|By Business Wire||
|November 29, 2012 04:00 PM EST||
Daegis Inc. (NASDAQ: DAEG), an eDiscovery and information management company, today announced financial results for its fiscal 2013 second quarter ended October 31, 2012.
Second quarter total revenue was $10.3 million, compared to $11.1 million in the second quarter last year. Electronic discovery revenue was $4.0 million, compared to $5.5 million in the comparable quarter last year. Total revenue for the database, archive and migration business segment was $6.3 million, compared to $5.5 million in the second quarter of fiscal 2012. Adjusted EBITDA was $1.7 million or 17% of revenue, compared to $2.3 million or 21% of revenue, in the comparable quarter last year (see reconciliation table below regarding the presentation of Adjusted EBITDA and Non-GAAP net income).
Second quarter GAAP net income was $252,000 or $0.01 per share, compared to net income of $795,000 or $0.05 per share in the second quarter of fiscal 2012. Non-GAAP net income was $978,000 or $0.07 per share, compared to $1.4 million or $0.10 per share in the same quarter last year (see reconciliation table). The Company generated cash from operations of $687,000 during the second quarter, compared to $2.1 million during the second quarter last year.
Cash and cash equivalents at October 31, 2012 were $4.0 million, compared to $4.8 million reported at April 30, 2012. Total outstanding debt at October 31, 2012 was $18.6 million, a decrease of $2.7 million, compared to $21.3 million at April 30, 2012.
For the six-month period of fiscal 2013, total revenue was $20.0 million, compared to $22.6 million for the same period of the prior year. GAAP net income was $409,000 or $0.01 per share, compared to GAAP net loss of $983,000 or $0.08 loss per share last year. Non-GAAP net income was $1.2 million or $0.08 per share, compared to $2.2 million or $0.14 per share for the first six months of last year. Adjusted EBITDA was $2.8 million, compared to $4.1 million in the same period last year. Cash generated from operations was $1.3 million, compared to $3.1 million in the comparable period last year.
Commenting on results, Chief Executive Officer Todd Wille said, “During the first two quarters of the fiscal year, we rebuilt the eDiscovery executive team, significantly enhanced our cloud-based eDiscovery Platform, and added experienced sales professionals. We delivered a major new release of the Daegis eDiscovery Platform with enhanced self-service usability and our innovative technology assisted review solution known as Acumen. In addition, we right sized our cost structure to deliver profitability as we implement our plans to grow. We are extremely focused on execution and expect to see improved results in the second half of the year. In our database, archive and migration business segment, we saw stronger than anticipated performance with 14% growth quarter over quarter and 13% sequentially. We launched a major release of our AXS-One archive product, achieved significant archive and migration wins, and continued our trend of strong maintenance renewals.”
Investor Conference Call
Management will host a conference call today, November 29, 2012, at 2:00 p.m. PT (5:00 p.m. ET) to review the second quarter 2013 financial results. The call can be accessed by dialing (877) 941-1427 or (480) 629-9664 for international callers and providing the company name. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available over the Internet at www.daegis.com. A replay of the call will be available approximately two hours following the end of the call through 11:59 p.m. ET on December 9, 2012 by dialing (800) 406-7325 or (303) 590-3030 for international callers and using the following passcode: 4576354#.
About Daegis Inc.
Daegis delivers eDiscovery and information management solutions. Daegis’ eDiscovery Platform combines technology and on-demand services to deliver end-to-end and cost-effective solutions for corporations and law firms. The Company’s information management business delivers solutions for developing, managing, modernizing, and archiving applications and business data. For additional information, visit www.daegis.com.
Use of Non-GAAP Financial Information
To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, Daegis uses certain Non-GAAP measures of financial performance. 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. For more information on these Non-GAAP financial measures and the Company’s Adjusted EBITDA, including how these measures are calculated, please see the tables in this release captioned "Reconciliation of GAAP to Non-GAAP Net Income" which includes a reconciliation of the GAAP results to Non-GAAP results as well as “Reconciliation of GAAP Operating Income to Adjusted EBITDA.”
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. Wille. 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. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events, circumstances or otherwise.
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share data)|
|Three Months Ended||Six Months Ended|
|October 31,||October 31,|
|Database, archive, and migration||6,302||5,546||11,867||11,034|
|Direct costs of eDiscovery revenue||2,222||2,234||4,377||4,632|
|Direct costs of database, archive, and migration revenue||1,273||1,352||2,555||2,700|
|Selling, general and administrative||4,146||4,428||9,179||9,376|
|Gain on sale of intangible assets||—||—||(1,000||)||—|
|Total operating expenses||9,443||9,877||18,797||20,546|
|Income from operations||902||1,198||1,186||2,043|
|Other income (expense):|
|Loss on extinguishment of debt||—||—||—||(2,166||)|
|Gain (loss) from change in fair value of common stock warrant liability||(188||)||158||271||602|
|Total other income (expense)||(604||)||(335||)||(679||)||(2,907||)|
|Income (loss) before income taxes||298||863||507||(864||)|
|Provision for income taxes||46||68||98||119|
|Net income (loss)||$||252||$||795||$||409||$||(983||)|
|Income (loss) per share:|
|Weighted-average shares used in computing income (loss) per share:|
|CONSOLIDATED BALANCE SHEETS|
|October 31,||April 30,|
|Cash and cash equivalents||$||4,037||$||4,752|
|Accounts receivable, net||8,956||10,968|
|Prepaid expenses and other current assets||1,327||1,805|
|Total current assets||14,320||17,525|
|Property and equipment, net||2,438||2,827|
|Other assets, net||1,010||1,121|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current portion of long term debt||1,190||2,945|
|Accrued compensation and related expenses||2,032||2,465|
|Common stock warrant liability||298||569|
|Other accrued liabilities||999||819|
|Total current liabilities||11,519||15,660|
|Long term debt, net of current portion||17,364||18,306|
|Deferred tax liabilities||841||734|
|Other long term liabilities||1,165||1,148|
|Commitments and contingencies||—||—|
|Additional paid-in capital||99,989||99,860|
|Accumulated other comprehensive income||289||341|
|Total stockholders’ equity||6,506||6,021|
|Total liabilities and stockholders’ equity||$||37,395||$||41,869|
|RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED EBITDA|
|(In thousands, except per share data)|
|Three Months Ended||Six Months Ended|
|October 31,||October 31,|
|GAAP income from operations||$||902||$||1,198||$||1,186||$||2,043|
|Amortization of intangible assets||384||558||769||1,123|
|Stock based compensation expenses||154||245||330||473|
|Total adjustments to GAAP income from operations||815||1,082||1,654||2,105|
|RECONCILIATION OF GAAP TO NON-GAAP NET INCOME|
|(In thousands, except per share data)|
|GAAP net income (loss)||$||252||$||795||$||409||$||(983||)|
|Amortization of intangible assets and warrant discount||384||558||769||1,166|
|Stock based compensation expenses||154||245||330||473|
|Gain from change in fair value of common stock warrant liability||188||(158||)||(271||)||(602||)|
|Loss on extinguishment of debt||—||—||—||2,166|
|Total adjustments to GAAP net loss||726||645||828||3,203|
|Non-GAAP net income||$||978||$||1,440||$||1,237||$||2,220|
|Non-GAAP diluted earnings per share||$||0.07||$||0.10||$||0.08||$||0.14|
|Weighted average shares used in computing earnings per share:|
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 25, 2016 08:15 PM EDT Reads: 1,369
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 25, 2016 07:30 PM EDT Reads: 1,104
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Oct. 25, 2016 07:30 PM EDT Reads: 1,536
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Oct. 25, 2016 07:15 PM EDT Reads: 280
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 25, 2016 07:00 PM EDT Reads: 1,023
[webinar] Cloud Computing: A Roadmap to Modern Software Delivery | @ImpigerTech #API #Cloud #DataCenter
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Oct. 25, 2016 07:00 PM EDT Reads: 328
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Oct. 25, 2016 06:45 PM EDT Reads: 1,240
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 25, 2016 06:45 PM EDT Reads: 1,438
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
Oct. 25, 2016 06:15 PM EDT Reads: 371
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Oct. 25, 2016 06:15 PM EDT Reads: 2,140
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Oct. 25, 2016 06:00 PM EDT Reads: 2,705
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 25, 2016 05:45 PM EDT Reads: 1,443
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 25, 2016 05:15 PM EDT Reads: 1,614
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 25, 2016 04:45 PM EDT Reads: 1,553
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Oct. 25, 2016 04:15 PM EDT Reads: 1,452
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Oct. 25, 2016 03:15 PM EDT Reads: 427
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Oct. 25, 2016 03:00 PM EDT Reads: 34,207
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 this power panel at @...
Oct. 25, 2016 03:00 PM EDT Reads: 2,024
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
Oct. 25, 2016 02:30 PM EDT Reads: 1,489
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
Oct. 25, 2016 01:45 PM EDT Reads: 1,265