TigerLogic Corporation Announces Results For The Third Quarter Ended December 31, 2013

Feb 14, 2014, 16:41 ET from TigerLogic Corporation

IRVINE, Calif., Feb. 14, 2014 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the third quarter ended December 31, 2013.  As previously announced, the Company closed the sale of its business dedicated to the multidimensional database management system and related connectivity products (the "MDMS Business") to Rocket Software, Inc., effective November 15, 2013.  The Company accounted for the sale as a discontinued operation. Accordingly, the unaudited condensed consolidated financial statements have been revised for all periods presented to reflect the MDMS Business as discontinued operations. Please refer to the Company's Form 10-Q filed with the SEC earlier today for a more detailed description of the sale of the MDMS Business and the related accounting treatment and disclosures. Unless noted otherwise, the unaudited condensed consolidated financial statements included in this press release reflect continuing operations. 

Net revenue from continuing operations increased $0.5 million to $1.4 million for the third quarter ended December 31, 2013, as compared to prior fiscal year third quarter net revenue of $0.9 million, primarily due to higher revenue from Postano subscriptions and Storycode professional services.  Net loss from continuing operations was $0.8 million and $1.6 million for the third quarters ended December 31, 2013 and December 31, 2012, respectively.  Net loss per share from continuing operations was $0.03 and $0.05 for the quarters ended December 31, 2013 and December 31, 2012, respectively.  Cash balance was $21.7 million at December 31, 2013 as compared to $7.9 million at December 31, 2012.

Adjusted earnings before interest, taxes, depreciation, amortization, other income (expense)-net, and non-cash stock-based compensation expense ("Adjusted EBITDA") presented below includes results from both continuing and discontinued operations.  Adjusted EBITDA for the quarter ended December 31, 2013 was negative $1.5 million or negative 105% of net revenue, as compared to negative $0.4 million or negative 45% of net revenue for the same period in the prior fiscal year. The decrease in Adjusted EBITDA for the three months ended December 31, 2013 when compared to the same period in the prior year was primarily a result of higher operating and personnel expenses as a result of our acquisition of Storycode completed on January 17, 2013, and higher professional services expenses relating to the sale of the MDMS Business. 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 Tuesday, February 18, 2014 at 5:00 p.m. Eastern Time, TigerLogic's management will host a conference call to discuss the company's financial results for the third 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 47198223.

A taped rebroadcast of the call will be available approximately two hours after the call through February 20, 2014. 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 47198223.

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 December 31, 2013 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, Postano, yolink, Raining Data, mvDesigner, 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)

December 31,

March 31,

2013

2013

ASSETS

Current assets:

     Cash

$          21,653

$     6,465

     Trade accounts receivable, less allowance for doubtful

        accounts of $204 and $24, respectively

937

575

     Receivable from sale of MDMS business

2,200

-

     Other current assets

630

561

     Current assets of discontinued operations

-

411

          Total current assets

25,420

8,012

Property, furniture and equipment, net

539

459

Goodwill

18,183

18,183

Intangible assets, net

530

593

Deferred tax assets

229

228

Other assets

64

111

Noncurrent assets of discontinued operations

-

13,565

          Total assets

$          44,965

$   41,151

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

     Accounts payable

$               231

$        388

     Accrued liabilities

3,127

1,240

     Deferred revenue

1,253

948

     Current liabilities of discontinued operations

-

3,448

          Total current liabilities

4,611

6,024

     Other long-term liabilities

111

103

     Other long-term liabilities of discontinued operations

-

34

          Total liabilities

4,722

6,161

Commitments and contingencies

Stockholders' equity:

     Preferred stock

-

-

     Common stock

3,008

2,993

     Additional paid-in-capital

142,659

141,478

     Accumulated other comprehensive income

2,333

2,257

     Accumulated deficit

(107,757)

(111,738)

          Total stockholders' equity

40,243

34,990

          Total liabilities and stockholders' equity 

$          44,965

$   41,151

TIGERLOGIC CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

Three Months Ended

Nine Months Ended

December 31,

December 31,

2013

2012

2013

2012

Net revenues:

Licenses

$      912

$     542

$  2,762

$   1,656

Services

530

356

1,564

1,074

Total net revenues

1,442

898

4,326

2,730

Operating expenses:

Cost of license revenues

62

1

144

3

Cost of revenue-amortization of intangible assets

19

-

57

-

Cost of service revenues

103

56

309

153

Selling and marketing

1,615

942

4,459

2,795

Research and development

1,234

916

3,381

2,695

General and administrative

903

1,073

3,199

2,913

Acquisition related costs

-

-

209

-

Total operating expenses

3,936

2,988

11,758

8,559

Operating loss from continuing operations

(2,494)

(2,090)

(7,432)

(5,829)

Other income (expense):

Interest expense-net

(1)

(1)

(3)

(4)

Other income (expense)-net

(23)

14

(44)

(14)

Total other income (expense)

(24)

13

(47)

(18)

Loss before income taxes from continuing operations

(2,518)

(2,077)

(7,479)

(5,847)

Income tax benefit

(1,720)

(525)

(2,678)

(1,576)

Net loss from continuing operations

(798)

(1,552)

(4,801)

(4,271)

Discontinued operations:

Income from discontinued operations, net of tax

1,082

870

2,669

2,584

Gain on sale of discontinued operations, net of tax

6,113

-

6,113

-

Income from discontinued operations

7,195

870

8,782

2,584

Net income (loss)

$    6,397

$    (682)

$  3,981

$ (1,687)

Other comprehensive income (loss):

Foreign currency translation adjustments

27

(10)

76

17

Total comprehensive income (loss)

$    6,424

$    (692)

$  4,057

$ (1,670)

Basic and diluted net income (loss) per share:

Loss from continuing operations

$    (0.03)

$   (0.05)

$   (0.16)

$    (0.15)

Income from discontinued operations

$      0.24

$     0.03

$     0.29

$      0.09

Net income (loss)

$      0.21

$   (0.02)

$     0.13

$    (0.06)

Shares used in computing net loss from continuing operations per share, income from discontinued operations per share, and net income (loss) per share 30,176

30,176

28,218

30,116

28,206

TIGERLOGIC CORPORATION AND SUBSIDIARIES

 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine Months Ended December 31,

2013

2012

Cash flows from operating activities:

Net income (loss)

$   3,981

$ (1,687)

Gain on sale of discontinued operations

(9,926)

-

Adjustments to reconcile net income (loss) to net cash

used in operating activities:

Depreciation and amortization of long-lived assets

143

97

Provision for (recovery from) bad debt

94

(7)

Stock-based compensation expense

1,129

744

Foreign currency exchange (gain) loss

(111)

13

Change in operating assets and liabilities, net of

discontinued operations:

Trade accounts receivable

(968)

10

Other current assets

75

(17)

Accounts payable

(233)

53

Accrued liabilities

590

103

Deferred revenue

634

(203)

Net cash used in operating activities

(4,592)

(894)

Cash flows from investing activities:

Acquisition bridge loan

-

(100)

Purchases of property, plant and equipment

(102)

(34)

Proceeds from sale of discontinued operations

19,800

-

Net cash provided by (used in) investing activities

19,698

(134)

Cash flows from financing activities:

Proceeds from exercise of stock options

43

24

Proceeds from issuance of common stock

24

23

Net cash provided by financing activities

67

47

Effect of exchange rate changes on cash

15

(10)

Net increase (decrease) in cash

15,188

(991)

Cash at beginning of the period

6,465

8,918

Cash at end of the period

$ 21,653

$  7,927

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.  Adjusted EBITDA presented below include results from both continuing and discontinued operations.

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

TIGERLOGIC CORPORATION AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

For the Three Months 

For the Nine Months 

Ended December 31,

Ended December 31,

2013

2012

2013

2012

Reported net income (loss)

$         6,397

$          (682)

$         3,981

$       (1,687)

Depreciation and amortization 

48

31

143

97

Stock-based compensation

367

244

1,129

744

Interest expense-net

1

1

3

5

Other (income) expense-net

23

(19)

44

8

Income tax provision

1,579

25

1,697

47

Gain on sale of discontinued operations

(9,926)

-

(9,926)

-

Adjusted EBITDA

$       (1,511)

$          (400)

$       (2,929)

$          (786)

 

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 Nine Months Ended December 31, 

2013

2012

Net cash used in operating activities

$ (4,592)

$ (894)

Interest expense-net

3

5

Other expense-net

44

8

Income tax provision

1,697

47

Change in trade accounts receivable

968

(10)

Change in other current assets

(75)

17

Change in accounts payable

233

(53)

Change in accrued liabilities

(590)

(103)

Change in deferred revenue

(634)

203

Foreign currency exchange gain (loss)

111

(13)

Recovery from (provision for) bad debt

(94)

7

Adjusted EBITDA

$ (2,929)

$ (786)

SOURCE TigerLogic Corporation



RELATED LINKS

http://www.tigerlogic.com