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TigerLogic Corporation Announces Results For The First Quarter Ended June 30, 2014

Companies mentioned in this article: TigerLogic Corporation

IRVINE, Calif., Aug. 14, 2014 /PRNewswire/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the first quarter ended June 30, 2014. Net revenue increased 29% quarter-over-quarter to $1.8 million for the first quarter ended June 30, 2014, as compared to prior fiscal year first quarter net revenue of $1.4 million, primarily due to higher services revenue from our Postano platform. Sequentially, when compared to the fourth quarter of the fiscal year ended March 31, 2014, revenue increased from $1.2 million to $1.8 million during the quarter ended June 30, 2014, primarily due to the increase in services revenue from the Postano platform since the launch of Postano version 2.0 in November 2013. Net loss from continuing operations for the first quarter ended June 30, 2014 was $3.4 million as compared to a net loss of $2.0 million for the same period in the prior fiscal year, due mainly to additional new hires, and higher legal and financial advisory services expense related to the evaluation of any proposed sale of TigerLogic's common stock by its largest stockholder that may be presented to the company, as well as the evaluation of other strategic alternatives available to the company. Net loss per share from continuing operations was $0.11 and $0.07 for the quarters ended June 30, 2014 and June 30, 2013, respectively. Cash balance was $15.4 million at June 30, 2014 as compared to $18.6 million at March 31, 2014.

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 first quarter ended June 30, 2014 was negative $3.2 million or (179%) of net revenue, as compared to negative $0.7 million or (54%) of net revenue for the same period in the prior fiscal year. The decrease in Adjusted EBITDA on a year-over-year basis was mainly due to the before-mentioned higher personnel and professional services expenses, offset by an increase in revenue. TigerLogic 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 5:30 p.m. Eastern Time on Thursday, August 14, 2014, TigerLogic's management will host a conference call to discuss the company's financial results for the first quarter ended June 30, 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 85354726.

A taped rebroadcast of the call will be available approximately two hours after the call through August 21, 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 85354726.

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 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 June 30, 2014 are not necessarily indicative of its 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

                                            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                                                             (In thousands)


                            ASSETS                                      June 30,            March 31,

                                                                                      2014                 2014
                                                                                      ----                 ----

    Current assets:

    Cash                                                                           $15,357              $18,602

    Trade accounts receivable, less
     allowance for doubtful accounts of
     $36

        and $43, respectively                                                          889                  934

    Receivable from sale of MDMS business                                            2,200                2,200

    Other current assets                                                               480                  553

    Total current assets                                                            18,926               22,289


    Property, furniture and equipment, net                                             790                  575

    Goodwill                                                                        18,183               18,183

    Intangible assets, net                                                             489                  510

    Deferred tax assets                                                                109                  109

    Other assets                                                                        73                   73

    Total assets                                                                   $38,570              $41,739
                                                                                   =======              =======


             LIABILITIES AND STOCKHOLDERS' EQUITY


    Current liabilities:

    Accounts payable                                                                  $626                 $349

    Accrued liabilities                                                              1,514                1,892

    Deferred revenue                                                                 1,746                1,599

    Total current liabilities                                                        3,886                3,840


    Other long-term liabilities                                                        121                  122

    Total liabilities                                                                4,007                3,962
                                                                                     -----                -----


    Commitments and contingencies


    Stockholders' equity:

    Preferred stock                                                                      -                   -

    Common stock                                                                     3,013                3,012

    Additional paid-in-capital                                                     143,031              142,848

    Accumulated other comprehensive income                                           2,398                2,360

    Accumulated deficit                                                          (113,879)           (110,443)
                                                                                  --------             --------

    Total stockholders' equity                                                      34,563               37,777
                                                                                    ------               ------


    Total liabilities and stockholders'
     equity                                                                        $38,570              $41,739
                                                                                   =======              =======

                         TIGERLOGIC CORPORATION AND SUBSIDIARIES

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

                          (In thousands, except per share data)


                                                            Three Months Ended June 30,
                                                            ---------------------------

                                                                           2014              2013


    Net revenues:

         Licenses                                                          $745              $649

         Services                                                         1,024               718
                                                                          -----               ---

         Total net revenues                                               1,769             1,367
                                                                          -----             -----

    Operating expenses

         Cost of license revenue-
          amortization of
          technology

         intangible asset                                                    19                19

         Cost of service revenues                                           253               143

         Selling and marketing                                            1,915             1,480

         Research and development                                         1,086               999

         General and
          administrative                                                  1,887             1,286

         Total operating expenses                                         5,160             3,927
                                                                          -----             -----

    Operating loss                                                      (3,391)          (2,560)

    Other income (expense):

         Interest expense-net                                               (1)              (1)

         Other income
          (expense)-net                                                    (32)                8
                                                                            ---               ---

              Total other income
               (expense)-net                                               (33)                7
                                                                            ---               ---

    Loss before income taxes
     from continuing
     operations                                                         (3,424)          (2,553)

    Income tax provision
     (benefit)                                                               12             (517)
                                                                            ---              ----

    Net loss from continuing
     operations                                                        $(3,436)         $(2,036)

    Discontinued operations:

         Net income from
          discontinued
          operations, net of tax                                              -              798

    Net loss                                                           $(3,436)         $(1,238)
                                                                        =======           =======

    Other comprehensive
     loss:

         Foreign currency
          translation adjustments                                            38               (8)

    Total comprehensive loss                                           $(3,398)         $(1,246)
                                                                        =======           =======


    Basic and diluted net
     income (loss) per
     share:

         Loss from continuing
          operations                                                    $(0.11)          $(0.07)

         Income from discontinued
          operations                                        $                 -            $0.03

         Net loss                                                       $(0.11)          $(0.04)
                                                                         ======            ======


         Shares used in computing
          net loss from
          continuing

         operations per share,
          income from
          discontinued

         operations per share,
          and net loss per share                                         30,130            29,933

                                                      TIGERLOGIC CORPORATION AND SUBSIDIARIES

                                             UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                Three Months Ended June 30,
                                                                                ---------------------------

                                                                                                        2014               2013
                                                                                                        ----               ----


    Cash flows from operating activities:

                          Net loss                                 $(3,436)                                  $(1,238)

                          Adjustments to
                           reconcile net
                           loss to net cash
                           used in operating
                           activities:

                          Depreciation
                           and
                           amortization
                           of long-
                           lived assets                                  58                                         49

                           Recovery from
                           bad debt                                     (9)                                         -

                           Stock-based
                           compensation
                           expense                                      173                                        399

                           Foreign
                           currency
                           exchange
                           (gain) loss                                   32                                        (8)

                           Change in
                           assets and
                           liabilities:

                                                Trade accounts receivable                                 53              (362)

                                                 Other current and non-
                                                 current assets                                           12                117

                                                Accounts payable                                         253              (105)

                                                Accrued liabilities                                    (318)               203

                                                Deferred revenue                                         149                304
                                                                                                         ---                ---

                           Net cash used in
                           operating
                           activities                               (3,033)                                     (641)
                                                                  -------


    Cash used in investing activities-
     purchase of property, furniture and
     equipment                                                                                      (222)              (17)
                                                                                                     ----                ---


    Cash from financing activities-
     proceeds from exercise of stock
     options                                                                                           12                 12
                                                                                                      ---                ---


                           Effect of exchange
                           rate changes on
                           cash                                         (2)                                         6
                                                                      ---


                           Net decrease in
                           cash                                     (3,245)                                     (640)

                           Cash at beginning
                           of the period                             18,602                                      6,465
                                                                   ------

                           Cash at end of the
                           period                                   $15,357                                     $5,825
                                                                  -------

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 TigerLogic's 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, TigerLogic 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 its 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 TigerLogic 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. Adjusted EBITDA financial information is comparable to net income (loss). The table below reconciles Adjusted EBITDA to TigerLogic's GAAP reported net loss:

                                  TIGERLOGIC CORPORATION AND SUBSIDIARIES

                               RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

                                              (In thousands)


                                                  For the Three Months Ended
                                                           June 30,
                                                 ---------------------------

                                                                          2014      2013
                                                                          ----      ----


    Reported net loss                                                 $(3,436) $(1,238)

    Depreciation and
     amortization                                                           58        49

    Stock-based compensation                                               173       399

    Interest expense-net                                                     1         1

    Other (income) expense-net                                              32       (8)

    Income tax provision                                                    12        52

    Adjusted EBITDA                                                   $(3,160)   $(745)
                                                                       =======     =====

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)


                                               For the Three Months Ended
                                                        June 30,
                                              --------------------------

                                                                       2014                    2013
                                                                       ----                    ----


    Net cash
     used in
     operating
     activities                                                    $(3,033)                 $(641)

    Interest
     expense-
     net                                                                  1                       1

    Other
     (income)
     expense-
     net                                                                 32                     (8)

    Income
     tax
     provision                                                           12                      52

    Change in
     trade
     accounts
     receivable                                                        (53)                    362

    Change in
     other
     current
     and non-
     current
     assets                                                            (12)                  (117)

    Change in
     accounts
     payable                                                          (253)                    105

    Change in
     accrued
     liabilities                                                        318                   (203)

    Change in
     deferred
     revenue                                                          (149)                  (304)

    Foreign
     currency
     exchange
     gain
     (loss)                                                            (32)                      8

    Recovery
     from bad
     debt                                                                 9                       -
                                                                        ---                     ---

    Adjusted
     EBITDA                                                        $(3,160)                 $(745)
                                                                    =======                   =====

SOURCE TigerLogic Corporation