TigerLogic Corporation Announces Results for the Third Quarter Ended December 31, 2011
IRVINE, Calif., Feb. 13, 2012 /PRNewswire/ — TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the third quarter ended December 31, 2011. Net revenue was $3.4 million for the third quarter ended December 31, 2011, as compared to $3.7 million for the third quarter ended December 31, 2010. Net loss for the third quarter ended December 31, 2011 was $0.8 million as compared to a net loss of $0.5 million for the same period in the prior fiscal year. Net loss per share was $0.03 and $0.02 for the quarters ended December 31, 2011 and December 31, 2010, respectively. Cash balance was $9.0 million at December 31, 2011 as compared to $11.4 million at December 31, 2010. The Company continues to invest in the development and marketing of its Postano social media and yolink search solutions, while also upgrading its core Pick and Omnis product lines.
Adjusted earnings before interest, taxes, depreciation, amortization, other income (expense)-net, and non-cash stock-based compensation expense (“Adjusted EBITDA”) for the quarter ended December 31, 2011 was negative $0.3 million or negative 10% of net revenue, as compared to negative $0.1 million or negative 2% of net revenue for the same period in the prior fiscal year. The decrease in the Adjusted EBITDA for the three months ended December 31, 2011 as compared to the same period in the prior year was primarily due to lower license 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) is a global provider of data management and application development solutions for enterprises that need to launch easy and cost-effective e-business initiatives. Built on proven technology, TigerLogic helps control data and transform it into business intelligence and engagement. TigerLogic’s product offerings include: 1) TigerLogic Postano(TM), a real-time social media content aggregation platform; 2) TigerLogic® yolink, a next-generation search enhancement technology; 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 24×7 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 ended December 31, 2011 are not necessarily indicative of the Company’s operating results for any future periods.
TigerLogic, Postano, 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
(In thousands)
December 31, March 31,
2011 2011
---- ----
ASSETS
Current assets
Cash $8,994 $11,354
Trade accounts receivable, less allowance
for doubtful
accounts of $11 and $11, respectively 1,038 756
Other current assets 782 421
--- ---
Total current assets 10,814 12,531
Property, furniture and equipment-net 625 699
Goodwill 26,388 26,388
Deferred tax assets 242 304
Other assets 112 116
--- ---
Total assets $38,181 $40,038
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $199 $205
Accrued liabilities 1,559 1,682
Deferred revenue 4,087 4,283
----- -----
Total current liabilities 5,845 6,170
Commitments and contingencies
Stockholders' equity
Preferred stock - -
Common stock 2,816 2,810
Additional paid-in-capital 135,113 133,995
Accumulated other comprehensive income 2,277 2,312
Accumulated deficit (107,870) (105,249)
-------- --------
Total stockholders' equity 32,336 33,868
Total liabilities and stockholders' equity $38,181 $40,038
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TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
Net
revenues
Licenses $1,027 $1,348 $3,003 $3,354
Services 2,331 2,353 7,058 6,965
----- ----- ----- -----
Total
net
revenues 3,358 3,701 10,061 10,319
Operating
expenses
Cost
of
license
revenues 3 4 9 10
Cost
of
service
revenues 435 428 1,394 1,279
Selling
and
marketing 1,290 1,216 3,850 3,524
Research
and
development 1,485 1,479 4,353 4,481
General
and
administrative 890 965 2,863 3,030
Total
operating
expenses 4,103 4,092 12,469 12,324
----- ----- ------ ------
Operating
loss (745) (391) (2,408) (2,005)
Other
expense/
income
Interest
expense-
net (2) (1) - (2)
Other
expense-
net (40) (7) (69) (19)
--- --- --- ---
Total
other
expense (42) (8) (69) (21)
--- --- --- ---
Loss
before
income
taxes (787) (399) (2,477) (2,026)
Income
tax
provision
(benefit) (33) 52 144 169
--- --- --- ---
Net
loss $(754) $(451) $(2,621) $(2,195)
===== ===== ======= =======
Basic
and
diluted
net
loss
per
share $(0.03) $(0.02) $(0.09) $(0.08)
====== ====== ====== ======
Shares
used
in
computing
basic
and
diluted
net
loss
per
share 28,163 28,024 28,138 27,981
TIGERLOGIC CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Nine Months Ended December
31,
---------------------------
2011 2010
---- ----
Cash flows from
operating
activities:
Net loss $(2,621) $(2,195)
Adjustments to
reconcile net loss
to net cash
used in operating
activities:
Depreciation and
amortization of
long-lived assets 119 276
Provision for bad
debt 4 3
Stock-based
compensation
expense 990 777
Change in deferred
tax assets 144 169
Foreign currency
exchange loss 75 17
Change in assets
and liabilities:
Trade accounts
receivable (333) (288)
Other current and
non-current
assets (330) (41)
Accounts payable - 80
Accrued
liabilities (243) 4
Deferred revenue (122) 51
---- ---
Net cash used in
operating
activities (2,317) (1,147)
------ ------
Cash flows used in
investing
activities-
purchase of
property, furniture
and equipment (61) (225)
--- ----
Cash flows from
financing
activities:
Proceed from
exercise of stock
options 87 240
Proceed from
issuance of common
stock 48 32
--- ---
Net cash provided
by financing
activities 135 272
Effect of exchange
rate changes on
cash (117) (17)
---- ---
Net decrease in
cash (2,360) (1,117)
Cash at beginning
of period 11,354 12,492
------ ------
Cash at end of
period $8,994 $11,375
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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 reported net loss:
TIGERLOGIC CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
Three Months Nine Months
Ended December
Ended December 31, 31,
------------------ ---------------
2011 2010 2011 2010
---- ---- ---- ----
Reported
net loss $(754) $(451) $(2,621) $(2,195)
Depreciation
and
amortization 37 89 119 276
Stock-
based
compensation 361 228 990 777
Interest
expense-
net 2 1 - 2
Other
expense-
net 40 7 69 19
Income
tax
provision
(benefit) (33) 52 144 169
Adjusted
EBITDA $(347) $(74) $(1,299) $(952)
===== ==== ======= =====
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)
Nine Months Ended
December 31,
------------
2011 2010
---- ----
Net cash used in operating
activities $(2,317) $(1,147)
Interest expense-net - 2
Other expense-net 69 19
Change in trade accounts
receivable 333 288
Change in other current and
non-current assets 330 41
Change in accounts payable - (80)
Change in accrued liabilities 243 (4)
Change in deferred revenue 122 (51)
Foreign currency exchange loss (75) (17)
Provision for bad debt (4) (3)
--- ---
Adjusted EBITDA $(1,299) $(952)
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SOURCE TigerLogic Corporation