TigerLogic Corporation Announces First Quarter June 30, 2009 Results

IRVINE, Calif., Aug. 12  /PRNewswire-FirstCall/ -- TigerLogic Corporation (NASDAQ:TIGR) today announced financial results for the first quarter ended June 30, 2009.  Net revenue for the first quarter was $3.6 million as compared to $4.6 million for the same period in the prior fiscal year.  Net income for the first quarter ended June 30, 2009 was $0.3 million as compared to a net loss of $1.5 million for the same period in the prior fiscal year.  Earnings per share for the quarter ended June 30, 2009 were $0.01 as compared to a loss per share of $0.06 in the same period in the prior fiscal year.  Cash balance was $11.8 million at June 30, 2009 as compared to $12.1 million at June 30, 2008.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended June 30, 2009 was a loss of $0.2 million or negative 5% of net revenue, as compared to a loss of  $0.9 million or negative 21% of net revenue for the same period in the prior fiscal year. The improvement in EBITDA for the three month period ended June 30, 2009, compared to the same period in the prior year, was a result of lower operating expenses due to less headcount and lower legal and marketing expense, partially offset by lower revenues. 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 (benefit) to its GAAP reported net income (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  yolink, an internet browser-based application that enhances the search experience of any popular search engine or Web page; 2) TigerLogic  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  Universal Data Model (Pick UDM) based database management systems and components, including D3 , mvEnterprise  and mvBase  that are the choice of more than a thousand application developers worldwide; and 4) Omnis Studio , 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 http://www.tigerlogic.com/.  Product details about yolink can be found at http://www.yolink.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 ended June 30, 2009 are not necessarily indicative of the Company's operating results for any future periods.

TigerLogic, yolink, 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

                                              June 30,          March 31,
                                                2009              2009
                                                ----              ----
                                                    (In thousands)
                        ASSETS
  Current assets
    Cash                                      $11,780           $12,282
    Trade accounts receivable, less
     allowance for doubtful accounts of $63
     and $271, respectively                     1,032               881
    Other current assets                          434               389
                                                  ---               ---
      Total current assets                     13,246            13,552

  Property, furniture and equipment-net           914               849
  Goodwill                                     26,388            26,388
  Deferred tax assets                             390               383
  Other assets                                    164               161
                                                  ---               ---
      Total assets                            $41,102           $41,333
                                              =======           =======


            LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
    Accounts payable                             $545              $161
    Accrued liabilities                         1,622             2,090
    Deferred revenue                            4,469             4,531
                                                -----             -----
      Total current liabilities                 6,636             6,782


  Commitments and contingencies

  Stockholders' equity
    Preferred stock                                 -                 -
    Common stock                                2,674             2,673
    Additional paid-in-capital                129,909           129,684
    Accumulated other comprehensive income      2,253             2,861
    Accumulated deficit                      (100,370)         (100,667)
                                             --------          --------
      Total stockholders' equity               34,466            34,551
                                               ------            ------
      Total liabilities and stockholders'
       equity                                 $41,102           $41,333
                                              =======           =======




                   TIGERLOGIC CORPORATION AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share data)

                                         For the Three Months Ended June 30,
                                         ----------------------------------
                                                2009              2008
                                                ----              ----
  Net revenues
    Licenses                                   $1,092            $1,636
    Services                                    2,495             2,919
                                                -----             -----
    Total net revenues                          3,587             4,555

  Operating expenses
    Cost of license revenues                       21                 4
    Cost of service revenues                      398               448
    Selling and marketing                         926             1,827
    Research and development                    1,578             2,232
    General and administrative                  1,156             1,543
                                                -----             -----
    Total operating expenses                    4,079             6,054
                                                -----             -----
  Operating loss                                 (492)           (1,499)

  Other income (expense)
    Interest income (expense)-net                  (1)               51
    Other income (expense)-net                    793                (6)
                                                  ---               ---
    Total other income                            792                45
                                                  ---               ---

  Income (loss) before income taxes               300            (1,454)

  Income tax provision                              3                11
                                                  ---               ---

  Net income (loss)                              $297           $(1,465)
                                                 ====           ========

  Basic net income (loss) per share             $0.01            $(0.06)
                                                =====            =======

  Diluted net income (loss) per share           $0.01            $(0.06)
                                                =====            =======

  Shares used in computing basic
   net income (loss) per share                 26,742            26,452

  Shares used in computing diluted
   net income (loss) per share                 27,090            26,452




                    TIGERLOGIC CORPORATION AND SUBSIDIARIES
         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                              Three Months Ended June 30,
                                              --------------------------
                                                 2009              2008
                                                 ----              ----
                                                     (In thousands)
  Cash flows from operating activities:
  Net income (loss)                             $ 297           $(1,465)
    Adjustments to reconcile net income
     (loss) to net cash used in operating
     activities:
       Depreciation and amortization of
        long-lived assets                          95               106
       Provision for bad debt                     (24)              (19)
       Stock-based compensation expense           213               450
       Income tax expense                           3                11
       Foreign currency exchange (gain) loss     (693)                8
       Change in assets and liabilities:
         Trade accounts receivable                (67)               82
         Other current and non-current assets     (35)              (45)
         Accounts payable                         369               (54)
         Accrued liabilities                     (518)             (702)
         Deferred revenue                        (165)               18
                                                 ----               ---
  Net cash used in operating activities          (525)           (1,610)
                                                 ----            ------

  Cash flows used in investing activities-
   purchase of property, furniture and equipment  (88)             (498)
                                                  ---              ----

  Cash flows provided by financing activities-
   proceeds from exercise of stock options         14               100
                                                  ---               ---
  Effect of exchange rate changes on cash          97                (4)
                                                  ---               ---

  Net decrease in cash and cash equivalents      (502)           (2,012)

  Cash and cash equivalents at beginning
   of period                                   12,282            14,065
                                               ------            ------
  Cash and cash equivalents at end of period  $11,780           $12,053
                                              =======           =======

  Non-cash financing activities:
    Conversion of debt to common stock             $-              $977


  Non-GAAP Financial Information


EBITDA should not be construed as a substitute for net income (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 debt service, capital expenditure and working capital requirements.

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

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

                                                  For the Three Months
                                                     Ended June 30,
                                                  --------------------
                                                 2009              2008
                                                 ----              ----
  Reported net income (loss)                     $297           $(1,465)
  Depreciation and amortization                    95               106
  Stock-based compensation                        213               450
  Interest (income) expense-net                     1               (51)
  Other (income) expense-net                     (793)                6
  Income tax provision                              3                11
                                                  ---               ---
  EBITDA                                        $(184)            $(943)
                                                =====             =====




Our EBITDA financial information can also be reconciled to net cash used in operating activities as follows:

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

                                         For the Three Months Ended June 30,
                                         ----------------------------------
                                                 2009              2008
                                                 ----              ----

  Net cash used in operating activities         $(525)          $(1,610)
  Interest (income) expense-net                     1               (51)
  Other (income) expense-net                     (793)                6
  Change in trade accounts receivable              67               (82)
  Change in other current and non-current assets   35                45
  Change in accounts payable                     (369)               54
  Change in accrued liabilities                   518               702
  Change in deferred revenue                      165               (18)
  Foreign currency exchange gain (loss)           693                (8)
  Provision for bad debt                           24                19
                                                  ---               ---
  EBITDA                                        $(184)            $(943)
                                                =====             =====


DATASOURCE: TigerLogic Corporation



CONTACT:  Thomas Lim, Chief Financial Officer of TigerLogic Corporation,

[phone], Fax, [phone], 



Web Site:  http://www.tigerlogic.com/ 

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