Press Release: TigerLogic Corporation Announces Fiscal 2009 Third Quarter Results

IRVINE, Calif., Feb. 11 /PRNewswire-FirstCall/ -- TigerLogic Corporation (Nasdaq: TIGR) today announced financial results for the third quarter of fiscal year 2009. Net revenue for the third quarter ended December 31, 2008 was $4.2 million as compared to $4.9 million for the same period in the prior fiscal year. Net loss for the third quarter ended December 31, 2008 was $1.5 million as compared to net loss of $0.2 million for the same period in the prior fiscal year. Loss per share for the third quarter ended December 31, 2008 was $0.05 as compared to $0.01 in the same period in the prior fiscal year. Cash balance was $12.1 million at December 31, 2008 as compared to $13.1 million at December 31, 2007.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the third quarter ended December 31, 2008 was breakeven as compared to $0.3 million, or 6% of net revenue for the same period in the prior fiscal year. The decrease in EBITDA was primarily a result of lower revenue. 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 (income) expense, other (income) expense, and income tax provision to its GAAP reported net loss.

About TigerLogic Corporation

TigerLogic Corporation (Nasdaq: TIGR), has been providing reliable data management and rapid application deployment solutions for ISVs and developers of database applications for more than three decades. TigerLogic's product offerings include: 1) TigerLogic(R) ChunkIt!, an internet browser-based application that enhances the search experience of any popular search engine or Web page; 2) TigerLogic(R) XML Data Management Server (XDMS), 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; 3) 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 4) Omnis Studio(R), 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 24x7 customer support services and maintains an international presence. More information about TigerLogic and its products can be found at :e776:http://www.tigerlogic.com:/e776:. Product details about ChunkIt! can be found at [www.getchunkit.com.] 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 the Company 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-Q/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 December 31, 2008 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, ChunkIt!, 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

                                               December 31,       March 31,
                                                   2008            2008
                                                      (In thousands)
                                   ASSETS
      Current assets
        Cash and cash equivalents                $12,128          $14,065
        Trade accounts receivable,
         less allowance for doubtful
         accounts of $162 and $271,
         respectively                              1,238            1,845
        Other current assets                         404              439
          Total current assets                    13,770           16,349

      Property, furniture and
       equipment-net                                 951            1,053
      Goodwill                                    26,388           26,388
      Deferred tax assets                            406              460
      Other assets                                   164              142
          Total assets                           $41,679          $44,392

                     LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities
        Accounts payable                            $240             $424
        Accrued liabilities                        1,951            2,659
        Deferred revenue                           4,572            5,257
          Total current liabilities                6,763            8,340

      Long-term debt-net of discount                   -              977
          Total liabilities                        6,763            9,317

      Commitments and contingencies

      Stockholders' equity
        Preferred stock                                -                -
        Common stock                               2,670            2,625
        Additional paid-in-capital               129,350          126,610
        Accumulated other
         comprehensive income                      2,833            1,367
        Accumulated deficit                      (99,937)         (95,527)
          Total stockholders' equity              34,916           35,075
          Total liabilities and
           stockholders' equity                  $41,679          $44,392



                      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,
                                   2008          2007       2008     2007
     Net revenues
       Licenses                   $1,519        $1,992     $4,486   $5,953
       Services                    2,659         2,913      8,397    8,871
         Total net revenues        4,178         4,905     12,883   14,824

     Operating expenses
       Cost of license
        revenues                       8             8         20       29
       Cost of service
        revenues                     383           444      1,267    1,383
       Selling and
        marketing                  1,252         1,601      4,576    4,278
       Research and
        development                1,829         1,861      6,004    5,780
       General and
        administrative             1,086         1,115      3,873    3,486
         Total operating
          expenses                 4,558         5,029     15,740   14,956

     Operating loss                 (380)         (124)    (2,857)    (132)

     Other income (expense)
       Interest income
        (expense)-net                 32           124        138     (282)
       Other income
        (expense)-net             (1,066)         (108)    (1,676)     275
         Total other income
          (expense)               (1,034)           16     (1,538)      (7)

     Loss before income
      taxes                       (1,414)         (108)    (4,395)    (139)

     Income tax provision             36           109         15      186

     Net loss                    $(1,450)        $(217)   $(4,410)   $(325)

     Basic and diluted
      net loss per share          $(0.05)       $(0.01)    $(0.17)  $(0.01)

     Shares used in
      computing basic
      and diluted net loss
      per share                   26,697        25,909     26,562   22,785



                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  Nine Months Ended
                                                     December 31,
                                                  2008        2007
                                                   (In thousands)

     Cash flows from operating activities:
     Net loss                                   $(4,410)      $(325)
       Adjustments to reconcile net loss
        to net cash provided by (used in)
        operating activities:
         Depreciation and amortization of
          long-lived assets                         321         203
         Provision for bad debt                       8         111
         Note discount amortization                   -          90
         Stock-based compensation expense         1,138         888
         Income tax expense                          15         186
         Foreign currency exchange (gain)
          loss                                    1,681        (226)
         Change in assets and liabilities:
           Trade accounts receivable                417        (348)
           Other current and non-current
            assets                                   16         (50)
           Accounts payable                        (141)        172
           Accrued liabilities                     (444)        233
           Deferred revenue                        (454)        (59)
       Net cash provided by (used in)
        operating activities                     (1,853)        875

       Cash flows used in investing
        activities-purchase of property,
        furniture and equipment                    (570)       (118)

     Cash flows from financing
      activities:
       Proceeds from exercise of stock
        options                                     585         478
       Proceeds from issuance of common
        stock                                        86          52
       Repayment of debt                              -          (1)
       Net cash provided by financing
        activities                                  671         529

       Effect of exchange rate changes on
        cash                                       (185)        114

       Net increase (decrease) in cash and
        cash equivalents                         (1,937)      1,400

       Cash and cash equivalents at
        beginning of period                      14,065      11,654

       Cash and cash equivalents at end of
        period                                  $12,128     $13,054

       Non-cash financing activities:
         Accrued interest added to debt              $-        $576
         Conversion of debt to common
          stock                                    $977     $23,898

Non-GAAP Financial Information

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. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. 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 capital expenditure and working capital requirements.

The Company's EBITDA financial information is comparable to net loss. The table below reconciles EBITDA to the Company's GAAP disclosure of net loss:

TIGERLOGIC CORPORATION AND SUBSIDIARIES
                      RECONCILIATION OF EBITDA TO NET LOSS
                                 (In thousands)

                              For the Three Months     For the Nine Months
                                Ended December 31,       Ended December 31,
                                2008         2007        2008         2007
      Reported net loss      $(1,450)       $(217)    $(4,410)       $(325)
      Depreciation and
       amortization              104           71         321          203
      Stock-based
       compensation              291          332       1,138          888
      Interest (income)
       expense-net               (32)        (124)       (138)         282
      Other (income)
       expense-net             1,066          108       1,676         (275)
      Income tax provision        36          109          15          186
      EBITDA                     $15         $279     $(1,398)        $959

The Company's EBITDA financial information can also be reconciled to net cash provided by (used in) operating activities as follows:

TIGERLOGIC CORPORATION AND SUBSIDIARIES
     RECONCILIATION OF EBITDA TO NET CASH PROVIDED BY (USED IN) OPERATING
                                  ACTIVITIES
                                (In thousands)

                                                      For the Nine
                                                      Months Ended
                                                       December 31,
                                                    2008          2007

      Net cash provided by (used in)
       operating activities                       $(1,853)         $875
        Interest (income)
         expense-net                                 (138)          282
        Other (income)
         expense-net                                1,676          (275)
        Change in trade accounts
         receivable                                  (417)          348
        Change in other current and
         non-current assets                           (16)           50
        Change in accounts
         payable                                      141          (172)
        Change in accrued
         liabilities                                  444          (233)
        Change in deferred
         revenue                                      454            59
        Foreign currency exchange
         gain (loss)                               (1,681)          226
        Note payable discount
         amortization                                  --           (90)
        Provision for
            bad debt                                   (8)         (111)
      EBITDA                                      $(1,398)         $959

The Company's EBITDA financial information can also be reconciled to net cash provided by (used in) operating activities as follows:

Source: PRNewsWire