TigerLogic Corporation Announces Third Fiscal Quarter Financial Results

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Feb 17, 2015, 04:30 ET

IRVINE, Calif., Feb. 17, 2015 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the third fiscal quarter ended December 31, 2014.

Revenues: Total revenues were $1.9 million for the third fiscal quarter ended December 31, 2014, an increase of 33% year-over-year, and an increase of 5% from the second fiscal quarter. Total revenues for the nine-months ended December 31, 2014 were $5.5 million, an increase of 27% compared to the same period in the prior year.
Net Loss: Net loss for the third fiscal quarter ended December 31, 2014 was $20.4 million, or $0.65 per share, compared to net income of $6.4 million, or $0.21 per share, for the third quarter of the prior year. Net loss for the nine-months ended December 31, 2014 was $26.5 million, or $0.85 per share, compared to net income of $4.0 million, or $0.13 per share, for the same period in the prior year. During the third quarter of the current fiscal year, the Company recorded a goodwill impairment charge of $18.2 million, while during the prior year it recorded income from discontinued operations of $7.2 million and $8.8 million for the quarter and the nine-month periods, respectively.
Adjusted EBITDA: Adjusted EBITDA was negative $1.9 million for the third fiscal quarter ended December 31, 2014 as compared to negative $2.4 for the second fiscal quarter and negative $2.1 million for the same period in the prior year, a 22% and 11% improvement, respectively. For the nine-months ended December 31, 2014, Adjusted EBITDA was negative $7.4 million compared to negative $6.0 million for the same period in the prior year.
Cash: Cash was $12.8 million as of December 31, 2014, up $0.2 million from the end of the prior quarter. The final $2.2 million held in escrow related to the sale of the MDMS business was released and received by the Company in November 2014.

"TigerLogic grew its revenues 33% year over year, largely due to increased market penetration and acceptance of our Postano products," said Brad Timchuk, CEO of TigerLogic. "We also improved our operating performance during the quarter, exclusive of the goodwill impairment charge. In addition, we released a number of new exciting features and products across our portfolio that we expect to contribute to future revenue growth," continued Timchuk.

For information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

Recent Business Highlights

Earlier this month, TigerLogic launched the Postano Command Center platform, a next-generation product for wall-to-wall displays empowering users with a holistic view of brand, campaign and social data to deliver advanced insight into consumer trends, sentiment and behaviors. The Postano product platform significantly leverages technology obtained in the January 2013 acquisition of Storycode, Inc.
In November 2014, TigerLogic released Postano 2.6, a significant update to the Postano platform. The new version includes improvements in speed and curation workflow, new social network integrations and multiple new visualization formats.
During the quarter, TigerLogic released Omnis Studio 6.1. The new version offers an advanced Omnis development environment with greater overall performance for building and deploying highly interactive enterprise web and mobile applications across multiple platforms, including Android and iOS based devices.
In January 2015, TigerLogic announced that the Postano platform was named as a Facebook Public Content Solution partner. Membership in this exclusive program allows TigerLogic to continually work with Facebook to take advantage of the Postano platform and unique technical resources.
During the quarter, Tigerlogic expanded the Postano platform reach across multiple sports teams and events. Specifically, TigerLogic announced that teams like the Arizona Cardinals, University of Oregon and Cleveland Cavaliers have chosen to build social visualizations to drive fan engagement and conversations within stadiums and arenas during games using the Postano platform. In addition, the Postano platform powered fan engagement during the inaugural college football playoff championship game between the Ohio State Buckeyes and Oregon Ducks and during the Goodyear Cotton Bowl Classic, both held in Dallas, Texas in January 2015.

Earnings Call

At 2:00 p.m. Pacific Time on Tuesday, February 17, 2015, TigerLogic's management will host a conference call to discuss the company's financial results for the third fiscal quarter ended December 31, 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 76972240.

A taped rebroadcast of the call will be available approximately two hours after the call through February 24, 2015. 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 76972240.

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 in engagement solutions, including the Omnis mobile development platform and Postano, a social media aggregation and display platform. 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, including statements about TigerLogic's future success and revenue growth opportunities. 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 December 31, 2014 are not necessarily indicative of its operating results for any future periods.

TigerLogic, Postano, 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
(In thousands)




ASSETS	December 31,	March 31,
	2014	2014
Current assets:
Cash	$ 12,846	$ 18,602
Trade accounts receivable, less allowance for doubtful accounts of $0 and $43, respectively	850	934
Receivable from sale of MDMS business	—	2,200
Other current assets	472	553
Total current assets	14,168	22,289

Property, furniture and equipment,net	687	575
Goodwill	—	18,183
Intangible assets, net	383	510
Deferred tax assets	107	109
Other assets	63	73
Total assets	$ 15,408	$ 41,739

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$ 368	$ 349
Accrued liabilities	1,527	1,892
Deferred revenue	1,643	1,599
Total current liabilities	3,538	3,840

Other long-term liabilities	108	122
Total liabilities	3,646	3,962

Commitments and contingencies

Stockholders' equity:
Preferred stock	—	—
Common stock	3,015	3,012
Additional paid-in-capital	143,398	142,848
Accumulated other comprehensive income	2,245	2,360
Accumulated deficit	(136,896)	(110,443)
Total stockholders' equity	11,762	37,777

Total liabilities and stockholders' equity	$ 15,408	$ 41,739

TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)


	Three Months Ended December 31,		Nine Months Ended December 31,
	Three Months Ended December 31,		Nine Months Ended December 31,
	2014	2013	2014	2013

Net revenues:
Licenses	$ 515	$ 591	$ 1,852	$ 1,856
Subscriptions and services	1,398	851	3,658	2,470
Total net revenues	1,913	1,442	5,510	4,326
Operating expenses:
Cost of license revenues-amortization of technology intangible asset	19	19	57	57
Cost of subscriptions and service revenues	289	221	899	567
Selling and marketing	1,260	1,615	4,679	4,459
Research and development	780	1,178	3,009	3,267
General and administrative	1,729	903	5,068	3,199
Impairment of goodwill	18,183	—	18,183	—
Acquisition-related cost	—	—	—	209
Total operating expenses	22,260	3,936	31,895	11,758
Operating loss	(20,347)	(2,494)	(26,385)	(7,432)
Other income (expense):
Interest expense-net	—	(1)	(2)	(3)
Other income (expense)-net	33	(23)	42	(44)
Total other income (expense)-net	33	(24)	40	(47)
Loss before income taxes from continuing operations	(20,314)	(2,518)	(26,345)	(7,479)
Income tax provision (benefit)	78	(1,720)	108	(2,678)
Net loss from continuing operations	$ (20,392)	$ (798)	$ (26,453)	$ (4,801)
Discontinued operations:
Net income from discontinued operations, net of tax	—	1,082	—	2,669
Gain on sale of discontinued operations, net of tax	—	6,113	—	6,113
Income from discontinued operations	—	7,195	—	8,782
Net income (loss)	$ (20,392)	$ 6,397	$ (26,453)	$ 3,981
Other comprehensive income (loss):
Foreign currency translation adjustments	(66)	27	(115)	76
Total comprehensive income (loss)	$ (20,458)	$ 6,424	$ (26,568)	$ 4,057

Basic and diluted net income (loss) per share:
Loss from continuing operations	$ (0.65)	$ (0.03)	$ (0.85)	$ (0.16)
Income from discontinued operations	$ —	$ 0.24	$ —	$ 0.29
Net income (loss)	$ (0.65)	$ 0.21	$ (0.85)	$ 0.13

Shares used in computing net loss from continuing
operations per share, income from discontinued	31,560	30,176	31,109	30,116
operations per share, and net loss per share

TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

				Nine Months Ended December 31,
				2014	2013

Cash flows from operating activities:
	Net income (loss)			$ (26,453)	$ 3,981
	Adjustments to reconcile net loss to net cash used in operating activities:
	Gain on sale of discontinued operations			—	(9,926)
	Impairment of goodwill			18,183	—
	Depreciation and amortization of long-lived assets			261	143
	Provision for (recovery of) bad debt			(71)	94
	Stock-based compensation expense			531	1,129
	Foreign currency exchange gain			(47)	(111)
		Change in assets and liabilities:
			Trade accounts receivable	173	(968)
			Other current and non-current assets	21	75
			Accounts payable	17	(233)
			Accrued liabilities	(272)	590
			Deferred revenue	57	634
	Net cash used in operating activities			(7,600)	(4,592)

Cash from investing activities:
	Purchase of property,furniture and equipment			(264)	(102)
	Proceeds from sale of discontinued operations			—	19,800
	Net cash provided from (used by) investing activities			(264)	19,698

Cash from financing activities:
	Proceeds from exercise of stock options			16	43
	Proceeds from issuance of common stock			7	24
	Proceeds from sale of discontinued operations			2,200	—
	Net cash provided from financing activities			2,223	67

	Effect of exchange rate changes on cash			(115)	15

	Net increase (decrease) in cash			(5,756)	15,188
	Cash at beginning of the period			18,602	6,465
	Cash at end of the period			$ 12,846	$ 21,653

Non-GAAP Financial Measures

Adjusted EBITDA (as defined below) should not be construed as a substitute for net income (loss) determined in accordance with U.S. GAAP. Adjusted EBITDA excludes components that are significant in understanding and assessing TigerLogic's results of operations. Adjusted EBITDA does 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 might not be comparable to similarly titled measures used by other companies.

However, Adjusted EBITDA is used by management to evaluate, assess and benchmark TigerLogic's operational results and the company believes that Adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties in the industry. Accordingly, TigerLogic is disclosing this information to permit a more comprehensive analysis of its operating performance, and to provide an additional measure of performance.

Adjusted EBITDA used by TigerLogic is defined as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, and income tax provision (benefit) plus adjustments for other income (expense)-net, non-cash stock-based compensation expense, and other non-recurring items such as income from discontinued operations, goodwill impairment charges and acquisition related costs.

Adjusted EBITDA presented below includes results from both continuing operations. Adjusted EBITDA financial information is comparable to net income (loss). The table below reconciles Adjusted EBITDA to TigerLogic's GAAP reported net income (loss):

Reconciliation of GAAP to Non-GAAP Financial Measures

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)

	For the Three Months Ended			For the Nine Months Ended
	December 31,	September 30,	December 31,	December 31,
	2014	2014	2013	2014	2013

Reported net income (loss)	$ (20,392)	$ (2,625)	$ 6,397	$ (26,453)	$ 3,981
Depreciation and amortization	138	65	48	261	143
Stock-based compensation	170	188	367	531	1,129
Interest expense-net	—	1	1	2	3
Other (income) expense-net	(33)	(41)	23	(42)	44
Income tax provision (benefit)	78	18	(1,720)	108	(2,678)
Acquisition-related cost	—	—	—	—	209
Impairment of goodwill	18,183	—	—	18,183	—
Income from discontinued operations	—	—	(7,195)	—	(8,782)
Adjusted EBITDA	$ (1,856)	$ (2,394)	$ (2,079)	$ (7,410)	$ (5,951)