TigerLogic Corporation Announces Fourth Quarter And Fiscal Year Ended March 31, 2012 Results

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Jun 26, 2012, 04:33 ET

IRVINE, Calif., June 26, 2012 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the fourth quarter and fiscal year ended March 31, 2012. Net revenue for the fourth quarter was $3.3 million and for the full fiscal year was $13.3 million, as compared to $3.4 million and $13.7 million for the same respective periods in the prior fiscal year. Net loss for the fourth quarter ended March 31, 2012 was $0.9 million as compared to a net loss of $0.8 million for the same period in the prior fiscal year. Net loss for fiscal year 2012 was $3.5 million as compared to a net loss of $3.0 million in the prior fiscal year. Net loss per share was $0.03 for each of the fourth quarters ended March 31, 2012 and March 31, 2011. Net loss per share for the fiscal year ended March 31, 2012 was $0.13 as compared to $0.11 for the prior fiscal year. Cash balance was $8.9 million at March 31, 2012 as compared to $11.4 million at March 31, 2011.

Adjusted earnings before interest, taxes, depreciation, amortization, other income (expense)-net, and non-cash stock-based compensation expense ("Adjusted EBITDA") for the quarter and fiscal year ended March 31, 2012 was negative $0.6 million and negative $1.9 million, or (19.7%) and (14.6%) of net revenue, respectively, as compared to negative $0.5 million and negative $1.5 million, or (15.1%) and (10.7%) of net revenue, respectively, for the same periods in the prior fiscal year. The decrease in Adjusted EBITDA in fiscal 2012 as compared to fiscal 2011 was a result of lower revenue, and higher personnel and sales and marketing expenses relating to our Postano product. The Company computes Adjusted EBITDA, as reflected in the table appearing at the end of this press release, by adding depreciation, amortization, non-cash stock-based compensation expense, interest (income) expense, other (income) expense, and income tax provision (benefit) to its GAAP reported net loss.

Earnings Call

At 5:30 p.m. Eastern Time, TigerLogic's management will host a conference call to discuss the company's financial results for the fourth quarter and fiscal year 2012 and provide a general business update.

The call can be accessed by dialing 1-877-481-4996 (Domestic) or 1-518-444-5106 (International), and by providing the operator the conference ID number 83528857.

A taped rebroadcast of the conference call will be available approximately two hours after the call through June 28, 2012. To access the taped rebroadcast, dial 1-855-859-2056/1-800-585-8367 (Domestic) or 1-404-537-3406 (International), and enter security code 31833 and conference ID number 83528857.

The earnings call will also be archived for one year in the Earnings Releases section of TigerLogic's website at: http://www.tigerlogic.com/tigerlogic/company/press/earnings/index.jsp.

About TigerLogic Corporation

TigerLogic Corporation (Nasdaq: TIGR) is a global provider of data management and application development solutions for enterprises that need to launch easy and cost-effective e-business initiatives. Built on proven technology, TigerLogic helps control data and transform it into business intelligence and engagement. TigerLogic's product offerings include: 1) TigerLogic Postano™, a real-time social media content aggregation platform; 2) TigerLogic® yolink, a next-generation search enhancement technology; 3) Pick® Universal Data Model (Pick UDM) based database management systems and components, including D3®, mvEnterprise® and mvBase® that are the choice of more than a thousand application developers worldwide; and 4) Omnis Studio®, a cross-platform, object-oriented RAD tool for developing sophisticated thick-client, Web-client or ultra thin-client database applications. TigerLogic's installed customer base includes more than 500,000 active users representing more than 20,000 customer sites worldwide, with a significant base of diverse vertical applications. With employees and contractors worldwide, TigerLogic offers 24x7 customer support services and maintains an international presence. More information about TigerLogic and its products can be found at http://www.tigerlogic.com.

Except for the historical statements contained herein, the foregoing release may contain forward-looking information. Any forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the success of the Company's research and development efforts to develop new products and to penetrate new markets, the market acceptance of the Company's new products and updates, technical risks related to such products and updates, the Company's ability to maintain market share for its existing products, the availability of adequate liquidity and other risks and uncertainties. Please consult the various reports and documents filed by the Company with the U.S. Securities and Exchange Commission, including but not limited to the Company's most recent reports on Form 10-K and Form 10-Q for factors potentially affecting the Company's future financial results. All forward-looking statements are made as of the date hereof and the Company disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The Company's results for the quarter and year ended March 31, 2012 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, Postano, yolink, Raining Data, Pick, mvDesigner, D3, mvEnterprise, mvBase, Omnis, and Omnis Studio are trademarks of TigerLogic Corporation. All other trademarks and registered trademarks are properties of their respective owners.

TIGERLOGIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

	March 31,	March 31,
	2012	2011

ASSETS
Current assets
Cash	$ 8,918	$ 11,354
Trade accounts receivable, less allowance for doubtful accounts
of $19 and $11 as of March 31, 2012 and 2011, respectively.	891	756
Other current assets	632	421
Total current assets	10,441	12,531

Property, furniture and equipment-net	615	699
Goodwill	26,388	26,388
Deferred tax assets	257	304
Other assets	113	116
Total assets	$ 37,814	$ 40,038


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$ 272	$ 205
Accrued liabilities	1,467	1,682
Deferred revenue	4,311	4,283
Total current liabilities	6,050	6,170


Commitments and contingencies

Stockholders' equity
Series A convertible preferred stock: $1.00 par value; 5,000,000 shares
authorized; none issued or outstanding at March 31, 2012 and 2011.	-	-
Common stock: $0.10 par value; 100,000,000 shares authorized;
28,183,469 and 28,101,991 issued and outstanding at March 31, 2012
and 2011, respectively.	2,818	2,810
Additional paid-in-capital	135,438	133,995
Accumulated other comprehensive income	2,304	2,312
Accumulated deficit	(108,796)	(105,249)
Total stockholders' equity	31,764	33,868
Total liabilities and stockholders' equity	$ 37,814	$ 40,038

TIGERLOGIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

		Three Months Ended		Twelve Months Ended
		March 31,		March 31,
		2012	2011	2012	2011
Net revenues
	Licenses	$ 971	$ 1,024	$ 3,974	$ 4,378
	Services	2,314	2,327	9,372	9,292
	Total net revenues	3,285	3,351	13,346	13,670

Operating expenses
	Cost of license revenues	4	7	13	17
	Cost of service revenues	429	435	1,823	1,714
	Selling and marketing	1,352	1,113	5,202	4,637
	Research and development	1,534	1,475	5,887	5,956
	General and administrative	943	1,145	3,806	4,175
	Total operating expenses	4,262	4,175	16,731	16,499

Operating loss		(977)	(824)	(3,385)	(2,829)

Other income (expense)
	Interest income (expense)-net	(2)	2	(2)	-
	Other income (expense)-net	7	18	(62)	(1)
	Total other income (expense)	5	20	(64)	(1)

Loss before income taxes		(972)	(804)	(3,449)	(2,830)

Income tax provision (benefit)		(46)	(20)	98	149

Net loss		$ (926)	$ (784)	$ (3,547)	$ (2,979)

Basic and diluted net loss per share		$ (0.03)	$ (0.03)	$ (0.13)	$ (0.11)

Shares used in computing basic and
diluted net loss per share		28,174	28,077	28,146	28,005

TIGERLOGIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
				For the Years Ended March 31,
				2012	2011

Cash flows from operating activities:
Net loss				$ (3,547)	$ (2,979)
	Adjustments to reconcile net loss to net cash used in
	operating activities:
		Depreciation and amortization of long-lived assets		159	364
		Provision for bad debt		5	3
		Stock-based compensation expense		1,280	1,007
		Change in deferred tax assets		98	149
		Foreign currency exchange (gain) loss		74	(7)
		Change in assets and liabilities:
			Trade accounts receivable	(157)	221
			Other current and non-current assets	(175)	(80)
			Accounts payable	71	1
			Accrued liabilities	(299)	(24)
			Deferred revenue	69	(84)
	Net cash used in operating activities			(2,422)	(1,429)

	Cash flows used in investing activities-purchase of
	property, furniture and equipment			(76)	(266)

	Cash flows from financing activities:
		Proceeds from exercise of stock options		87	379
		Proceeds from issuance of common stock		85	83
		Net cash provided by financing activities		172	462

	Effect of exchange rate changes on cash			(110)	95

	Net decrease in cash			(2,436)	(1,138)

	Cash at beginning of year			11,354	12,492
	Cash at end of year			$ 8,918	$ 11,354

Non-GAAP Financial Information

EBITDA or Adjusted EBITDA (each as defined below) should not be construed as a substitute for net income (loss) or as a better measure of liquidity than cash flow from operating activities determined in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude components that are significant in understanding and assessing our results of operations and cash flows. EBITDA or Adjusted EBITDA do not represent funds available for management's discretionary use and are not intended to represent cash flow from operations. In addition, EBITDA and Adjusted EBITDA are not terms defined by GAAP and as a result our measure of EBITDA and Adjusted EBITDA might not be comparable to similarly titled measures used by other companies.

However, EBITDA and Adjusted EBITDA are used by management to evaluate, assess and benchmark our operational results and the Company believes that EBITDA and Adjusted EBITDA are relevant and useful information widely used by analysts, investors and other interested parties in our industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the Company's ability to meet future capital expenditure and working capital requirements.

EBITDA is defined as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, and income tax provision (benefit). Adjusted EBITDA used by the Company is defined as EBITDA plus adjustments for other income (expense)-net, and non-cash stock-based compensation expense.

The Company's Adjusted EBITDA financial information is comparable to net loss. The table below reconciles Adjusted EBITDA to the Company's GAAP reported net loss:

TIGERLOGIC CORPORATION AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

	For the Three Months		For the Twelve Months
	Ended March 31,		Ended March 31,
	2012	2011	2012	2011
Reported net loss	$ (926)	$ (784)	$ (3,547)	$ (2,979)
Depreciation and amortization	40	88	159	364
Stock-based compensation	290	230	1,280	1,007
Interest (income) expense -net	2	(2)	2	-
Other (income) expense -net	(7)	(18)	62	1
Income tax provision (benefit)	(46)	(20)	98	149
Adjusted EBITDA	$ (647)	$ (506)	$ (1,946)	$ (1,458)

Our Adjusted EBITDA financial information can also be reconciled to net cash used in operating activities as follows:

TIGERLOGIC CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET CASH USED IN OPERATING ACTIVITIES
(In thousands)

	For the Years Ended March 31,
	2012	2011

Net cash used in operating activities	$ (2,422)	$ (1,429)
Interest expense-net	2	-
Other expense-net	62	1
Change in trade accounts receivable	157	(221)
Change in other current and non-current assets	175	80
Change in accounts payable	(71)	(1)
Change in accrued liabilities	299	24
Change in deferred revenue	(69)	84
Foreign currency exchange gain (loss)	(74)	7
Provision for bad debt	(5)	(3)
Adjusted EBITDA	$ (1,946)	$ (1,458)