RDTA Raining Data (MM)

IRVINE, Calif., Feb. 14 /PRNewswire-FirstCall/ -- Raining Data Corporation (NASDAQ:RDTA) today announced financial results for the third quarter of fiscal year 2008. Net revenue for the quarter ended December 31, 2007 was $4.9 million as compared to $4.8 million for the same period in the prior fiscal year. Net loss for the quarter ended December 31, 2007 was $0.2 million as compared to a net loss of $0.4 million for the same period in the prior fiscal year. Earnings per share for the quarter ended December 31, 2007 was a loss per share of $0.01 as compared to a loss per share of $0.02 in the same period in the prior fiscal year. Cash balance was $13.1 million at December 31, 2007 as compared to $10.5 million at December 31, 2006. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended December 31, 2007 was $0.3 million, or 6% of net revenue, as compared to $0.2 million, or 3% 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 December 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 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS December 31, March 31, 2007 2007 (In thousands) ASSETS Current assets Cash and cash equivalents $13,054 $11,654 Trade accounts receivable, less allowance for doubtful accounts of $329 and $200, respectively 1,979 1,609 Other current assets 497 461 Total current assets 15,530 13,724 Property, furniture and equipment, net 876 949 Goodwill 26,622 26,751 Other assets 104 112 Total assets $43,132 $41,536 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $307 $130 Accrued liabilities 2,241 2,536 Deferred revenue 4,966 4,801 Debt-net of discount 964 - Total current liabilities 8,478 7,467 Long-term debt-net of discount - 24,150 Total liabilities 8,478 31,617 Commitments and contingencies Stockholders' equity Preferred stock - - Common stock 2,620 2,118 Additional paid-in-capital 126,151 101,385 Accumulated other comprehensive income 1,404 1,612 Accumulated deficit (95,521) (95,196) Total stockholders' equity 34,654 9,919 Total liabilities and stockholders' equity $43,132 $41,536 RAINING DATA 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, 2007 2006 2007 2006 Net revenues Licenses $1,992 $1,793 $5,953 $5,133 Services 2,913 2,983 8,871 8,911 Total net revenues 4,905 4,776 14,824 14,044 Operating expenses Cost of license revenues 8 28 29 68 Cost of service revenues 444 442 1,383 1,583 Selling and marketing 1,601 1,387 4,278 4,204 Research and development 1,861 2,175 5,780 7,052 General and administrative 1,115 907 3,486 2,916 Total operating expenses 5,029 4,939 14,956 15,823 Operating loss (124) (163) (132) (1,779) Other income (expense) Interest income (expense)-net 124 (205) (282) (636) Other income (expense)-net (108) 6 275 13 Total other income (expense) 16 (199) (7) (623) Loss before income taxes (108) (362) (139) (2,402) Provision for income taxes 109 17 186 57 Net loss $(217) $(379) $(325) $(2,459) Basic and diluted net loss per share $(0.01) $(0.02) $(0.01) $(0.12) Shares used in computing basic and diluted net loss per share 25,909 21,142 22,785 20,928 RAINING DATA CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended December 31, 2007 2006 (In thousands) Cash flows from operating activities: Net loss $(325) $(2,459) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization of long-lived assets 203 232 Provision for bad debt 111 105 Note discount amortization 90 62 Stock-based compensation expense 888 695 Deferred income tax expense 186 57 Foreign currency exchange gain (226) (16) Change in assets and liabilities: Trade accounts receivable (348) (299) Other current and non-current assets (50) (218) Accounts payable 172 (182) Accrued liabilities 233 400 Deferred revenue (59) 243 Net cash provided by (used in) operating activities 875 (1,380) Cash flows used in investing activities - purchase of property, furniture and equipment (118) (139) Cash flows from financing activities: Proceeds from exercise of stock options and warrants 478 1,005 Proceeds from issuance of common stock 52 112 Repayment of debt (1) - Net cash provided by financing activities 529 1,117 Effect of exchange rate changes on cash 114 145 Net increase (decrease) in cash and cash equivalents 1,400 (257) Cash and cash equivalents at beginning of period 11,654 10,789 Cash and cash equivalents at end of period $13,054 $10,532 Other non-cash activities: Accrued interest added to debt $576 $863 Conversion of debt to common stock $23,898 $- RAINING DATA CORPORATION AND SUBSIDIARIES RECONCILIATION OF EBITDA TO NET LOSS (In thousands) For the Three For the Nine Months Ended Months Ended December 31, December 31, 2007 2006 2007 2006 Reported net loss $(217) $(379) $(325) $(2,459) Depreciation and amortization 71 78 203 232 Stock-based compensation 332 238 888 695 Interest (income) expense-net (124) 205 282 636 Other (income) expense-net 108 (6) (275) (13) Provision for income taxes 109 17 186 57 EBITDA $279 $153 $959 $(852) 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. Our 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) For the Nine Months Ended December 31, 2007 2006 Net cash provided by (used in) operating activities $875 $(1,380) Interest expense-net 282 636 Other income-net (275) (13) Change in trade accounts receivable 348 299 Change in other current and non-current assets 50 218 Change in accounts payable (172) 182 Change in accrued liabilities (233) (400) Change in deferred revenue 59 (243) Foreign currency exchange gain 226 16 Note payable discount amortization (90) (62) Provision for bad debt (111) (105) EBITDA $959 $(852) 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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