IRVINE, Calif., June 27, 2014 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the fourth quarter and fiscal year ended March 31, 2014. As previously announced, the Company closed the sale of its multidimensional database management system (the "MDMS Business") to Rocket Software, Inc., effective November 15, 2013.Accordingly, the consolidated financial statements have been revised for all periods presented to reflect the MDMS Business as discontinued operations, and unless noted otherwise, the consolidated financial statements included in this press release reflect results fromcontinuing operations.
Net revenue from continuing operations for the fourth quarter of fiscal year 2014 was $1.2 million and for the full fiscal year 2014 was $5.5 million, as compared to $1.0 million and $3.8 million for the same respective periods in the prior fiscal year. Net loss from continuing operationsfor the fourth quarter ended March 31, 2014 was $2.5 million as compared to a net loss of $2.0 million for the same period in the prior fiscal year. Net loss from continuing operations for the fiscal year ended March 31, 2014 was $7.3 million as compared to a net loss of $6.3 million for the prior fiscal year. The higher net loss from continuing operationsfor fiscal year 2014 was primarily due to a one-time charge of $1.0 million related to a revenue sharing agreement with a former consultant, in which the consultant also reconfirmed the assignment to the Company of any and all rights related to Postano platform and associated inventions and intellectual property rights. In addition, higher professional advisory, legal, and accounting services expense relating to the sale of the MDMS Business contributed to the higher net loss in fiscal year 2014. Net loss per share from continuing operationswas $0.08 and $0.07 for the quarters ended March 31, 2014 and March 31, 2013, respectively. Net loss per share from continuing operationswas $0.24 for the fiscal year ended March 31, 2014, as compared to $0.22 for the prior fiscal year. Cash balance was $18.6 million at March 31, 2014 as compared to $6.5 million at March 31, 2013.
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 and fiscal year ended March 31, 2014 was negative $3.5 million and negative $6.4 million, or (302.0%) and (117.4%) of net revenue, respectively, as compared to negative $0.9 million and negative $1.7 million, or (85.0%) and (44.4%) of net revenue, respectively, for the same periods in the prior fiscal year. The decrease in Adjusted EBITDA on a year-over-year basis was mainly due to thebefore-mentioned one-time charge of $1.0 million related to the revenue sharing agreement reached with a former consultant, and higher professional advisory, legal, and accounting services expense related to the sale of our MDMS Business. Additional headcount and increased marketing campaign expenses for the Company's Postano product line also contributed to the decrease in Adjusted EBITDA for fiscal year 2014. 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 income (loss).
Earnings Call
At 5:00 p.m. Eastern Time on Monday, June 30, 2014, TigerLogic's management will host a conference call to discuss the company's financial results for the fourth quarter and 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 61734764.
A taped rebroadcast of the call will be available approximately two hours after the call through July 7, 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 61734764.
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 and visualization platform, Internet search enhancement tools, and the design and development of mobile applications and digital publications. 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 and fiscal year ended March 31, 2014 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.
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands, except share data) | ||||
ASSETS | March 31, | March 31, | ||
2014 | 2013 | |||
Current assets: | ||||
Cash | $18,602 | $6,465 | ||
Trade accounts receivable, less allowance for doubtful accounts of $43 in 2014 | ||||
and $24 in 2013 | 934 | 575 | ||
Receivable from sale of MDMS business | 2,200 | - | ||
Other current assets | 553 | 561 | ||
Current assets of discontinued operations | - | 411 | ||
Total current assets | 22,289 | 8,012 | ||
Property, furniture and equipment, net | 575 | 459 | ||
Goodwill | 18,183 | 18,183 | ||
Intangible assets, net | 510 | 593 | ||
Deferred tax assets | 109 | 228 | ||
Other assets | 73 | 111 | ||
Noncurrent assets of discontinued operations | - | 13,565 | ||
Total assets | $41,739 | $41,151 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $349 | 388 | ||
Accrued liabilities | 1,892 | 1,240 | ||
Deferred revenue | 1,599 | 948 | ||
Current liabilities of discontinued operations | - | 3,448 | ||
Total current liabilities | 3,840 | 6,024 | ||
Other long-term liabilities | 122 | 103 | ||
Other long-term liabilities of discontinued operations | - | 34 | ||
Total liabilities | 3,962 | 6,161 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Series A convertible preferred stock: $1.00 par value; 5,000,000 shares authorized; | ||||
none issued or outstanding at March 31, 2014 and 2013 | - | - | ||
Common stock: $0.10 par value; 100,000,000 shares authorized; 30,117,234 and | ||||
and 29,931,248 issued and outstanding as of March 31, 2014 and 2013, respectively .. | 3,012 | 2,993 | ||
Additional paid-in-capital | 142,848 | 141,478 | ||
Accumulated other comprehensive income | 2,360 | 2,257 | ||
Accumulated deficit | (110,443) | (111,738) | ||
Total stockholders' equity | 37,777 | 34,990 | ||
Total liabilities and stockholders' equity | $41,739 | $41,151 | ||
TIGERLOGIC CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
(In thousands, except per share data) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Net revenues | |||||||||||
Licenses | $408 | $672 | $2,264 | $2,090 | |||||||
Services | 756 | 376 | 3,226 | 1,687 | |||||||
Total net revenues | 1,164 | 1,048 | 5,490 | 3,777 | |||||||
Operating expenses | |||||||||||
Cost of license revenues | (125) | 17 | 19 | 5 | |||||||
Cost of license revenues - amortization of intangible assets | 19 | 15 | 76 | 15 | |||||||
Cost of service revenues | 215 | 107 | 638 | 355 | |||||||
Cost of service revenues - revenue sharing agreement | 1,000 | - | 1,000 | - | |||||||
Selling and marketing | 1,459 | 1,185 | 5,918 | 3,979 | |||||||
Research and development | 1,174 | 1,083 | 4,441 | 3,698 | |||||||
General and administrative | 1,151 | 904 | 4,350 | 3,728 | |||||||
Acquisition relatedcosts | - | 199 | 209 | 288 | |||||||
Total operating expenses | 4,893 | 3,510 | 16,651 | 12,068 | |||||||
Operating loss from continuing operations | (3,729) | (2,462) | (11,161) | (8,291) | |||||||
Other income (expense) | |||||||||||
Interestexpense-net | (3) | (2) | (6) | (6) | |||||||
Other income (expense)-net | (19) | 24 | (62) | 10 | |||||||
Total other income (expense) - net | (22) | 22 | (68) | 4 | |||||||
Loss before income taxes from continuing operations | (3,751) | (2,440) | (11,229) | (8,287) | |||||||
Income tax benefit | (1,287) | (436) | (3,965) | (2,012) | |||||||
Net loss from continuing operations | (2,464) | (2,004) | (7,264) | (6,275) | |||||||
Discontinued operations: | |||||||||||
Income from discontinued operations, net of tax | (28) | 749 | 2,641 | 3,333 | |||||||
Gain (loss) on sale of discontinued operations, net of tax | (195) | - | 5,918 | - | |||||||
Income (loss) from discontinued operations | (223) | 749 | 8,559 | 3,333 | |||||||
Net income (loss) | $(2,687) | $ (1,255) | $ 1,295 | $ (2,942) | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | 27 | (64) | 103 | (47) | |||||||
Total comprehensive income (loss) | $(2,660) | $(1,319) | $1,398 | $(2,989) | |||||||
Basic and diluted net loss per share | |||||||||||
Loss from continuing operations | $(0.08) | $(0.07) | $(0.24) | $(0.22) | |||||||
Income (loss) from discontinued operations | $ (0.01) | $ 0.03 | $ 0.28 | $0.12 | |||||||
Net income (loss) | $(0.09) | $(0.04) | $0.04 | $(0.10) | |||||||
Shares used in computing net loss from continuing | |||||||||||
operations per share, income (loss) from discontinued | |||||||||||
operations per share, and net income (loss) per share | 30,255 | 28,548 | 30,255 | 28,548 | |||||||
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(in thousands) | ||||||
For the Years Ended March 31 | ||||||
2014 | 2013 | |||||
Cash flows from operating activities: | ||||||
Net income (loss) | $1,295 | $(2,942) | ||||
Gain on sale of discontinued operations | (9,926) | - | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization of long-lived assets | 191 | 144 | ||||
Provision for (recovery from) bad debt | 133 | (7) | ||||
Stock-based compensation expense | 1,293 | 1,049 | ||||
Change in deferred tax assets | 120 | 89 | ||||
Foreign currency exchange (gain) loss . | (46) | (3) | ||||
Change in operating assets and liabilities, net of discontinued operations: | ||||||
Trade accounts receivable | (970) | 76 | ||||
Other current assets | 138 | (72) | ||||
Accounts payable | (98) | (108) | ||||
Accrued liabilities | (633) | (197) | ||||
Deferred revenue | 941 | 77 | ||||
Net cash used in operating activities | (7,562) | (1,894) | ||||
Cash flows from investing activities: | ||||||
Business acquistion, net of cash received | - | (490) | ||||
Purchases of property, plant and equipment | (183) | (81) | ||||
Proceeds from sale of discontinued operations | 19,800 | - | ||||
Net cash provided by (used in) investing activities | 19,617 | (571) | ||||
Cash flows from financing activities: | ||||||
Proceeds from exercise of stock options | 59 | 24 | ||||
Proceeds from issuance of common stock | 37 | 47 | ||||
Net cash provided by financing activities | 96 | 71 | ||||
Effect of exchange rate changes on cash | (14) | (59) | ||||
Net increase (decrease) in cash | 12,137 | (2,453) | ||||
Cash at beginning of the period | 6,465 | 8,918 | ||||
Cash at end of the period | $18,602 | $6,465 | ||||
Supplemental disclosures: | ||||||
Cash paid for income taxes | $488 | $148 | ||||
Non-cash investing activities: | ||||||
Issuance of common stock and stock options assumed in business acquistion | - | $5,095 | ||||
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 includes 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 loss:
TIGERLOGIC CORPORATION AND SUBSIDIARIES | ||||||||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) | ||||||||||
(In thousands) | ||||||||||
For the Three Months Ended | For the Years Ended | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Reported net income (loss) | $ (2,687) | (1,255) | $1,295 | $(2,942) | ||||||
Depreciation and amortization | 48 | 47 | 191 | 144 | ||||||
Stock-based compensation | 164 | 305 | 1,293 | 1,049 | ||||||
Interest expense-net | 3 | 1 | 6 | 6 | ||||||
Other (income) expense-net | 18 | (18) | 62 | (10) | ||||||
Income tax provision (benefit) | (1,064) | 30 | 633 | 77 | ||||||
Gain on sale of discontinued operations | (9,926) | - | ||||||||
Adjusted EBITDA | $(3,518) | $(890) | $(6,446) | $(1,676) | ||||||
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 ACTIVITES | ||||
(In thousands) | ||||
For the Year Ended | ||||
2014 | 2013 | |||
Net cash used in operating activities | $ (7,562) | $ (1,894) | ||
Interest expense-net | 6 | 6 | ||
Other (income) expense-net | 62 | (10) | ||
Income tax provision | 633 | 77 | ||
Change in trade accounts receivable | 970 | (76) | ||
Change in other current and non-current assets | (258) | (17) | ||
Change in accounts payable | 98 | 108 | ||
Change in accrued liabilities | 633 | 197 | ||
Change in deferred revenue | (941) | (77) | ||
Foreign currency exchange gain | 46 | 3 | ||
Provision for (recovery from) bad debt | (133) | 7 | ||
Adjusted EBITDA | $ (6,446) | $ (1,676) | ||
SOURCE TigerLogic Corporation
