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 2008. Net revenue for the quarter ended September 30, 2007 was $4.9 million as compared to $4.6 million for the same period in the prior fiscal year. Net income for the quarter ended September 30, 2007 was $0.1 million as compared to a net loss of $0.8 million for the same period in the prior fiscal year. Earnings per share for the quarter ended September 30, 2007 was breakeven as compared to a loss per share of $0.04 in the same period in the prior fiscal year. Cash balance was $12.2 million at September 30, 2007 as compared to $10.6 million at September 30, 2006. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended September 30, 2007 was $0.5 million, or 10% of net revenue, as compared to negative $0.2 million, or (4%) of net revenue, for the same period in the prior fiscal year. The increase in EBITDA was primarily due to higher license revenue and lower personnel costs. 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 income (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 ended September 30, 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 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS September 30, March 31, 2007 2007 (In thousands) ASSETS Current assets Cash and cash equivalents $12,234 $11,654 Trade accounts receivable, less allowance for doubtful accounts of $287 and $200, respectively 2,029 1,609 Other current assets 446 461 Total current assets 14,709 13,724 Property, furniture and equipment-net 909 949 Goodwill 26,674 26,751 Other assets 102 112 Total assets $42,394 $41,536 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $187 $130 Accrued liabilities 2,004 2,536 Deferred revenue 5,084 4,801 Debt-net of discount 951 - Total current liabilities 8,226 7,467 Long-term debt - net of discount 23,852 24,150 Total liabilities 32,078 31,617 Commitments and contingencies Subsequent event Stockholders' equity Preferred stock - - Common stock 2,132 2,118 Additional paid-in-capital 102,183 101,385 Accumulated other comprehensive income 1,305 1,612 Accumulated deficit (95,304) (95,196) Total stockholders' equity 10,316 9,919 Total liabilities and stockholders' equity $42,394 $41,536 RAINING DATA CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three Months Ended Six Months Ended September 30, September 30, 2007 2006 2007 2006 Net revenues Licenses $1,959 $1,686 $3,961 $3,340 Services 2,987 2,910 5,958 5,928 Total net revenues 4,946 4,596 9,919 9,268 Operating expenses Cost of license revenues 12 19 21 40 Cost of service revenues 454 488 939 1,141 Selling and marketing 1,373 1,394 2,677 2,850 Research and development 1,922 2,198 3,919 4,844 General and administrative 1,048 1,002 2,371 2,009 Total operating expenses 4,809 5,101 9,927 10,884 Operating income (loss) 137 (505) (8) (1,616) Other income (expense) Interest expense-net (204) (208) (406) (431) Other income (expense)-net 205 (3) 383 7 Total other income (expense) 1 (211) (23) (424) Income (loss) before income taxes 138 (716) (31) (2,040) Provision for income taxes 58 59 77 40 Net income (loss) $80 $(775) $(108) $(2,080) Basic net income (loss) per share $0.00 $(0.04) $(0.01) $(0.10) Diluted net income (loss) per share $0.00 $(0.04) $(0.01) $(0.10) Shares used in computing basic net income (loss) per share 21,241 20,989 21,214 20,820 Shares used in computing diluted net income (loss) per share 22,073 20,989 21,214 20,820 RAINING DATA CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended September 30, 2007 2006 (In thousands) Cash flows from operating activities: Net loss $(108) $(2,080) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization of long-lived assets 132 154 Provision for bad debt 74 - Note payable discount amortization 42 41 Stock-based compensation expense 556 457 Deferred income tax expense 77 40 Foreign currency exchange gain (334) (40) Change in assets and liabilities: Trade accounts receivable (64) 391 Other current and non- current assets (3) (95) Accounts payable 53 (133) Accrued liabilities 60 158 Deferred revenue (231) (120) Net cash provided by (used in) operating activities 254 (1,227) Cash flows used in investing activities - purchase of property, furniture and equipment (33) (140) Cash flows from financing activities: Proceeds from exercise of stock options 204 981 Proceeds from issuance of common stock 52 112 Net cash provided by financing activities 256 1,093 Effect of exchange rate changes on cash 103 74 Net increase (decrease) in cash and cash equivalents 580 (200) Cash and cash equivalents at beginning of period 11,654 10,789 Cash and cash equivalents at end of period $12,234 $10,589 Non-cash financing activities: Accrued interest added to debt $611 $568 RAINING DATA CORPORATION AND SUBSIDIARIES RECONCILIATION OF EBITDA TO NET INCOME (LOSS) (In thousands) Three Months Ended Six Months Ended September 30, September 30, 2007 2006 2007 2006 Reported net income (loss) $80 $(775) $(108) $(2,080) Depreciation and amortization 67 79 132 154 Stock-based compensation 301 246 556 457 Interest expense-net 204 208 406 431 Other (income) expense-net (205) 3 (383) (7) Provision for income taxes 58 59 77 40 EBITDA $505 $(180) $680 $(1,005) 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 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. 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 provided by (used in) operating activities. The table below reconciles EBITDA to the GAAP disclosure of net cash provided by (used in) operating activities: RAINING DATA CORPORATION AND SUBSIDIARIES RECONCILIATION OF EBITDA TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (In thousands) Six Months Ended September 30, 2007 2006 Net cash provided by (used in) operating activities $254 $(1,227) Interest expense-net 406 431 Other income-net (383) (7) Change in trade accounts receivable 64 (391) Change in other current and non- current assets 3 95 Change in accounts payable (53) 133 Change in accrued liabilities (60) (158) Change in deferred revenue 231 120 Foreign currency exchange gain 334 40 Note payable discount amortization (42) (41) Provision for bad debt (74) - EBITDA $680 $(1,005) 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/

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