TigerLogic Corporation Announces Results For The Second Quarter Ended September 30, 2013

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Nov 08, 2013, 04:28 ET

IRVINE, Calif., Nov. 8, 2013 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the second quarter ended September 30, 2013. Net revenue increased $0.6 million to $3.8 million for the second quarter ended September 30, 2013, as compared to prior fiscal year second quarter net revenue of $3.2 million, primarily due to higher revenue from our social and mobile platform. Net loss was $1.2 million and $0.5 million for the second quarters ended September 30, 2013 and September 30, 2012, respectively. Net loss per share was $0.04 and $0.02 for the quarters ended September 30, 2013 and September 30, 2012, respectively. Cash balance was $4.9 million at September 30, 2013, as compared to $7.6 million at September 30, 2012.

Adjusted earnings before interest, taxes, depreciation, amortization, other income (expense)-net, and non-cash stock-based compensation expense ("Adjusted EBITDA") for the quarter ended September 30, 2013 was negative $0.7 million or negative 18% of net revenue, as compared to negative $0.2 million or negative 6% of net revenue for the same period in the prior fiscal year. The decrease in Adjusted EBITDA for the three months ended September 30, 2013 when compared to the same period in the prior year was a result of higher operating expenses primarily from the acquisition of Storycode that was completed on January 17, 2013, and higher professional services expenses relating to the pending asset sale of the Company's MDMS business, which is anticipated to be completed during the quarter ending December 31, 2013. 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

On Monday, November 11, 2013 at 5:00 p.m. Eastern Time, TigerLogic's management will host a conference call to discuss the company's financial results for the second quarter of fiscal year 2014 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 97158966.

A taped rebroadcast of the call will be available approximately two hours after the call through November 18, 2013. 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 081213 and conference ID number 97158966.

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 application development solutions for enterprises that need to launch easy and cost-effective e-business initiatives. TigerLogic's offerings include cross-platform and mobile solutions for rapid application development, social media content aggregation, as well as search enhancement. 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 ended September 30, 2013 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, Omnis Studio, and Storycode are trademarks of TigerLogic Corporation. All other trademarks and registered trademarks are properties of their respective owners.

TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	September 30,	March 31,
	2013	2013

ASSETS
Current assets:
Cash	$ 4,881	$ 6,465
Trade accounts receivable, less allowance for doubtful
accounts of $24 and $24, respectively	1,675	986
Other current assets	527	561
Total current assets	7,083	8,012

Property, furniture and equipment, net	572	551
Goodwill	31,656	31,656
Intangible assets, net	551	593
Deferred tax assets	229	228
Other assets	86	111
Total assets	$ 40,177	$ 41,151


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 443	$ 388
Accrued liabilities	1,658	1,294
Deferred revenue	4,490	4,342
Total current liabilities	6,591	6,024

Other long-term liabilities	144	137

Total liabilities	6,735	6,161

Commitments and contingencies

Stockholders' equity:
Preferred stock	-	-
Common stock	3,007	2,993
Additional paid-in-capital	142,283	141,478
Accumulated other comprehensive income	2,306	2,257
Accumulated deficit	(114,154)	(111,738)
Total stockholders' equity	33,442	34,990
Total liabilities and stockholders' equity	$ 40,177	$ 41,151



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

		Three Months Ended		Six Months Ended
		September 30,		September 30,
		2013	2012	2013	2012
Net revenues:
	Licenses	$ 1,357	$ 910	$ 2,655	$ 1,905
	Services	2,482	2,246	4,909	4,535
	Total net revenues	3,839	3,156	7,564	6,440

Operating expenses:
	Cost of license revenues	66	2	84	4
	Cost of revenue-amortization of
	intangible asset	19	-	38	-
	Cost of service revenues	524	400	1,013	824
	Selling and marketing	1,505	1,056	3,103	2,113
	Research and development	1,528	1,264	2,976	2,499
	General and administrative	1,279	915	2,416	1,952
	Acquisition related costs	-	-	209	-
	Total operating expenses	4,921	3,637	9,839	7,392

Operating loss		(1,082)	(481)	(2,275)	(952)

Other expense:
	Interest expense-net	(1)	(1)	(2)	(4)
	Other expense-net	(29)	(11)	(21)	(27)
	Total other expense	(30)	(12)	(23)	(31)

Loss before income taxes		(1,112)	(493)	(2,298)	(983)

Income tax provision		66	19	118	22

Net loss		$ (1,178)	$ (512)	$ (2,416)	$ (1,005)

Other comprehensive loss:
	Foreign currency translation adjustments	57	30	49	27
Total comprehensive loss		$ (1,121)	$ (482)	$ (2,367)	$ (978)

Basic and diluted net loss per share		$ (0.04)	$ (0.02)	$ (0.08)	$ (0.04)

Shares used in computing basic and
diluted net loss per share		30,042	28,210	29,997	28,200

TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

				Six Months Ended September 30,
				2013	2012

Cash flows from operating activities:
Net loss				$ (2,416)	$ (1,005)
	Adjustments to reconcile net loss to net cash
		used in operating activities:
		Depreciation and amortization of long-lived assets		94	66
		Recovery from bad debt		-	(7)
		Stock-based compensation expense		763	500
		Foreign currency exchange loss		28	33
		Change in assets and liabilities:
			Trade accounts receivable	(645)	(98)
			Other current assets	148	(15)
			Accounts payable	(38)	(62)
			Accrued liabilities	333	(314)
			Deferred revenue	88	(419)
	Net cash used in operating activities			(1,645)	(1,321)

Cash used in investing activities - purchase of property,
	furniture and equipment			(33)	(27)

Cash from financing activities:
	Proceeds from exercise of stock options			32	24
	Proceeds from issuance of common stock			24	23
	Net cash provided by financing activities			56	47

	Effect of exchange rate changes on cash			38	(26)

	Net decrease in cash			(1,584)	(1,327)

	Cash at beginning of the period			6,465	8,918
	Cash at end of the period			$ 4,881	$ 7,591

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 Six Months
	Ended September 30,		Ended September 30,
	2013	2012	2013	2012
Reported net loss	$ (1,178)	$ (512)	$ (2,416)	$ (1,005)
Depreciation and amortization	45	31	94	66
Stock-based compensation	364	276	763	500
Interest expense-net	1	1	2	4
Other expense-net	29	11	21	27
Income tax provision	66	19	118	22
Adjusted EBITDA	$ (673)	$ (174)	$ (1,418)	$ (386)

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 Six Months Ended September 30,
	2013	2012
Net cash used in operating activities	$ (1,645)	$ (1,321)
Interest expense-net	2	4
Other expense-net	21	27
Income tax provision	118	22
Change in trade accounts receivable	645	98
Change in other current assets	(148)	15
Change in accounts payable	38	62
Change in accrued liabilities	(333)	314
Change in deferred revenue	(88)	419
Foreign currency exchange loss	(28)	(33)
Recovery from bad debt	-	7
Adjusted EBITDA	$ (1,418)	$ (386)