Welcome!

@CloudExpo Authors: Elizabeth White, Pat Romanski, Liz McMillan, Stackify Blog, Dana Gardner

News Feed Item

Daegis Reports Fiscal 2013 Second Quarter Financial Results

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.

DAEGIS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
       
Three Months Ended Six Months Ended
October 31, October 31,
  2012     2011     2012     2011  
 
Revenues:
eDiscovery $ 4,043 $ 5,529 $ 8,116 $ 11,555
Database, archive, and migration   6,302     5,546     11,867     11,034  
Total revenues   10,345     11,075     19,983     22,589  
 
Operating Expenses:
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
Product development 1,802 1,863 3,686 3,838
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
Interest expense (400 ) (469 ) (842 ) (1,369 )
Other, net   (16 )   (24 )   (108 )   26  
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:
Basic $ 0.01 $ 0.05 $ 0.01 $ (0.08 )
Diluted $ 0.01 $ 0.05 $ 0.01 $ (0.08 )
 
Weighted-average shares used in computing income (loss) per share:
Basic 14,718 14,657 14,718 14,629
Diluted 14,729 14,809 14,723 14,629
DAEGIS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
   
October 31, April 30,
  2012     2012  
ASSETS
Current assets:
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
Goodwill 11,706 11,706
Intangibles, net 7,921 8,690
Other assets, net   1,010     1,121  
Total assets $ 37,395   $ 41,869  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 398 $ 450
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
Deferred revenue   6,602     8,412  
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  
Total liabilities   30,889     35,848  
 
Commitments and contingencies
 
Stockholders’ equity:
Preferred Stock 2 2
Common stock 15 15
Additional paid-in capital 99,989 99,860
Accumulated other comprehensive income 289 341
Accumulated deficit   (93,789 )   (94,197 )
Total stockholders’ equity   6,506     6,021  
Total liabilities and stockholders’ equity $ 37,395   $ 41,869  
DAEGIS INC.
RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED EBITDA
(In thousands, except per share data)
       
Three Months Ended Six Months Ended
October 31, October 31,
  2012   2011     2012     2011  
 
 
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
Depreciation   277   279     555     509  
Total adjustments to GAAP income from operations   815   1,082     1,654     2,105  
 
Adjusted EBITDA $ 1,717 $ 2,280   $ 2,840   $ 4,148  
 
 
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:

Diluted

14,729 14,809 14,723 15,933

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.

@CloudExpo Stories
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
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...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
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...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...