[July 28, 2015] |
|
Daegis Announces Fiscal 2015 Fourth Quarter and Full Year Results
Daegis
Inc. (NASDAQ: DAEG), a global information governance, data migration
and application development software company, today announced financial
results for its fourth quarter and fiscal year 2015 ended April 30, 2015.
Fourth Quarter Fiscal 2015 Financial Highlights
-
Total revenue of $6.1 million, compared to $5.7 million in the third
quarter and $7.4 million in the fourth quarter last year.
Year-over-year revenue reflects a $1.1 million decline related to the
completion of an eDiscovery matter with the Company's former largest
customer.
-
GAAP net loss of $541,000 or $0.03 loss per share, compared to GAAP
net income of $163,000 or $0.01 per share for the same period last
year.
-
Adjusted EBITDA of $146,000, compared to $1.6 million last year.
(1)
-
Non-GAAP net loss of $65,000 or $0.00 loss per share, compared to
Non-GAAP net income of $1.1 million or $0.07 per share last year.
(1)
-
Cash at April 30, 2015 was $5.4 million, compared to $7.2 million at
April 30, 2014.
-
Total debt outstanding at April 30, 2015 was $11.8 million, a decrease
of $3.1 million from April 30, 2014.
Full Year Fiscal 2015 Financial Highlights
-
Total revenue of $25.1 million, compared to $31.0 million year over
year. Revenue reflects a $4.2 million decline in eDiscovery revenue
which was primarily related to the completion of an eDiscovery matter
with the Company's former largest customer and two large product sales
totaling $1.1 million in the prior year.
-
GAAP net loss of $1.7 million or $0.10 loss per share, compared to
GAAP net loss of $1.6 million or $0.10 loss per share for the same
period last year.
-
Adjusted EBITDA of $2.1 million, compared to $4.3 million last year.
(1)
-
Non-GAAP net income of $57,000 or $0.00 per share, compared to $1.7
million or $0.10 per share last year. (1)
Other Company Highlights
-
Launched and funded global channel partner program including the
announcement of partnerships with Cisco, Oracle (News - Alert) and Cloud Recover.
-
Made a $1.5 million elective debt payment in first quarter fiscal
2016, reducing the debt balance to $10.1 million.
"We're making solid progress in executing on our enterprise software
strategy as evident with the signing of partners since the end of the
last quarter," said Tim Bacci, CEO of Daegis. "We experienced a 7%
increase in revenue sequentially and although our work is yet to be
reflected in consistent top line growth, it is indicative that our focus
in expanding our global channel program was the right move. The market
for Information Governance and hosted archive software is growing as
enterprises seek holistic solutions to resolve their growing governance
and data preservation challenges. Daegis is primed for this opportunity
as we work to further expand our partner ecosystem and grow our
business."
Fourth Quarter and Full Year Fiscal 2015 Comparative Financial Summary
$ In Millions, except per share and % data
|
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Q4 FY2015
|
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Q4 FY2014
|
|
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% or $ Change(3)
|
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FY 2015
|
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FY 2014
|
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% or $ Change(3)
|
Total Revenue
|
|
|
$6.1
|
|
|
$7.4
|
|
|
($1.3)
|
|
|
$25.1
|
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$31.0
|
|
|
($5.8)
|
Information Governance Revenue
|
|
|
$3.7
|
|
|
$4.4
|
|
|
($0.7)
|
|
|
$14.8
|
|
|
$19.3
|
|
|
($4.6)
|
Migration Revenue
|
|
|
$0.1
|
|
|
$0.3
|
|
|
($0.2)
|
|
|
$0.7
|
|
|
$0.8
|
|
|
($0.1)
|
Database & Development Tools Revenue
|
|
|
$2.3
|
|
|
$2.7
|
|
|
($0.4)
|
|
|
$9.7
|
|
|
$10.8
|
|
|
($1.2)
|
GAAP Net Income (Loss)
|
|
|
($0.5)
|
|
|
$0.2
|
|
|
($0.7)
|
|
|
($1.7)
|
|
|
($1.6)
|
|
|
($0.1)
|
GAAP Net Income (Loss) Per Share - Diluted
|
|
|
($0.03)
|
|
|
$0.01
|
|
|
($0.04)
|
|
|
($0.10)
|
|
|
($0.10)
|
|
|
$0
|
Adjusted EBITDA(2)
|
|
|
$0.1
|
|
|
$1.6
|
|
|
($1.5)
|
|
|
$2.1
|
|
|
$4.3
|
|
|
($2.1)
|
Adjusted EBITDA Margin(2)
|
|
|
2%
|
|
|
22%
|
|
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(20%)
|
|
|
8%
|
|
|
14%
|
|
|
(5%)
|
Non-GAAP Net Income (Loss)(2)
|
|
|
($0.07)
|
|
|
$1.1
|
|
|
($1.2)
|
|
|
$0.06
|
|
|
$1.7
|
|
|
($1.6)
|
Non-GAAP Net Income (Loss) Per Share - Diluted(2)
|
|
|
($0.00)
|
|
|
$0.07
|
|
|
($0.07)
|
|
|
$0.00
|
|
|
$0.10
|
|
|
($0.10)
|
|
|
|
(1)
|
|
Adjusted EBITDA and Non-GAAP net income (loss) reflect increased
investment in sales and marketing to build a global channel
partner program and decreased revenue year over year, primarily
from eDiscovery.
|
(2)
|
|
See reconciliation table below regarding the presentation of
Adjusted EBITDA and Non-GAAP net income (loss).
|
(3)
|
|
The calculation of percentage or dollar change is based on unrounded
numbers.
|
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Investor Conference Call
Management will host a conference call July 28, 2015, at 4:00 p.m. CT
(5:00 p.m. ET) to review the fourth quarter and full fiscal year 2015
financial results. The call can be accessed by dialing 888-481-2844
or 719-325-2281 for international callers.
The conference call also will be webcast on the Daegis website at www.daegis.com.
A replay of the call will be available through August 7, 2015 by dialing
888-203-1112 or 719-457-0820 and using the passcode 8269192.
About Daegis Inc.
Daegis
Inc. (NASDAQ: DAEG) is a global enterprise software company with
comprehensive offerings for information governance, application
migration, data management and application development. Our products
include leading-edge enterprise information archive and eDiscovery
software, and mobile application development, application migration and
data management software. Approximately 20% of Fortune 100 companies use
our solutions. We are headquartered in Irving, Texas and serve our
worldwide customer base through our offices in California, New Jersey,
Australia, Canada, France, Germany and the UK. Visit www.daegis.com
to learn more about Daegis' solutions.
Some of the information in this press release may contain projections
or other forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. We wish to caution you
that these statements involve risks and uncertainties and actual events
or results may differ materially. When the words "believes," "expects,"
"plans," "projects," "estimates" and similar expressions are used, they
identify forward-looking statements. These forward-looking statements
are based on management's current expectations and assumptions and
information currently available to management and are subject to a
number of factors and uncertainties that may cause the actual results,
performance or achievements of the Company to differ materially from
those described herein. Although the Company believes the expectations
in this press release to be reasonable, there can be no assurance that
such expectations will prove to be correct. Examples of
forward-looking statements in this press release include the statements
made by Mr. Bacci. Among the important factors which could cause actual
results to differ materially from those in the forward-looking
statements are general market and economic conditions, our ability to
execute our business strategy and integrate acquired businesses, the
effectiveness of our sales team and approach, our ability to target,
analyze and forecast the revenue to be derived from a customer and the
costs associated with providing services to that customer, the date
during the course of a fiscal year that a new customer is acquired, the
length of the integration cycle for new customers and the timing of
revenues and costs associated therewith, our customer concentration
given that the Company is currently dependent on a few large customer
relationships, potential competition in the marketplace, the ability to
retain and attract employees, market acceptance of our service programs
and pricing options, our ability to maintain our existing technology
platform and to deploy new technology, our ability to sign new customers
and control expenses, the possibility of the discontinuation of some
customer relationships, the financial condition of our customers'
business and other factors detailed in the Company's filings with the
Securities and Exchange Commission.
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DAEGIS INC.
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
|
|
|
|
|
|
|
April 30,
|
|
April 30,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
|
$
|
5,426
|
|
|
$
|
7,178
|
|
Accounts receivable, net
|
|
|
3,918
|
|
|
|
6,657
|
|
Prepaid expenses
|
|
|
765
|
|
|
|
617
|
|
Other current assets
|
|
|
203
|
|
|
|
358
|
|
Total current assets
|
|
|
10,312
|
|
|
|
14,810
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
864
|
|
|
|
1,053
|
|
Goodwill
|
|
|
11,706
|
|
|
|
11,706
|
|
Intangibles, net
|
|
|
4,102
|
|
|
|
5,614
|
|
Other assets
|
|
|
422
|
|
|
|
470
|
|
Total assets
|
|
$
|
27,406
|
|
|
$
|
33,653
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
616
|
|
|
$
|
308
|
|
Current portion of long-term debt
|
|
|
1,029
|
|
|
|
3,123
|
|
Accrued compensation and related expenses
|
|
|
869
|
|
|
|
1,185
|
|
Other accrued liabilities
|
|
|
881
|
|
|
|
971
|
|
Deferred revenue
|
|
|
7,584
|
|
|
|
8,590
|
|
Total current liabilities
|
|
|
10,979
|
|
|
|
14,177
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
10,810
|
|
|
|
11,848
|
|
Deferred tax liabilities, net
|
|
|
1,119
|
|
|
|
1,032
|
|
Common stock warrant liability
|
|
|
195
|
|
|
|
276
|
|
Other long-term liabilities
|
|
|
623
|
|
|
|
1,095
|
|
Total liabilities
|
|
|
23,726
|
|
|
|
28,428
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
|
|
17
|
|
|
|
17
|
|
Additional paid-in capital
|
|
|
100,293
|
|
|
|
100,152
|
|
Accumulated other comprehensive income
|
|
|
280
|
|
|
|
280
|
|
Accumulated deficit
|
|
|
(96,910
|
)
|
|
|
(95,224
|
)
|
Total stockholders' equity
|
|
|
3,680
|
|
|
|
5,225
|
|
Total liabilities and stockholders' equity
|
|
$
|
27,406
|
|
|
$
|
33,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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DAEGIS INC.
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
April 30,
|
|
|
April 30,
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Information Governance
|
|
$
|
3,656
|
|
|
$
|
4,384
|
|
|
|
$
|
14,755
|
|
|
$
|
19,320
|
|
Migration
|
|
|
130
|
|
|
|
302
|
|
|
|
|
680
|
|
|
|
801
|
|
Database & Development Tools
|
|
|
2,322
|
|
|
|
2,684
|
|
|
|
|
9,681
|
|
|
|
10,837
|
|
Total revenues
|
|
|
6,108
|
|
|
|
7,370
|
|
|
|
|
25,116
|
|
|
|
30,958
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Direct costs of revenue
|
|
|
2,089
|
|
|
|
2,142
|
|
|
|
|
8,335
|
|
|
|
9,810
|
|
Product development
|
|
|
1,244
|
|
|
|
1,215
|
|
|
|
|
4,794
|
|
|
|
5,898
|
|
Selling, general and administrative
|
|
|
3,192
|
|
|
|
3,507
|
|
|
|
|
12,338
|
|
|
|
15,080
|
|
Total operating expenses
|
|
|
6,525
|
|
|
|
6,864
|
|
|
|
|
25,467
|
|
|
|
30,788
|
|
Income (loss) from operations
|
|
|
(417
|
)
|
|
|
506
|
|
|
|
|
(351
|
)
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
Gain (loss) from change in fair value of common stock warrant
liability
|
|
|
(49
|
)
|
|
|
(21
|
)
|
|
|
|
81
|
|
|
|
(72
|
)
|
Interest expense
|
|
|
(173
|
)
|
|
|
(293
|
)
|
|
|
|
(828
|
)
|
|
|
(1,332
|
)
|
Other, net
|
|
|
(70
|
)
|
|
|
60
|
|
|
|
|
(470
|
)
|
|
|
9
|
|
Total other income (expense)
|
|
|
(292
|
)
|
|
|
(254
|
)
|
|
|
|
(1,217
|
)
|
|
|
(1,395
|
)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(709
|
)
|
|
|
252
|
|
|
|
|
(1,568
|
)
|
|
|
(1,225
|
)
|
Provision for (benefit from) income taxes
|
|
|
(168
|
)
|
|
|
89
|
|
|
|
|
118
|
|
|
|
333
|
|
Net income (loss)
|
|
$
|
(541
|
)
|
|
$
|
163
|
|
|
|
$
|
(1,686
|
)
|
|
$
|
(1,558
|
)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
Diluted
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing income (loss) per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,384
|
|
|
|
16,384
|
|
|
|
|
16,384
|
|
|
|
16,110
|
|
Diluted
|
|
|
16,384
|
|
|
|
16,386
|
|
|
|
|
16,384
|
|
|
|
16,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAEGIS INC.
|
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
April 30,
|
|
|
April 30,
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from operations
|
|
$
|
(417
|
)
|
|
$
|
506
|
|
|
$
|
(351
|
)
|
|
$
|
170
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
377
|
|
|
|
384
|
|
|
|
1,512
|
|
|
|
1,538
|
|
Stock based compensation expenses
|
|
|
50
|
|
|
|
34
|
|
|
|
141
|
|
|
|
165
|
|
Depreciation
|
|
|
136
|
|
|
|
207
|
|
|
|
661
|
|
|
|
947
|
|
Charges related to alignment of business units(1)
|
|
|
-
|
|
|
|
485
|
|
|
|
171
|
|
|
|
1,451
|
|
Total adjustments to GAAP income (loss) from operations
|
|
|
563
|
|
|
|
1,110
|
|
|
|
2,485
|
|
|
|
4,101
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
146
|
|
|
$
|
1,616
|
|
|
$
|
2,134
|
|
|
$
|
4,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP NET (News - Alert) INCOME (LOSS)
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(541
|
)
|
|
$
|
163
|
|
|
$
|
(1,686
|
)
|
|
$
|
(1,558
|
)
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
377
|
|
|
|
384
|
|
|
|
1,512
|
|
|
|
1,538
|
|
Stock based compensation expenses
|
|
|
50
|
|
|
|
34
|
|
|
|
141
|
|
|
|
165
|
|
(Gain) loss from change in fair value of common stock warrant
liability
|
|
|
49
|
|
|
|
21
|
|
|
|
(81
|
)
|
|
|
72
|
|
Charges related to alignment of business units(1)
|
|
|
-
|
|
|
|
485
|
|
|
|
171
|
|
|
|
1,451
|
|
Total adjustments to GAAP net income (loss)
|
|
|
476
|
|
|
|
924
|
|
|
|
1,743
|
|
|
|
3,226
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
|
|
$
|
(65
|
)
|
|
$
|
1,087
|
|
|
$
|
57
|
|
|
$
|
1,668
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted income (loss) per share
|
|
$
|
(0.00
|
)
|
|
$
|
0.07
|
|
|
$
|
0.00
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Dilutive
|
|
|
16,384
|
|
|
|
16,386
|
|
|
|
16,384
|
|
|
|
16,110
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior year alignment costs have been reported to conform with
the current year presentation.
|
|
Use of Non-GAAP Financial Information
|
Daegis utilizes financial measures not calculated in accordance
with generally accepted accounting principles in the United States
("GAAP") to supplement the Company's unaudited condensed
consolidated financial statements and provide investors with an
alternative method for assessing our operating results. We also
believe these Non-GAAP measures provide investors with a more
informed baseline for modeling the Company's future financial
performance. Management uses the Non-GAAP financial measures to
make operational decisions, to evaluate the Company's performance
and to forecast. We believe that our investors should have access
to, and that we are obligated to provide, the same set of tools
that we use in analyzing our results. The presentation of these
Non-GAAP financial measures is not intended to be considered in
isolation from, as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP, and
may be different from Non-GAAP financial measures used by other
companies. In addition, these Non-GAAP measures have limitations
in that they do not reflect all of the amounts associated with the
Company's results of operations as determined in accordance with
GAAP.
|
|
Our Non-GAAP measures adjust GAAP income (loss) from operations
and GAAP net income (loss) for non-cash stock based compensation
expenses, amortization of intangible assets, depreciation and
non-recurring charges. For more information on these Non-GAAP
financial measures including how they are calculated, please see
the tables in this release captioned "Reconciliation of GAAP to
Non-GAAP Net Income (Loss)" and "Reconciliation of GAAP Operating
Income (Loss) to Adjusted EBITDA" which includes a reconciliation
of the GAAP results to Non-GAAP and Adjusted EBITDA results.
|
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