RDTA Raining Data (MM)

IRVINE, Calif., July 2 /PRNewswire-FirstCall/ -- Raining Data Corporation (NASDAQ:RDTA) today announced financial results for the fourth quarter and full fiscal year ended March 31, 2007. Net revenue for the fourth quarter was $4.7 million and for the full fiscal year was $18.7 million, as compared to $5.1 million and $20.3 million for the same respective periods in the prior fiscal year. Loss per share was $0.14 for the year ended March 31, 2007 as compared to a loss per share of $0.08 in the prior fiscal year. Net loss was $0.6 million for the fourth quarter ended March 31, 2007 compared to $0.3 million for the same period in the prior fiscal year. Net loss for the year ended March 31, 2007 was $3.0 million compared to a net loss of $1.6 million in the prior fiscal year. Net loss for the fourth quarter and full fiscal year ended March 31, 2007 included stock-based compensation charges of $0.2 million and $0.9 million, respectively. The Company adopted SFAS 123(R), "Share-Based Payment," effective April 1, 2006. Cash balance was $11.7 million at March 31, 2007 as compared to $10.8 million at March 31, 2006. Cash balance increased during the fourth quarter by $1.2 million from $10.5 million at December 31, 2006. Working capital was $6.3 million at March 31, 2007, an increase of $1.3 million or 26% from $5.0 million at March 31, 2006. The Company computes working capital as total current assets less current liabilities. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter and fiscal year ended March 31, 2007 was negative $0.1 million and negative $0.9 million, or (2%) and (5%) of net revenue, respectively, as compared to breakeven and negative $0.2 million, or breakeven and (1%) of net revenue, respectively, for the same periods in the prior year. The reductions in EBITDA were primarily due to decreased revenues and increased spending for research and development. 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 100 employees and contractors worldwide, Raining Data offers 24x7 customer support services 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 and fiscal year ended March 31, 2007 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 CONSOLIDATED BALANCE SHEETS March 31, March 31, 2007 2006 (in thousands, except per share data) ASSETS Current assets Cash and cash equivalents $11,654 $10,789 Trade accounts receivable, less allowance for doubtful accounts of $200 in 2007 and $182 in 2006 1,609 2,019 Other current assets 461 355 Total current assets 13,724 13,163 Property, furniture and equipment-net 949 1,055 Goodwill 26,751 26,845 Other assets 112 96 Total assets $41,536 $41,159 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $130 $399 Accrued liabilities 2,536 2,885 Deferred revenue 4,801 4,886 Total current liabilities 7,467 8,170 Long-term debt, net of discount 24,150 22,893 Total liabilities 31,617 31,063 Commitments and contingencies Stockholders' equity Series A convertible preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued and outstanding at March 31, 2007 and 2006 - - Common stock: $0.10 par value; 100,000,000 shares authorized; 21,184,402 and 20,644,576 issued and outstanding as of March 31, 2007 and 2006, respectively 2,118 2,064 Additional paid-in capital 101,385 99,341 Accumulated other comprehensive income 1,612 1,234 Accumulated deficit (95,196) (92,543) Total stockholders' equity 9,919 10,096 Total liabilities and stockholders' equity $41,536 $41,159 RAINING DATA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) For the three months ended For the years March 31, ended March 31, 2007 2006 2007 2006 Net revenues Licenses $1,726 $2,133 $6,859 $8,404 Services 2,974 2,960 11,885 11,890 Total net revenues 4,700 5,093 18,744 20,294 Operating Expenses Cost of license revenues 31 33 99 207 Cost of service revenues 534 529 2,117 2,274 Selling and marketing 1,262 1,296 5,466 5,219 Research and development 2,243 2,576 9,295 9,638 General and administrative 1,023 750 3,866 3,477 Total operating expenses 5,093 5,184 20,843 20,815 Operating loss (393) (91) (2,099) (521) Other income (expense) Interest expense-net (201) (224) (837) (952) Other income (expense)-net 17 4 72 (75) Loss before taxes (577) (311) (2,864) (1,548) Provision for income taxes 37 15 94 76 Net loss $(614) $(326) $(2,958) $(1,624) Basic and diluted net loss per share $(0.03) $(0.02) $(0.14) $(0.08) Shares used in computing basic and diluted loss per share 21,166 20,623 20,986 20,203 Departmental allocation of stock-based compensation expense (1): Selling and marketing $96 $371 Research and development 40 253 General and administrative 80 287 Total stock-based compensation expense $216 $911 (1) The Company adopted SFAS 123(R), "Share-Based Payment," effective April 1, 2006. RAINING DATA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended March 31, 2007 and 2006 2007 2006 (In thousands) Cash flows from operating activities: Net loss $(2,958) $(1,624) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 318 276 Provision for bad debt 1 - Note payable discount amortization 83 83 Stock-based compensation expense 911 10 Income tax expense 94 76 Change in assets and liabilities: Trade accounts receivable 375 (110) Other current and non-current assets (68) 133 Accounts payable (279) (134) Accrued liabilities 1,145 1,482 Deferred revenue 98 (355) Net cash used in operating activities (280) (163) Cash flows from investing activities - purchase of property, furniture and equipment (87) (483) Cash flows from financing activities: Proceeds from exercise of stock options and warrants 1,007 730 Proceeds from issuance of common stock 179 133 Net cash provided by financing activities 1,186 863 Effect of exchange rate changes on cash 46 (53) Net increase in cash and cash equivalents 865 164 Cash and cash equivalents at beginning of period 10,789 10,625 Cash and cash equivalents at end of period $11,654 $10,789 Non-cash financing activities: Accrued interest added to long-term debt $1,161 $1,105 Conversion of preferred stock to common stock $- $300 RAINING DATA CORPORATION AND SUBSIDIARIES RECONCILIATION OF EBITDA TO NET LOSS (In thousands) For the three months For the years ended March 31, ended March 31, 2007 2006 2007 2006 Reported net loss $(614) $(326) $(2,958) $(1,624) Depreciation and amortization 86 69 318 276 Stock-based compensation expense 216 - 911 10 Interest expense-net 201 224 837 952 Other (income) expense-net (17) (4) (72) 75 Provision for income taxes 37 15 94 76 EBITDA $(91) $(22) $(870) $(235) 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) For the years ended March 31, 2007 2006 Net cash used in operating activities $(280) $(163) Interest expense-net 837 952 Other (income) expense-net (72) 75 Change in accounts receivable (375) 110 Change in other assets 68 (133) Change in accounts payable 279 134 Change in accrued liabilities (1,145) (1,482) Change in deferred revenue (98) 355 Note payable discount amortization (83) (83) Provision for bad debt (1) - EBITDA $(870) $(235) DATASOURCE: Raining Data Corporation CONTACT: Thomas Lim, Chief Financial Officer of Raining Data Corporation, +1-949-442-4400, fax, +1-949-250-8187, Web site: http://www.rainingdata.com/

Copyright