IRVINE, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Raining Data Corporation today announced financial results for the first quarter of fiscal year 2007. Net revenue for the quarter ended June 30, 2006 was $4.7 million as compared to $5.3 million for the same period in the prior fiscal year. Net loss for the quarter ended June 30, 2006, was $1.1 million as compared to a net loss of $0.2 million for the same period in the prior fiscal year. Loss per share was $0.05 for the quarter ended June 30, 2006 as compared to a loss per share of $0.01 in the same period in the prior fiscal year.
Cash balance was $10.0 million at June 30, 2006 as compared to $10.3 million at June 30, 2005. Working capital was $4.6 million at June 30, 2006 as compared to $4.8 million at June 30, 2005. The Company computes working capital as total current assets less current liabilities.
Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended June 30, 2006 was negative $0.6 million, or 13% of revenue, as compared to $0.2 million, or 4% of revenue, for the same period in the prior year. The reduction in EBITDA was primarily due to lower revenues and increased research and development expenditures. The Company computes 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 expense, other (income) expense, and provision (benefit) for income taxes to its GAAP reported net loss.
About Raining Data
Raining Data Corporation , headquartered in Irvine, California, offers enterprise-grade XML database management and information aggregation software solutions and has been providing reliable data management and rapid application deployment solutions for ISVs and developers of database applications for more than three decades. Raining Data's flagship products include: 1) The High-performance TigerLogic(R) XML Data Management Server (XDMS), which 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, delivering mid-tier scalability and transactional integrity across heterogeneous enterprise databases as well as dynamic extensibility and ease of use, mostly found in repositories and file systems; 2) Powerful Pick(R) Universal Data Model (Pick UDM) based database management systems and components, including D3(R), mvEnterprise(R) and mvBase(R) that are the choice of more than a thousand application developers worldwide and .NET Integration components including the Pick Data Provider for .NET and the Pick Reporting Services Connector; and 3) Omnis Studio(R), a powerful, cross-platform, object-oriented RAD tool for developing sophisticated thick-client, Web-client or ultra thin-client database applications.
Raining Data's installed customer base includes more than 500,000 active users representing over 20,000 customer sites worldwide, with a significant base of diverse vertical applications. With more than 160 employees and contractors in five countries, Raining Data offers 24x7 customer support and
maintains a strong international presence. More information about Raining Data Corporation and its products can be found at http://www.rainingdata.com/.
Except for the historical statements contained herein, the foregoing release may contain forward-looking statements. These 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 Raining Data Corporation with the U.S. Securities and Exchange Commission, including but not limited to the Company's most recent reports on Form 10-KSB and Form 10-QSB 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 June 30, 2006 are not necessarily indicative of the Company's operating results for any future periods.
Raining Data, Pick, mvDesigner, D3, mvEnterprise, mvBase, Omnis, Omnis Studio and TigerLogic are trademarks of Raining Data Corporation. All other trademarks and registered trademarks are properties of their respective owners.
RAINING DATA CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2006 2006
(in thousands)
ASSETS
Current assets
Cash and cash equivalents $9,974 $10,789
Trade accounts receivable, less
allowance for doubtful accounts of
$223 and $182 1,680 2,019
Other current assets 483 355
Total current assets 12,137 13,163
Property, furniture and equipment-net 1,137 1,055
Goodwill 26,845 26,845
Other assets 98 96
Total assets $40,217 $41,159
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $293 $399
Accrued liabilities 2,234 2,885
Deferred revenue 5,026 4,886
Total current liabilities 7,553 8,170
Long-term debt, net of discount 23,201 22,893
Total liabilities 30,754 31,063
Commitments and contingencies
Stockholders' equity
Preferred stock -- --
Common stock 2,069 2,064
Additional paid-in capital 99,634 99,341
Accumulated other comprehensive income 1,395 1,234
Accumulated deficit (93,635) (92,543)
Total stockholders' equity 9,463 10,096
Total liabilities and
stockholders' equity $40,217 $41,159
RAINING DATA CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended June 30,
2006 2005
(in thousands, except per share amounts)
Net revenues
Licenses $1,654 $2,311
Services 3,018 2,982
Total net revenues 4,672 5,293
Operating Expenses
Cost of license revenues 21 64
Cost of service revenues 653 620
Selling and marketing 1,456 1,329
Research and development 2,646 2,244
General and administrative 806 901
Total operating expenses 5,582 5,158
Operating income (loss) (910) 135
Other income (expense)
Interest expense-net (223) (247)
Other income (expense)-net 22 (51)
Loss before income taxes (1,111) (163)
Benefit from income taxes (19) --
Net loss $(1,092) $(163)
Basic and diluted net loss per share $(0.05) $(0.01)
Shares used in computing basic and
diluted net loss per share 20,649 19,764
RAINING DATA CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
2006 2005
(In thousands)
Cash flows from operating activities:
Net loss $(1,092) $(163)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 75 82
Note payable discount amortization 21 21
Stock-based compensation expense 211 6
Income tax benefit (19) --
Change in assets and liabilities:
Trade accounts receivable 217 (129)
Other current and non-current assets (112) 24
Accounts payable (111) (217)
Accrued liabilities (341) 125
Deferred revenue 351 75
Net cash used in operating activities (800) (176)
Cash flows used in investing
activities - purchase of property, furniture
and equipment (133) (91)
Cash flows from financing activities - proceeds
from exercise of stock options and warrants 86 34
Effect of exchange rate changes on cash 32 (51)
Net increase in cash and cash equivalents (815) (284)
Cash and cash equivalents at beginning
of period 10,789 10,625
Cash and cash equivalents at end of period $9,974 $10,341
Non-cash financing activities:
Issuance of notes for accrued interest $288 $274
RAINING DATA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO NET LOSS
(In thousands)
Three months
ended June 30,
2006 2005
Reported net loss $(1,092) $(163)
Depreciation and amortization 75 82
Stock-based compensation 211 6
Interest expense-net 223 247
Other (income) expense-net (22) 51
Benefit from income taxes (19) --
EBITDA $(624) $223
EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies.
However, EBITDA is used by management to evaluate, assess and benchmark the Company's operational results and the Company believes that EBITDA is relevant and useful information, which is often reported and 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.
The Company's EBITDA financial information is also comparable to net cash used in operating activities. The table below reconciles EBITDA to the GAAP disclosure of net cash used in operating activities:
RAINING DATA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO NET CASH USED IN OPERATING ACTIVITIES
(In thousands)
Three Months
ended June 30,
2006 2005
Net cash used in operating activities $(800) $(176)
Interest expense-net 223 247
Other (income) expense-net (22) 51
Change in accounts receivable (217) 129
Change in other assets 112 (24)
Change in accounts payable 111 217
Change in accrued liabilities 341 (125)
Change in deferred revenue (351) (75)
Note payable discount amortization (21) (21)
EBITDA $(624) $223
