RDTA Raining Data (MM)

IRVINE, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Raining Data Corporation (NASDAQ:RDTA) today announced financial results for the second quarter of fiscal year 2007. Net revenue for the three and six-month periods ended September 30, 2006 were $4.6 million and $9.3 million as compared to $4.6 million and $9.9 million for the same three and six-month periods in the prior fiscal year. Net losses for the three and six-month periods ended September 30, 2006, were $0.8 million and $1.9 million as compared to $0.8 and $1.0 million for the same three and six-month periods in the prior fiscal year. Loss per share was $0.04 for both the three-month periods ended September 30, 2006 and 2005 and was $0.09 and $0.05 for the six-month periods ended September 30, 2006 and 2005. Cash balance was $10.6 million at September 30, 2006 as compared to $10.1 million at September 30, 2005. Working capital was $5.3 million at September 30, 2006, an increase of $1.0 million from $4.3 million at September 30, 2005. The Company computes working capital as total current assets less current liabilities. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the three and six-month periods ended September 30, 2006 were negative $0.3 million, or 6% of net revenue, and negative $0.9 million, or 9% of net revenue. EBITDA for the three and six-month periods ended September 30, 2005 were negative $0.5 million, or 10% of net revenue, and negative $0.3 million, or 3% of net revenue. The increase in EBITDA in the quarter ended September 30, 2006 was primarily due to efforts to reduce 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 (NASDAQ:RDTA), 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 160 employees and contractors in five countries, Raining Data offers 24x7 customer support 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 September 30, 2006 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 September 30, March 31, 2006 2006 (In thousands) ASSETS Current assets Cash and cash equivalents $10,589 $10,789 Trade accounts receivable, less allowance for doubtful accounts of $223 and $182 1,868 2,019 Other current assets 458 355 Total current assets 12,915 13,163 Property, furniture and equipment-net 1,082 1,055 Goodwill 26,805 26,845 Other assets 99 96 Total assets $40,901 $41,159 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $273 $399 Accrued liabilities 2,305 2,885 Deferred revenue 5,000 4,886 Total current liabilities 7,578 8,170 Long-term debt-net of discount 23,516 22,893 Total liabilities 31,094 31,063 Commitments and contingencies Stockholders' equity Preferred stock -- -- Common stock 2,113 2,064 Additional paid-in-capital 100,842 99,341 Accumulated other comprehensive income 1,318 1,234 Accumulated deficit (94,466) (92,543) Total stockholders' equity 9,807 10,096 Total liabilities and stockholders' equity $40,901 $41,159 RAINING DATA CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Three Months Ended Six Months Ended September 30, September 30, 2006 2005 2006 2005 Net revenues Licenses $1,686 $1,626 $3,340 $3,937 Services 2,910 2,983 5,928 5,965 Total net revenues 4,596 4,609 9,268 9,902 Operating expenses Cost of license revenues 19 37 40 101 Cost of service revenues 488 583 1,141 1,203 Selling and marketing 1,361 1,257 2,817 2,586 Research and development 2,231 2,389 4,877 4,633 General and administrative 1,075 885 1,881 1,786 Total operating expenses 5,174 5,151 10,756 10,309 Operating loss (578) (542) (1,488) (407) Other expense Interest expense-net (208) (242) (431) (489) Other (expense) income-net 14 (21) 36 (72) Total other expense (194) (263) (395) (561) Loss before income taxes (772) (805) (1,883) (968) Provision for income taxes 59 -- 40 -- Net loss $(831) $(805) $(1,923) $(968) Basic and diluted net loss per share $(0.04) $(0.04) $(0.09) $(0.05) Shares used in computing basic and diluted net loss per share 20,989 19,945 20,820 19,854 RAINING DATA CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended September 30, 2006 2005 (In thousands) Cash flows from operating activities: Net loss $(1,923) $(968) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of long-lived assets 154 147 Note payable discount amortization 41 41 Stock-based compensation expense 457 10 Income tax expense 40 -- Change in assets and liabilities: Trade accounts receivable 391 408 Other current and non-current assets (95) (61) Accounts payable (133) (149) Accrued liabilities (10) 418 Deferred revenue (120) (254) Net cash used in operating activities (1,198) (408) Cash flows used in investing activities-purchase of property, furniture and equipment (140) (290) Cash flows from financing activities: Proceeds from exercise of stock options and warrants 981 120 Proceeds from issuance of common stock 112 65 Net cash provided by financing activities 1,093 185 Effect of exchange rate changes on cash 45 (53) Net decrease in cash and equivalents (200) (566) Cash and equivalents at beginning of period 10,789 10,625 Cash and equivalents at end of period $10,589 $10,059 Non-cash financing activities: Issuance of payment-in-kind notes for accrued interest $568 $540 Conversion of preferred stock to common stock $300 RAINING DATA CORPORATION AND SUBSIDIARIES RECONCILIATION OF EBITDA TO NET LOSS (In thousands) Three Months Ended Six Months Ended September 30, September 30, 2006 2005 2006 2005 Reported net loss $(831) $(805) $(1,923) $(968) Depreciation and amortization 79 65 154 147 Stock-based compensation 246 4 457 10 Interest expense-net 208 242 431 489 Other expense (income)-net (14) 21 (36) 72 Provision for income tax 59 -- 40 -- EBITDA $(253) $(473) $(877) $(250) 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) Six Months Ended September 30, 2006 2005 Net cash used in operating activities $(1,198) $(408) Interest expense-net 431 489 Other expense (income)-net (36) 72 Change in accounts receivable (391) (408) Change in other assets 95 61 Change in accounts payable 133 149 Change in accrued liabilities 10 (418) Change in deferred revenue 120 254 Note payable discount amortization (41) (41) EBITDA $(877) $(250) DATASOURCE: Raining Data Corporation CONTACT: Thomas G. Lim, Chief Financial Officer of Raining Data Corporation, +1-949-442-4400, or fax, +1-949-250-8187, Web site: http://www.rainingdata.com/

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