Welcome!

News Feed Item

Daegis Inc. Reports Fiscal 2014 Fourth Quarter and Full Year Results

Daegis Inc. (NASDAQ: DAEG), a global archiving, eDiscovery and software development and migration tools company, today announced financial results for its fiscal 2014 fourth quarter and full year ended April 30, 2014.

Fourth Quarter Fiscal 2014 Financial Highlights

  • Fourth quarter total revenue of $7.4 million, compared to $9.8 million year over year.
  • Fourth quarter GAAP net income of $163,000 or $0.01 per share, compared to GAAP net income of $188,000 or $0.01 per share for the same period last year.
  • Fourth quarter Adjusted EBITDA of $1.6 million, compared to $1.5 million last year and up sequentially from $1.0 million in the third quarter. (1)
  • Non-GAAP net income of $1.1 million or $0.07 per share, compared to $610,000 or $0.03 per share last year. (1)
  • Cash at April 30, 2014 was $7.2 million, compared to $5.5 million at April 30, 2013.
  • Total debt outstanding at April 30, 2014 was $15.0 million, a decrease of $2.7 million from April 30, 2013.

Full Year Fiscal 2014 Financial Highlights

  • Total revenue of $31.0 million, compared to $40.2 million last year.
  • GAAP net loss of $1.6 million or $0.10 per share, compared to GAAP net income of $532,000 or $0.01 per share in the prior year.
  • Adjusted EBITDA of $4.3 million, compared to $6.5 million last year. (1)
  • Non-GAAP net income of $1.7 million or $0.10 per share, compared to Non-GAAP net income of $3.2 million or $0.19 per share last year. (1)

Commenting on the results, Daegis Inc. Chief Executive Officer Tim Bacci said, “Daegis accomplished several key objectives in fiscal 2014 to advance its long-term strategy. We successfully aligned archive and eDiscovery into a cohesive, complete solution for information governance and eDiscovery, and launched our new mobile enterprise development solution, TD Mobile. We made decisions to increase the operational efficiency of our business which significantly improved the health of our financials in the fourth quarter. We are excited about our product offerings and opportunities and remain confident that we’ll demonstrate growth in the second half of calendar 2014.”

Fourth Quarter and Full Year 2014 Comparative Financial Summary

 
$ In Millions, except per share and % data       Q4
FY2014
      Q4
FY2013
      % or $ Change(2)       FY
2014
      FY
2013
      % or $ Change(2)
Total Revenue       $7.4       $9.8       ($2.4)       $31.0       $40.2       ($9.2)
Total Archive and Discovery Revenue       $4.4       $6.6       ($2.2)       $19.3       $26.1       ($6.8)
Total Database and Migration Revenue       $3.0       $3.2       ($0.2)       $11.6       $14.1       ($2.4)
GAAP Net Income (Loss)       $0.2       $0.2       $0.0       ($1.6)       $0.5       ($2.1)
GAAP Net Income (Loss) Per Share – Diluted       $0.01       $0.01       $0.00       ($0.10)       $0.01       ($0.11)
Adjusted EBITDA(1)       $1.6       $1.5       $0.1       $4.3       $6.5       ($2.2)
Adjusted EBITDA Margin(1)       22%       16%       6%       14%       16%       (2%)
Non-GAAP Net Income (Loss) (1)       $1.1       $0.6       $0.5       $1.7       $3.2       ($1.6)
Non-GAAP Net Income (Loss) Per Share - Diluted(1)       $0.07       $0.03       $0.04       $0.10       $0.19       ($0.09)

(1) See reconciliation table below regarding the presentation of Adjusted EBITDA and Non-GAAP net income.
(2) The calculation of percentage or dollar change is based on unrounded numbers.

Investor Conference Call

Management will host a conference call June 17, 2014, at 4:00 p.m. CT (5:00 p.m. ET) to review the financial results. The call can be accessed by dialing (888) 505-4375 or (719) 325-2281 for international callers. Additionally, the conference call will be webcast on the Daegis website at www.daegis.com. A replay of the call will be available through June 27, 2014 by dialing (888) 203-1112 or (719) 457-0820 for international callers and using the following passcode: 8990389#.

About Daegis Inc.

Daegis Inc. (NASDAQ: DAEG) is a global archiving, eDiscovery and software development tools company. Daegis delivers leading-edge archive and eDiscovery software through Daegis Edge, an end-to-end platform for managing the eDiscovery life cycle, Daegis Acumen technology assisted review and Daegis AXS-One enterprise information archiving. Daegis also offers specialized services including data collection, analytics consulting, project management and managed document review. The Gupta Technologies and Composer Technologies businesses serve customers around the globe with development tools for mobile and web application development, databases and application migration software. Visit our websites to learn more.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. 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 beliefs and assumptions and information currently available to management and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Examples of forward-looking statements in the 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 client and the costs associated with providing services to that client, the date during the course of a fiscal year that a new client is acquired, the length of the integration cycle for new clients and the timing of revenues and costs associated therewith, our client concentration given that the Company is currently dependent on a few large client 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 clients and control expenses, the possibility of the discontinuation of some client relationships, the financial condition of our clients' business and other factors detailed in the Company's filings with the Securities and Exchange Commission.

 
DAEGIS INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
           
April 30, April 30,
  2014     2013  
ASSETS
Current assets:
Cash $ 7,178 $ 5,459
Accounts receivable, net 6,657 10,594
Prepaid expenses 617 754
Other current assets 358 449
Assets held for sale       926  
Total current assets 14,810 18,182
 
Property and equipment, net 1,053 1,934
Goodwill 11,706 11,706
Intangibles, net 5,614 7,152
Other assets   470     733  
Total assets $ 33,653   $ 39,707  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 308 $ 243
Current portion of long-term debt 3,123 2,519
Accrued compensation and related expenses 1,185 2,697
Other accrued liabilities 971 863
Deferred revenue 8,590 8,449
Liabilities held for sale       526  
Total current liabilities 14,177 15,297
 
Long-term debt, net of current portion 11,848 15,170
Deferred tax liabilities, net 1,032 923
Common stock warrant liability 276 204
Other long-term liabilities   1,095     1,429  
Total liabilities   28,428     33,023  
 
Commitments and contingencies
 
Stockholders’ equity:
Preferred stock 2
Common stock 17 15
Additional paid-in capital 100,152 100,053
Accumulated other comprehensive income 280 280
Accumulated deficit   (95,224 )   (93,666 )
Total stockholders’ equity   5,225     6,684  
Total liabilities and stockholders’ equity $ 33,653   $ 39,707  
                     
 
DAEGIS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
Three Months Ended Twelve Months Ended
April 30, April 30,
  2014     2013     2014     2013  
 
Revenues:
Archive and eDiscovery $ 4,384 $ 6,598 $ 19,320 $ 26,126
Database and migration   2,986     3,172     11,638     14,067  
Total revenues   7,370     9,770     30,958     40,193  
 
Operating expenses:
Direct costs of Archive and eDiscovery revenue 1,618 2,188 7,929 10,091
Direct costs of database and migration revenue 524 775 1,881 3,027
Product development 1,215 2,067 5,898 7,478
Selling, general and administrative 3,507 3,978 15,080 18,282
Sale of intangible trade name               (1,000 )
Total operating expenses   6,864     9,008     30,788     37,878  
Income from operations   506     762     170     2,315  
 
Other income (expense):
Gain (loss) from change in fair value of common stock warrant liability (21 ) 62 (72 ) 365
Interest expense (293 ) (383 ) (1,332 ) (1,632 )
Other, net   60     (145 )   9     (234 )
Total other income (expense)   (254 )   (466 )   (1,395 )   (1,501 )
 
Income (loss) before income taxes 252 296 (1,225 ) 814
Provision for income taxes   89     108     333     282  
Net income (loss) $ 163   $ 188   $ (1,558 ) $ 532  
 
Income (loss) per share:
Basic $ 0.01 $ 0.01 $ (0.10 ) $ 0.01
Diluted $ 0.01 $ 0.01 $ (0.10 ) $ 0.01
 
Weighted-average shares used in computing income (loss) per share:
Basic 16,384 14,718 16,110 14,718
Diluted 16,386 14,736 16,110 14,728
                     
 
DAEGIS INC.
RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED EBITDA
(In thousands, except per share data)
 
Three Months Ended Twelve Months Ended
April 30, April 30,
  2014   2013     2014     2013  
 
 
GAAP income (loss) from operations $ 506 $ 762 $ 170 $ 2,315
 
Amortization of intangible assets 384 384 1,538 1,538
Stock based compensation expenses 34 100 165 593
Depreciation 207 281 947 1,123
Charges related to alignment of business units(1)   485   -     1,451     935  
Total adjustments to GAAP income from operations   1,110   765     4,101     4,189  
 
Adjusted EBITDA $ 1,616 $ 1,527   $ 4,271   $ 6,504  
 
 
 
 
 
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
(In thousands, except per share data)
 
GAAP net income (loss) $ 163 $ 188 $ (1,558 ) $ 532
 
Amortization of intangible assets 384 384 1,538 1,538
Stock based compensation expenses 34 100 165 593
(Gain) loss from change in fair value of common stock warrant liability 21 (62 ) 72 (365 )
Charges related to alignment of business units(1)   485   -     1,451     935  
Total adjustments to GAAP net income (loss)   924   422     3,226     2,701  
 
Non-GAAP net income $ 1,087 $ 610   $ 1,668   $ 3,233  
 
Non-GAAP diluted income per share $ 0.07 $ 0.03   $ 0.10   $ 0.19  
 
Weighted average shares used in computing income per share:
Dilutive 16,386 14,736 16,110 14,728
 
(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” and “Reconciliation of GAAP Operating Income to Adjusted EBITDA” which includes a reconciliation of the GAAP results to Non-GAAP and Adjusted EBITDA results.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products an...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...