IRVINE, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Raining Data Corporation today announced financial results for the first quarter of fiscal year 2008. Net revenue for the quarter ended June 30, 2007 was $5.0 million as compared to $4.7 million for the same period in the prior fiscal year. Net loss for the quarter ended June 30, 2007 was $0.2 million as compared to a net loss of $1.3 million for the same period in the prior fiscal year. Loss per share was $0.01 for the quarter ended June 30, 2007 as compared to a loss per share of $0.06 in the same period in the prior fiscal year. Cash balance was $11.3 million at June 30, 2007 as compared to $10.0 million at June 30, 2006.
Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended June 30, 2007 was $0.2 million, or 4% of net revenue, as compared to negative $0.8 million, or (18%) of net revenue, for the same period in the prior fiscal year. The increase in EBITDA was primarily due to higher license revenue and lower 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 100 employees and contractors worldwide, Raining Data offers 24x7 customer support services 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, 2007 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,
2007 2007
(in thousands, except per share data)
ASSETS
Current assets
Cash and cash equivalents $11,290 $11,654
Trade accounts receivable, less
allowance for doubtful accounts
of $204 and $200, respectively 1,940 1,609
Other current assets 474 461
Total current assets 13,704 13,724
Property, furniture and equipment-net 922 949
Goodwill 26,732 26,751
Other assets 97 112
Total assets $41,455 $41,536
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $250 $130
Accrued liabilities 1,987 2,536
Deferred revenue 4,943 4,801
Debt-net of discount 24,473 -
Total current liabilities 31,653 7,467
Long-term debt, net of discount - 24,150
Total liabilities 31,653 31,617
Commitments and contingencies
Stockholders' equity
Preferred stock - -
Common stock 2,119 2,118
Additional paid-in capital 101,644 101,385
Accumulated other comprehensive
income 1,423 1,612
Accumulated deficit (95,384) (95,196)
Total stockholders' equity 9,802 9,919
Total liabilities and
stockholders' equity $41,455 $41,536
RAINING DATA CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the three months ended June 30,
2007 2006
Net revenues
Licenses $2,002 $1,654
Services 2,971 3,018
Total net revenues 4,973 4,672
Operating Expenses
Cost of license revenues 9 21
Cost of service revenues 485 653
Selling and marketing 1,304 1,456
Research and development 1,997 2,646
General and administrative 1,323 1,007
Total operating expenses 5,118 5,783
Operating loss (145) (1,111)
Other expense-net
Interest expense-net (202) (223)
Other income-net 178 10
Total other expense (24) (213)
Loss before income taxes (169) (1,324)
Provision for (benefit from) income
taxes 19 (19)
Net loss $(188) $(1,305)
Basic and diluted net loss per share $(0.01) $(0.06)
Shares used in computing basic
and diluted net loss per share 21,186 20,649
RAINING DATA CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
2007 2006
(In thousands)
Cash flows from operating activities:
Net loss $(188) $(1,305)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization
of long-lived assets 65 75
Provision for bad debt 2 -
Debt discount amortization 21 21
Stock-based compensation
expense 255 211
Income tax expense (benefit) 19 (19)
Change in assets and
liabilities:
Trade accounts receivable (369) 217
Other current and non-
current assets (31) (112)
Accounts payable 120 (111)
Accrued liabilities (360) (140)
Deferred revenue 105 351
Net cash used in operating
activities (361) (812)
Cash flows from investing activities
- purchase of property, furniture and equipment (27) (133)
Cash flows from financing activities
- proceeds from exercise of stock options 5 86
Effect of exchange rate changes on
cash 19 44
Net decrease in cash and cash
equivalents (364) (815)
Cash and cash equivalents at
beginning of period 11,654 10,789
Cash and cash equivalents at end of
period $11,290 $9,974
Non-cash financing activities:
Accrued interest added to debt $302 $288
RAINING DATA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO NET LOSS
(In thousands)
For the three months
ended June 30,
2007 2006
Reported net loss $(188) $(1,305)
Depreciation and amortization 65 75
Stock-based compensation expense 255 211
Interest expense-net 202 223
Other income-net (178) (10)
Provision for (benefit from) income taxes 19 (19)
EBITDA $175 $(825)
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)
For the three months ended June 30,
2007 2006
Net cash used in operating activities $(361) $(812)
Interest expense-net 202 223
Other income-net (178) (10)
Change in accounts receivable 369 (217)
Change in other current and non-current
assets 31 112
Change in accounts payable (120) 111
Change in accrued liabilities 360 140
Change in deferred revenue (105) (351)
Debt discount amortization (21) (21)
Provision for bad debt (2) -
EBITDA $175 $(825)
