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

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.

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):

Our Adjusted EBITDA financial information can also be reconciled to net cash used in operating activities as follows:

SOURCE TigerLogic Corporation