TigerLogic Corporation Announces Results for Second Quarter Ended September 30, 2010
IRVINE, Calif., Nov. 12, 2010 /PRNewswire-FirstCall/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the second quarter ended September 30, 2010. Net revenue was $3.4 million for each of the second quarters ended September 30, 2010 and September 30, 2009. Net loss for the second quarter ended September 30, 2010 was $0.7 million as compared to a net loss of $0.6 million for the same period in the prior fiscal year. Loss per share was $0.03 and $0.02 for the quarters ended September 30, 2010 and September 30, 2009, respectively. Cash balance was $10.9 million at September 30, 2010 as compared to $11.4 million at September 30, 2009.
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, 2010 was negative $0.3 million or negative 8% of net revenue, as compared to negative $0.1 million or negative 3% of net revenue for the same period in the prior fiscal year. The decrease in Adjusted EBITDA in the second quarter of fiscal year 2011 as compared to the second quarter of fiscal year 2010 was primarily a result of increased sales and marketing headcount and expenditures. 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 income (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 mobile, 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, 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, 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 | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
September 30, | March 31, | ||||
2010 | 2010 | ||||
(In thousands) | |||||
ASSETS | |||||
Current assets | |||||
Cash | $ 10,875 | $ 12,492 | |||
Trade accounts receivable, less allowance for doubtful | |||||
accounts of $30 and $26, respectively | 922 | 954 | |||
Other current assets | 399 | 412 | |||
Total current assets | 12,196 | 13,858 | |||
Property, furniture and equipment-net | 808 | 766 | |||
Goodwill | 26,388 | 26,388 | |||
Deferred tax assets | 310 | 379 | |||
Other assets | 110 | 113 | |||
Total assets | $ 39,812 | $ 41,504 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ 211 | $ 192 | |||
Accrued liabilities | 1,235 | 1,686 | |||
Deferred revenue | 4,003 | 4,314 | |||
Total current liabilities | 5,449 | 6,192 | |||
Commitments and contingencies | |||||
Stockholders' equity | |||||
Preferred stock | - | - | |||
Common stock | 2,801 | 2,793 | |||
Additional paid-in-capital | 133,290 | 132,543 | |||
Accumulated other comprehensive income | 2,286 | 2,246 | |||
Accumulated deficit | (104,014) | (102,270) | |||
Total stockholders' equity | 34,363 | 35,312 | |||
Total liabilities and stockholders' equity | $ 39,812 | $ 41,504 | |||
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
September 30, | September 30, | |||||||||
2010 | 2009 | 2010 | 2009 | |||||||
Net revenues | ||||||||||
Licenses | $ 1,079 | $ 912 | $ 2,006 | $ 2,004 | ||||||
Services | 2,293 | 2,450 | 4,612 | 4,945 | ||||||
Total net revenues | 3,372 | 3,362 | 6,618 | 6,949 | ||||||
Operating expenses | ||||||||||
Cost of license revenues | 4 | 3 | 6 | 24 | ||||||
Cost of service revenues | 440 | 402 | 851 | 800 | ||||||
Selling and marketing | 1,147 | 938 | 2,308 | 1,864 | ||||||
Research and development | 1,496 | 1,539 | 3,002 | 3,117 | ||||||
General and administrative | 926 | 903 | 2,065 | 2,059 | ||||||
Total operating expenses | 4,013 | 3,785 | 8,232 | 7,864 | ||||||
Operating loss | (641) | (423) | (1,614) | (915) | ||||||
Other income (expense) | ||||||||||
Interest income (expense)-net | (1) | 1 | (1) | - | ||||||
Other income (expense)-net | 34 | (120) | (12) | 673 | ||||||
Total other income (expense) | 33 | (119) | (13) | 673 | ||||||
Loss before income taxes | (608) | (542) | (1,627) | (242) | ||||||
Income tax provision | 97 | 15 | 117 | 18 | ||||||
Net loss | $ (705) | $ (557) | $ (1,744) | $ (260) | ||||||
Basic and diluted net loss per share | $ (0.03) | $ (0.02) | $ (0.06) | $ (0.01) | ||||||
Shares used in computing basic and | ||||||||||
diluted net loss per share | 27,986 | 26,862 | 27,959 | 26,803 | ||||||
TIGERLOGIC CORPORATION AND SUBSIDIARIES | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Six Months Ended September 30, | |||||||
2010 | 2009 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ (1,744) | $ (260) | |||||
Adjustments to reconcile net loss to net cash | |||||||
used in operating activities: | |||||||
Depreciation and amortization of long-lived assets | 187 | 185 | |||||
Provision for bad debt | 5 | 12 | |||||
Stock-based compensation expense | 549 | 453 | |||||
Change in deferred tax assets | 117 | 18 | |||||
Foreign currency exchange (gain) loss | 10 | (551) | |||||
Change in assets and liabilities: | |||||||
Trade accounts receivable | 42 | 62 | |||||
Other current and non-current assets | (20) | (44) | |||||
Accounts payable | 18 | 51 | |||||
Accrued liabilities | (462) | (620) | |||||
Deferred revenue | (333) | (443) | |||||
Net cash used in operating activities | (1,631) | (1,137) | |||||
Cash used in investing activities-purchase of | |||||||
property, furniture and equipment | (213) | (106) | |||||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 175 | 235 | |||||
Proceeds from issuance of common stock | 32 | 38 | |||||
Net cash provided by financing activities | 207 | 273 | |||||
Effect of exchange rate changes on cash | 20 | 127 | |||||
Net decrease in cash | (1,617) | (843) | |||||
Cash at beginning of period | 12,492 | 12,282 | |||||
Cash at end of period | $ 10,875 | $ 11,439 | |||||
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 Ended | For the Six Months Ended | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | 2010 | 2009 | |||||
Reported net loss | $ (705) | $ (557) | $ (1,744) | $ (260) | ||||
Depreciation and amortization | 90 | 90 | 187 | 185 | ||||
Stock-based compensation | 274 | 240 | 549 | 453 | ||||
Interest expense-net | (1) | (1) | 1 | - | ||||
Other (income) expense-net | (34) | 120 | 12 | (673) | ||||
Income tax provision | 97 | 15 | 117 | 18 | ||||
Adjusted EBITDA | $ (279) | $ (93) | $ (878) | $ (277) | ||||
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, | ||||
2010 | 2009 | |||
Net cash used in operating activities | $ (1,631) | $ (1,137) | ||
Interest expense-net | 1 | - | ||
Other (income) expense-net | 12 | (673) | ||
Change in trade accounts receivable | (42) | (62) | ||
Change in other current and non-current assets | 20 | 44 | ||
Change in accounts payable | (18) | (51) | ||
Change in accrued liabilities | 462 | 620 | ||
Change in deferred revenue | 333 | 443 | ||
Foreign currency exchange gain (loss) | (10) | 551 | ||
Provision for bad debt | (5) | (12) | ||
Adjusted EBITDA | $ (878) | $ (277) | ||
SOURCE TigerLogic Corporation
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