TigerLogic Corporation Announces Fourth Quarter and Fiscal Year Ended March 31, 2010 Results

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Jun 22, 2010, 05:15 ET

IRVINE, Calif., June 22 /PRNewswire-FirstCall/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the fourth quarter and full fiscal year ended March 31, 2010. Net revenue for the fourth quarter was $3.5 million and for the full fiscal year was $13.9 million, as compared to $3.4 million and $16.3 million for the same respective periods in the prior fiscal year. Net loss for the fourth quarter ended March 31, 2010 was $0.6 million as compared to a net loss of $0.7 million for the same period in the prior fiscal year. Net loss for the fiscal year ended March 31, 2010 was $1.6 million, an improvement of $3.5 million from prior fiscal year's net loss of $5.1 million. Net loss per share was $0.02 and $0.03 for the quarters ended March 31, 2010 and March 31, 2009, respectively. Earnings per share for the fiscal year ended March 31, 2010 was a loss per share of $0.06 as compared to a loss per share of $0.19 for the prior fiscal year. Cash balance was $12.5 million at March 31, 2010 as compared to $12.3 million at March 31, 2009.

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, 2010 was negative $0.2 million and negative $1.0 million, or (6.5%) and (7.1%) of net revenue, respectively, as compared to negative $0.3 million and negative $1.7 million, or (8.4%) and (10.3%) of net revenue, respectively, for the same periods in the prior fiscal year. The improvement in Adjusted EBITDA in fiscal 2010 as compared to fiscal 2009 was a result of lower expenses in the current year, offset by lower revenue. 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.

About TigerLogic Corporation

TigerLogic Corporation (Nasdaq: TIGR) has been providing reliable data management and rapid application deployment solutions for ISVs and developers of database applications for more than three decades. TigerLogic's product offerings include: 1) TigerLogic® yolink, a next-generation search enhancement technology; 2) TigerLogic® XML Data Management Server (XDMS), provides flexible, scalable and extensible XML data storage as well as query and retrieval of critical business data across a variety of structured and unstructured information sources; 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, 2010 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, 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


	March 31,	March 31,
	2010	2009
	(In thousands)
ASSETS
Current assets
Cash	$ 12,492	$ 12,282
Trade accounts receivable, less allowance for doubtful
accounts of $26 in 2010 and $90 in 2009	954	881
Other current assets	412	389
Total current assets	13,858	13,552

Property, furniture and equipment-net	766	849
Goodwill	26,388	26,388
Deferred tax assets	379	383
Other assets	113	161
Total assets	$ 41,504	$ 41,333


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$ 192	$ 161
Accrued liabilities	1,686	2,090
Deferred revenue	4,314	4,531
Total current liabilities	6,192	6,782


Commitments and contingencies

Stockholders' equity
Preferred stock	-	-
Common stock	2,793	2,673
Additional paid-in-capital	132,543	129,684
Accumulated other comprehensive income	2,246	2,861
Accumulated deficit	(102,270)	(100,667)
Total stockholders' equity	35,312	34,551
Total liabilities and stockholders' equity	$ 41,504	$ 41,333

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,
		2010	2009	2010	2009
Net revenues
	Licenses	$ 1,101	$ 850	$ 4,223	$ 5,336
	Services	2,376	2,519	9,714	10,916
	Total net revenues	3,477	3,369	13,937	16,252

Operating expenses
	Cost of license revenues	(15)	9	13	29
	Cost of service revenues	455	385	1,700	1,652
	Selling and marketing	1,141	849	4,337	5,425
	Research and development	1,442	1,557	6,140	7,561
	General and administrative	1,022	1,224	4,129	5,097
	Total operating expenses	4,045	4,024	16,319	19,764

Operating loss		(568)	(655)	(2,382)	(3,512)

Other income (expense)
	Interest income (expense)-net	-	9	(1)	147
	Other income (expense)-net	(48)	(120)	778	(1,796)
	Total other income (expense)	(48)	(111)	777	(1,649)

Loss before income taxes		(616)	(766)	(1,605)	(5,161)

Income tax provision (benefit)		24	(36)	(2)	(21)

Net loss		$ (640)	$ (730)	$ (1,603)	$ (5,140)

Basic and diluted net loss per share		$ (0.02)	$ (0.03)	$ (0.06)	$ (0.19)

Shares used in computing basic and
diluted net loss per share		27,917	26,714	27,305	26,600

TIGERLOGIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

				For the Years Ended March 31,
				2010	2009
				(In thousands)

Cash flows from operating activities:
Net loss				$ (1,603)	$ (5,140)
	Adjustments to reconcile net loss to net cash
		used in operating activities:
		Depreciation and amortization of long-lived assets		374	416
		Provision for bad debt		(62)	(51)
		Stock-based compensation expense		1,053	1,415
		Income tax benefit		(2)	(21)
		Foreign currency exchange (gain) loss		(648)	1,801
		Change in assets and liabilities:
			Trade accounts receivable	12	790
			Other current and non-current assets	39	27
			Accounts payable	30	(215)
			Accrued liabilities	(424)	(264)
			Deferred revenue	(258)	(443)
	Net cash used in operating activities			(1,489)	(1,685)

	Cash flows used in investing activities-purchase of
		property, furniture and equipment		(264)	(573)

	Cash flows from financing activities:
		Proceeds from exercise of stock options		1,851	586
		Proceeds from issuance of common stock		75	144
		Net cash provided by financing activities		1,926	730

	Effect of exchange rate changes on cash			37	(255)

	Net increase (decrease) in cash and cash equivalents			210	(1,783)

	Cash and cash equivalents at beginning of period			12,282	14,065
	Cash and cash equivalents at end of period			$ 12,492	$ 12,282

	Non-cash financing activities:
		Conversion of debt to common stock		$ -	$ 977

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 does not represent funds available for management's discretionary use and is 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 debt service, 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 disclosure of 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,
	2010	2009	2010	2009
Reported net loss	$ (640)	$ (730)	$ (1,603)	$ (5,140)
Depreciation and amortization	80	95	374	416
Stock-based compensation	261	277	1,053	1,415
Interest expense (income)-net	-	(9)	1	(147)
Other expense (income)-net	48	120	(778)	1,796
Income tax provision (benefit)	24	(36)	(2)	(21)
Adjusted EBITDA	$ (227)	$ (283)	$ (955)	$ (1,681)

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,
	2010	2009

Net cash used in operating activities	$ (1,489)	$ (1,685)
Interest expense (income)-net	1	(147)
Other expense (income)-net	(778)	1,796
Change in trade accounts receivable	(12)	(790)
Change in other current and non-current assets	(39)	(27)
Change in accounts payable	(30)	215
Change in accrued liabilities	424	264
Change in deferred revenue	258	443
Foreign currency exchange gain (loss)	648	(1,801)
Provision for bad debt	62	51
Adjusted EBITDA	$ (955)	$ (1,681)