TigerLogic Corporation Announces Results For The Second Quarter Ended September 30, 2014
IRVINE, Calif., Nov. 14, 2014 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the second quarter ended September 30, 2014. Net revenue increased 21% quarter-over-quarter to $1.8 million for the second quarter ended September 30, 2014, as compared to prior fiscal year second quarter net revenue of $1.5 million, primarily due to higher subscription and services revenue from our Postano platform. Net loss from continuing operations for the second quarter ended September 30, 2014 was $2.6 million as compared to a net loss of $2.0 million for the same period in the prior fiscal year. The higher net loss from continuing operations was due mainly to an income tax benefit in the prior year of approximately $0.4 million, offset by higher personnel expenses from new hires, and higher legal and financial advisory services expense related to the evaluation of any proposed sale of TigerLogic's common stock by its largest stockholder that may be presented to the company, as well as the evaluation of other strategic alternatives available to the company. Net loss per share from continuing operations was $0.09 and $0.07 for the quarters ended September 30, 2014 and September 30, 2013, respectively. Cash balance was $12.6 million at September 30, 2014 as compared to $15.4 million at June 30, 2014.
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. Our Adjusted EBITDA was negative $2.4 million or negative 131% of total net revenue for the three month period ended September 30, 2014, and negative $5.6 million or negative 154% of total net revenue for the six month period ended September 30, 2014. Our Adjusted EBITDA was negative $0.7 million or negative 44% of total net revenue for the three month period ended September 30, 2013, and negative $1.4 million or negative 49% of total net revenue for the six month period ended September 30, 2013. The decrease in Adjusted EBITDA for the three and six month periods ended September 30, 2014 was a result of higher operating expenses in the current periods due mainly to higher personnel and marketing expenses as we expanded our sales and marketing efforts for Postano, and higher legal and financial advisory services expense relating to the evaluation of any proposed sale of our common stock by our largest stockholder, as well as the evaluation of other strategic alternatives available to the Company. TigerLogic 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).
Earnings Call
At 5:00 p.m. Eastern Time on Monday, November 17, 2014, TigerLogic's management will host a conference call to discuss the company's financial results for the second quarter ended September 30, 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 32138487.
A taped rebroadcast of the call will be available approximately two hours after the call through November 24, 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 32138487.
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 and visualization platform, Internet search enhancement tools, and the design and development of mobile applications and digital publications. 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 TigerLogic's research and development efforts to develop new products and to penetrate new markets, the market acceptance of TigerLogic's new products and updates, technical risks related to such products and updates, TigerLogic'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 TigerLogic with the U.S. Securities and Exchange Commission, including but not limited to TigerLogic's most recent reports on Form 10-K and Form 10-Q for factors potentially affecting its future financial results. All forward-looking statements are made as of the date hereof and TigerLogic disclaims any responsibility to update or revise any forward-looking statement provided in this news release. TigerLogic's results for the quarter ended September 30, 2014 are not necessarily indicative of its 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) | ||||
|
ASSETS |
September 30, |
March 31, | ||
|
2014 |
2014 | |||
|
Current assets: |
||||
|
Cash |
$ 12,582 |
$ 18,602 | ||
|
Trade accounts receivable, less allowance for doubtful accounts of $36 |
||||
|
and $43, respectively |
967 |
934 | ||
|
Receivable from sale of MDMS busines |
2,200 |
2,200 | ||
|
Other current assets |
484 |
553 | ||
|
Total current assets |
16,233 |
22,289 | ||
|
Property, furniture and equipment,net |
748 |
575 | ||
|
Goodwill |
18,183 |
18,183 | ||
|
Intangible assets, net |
468 |
510 | ||
|
Deferred tax assets |
108 |
109 | ||
|
Other assets |
70 |
73 | ||
|
Total assets |
$ 35,810 |
$ 41,739 | ||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ 683 |
$ 349 | ||
|
Accrued liabilities |
1,364 |
1,892 | ||
|
Deferred revenue |
1,601 |
1,599 | ||
|
Total current liabilities |
3,648 |
3,840 | ||
|
Other long-term liabilities |
112 |
122 | ||
|
Total liabilities |
3,760 |
3,962 | ||
|
Commitments and contingencies |
||||
|
Stockholders' equity: |
||||
|
Preferred stock |
— |
— | ||
|
Common stock |
3,015 |
3,012 | ||
|
Additional paid-in-capital |
143,228 |
142,848 | ||
|
Accumulated other comprehensive income |
2,311 |
2,360 | ||
|
Accumulated deficit |
(116,504) |
(110,443) | ||
|
Total stockholders' equity |
32,050 |
37,777 | ||
|
Total liabilities and stockholders' equity |
$ 35,810 |
$ 41,739 | ||
|
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||
|
(In thousands, except per share data) | ||||||||
|
Three Months Ended September 30, |
Six Months Ended September 30, | |||||||
|
2014 |
2013 |
2014 |
2013 | |||||
|
Net revenues: |
||||||||
|
Licenses |
$ 592 |
$ 615 |
$ 1,337 |
$ 1,263 | ||||
|
Services |
1,236 |
902 |
2,260 |
1,620 | ||||
|
Total net revenues |
1,828 |
1,517 |
3,597 |
2,883 | ||||
|
Operating expenses: |
||||||||
|
Cost of license revenue-amortization of technology intangible asset |
19 |
19 |
38 |
38 | ||||
|
Cost of service revenues |
357 |
201 |
610 |
344 | ||||
|
Selling and marketing |
1,504 |
1,366 |
3,419 |
2,846 | ||||
|
Research and development |
1,143 |
1,090 |
2,229 |
2,089 | ||||
|
General and administrative |
1,452 |
1,219 |
3,339 |
2,504 | ||||
|
Total operating expenses |
4,475 |
3,895 |
9,635 |
7,821 | ||||
|
Operating loss |
(2,647) |
(2,378) |
(6,038) |
(4,938) | ||||
|
Other income (expense): |
||||||||
|
Interest expense-net |
(1) |
(1) |
(2) |
(2) | ||||
|
Other income (expense)-net |
41 |
(29) |
9 |
(21) | ||||
|
Total other income (expense)-net |
40 |
(30) |
7 |
(23) | ||||
|
Loss before income taxes from continuing operations |
(2,607) |
(2,408) |
(6,031) |
(4,961) | ||||
|
Income tax provision (benefit) |
18 |
(442) |
30 |
(959) | ||||
|
Net loss from continuing operations |
$ (2,625) |
$ (1,966) |
$ (6,061) |
$ (4,002) | ||||
|
Discontinued operations: |
||||||||
|
Net income from discontinued operations, net of tax |
— |
788 |
— |
1,586 | ||||
|
Net loss |
$ (2,625) |
$ (1,178) |
$ (6,061) |
$ (2,416) | ||||
|
Other comprehensive loss: |
||||||||
|
Foreign currency translation adjustments |
(87) |
57 |
(49) |
49 | ||||
|
Total comprehensive loss |
$ (2,712) |
$ (1,121) |
$ (6,110) |
$ (2,367) | ||||
|
Basic and diluted net income (loss) per share: |
||||||||
|
Loss from continuing operations |
$ (0.09) |
$ (0.07) |
$ (0.20) |
$ (0.13) | ||||
|
Income from discontinued operations |
$ — |
$ 0.03 |
$ — |
$ 0.05 | ||||
|
Net loss |
$ (0.09) |
$ (0.04) |
$ (0.20) |
$ (0.08) | ||||
|
Shares used in computing net loss from continuing operations per share, income from discontinued operations per share, and net loss per share |
||||||||
|
30,747 |
30,042 |
30,449 |
29,997 | |||||
|
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
|
(In thousands) |
||||||
|
Six Months Ended September 30, | ||||||
|
2014 |
2013 | |||||
|
Cash flows from operating activities: |
||||||
|
Net loss |
$ (6,061) |
$ (2,416) | ||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||
|
Depreciation and amortization of long-lived assets |
123 |
94 | ||||
|
Recovery from bad debt |
(58) |
— | ||||
|
Stock-based compensation expense |
361 |
763 | ||||
|
Foreign currency exchange (gain) loss |
(10) |
28 | ||||
|
Change in assets and liabilities: |
||||||
|
Trade accounts receivable |
(2) |
(645) | ||||
|
Other current and non-current assets |
56 |
148 | ||||
|
Accounts payable |
334 |
(38) | ||||
|
Accrued liabilities |
(507) |
333 | ||||
|
Deferred revenue |
43 |
88 | ||||
|
Net cash used in operating activities |
(5,721) |
(1,645) | ||||
|
Cash used in investing activities-purchase of property, furniture and equipment |
(258) |
(33) | ||||
|
Cash from financing activities |
||||||
|
Proceeds from exercise of stock options |
23 |
32 | ||||
|
Proceeds from issuance of common stock |
— |
24 | ||||
|
Net cash provided by financing activities |
23 |
56 | ||||
|
Effect of exchange rate changes on cash |
(64) |
38 | ||||
|
Net decrease in cash |
(6,020) |
(1,584) | ||||
|
Cash at beginning of the period |
18,602 |
6,465 | ||||
|
Cash at end of the period |
$ 12,582 |
$ 4,881 | ||||
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 TigerLogic's 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, TigerLogic 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 its 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 TigerLogic is defined as EBITDA plus adjustments for 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 financial information is comparable to net income (loss). The table below reconciles Adjusted EBITDA to TigerLogic's GAAP reported net loss:
|
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS | ||||||||
|
(In thousands) | ||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||
|
2014 |
2013 |
2014 |
2013 | |||||
|
Reported net loss |
$ (2,625) |
$ (1,178) |
$ (6,061) |
$ (2,416) | ||||
|
Depreciation and amortization |
65 |
45 |
123 |
94 | ||||
|
Stock-based compensation |
188 |
364 |
361 |
763 | ||||
|
Interest expense-net |
1 |
1 |
2 |
2 | ||||
|
Other (income) expense-net |
(41) |
29 |
(9) |
21 | ||||
|
Income tax provision |
18 |
66 |
30 |
118 | ||||
|
Adjusted EBITDA |
$ (2,394) |
$ (673) |
$ (5,554) |
$ (1,418) | ||||
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, | ||||
|
2014 |
2013 | |||
|
Net cash used in operating activities |
$ (5,721) |
$ (1,645) | ||
|
Interest expense-net |
2 |
2 | ||
|
Other (income) expense-net |
(9) |
21 | ||
|
Income tax provision |
30 |
118 | ||
|
Change in trade accounts receivable |
2 |
645 | ||
|
Change in other current and non-current assets |
(56) |
(148) | ||
|
Change in accounts payable |
(334) |
38 | ||
|
Change in accrued liabilities |
507 |
(333) | ||
|
Change in deferred revenue |
(43) |
(88) | ||
|
Foreign currency exchange gain (loss) |
10 |
(28) | ||
|
Recovery from bad debt |
58 |
— | ||
|
Adjusted EBITDA |
$ (5,554) |
$ (1,418) | ||
SOURCE TigerLogic Corporation
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