TIDMWAND

RNS Number : 8307B

WANdisco Plc

04 February 2020

4 February 2020

WANdisco plc

("WANdisco" or the "Company")

Trading and Microsoft joint product update

WANdisco (LSE: WAND), the live data company for machine learning and AI, today announces a trading update for the year ended 31 December 2019 and progress on the Company's strategic joint product initiative with Microsoft which is detailed in a separate release.

Revenue for the year ended 31 December 2019 is expected to be approximately $16 million, alongside a strong year-end cash balance of $23.3 million which the Board is confident will enable the Company to achieve cash flow breakeven. While revenue for the year was below expectations, the Company delivered strong sequential revenue growth in H2 2019 (c. 67%), driven by accelerating demand across both existing and new geographies.

Toward the end of 2019, a small number of significant deals slipped into 2020. The majority of these deals are within the Company's growing Microsoft channel, where customers have elected to wait for public availability of the Company's embedded Azure product, Fusion Resource Provider ("FRP"). Other pipeline customers across multiple channels have elected to revisit the initial scope of their engagements and increase them. The Board fully expects these deals to close in 2020 and notes that they are not competitive tenders.

The delayed deals now expected to close early in 2020, along with the Company's current pipeline, support the Board's continuing confidence in meeting current market expectations for FY 2020.

The joint FRP project with Microsoft brings WANdisco into the data fabric of the Azure cloud, integrated as if it were a native Microsoft product and unleashes the collective strength of the Microsoft seller network. As such, it is the most important initiative in the Company's history.

Importantly, the FRP product has now entered a critical phase of customer deployment, 'private preview'. Private preview signifies the availability of the product to select, existing Microsoft customers to address their data migration and data availability requirements and to provide product feedback ahead of the revenue generating 'public preview' expected in Q1 2020. General availability will follow this public preview, launching the full joint go-to-market strategy. A number of customers, including one of the world's largest retailers and a global systems integrator with over 100,000 employees have agreed to participate in the private preview.

Alongside the private preview, a global US restaurant and beverage chain has begun using WANdisco Fusion to migrate data to Azure Data Lake Storage in an Azure-specific use case with wide appeal within the Azure customer base, and where WANdisco is the only viable solution.

The Company will hold a Capital Markets Day for analysts and investors in H1 2020 to provide context on the Company's growing market opportunity.

David Richards, Chief Executive Officer and Chairman of WANdisco commented:

"2019 was a significant year for WANdisco. We delivered on our primary strategic goal, cementing our partnership with Microsoft to embed Fusion into Azure, allowing customers to use Fusion as if it was a native Azure offering. We are now focused on bringing the product to general availability which we expect to facilitate a greater volume and velocity of deals.

"The future of analytics and in particular machine learning and artificial intelligence (AI) is in the cloud. Our partnership with Databricks highlights the growing demand for non-disruptive solutions for bringing data to the cloud. In this regard we are uniquely positioned.

"Having successfully raised $16.5 million from existing shareholders in November 2019, we have secured the balance sheet and are well positioned to capitalise on our cloud opportunities in 2020 and beyond and achieve the important milestone of cash flow breakeven. While 2019 did not meet our financial expectations, the product and strategic progress is significant, and we enter 2020 more confident than ever."

The company expects to announce results for the year ended 31 December 2019 in mid-March.

For further information, please contact:

 
 WANdisco plc                               via FTI Consulting 
 David Richards, Chief Executive Officer 
  and Chairman 
 Erik Miller, Chief Financial Officer 
 
                                            +44 (0)20 3727 
 FTI Consulting                              1137 
 Matt Dixon / Chris Birt / Kwaku Aning 
 
                                            +44 (0)20 7710 
 Stifel (Nomad and Joint Broker)             7600 
 Fred Walsh / Neil Shah 
 
                                            +44 (0)20 7418 
 Peel Hunt (Joint Broker)                    8900 
 Edward Knight / Nick Prowting 
 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by David Richards, CEO and Chairman.

About WANdisco

WANdisco is the LiveData company for machine learning and AI. WANdisco solutions enable enterprises to create an environment where data is always available, accurate and protected, creating a strong backbone for their IT infrastructure and a bedrock for running consistent, accurate machine learning applications. With zero downtime and zero data loss, WANdisco Fusion keeps geographically dispersed data at any scale consistent between on-premises and cloud environments allowing businesses to operate seamlessly in a hybrid or multi-cloud environment. WANdisco has over a hundred customers and significant go-to-market partnerships with Microsoft Azure, Amazon Web Services, Google Cloud, Oracle, and others as well as OEM relationships with IBM and Alibaba. For more information on WANdisco, visit www.wandisco.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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February 04, 2020 02:01 ET (07:01 GMT)

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