologies for in-memory processing, all with minimal overhead and while generating fast ROI. One of the most notable successes recently occurred with the customer, who’s biggest focus on innovative Big Data product and transaction.
The go-live date for production deployment was just before the busiest day of the holiday shopping season next Friday. For this application, the innovative solution that could manage high volume, high velocity data to enable data processing in real time.
We anticipated the thick volume during the holiday period and due to the past experience with one of our competitor, we are uncertain about the uncertainty they could handle the volume and the velocity data.
Not only this region guarantee a seamless go live date but to briefly quote the CIO of this company, he said that Attunity Solutions perform perfect, very successfully. And the project went very smoothly even beyond the call of duty. This testimonial attached showed the superiority of our technology, the quality of our service and the dedication to our customers and partners.
Our planning for the new future is to continue to enhance Attunity Replicate by responding to customer depend, supporting additional data target and sources and providing even better performance results. We also plan to launch innovative data flow and process management solutions for the large scale enterprises, more cloud based solutions and enhance our current public offering.
Our strong Q4 benefited from our extended partner program in the Big Data market, resulting in record number of deals closed with our go-to market partners as well as growing pipeline of opportunities. During the past year, we continued to grow our partnership with Pivotal and were -- where we are seeing stronger momentum and closing more joint business.
In addition, we focused on building our partnership with Teradata by aligning our offering with Teradata, unified data architecture for Big Data analytics. We closed several business during the year. In the second half of the year, we introduced solutions for HP Vertica, and Microsoft Parallel Data Warehouse, both of which quickly ramped up, given our long lasting strong reliances with HP and Microsoft, resulting in new deals this year as well as strong momentum in the field.
Our partners continue to benefit from the unique value proposition of our software and we expect them to be a major contributor to our growth in 2014. We continue to add new customers to our software-as-a-service solution, Attunity CloudBeam. We received strong support from Amazon for the deployment of CloudBeam and it is providing a data loading and data transfer to Amazon Web Services and data warehouse Amazon Redshift.
This quarter, we expanded our solutions to support Amazon Relational Database Service, Amazon RDS and we participated in the partner, Amazon Web Services venture in November. This event introduced record number of lead and proved how valuable our relationship with Amazon is further growing our business.
As you can see, our fourth quarter marked unmatched growth on an operational scale as well as positive momentum as we further raise awareness within the investment community. To that effect, this quarter also marked the initiation of analyst coverage. We are happy to welcome two new covering analyst to our story, Mr. Richard Baldry from Roth Capital and Mr. Chad Bennett from Craig-Hallum, both of them will provide meaningful industry and company data to our growing shareholder base.
Result of the fourth quarter was below our original forecast as number of orders anticipated to close before the year end slip into Q1. Despite this unfortunate timing which we had indicated previously as a possibility, we still achieved record results for the fourth quarter.
We are pleased to say that many of those holders have now been recognized already in Q1 given us a strong start for the New Year. Given the market demand, our strong product, the extension of our direct, indirect and OEM sales channel, both domestically and internationally, the extended customer base, the total lend and expand business model and the solid debt free balance sheet with adequate cash reserve, we are planning to generate revenue in the range of $34 million to $37 million in 2014 with non-GAAP operating profit of 9% to 13%.
I will now turn the call to Dror Elkayam, our CFO, to discuss details of our financials. Dror?
Dror Elkayam
Thank you, Shimon. As Shimon just mentioned, we are excited about this upward momentum. This is evident in our Q4 total revenue which was a record quarter for us. The growth is mostly attributable to the proliferation of our Attunity Replicate Solution.
For reasons previously discussed, this momentum is lead apparent when we bring our results for the year at a high level given a slow than anticipated first half with $5 million in license revenue and $10.7 million in total revenues.
As a trend we saw in the second half of 2013 with $8.4 million in license and $14.6 million in total revenue is a clear indication of accelerated momentum going into 2014 as we intend to continue making significant progress, capitalizing on the growth engines we have put in place towards the end of 2013.
With that, I'll move to the specific financial results for the quarter. We saw total revenue increased 14% to $8.1 million, compared with $7.1 million for the same period of 2012. This is attributable to a 15% increase in total license revenue or $4.9 million in the fourth quarter, compared with $4.3 million for the same period of 2012 and a 12% increase in total maintenance and service revenues of $3.2 million in the fourth quarter, compared with $2.8 million for the same period last year.
Cost of revenues for the fourth quarter -- for the fourth quarters of 2013 and 2012 remained relatively flat at $600,000. Total R&D expenses for the fourth quarter increased by 7% to $2 million from $1.9 million in the fourth quarter of 2012. This increase is mainly due to salary upgrades during 2013, a lower U.S. dollar to Israeli shekel exchange rate and the relocation of our offices in Israel.
Total R&D expenses were 25% of total revenues for the fourth quarter compared with 27% for the same period last year. This decreased as a percentage of total revenues is a result of high revenues during this quarter of 2013, compared with the same period last year.
Sales and marketing expenses for the fourth quarter increased by 29% to $3.7 million from $2.9 million in the same period last year. This is mostly attributable to the increasing headcount of our sales and marketing teams during the last few quarters as part of our strategy to increase our global footprint, as well as the added investment in marketing to support this expansion. As a result, sales and marketing expenses for the fourth quarter as a percentage of total revenue were 46%, compared with 41% for the same period last year.
General and administrative expenses for the fourth quarter were $1.3 million or 17% of total revenue, compared with $800,000 or 11% of total revenue for the same period in 2012. This increase is mainly due to expenses associated with the acquisition of Hayes Technology Group.
Net operating income for the fourth quarter was $392,000, compared with $919,000 for the same period last year. Net operating income included a total of $1 million in expenses and amortization associated with the acquisitions of RepliWeb in 2011 and most recently Hayes and equity-based compensation expenses. This is compared with $476,000 of similar expenses for the same period last year.
Excluding these items non-GAAP operating income for the fourth quarter was a record of $1.4 million compared with a similarly unmatched income for the same period last year. Net income was $54,000 or zero cents per diluted share compared with $1.1 million in the fourth quarter of 2012 or $0.09 per diluted share, which is mainly attributable to expenses and amortization associated with acquisition of Hayes.
Non-GAAP net income for the fourth quarter was $1 million, compared with $1.5 million for the same period last year. Non-GAAP net income excluded a total of $1 million in expenses mostly attributable to expenses and amortization associated with acquisitions, non-cash financial expenses resulting from revaluations of liability presented at fair value, equity-based compensation expenses and deferred tax amortization related to acquire intangible assets. Non-GAAP net income for the same period last year excluded $393,000 in similar expenses.
Moving on to the financial results for fiscal year 2013. Revenues for 2013 and 2012 remained at comparable levels and amounted to $25.3 million in 2013, compared with $25.5 million in 2012. As I mentioned earlier, this reflects the circumstances we experienced in the first half of the year.
Total maintenance and services revenues in 2013 increased by 7% to $11.8 million compared with $11 million in 2012. This increase was offset by a 7% decrease in license revenues to $13.5 million in 2013 compared with $14.4 million in 2012.
Total of revenues for the full year as a percentage of total revenue was 8% in 2013 compared with 9% in 2012. For the year, R&D expenses as a percentage of total revenue were 31% in 2013 compared with 30% in 2012. Sales and marketing expenses for the year 2013 as a percentage of total revenues were 46% compared with 39% in 2012.
General and administrative expenses were 14% as a percentage of total revenue, compared with 12% in 2012. Non-GAAP operating income in 2013 was $2.3 million compared with $4.4 million in 2012.
Non-GAAP operating income excluded total of $2.1 million in expenses attributable to expenses and amortization associated with acquisitions and equity-based compensation expenses. This is compared with $1.8 million in similar expenses in 2012.
Net financial expenses were $600,000 in 2013 compared with $1.2 million in 2012. Net financial expenses, mainly derived from non-cash revaluation of liabilities presented at fair value of $363,000 for 2013 and $814,000 for 2012, as well as non-cash financial expenses associated with acquisitions of $95,000 in 2013 and $265,000 in 2012.
Net loss in 2013 was $400,000 or $0.04 per diluted share as compared with a net income of $1.5 million or $0.12 per diluted share in 2012. Non-GAAP net income for 2013 was $1.7 million as compared with $4.1 min for 2012.
Non-GAAP net income for 2013 excludes a total of $2.1 million in expenses mostly attributable to expenses and amortization associated with acquisitions, equity-based compensation expenses, non-cash financial expenses resulting from revaluation of liabilities presented at fair value and deferred tax amortization related to acquire intangible assets. This is compared with $2.6 million in similar expenses in 2012.
Moving to the balance sheet, as of December 31, 2013, we reported cash and cash equivalent of approximately $16.5 million, compared with $3.8 million as of December 31, 2012. This reflects the recent secondary offering completed in November 2013 where we raised $18 million in net proceeds and the upfront payment and cost associated with acquisition of Hayes.
Our shareholders' equity has increased to $30.3 million as of December 31, 2013, compared to $9.6 million as of December 31, 2012. This strong balance sheet will now support our growth initiative.
Now, I'd like to turn the call back over to Shimon for some closing comments.
Shimon Alon
Thank you very much, Dror. To follow up on what Dror just covered, it is important to note that our Replicate business continues to outperform the Big Data market. I believe that this signifies the demand for our technology, compounded with our strong partnership and enhanced direct sales team.
Before we conclude our prepared remarks, I'd like to thank all of our investors, customers, partners, the new Hayes employees and the dedicated members of the Attunity team for their support.
We will now open the call for questions. Operator?
Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) We will take our first question from Richard Baldry of ROTH Capital Partners. Please go ahead, sir.
Richard Baldry - ROTH Capital Partners
Thanks. Can we talk about the magnitude of deals that pushed out from Q4 into Q1 and maybe as part of that, talk a little bit about the seasonality you expect to your full year revenues? How linear it has to be throughout the year of both, maybe at the topline and bottom-line? Thanks.
Shimon Alon
Yeah. The first question is about the deals we’ve pushed and I will say that some large scale deals and some significant deals. I’m happy to say that some have already been recognized for Q1 and a very nice momentum that was created with this deal. The second question, Richard?
Richard Baldry - ROTH Capital Partners
A little bit about the linearity, expect your revenues or seasonality for revenues and earnings throughout 2014?
Shimon Alon
We definitely see this --- there will be some, I will say there will be linearity starting from Q1. We right now believe that we’ll see a revenue growth from quarter-to-quarter, Q1 to Q2 to Q3 to Q4 and with the tough Q4 as we always see very normal Q3 and alike.
Going to your previous questions, I will say that the average Replicate product price are going up and they are around the $250,000, $300,000. There are some much larger accounts in this, but there will be -- must be happening during the year and not necessarily right now.
Richard Baldry - ROTH Capital Partners
And you added almost a 60% to 70% increase capacity in headcounts and sales. Can you maybe talk to us about, how long it takes sales to ramp, how long it takes to build a pipeline, close the first deals? And so we can start to feel like when that will contribute meaningfully here in bookings and top-line growth. Thanks.
Shimon Alon
Okay. The business we hired, the sales team we hired, some of them are coming from a competitive environment from the software competitors. They actually met us during a competitive since as we had customer side. These people are on board, they know -- we had this peoples meeting on the first week of January. They are up and running, they started already to meet customers and prospects and they will deliver much faster.
As part of the territories, we split territories and by splitting territories, they get immediately and they get leads. They’re coming in. If they know how to sell, they can be up and running faster then just somebody who needs more training. The good news with that is also that we’re going into untouched territories like the Nordic, which is sales guy who came from the competitor. He knows all the customers there. The German and France and all will ramp up than faster than what we experienced before. So that’s when we are, we believe that these guys will be up and running shorter than what we normally use. It typically takes about two quarters and in some cases it will be faster.
Richard Baldry - ROTH Capital Partners
Thanks. And then last thing would be, could you talk about how much the partner’s contributed to revenues in the quarter, or was it sort of in line with your past experience, that’s starting to climb? Obviously you are dealing with some pretty large companies, so I’m curios how well do you think that’s currently utilized and what should you expect in 2014 in terms of those relationships? Thanks.
Shimon Alon
I will say that the fourth quarter signifies the record number of these global partners. Some partners will work full year. People actually started in the second quarter after establishing the first quarter. And Teradata, we introduced about the same time, both recurring well for us. We are very happy to see that they bring us to the accounts. They’re recommending us. In many times, they will say they can’t make sure that we are winning because our winning is their win.
We have to understand. It’s not just a normal friend relationship. We are a typical enabler for their revenue, without us they will lose it to other competitors. So it’s very important for them to bring us to the account and make sure that we will win. At the same time, we at the second part of the year, we establish firm relationship with HP Vertica and with Microsoft PDW. We announced the two products with those two vendors. We had very strong and long relationship with them. And we already closed the fourth quarter deals with both the companies.
So we’re very encouraged with what we saw in the fourth quarter with all the focus that we’re selling with. And I think, they are encouraged by us because they are winning deals as well. The momentum is strong and we will see an increase in number of deals closed during 2014.
Richard Baldry - ROTH Capital Partners
Thanks. And just one more, I think the 10 additional sales hires as well as the head is what we would have expected in Q4. So when you’re talking about adding more throughout 2014, is there a way to engage, is that -- will it be well below that trend line at a similar amount over the course of the year just so we have a feel for how we should expect to see that ramp? Thanks.
Shimon Alon
We hired the majority of the new sales guys before the beginning of the year as we want them to be up and running. We, of course have new sales that will be coming from the Hayes acquisition. Hayes brought with two of the acquisitions for they -- I will say qualified sales people. As we say, we’re ready to do cross-selling and up-selling, which it will help. During the year, based on some opportunities to happen in some territories, the new product we’re going to launch, we believe that we’ll hire similar more sales people, not in the same range and the quantities we will hire during Q4.
Richard Baldry - ROTH Capital Partners
Okay. Thanks and congrats on the quarter.
Shimon Alon
Thank you very much.
Dror Elkayam
Thank you.
Operator
Thank you. We’ll now move to Chad Bennett of Craig-Hallum. Please go ahead.
Chad Bennett - Craig-Hallum
Hey, thanks for taking my question. I only have a couple of questions, not six. But so the Replicate products, remind me then how much of that represented of Q4 product revenue and what that grew at year-over-year?
Shimon Alon
Okay. What we say that the growth was 140% year-over-year, 140% and total revenue, well that was $234 million in license revenue.
Chad Bennett - Craig-Hallum
Okay. And then on the Hayes or the SAP opportunity, how should we think about the growth rate of that SAP business for you guys this year, off of the Hayes base?
Shimon Alon
What we said before during the acquisition, we said that Hayes represents about $4 million of 2014 revenue. We’ve just started. We already got few deals from them in January. We have to continue to build the sales team, the marketing to know how we can go in. Right now, the target of sales team, they’ve been manage by our sales management. And we believe definitely that we can raise it even further with cross selling, up selling and adding more product, the introduction for HANA solutions by Attunity later on the year can give us another edge and another revenue opportunities but its early to say and let’s talk again in the call on the second quarter.
Chad Bennett - Craig-Hallum
Okay. But I mean -- should it be comparable to, I mean is there any reason that won’t be comparable to other kind of data warehouse, data appliance, growth rates i.e. EMC, Greenplum business, Pivotal business, is there anything -- is there any reason that would be different from that growth?
Shimon Alon
The focus of Hayes' Gold client once it goes with the HANA, we can see that the HANA solutions should grow the same way that other data world is. No reason for this. Right now….
Chad Bennett - Craig-Hallum
Yeah. Perfect. Thanks guys. Great quarter.
Shimon Alon
Thank you.
Dror Elkayam
Thank you.
Operator
Thank you. We will now move to [Bill Chan of Blueline Capital]. Please go ahead.
Unidentified Analyst
Hey Shimon.
Shimon Alon
Hi Bill.
Unidentified Analyst
So quick couple of question. First you said big bank, you guys went and replace someone else, can you talk about what you replaced?
Shimon Alon
Yes. In few occasions, we have been called to customers, you took about the one that I mentioned in my call. The one with we mentioned is I prefer not to use names but I will say it’s an established one of the only replication product in the market for long time complex. Customers didn’t enjoy it, had to change this environment, move the task and was very, very pleased from the first demo in the proof of concept.
So we replaced that. As you know, Bill, we are not -- we don’t have too many competitors. We are competing primarily with Oracle’s GoldenGate, IBM, DataMirror and Informatica, (inaudible) replication tools. And so far we are doing very good job in competing with them and replacing them.
Unidentified Analyst
Okay. And then second thing, your services revenue is quite bouncing round a bit. Can you give some color? How much of it is maintenance, how much of it is in ventilations and project management, whatever else that might be?
Shimon Alon
I will ask -- I will answer it and then I’ll ask Dror to add a little bit more color. As you know, our maintenance come from the license revenue, we are selling which is surely nice. And then we have also revenue coming from our royalty reports, coming from an OEM and this may vary from time to time.
We had a great -- we did a great job with one of the OEM partner restructuring the deal or the agreement that we had for three years. We restructure it in April and they start to get the first report in our third quarter and the second report in the fourth quarter. And we are getting much higher maintenance that we got from them earlier in the early agreement due to the fact that we are getting now recurring revenue which is different from what they had before.
So some of the valuation happened due to the report. There is no impact on total revenue and it was more of a fragmentation. Going forward, we don’t see any issues and that is more major point that we can raise right now.
Unidentified Analyst
So does that mean in the future when I look to 2014 between more license sale and this newly signed situation with this OEM that you are selling through, that your maintenance could grow faster than historically was the case?
Shimon Alon
I don’t expect it to grow faster. I expect it to have the additions from the OEM issue. I will ask Dror to give you a little bit more color.
Dror Elkayam
It will definitely be higher in terms of the total maintenance revenue recognized compared to the era before we amended agreement. Okay. So you should expect in terms of the maintenance and service revenue but the base line is Q4 2013. We were on 3.2 and incremental maintenance revenue that comes with the new revenues -- new transaction we closed. We also expect to increase our service revenue as we grow.
Unidentified Analyst
Okay. And then last question for me on the guidance and maybe I’m not doing my maths right. So the full year guidance for 2014 is $34 million to $37 million? Is that right?
Dror Elkayam
Yes.
Unidentified Analyst
And so when you bought Hayes, you got an additional $4 million in revenue?
Dror Elkayam
Yes.
Unidentified Analyst
Then assuming the big deal, deals, was there any one near million dollars, able to say that at the low end of the guidance before your guidance is small growth from -- an organic growth from $25 million to $29 million, am I doing my math right?
Shimon Alon
What you actually notice that guidance is 37, I’ll deduct the $4 million we are focusing and the rest is organic.
Unidentified Analyst
Right. So even if you do that but that is at the high end of the guidance, right?
Shimon Alon
You can do the same with the lower end of the guidance.
Unidentified Analyst
Right. My point is you do that with the low end of the guidance, your growth, your organic growth is only showing 16% growth?
Shimon Alon
As far as a -- Dror, it look smaller 20% to 25% more.
Unidentified Analyst
Okay. But than I would have.
Shimon Alon
If you take $34 million, deduct $4 million that they we discussed that from Hayes and you get 30. So from 25 to 30 you get. Yeah. Go ahead.
Unidentified Analyst
And I am assuming one of the deals that should have been booked in 2013 and pushing in it 2014, I am assuming one or two deals?
Shimon Alon
I will tell you for sure that some of the deals of 2014 will be pushed to 2015. So this is not the case. The case is we’re focusing, what we are going to do and that’s what we’re going to do.
Unidentified Analyst
Okay. So what I’m trying to (inaudible) very interesting conservative in your guidance especially on the low end?
Shimon Alon
Based on our experience in 2013, we prefer to be conservative.
Unidentified Analyst
Okay. So the things could be better than what you guys gave in some of the guidance.
Shimon Alon
That’s the meaning of conservative.
Unidentified Analyst
Okay. Thanks very much.
Shimon Alon
Thank you Bill.
Operator
Thank you. We’ll take our next question from Ed Schneider of Quan. Please go ahead.
Ed Schneider - Quan
Yes. You mention that the line share of revenues came from Replicate but can you just sort of quantify what that is with help us…
Shimon Alon
Yes. As we state on the call during the QA, Replicate drove year-over-year, it’s 140% and in Q4…
Ed Schneider - Quan
Right. You’re absolute on that.
Shimon Alon
…it represented the $2.4 million, a record license number of $2.4 million. So if you look at the total revenue, license revenue which was $4.9 million and look at the $2.4 million, you see that we’re now spending over 50% of our revenue come from Replicate and this become now the fastest growing product for the company and the one generating the highest amount of revenue. We can see that it will grow even faster during 2014 and this is where the larger deal, this is where the partner deals and that’s what we enjoy the most.
Ed Schneider - Quan
Okay.
Operator
Thank you. (Operator instructions) We will take the next question from George Marima, a private investor. Please go ahead.
Unidentified Analyst
Hi. Thanks for taking my call. I wanted to follow-up on that last question about Replicate. Did I hear right that Replicate in total was roughly half of your revenue in Q4?
Shimon Alon
It’s more than half.
Unidentified Analyst
Okay.
Shimon Alon
About of half.
Unidentified Analyst
About half, okay. And so when we speak about the 140% growth at license revenue, how much did total Replicate revenue grow year-on-year in the percentage?
Dror Elkayam
Definitely, it’s a lower percentage as we have vast number of customers under maintenance for the all products. So the majority of the maintenance revenues do not come from replicates.
Unidentified Analyst
Okay. I am just trying to get a handle on growth rates going forward for 2014 for Replicate --
Dror Elkayam
I think that the right thing -- the right thing is to take this measure of licence revenues. This is a good indication of the potential growth rather than the maintenance.
Unidentified Analyst
So, if I heard right, you expect Replicate to grow even faster in 2014, is this in dollar terms or percentage terms?
Dror Elkayam
What I am saying is that in order for you to model, or to better understand how we forecast the 34 to 37, it will be better to take a look at growth rates of Replicate license revenues rather than to take the entire total revenue generated from Replicate because of the reasons I explained earlier.
Shimon Alon
George, what I will probably say that if in Q4, license revenue from Replicate were about 50% of total revenue, in 2014 it will be much higher. I will say around 60 plus percent, 60% to 70%. Maintenance (inaudible), we have currently hundreds of customers over the years, which are very loyal, keep using us and keeping maintenance. And therefore, the maintenance cannot grow in the same rate as with the license. So license, we will say will grow nicely. Replicate license reach about 60% to 70% of our total licence revenue, while maintenance will get nice increase but cannot keep up with the same growth rates.
Unidentified Analyst
Okay. That helps, Simon. And if I may ask another question, can you talk a little bit about in 2014 and 2015, your plans for new product introductions and what the timing of those might be and what sort of contributions may we see from that?
Shimon Alon
Yes. As I kind of indicated during the script, we are looking at few areas. The first one, we are going to heavily invest in Replicate as a flagship product. Adding more, very high demand source and target as you know Replicate moves Big Data from different sources to different target. We will add additional data warehouses. We will add additional sources, different databases and structured and unstructured servers and this will be the first one to have this.
The second thing, as Big Data and that's what (inaudible). Big Data, it means data is growing all the time. Customers are not satisfied with performance today. With scalability, they will start to see issues going forward. We are going to announce during the first quarter our next version of Attunity Replicate, which will provide much higher performances and scalability to customers and will help us to continue to open the gap between us and our competitors. One of the things we are seeing from the customer base is the requirements for what we call dataflow and data process management.
What we are doing, we are part of a bigger processes that happen with the customer. We fulfill certain activity in a much bigger project. Many enterprise customers ask us to provide a solution for dataflow and process management of their Attunity product. We already in better sites for these products and we are going to announce this product its first version during the early second quarter.
We are also focusing our solutions on the growing demands for Hadoop. We being able to Replicate Hadoop files with our on structural five application. Now they are used. They said we'll focus and deliver during the second part of the year to enhance more Hadoop solutions. Working together with Amazon, we'll have more solutions for the Amazon Cloud and other cloud. And the last, but not least will be our Attunity Technologies. We are going to come up with many more solutions that will integrate between Hayes Technology and Attunity Technology, all will contribute very nicely into our revenue.
Unidentified Analyst
And you have much revenue forecast in these new products for '14 in your model?
Shimon Alon
The answer is no. My life experience, they don't focus the product you never sold.
Unidentified Analyst
Right. Yeah. Okay. So that's helpful. Thank you.
Shimon Alon
Thanks.
Operator
Thank you. We'll take the next question from Michael Needleman of Fusion. Please go ahead.
Michael Needleman - Fusion
Good morning. Thank you for taking the call. I was on the call late. So I didn't hear one -- I think it was just on the -- push out some of the revenue opportunities that we're not booked in the quarter. But I did hear you said that you booked some of that revenue already. Is that the belief that whatever was not booked in the fourth quarter will be during the course of the next few quarters or was anything lost in that revenue that wasn't booked?
Shimon Alon
I think your statement is correct and it will be recognized in the course of the first and second quarter.
Michael Needleman - Fusion
Okay. And the second very quick question is, Hayes is basically said they're projected into $4 million. Would you remind us of what was revenue based that they had during the last calendar year and what kind of growth rate that they have? Thank you so much.
Shimon Alon
First, I will tell you little bit about Hayes and then Dror can answer. So Hayes was the privately help company owned by family and they have 18 employees. So I log onto same scale and reporting structure that we are and I will (inaudible) you have any further questions on this area.
Michael Needleman - Fusion
Hello?
Shimon Alon
Yes, Can you hear?
Michael Needleman - Fusion
Yes. Can you just answer in terms of revenue what did they do last year in terms of revenue?
Dror Elkayam
Hi, Michael. We do not disclose revenues they generated in prior years when they were public…
Shimon Alon
Private.
Dror Elkayam
When they were a private share company.
Michael Needleman - Fusion
That's fair. Can you answer it a different way? Can you talk about what kind of growth rate they were achieving rather than the absolute dollar amount?
Shimon Alon
Again, you have to understand, they had four sales people. They build the product nicely, very nice company. You cannot second what’s called growth rate and so on. We certainly are focusing a $4 million.
Michael Needleman - Fusion
Right.
Shimon Alon
And their target is to do much more than this.
Michael Needleman - Fusion
Thank you.
Operator
Thank you. There are no further questions at this time.
Shimon Alon
Okay. I would like to thank everybody for joining our call. We are very firm in our guidance for 2014 and we would like to see you in the upcoming conferences that we are going to participate. Thank you very much. Have a great day.
Operator
That will conclude today's conference call. Thank you for your participation. You may now disconnect.
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