| PRESS
RELEASE
Contact
Information
Raining
Data Corporation
25A Technology Drive
Irvine, CA 92618
Thomas G. Lim, Chief Financial Officer
Phone: (949) 442-4400
Fax: (949) 250-8187
thomas.lim@rainingdata.com
RAINING
DATA CORPORATION ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR END
MARCH 31, 2006 RESULTS AND
RECEIPT OF A NASDAQ STOCK MARKET
STAFF DETERMINATION LETTER
IRVINE,
CA. - July 24, 2006
Raining
Data Corporation (Nasdaq: RDTA) today announced financial results
for the fourth quarter and full fiscal year ended March 31,
2006. Revenue for the fourth quarter was $5.1 million and for
the fiscal year was $20.3 million, as compared to $5.5 million
and $21.5 million for the same periods in the prior fiscal year.
Loss per share was $0.08 for the year ended March 31, 2006 as
compared to a loss per share of $0.05 in the prior fiscal year.
For the
quarter ended March 31, 2006, net loss was $0.3 million compared
to net income of $0.3 million for the same period in the prior
fiscal year, as restated. Net loss for the year ended March
31, 2006 was $1.6 million compared to a net loss of $1.0 million
in the prior fiscal year, as restated.
Cash balance
was $10.8 million at March 31, 2006 compared to $10.6 million
at March 31, 2005. Cash balance increased during the fourth
quarter by $1.1 million from $9.7 million at December 31, 2005.
Working capital was $5.0 million at March 31, 2006, up $0.3
million from $4.7 million at March 31, 2005. The Company computes
working capital as total current assets less current liabilities.
Earnings
before interest, taxes, depreciation, and amortization (“EBITDA”)
for the quarter and fiscal year ended March 31, 2006 was breakeven
and negative $0.2 million, or 0% and 1% of revenue, respectively,
as compared to $0.7 million and $2.3 million, or 12% and 11%
of revenue, respectively, for the same periods in the prior
year. The reduction in EBITDA was primarily due to increased
research and development expenditures and lower revenues. 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 income taxes to its GAAP reported
net income (loss).
The filing
of the Company’s Annual Report on Form 10-KSB for the year ended
March 31, 2006 was delayed to permit the Company to restate
its consolidated financial statements for the years ended March
31, 2004 and 2005. The restatement adjustments relate to an
error in adopting SFAS No. 142, “Goodwill and Other Intangible
Assets,” in 2003, and an error in accounting for foreign net
operating loss carryforwards acquired in a business combination.
For a more complete description of the current restatement and
the impact on specific periods, refer to Note 1 – Restatement
in the Notes to Consolidated Financial Statements contained
in the Form 10-KSB for the year ended March 31, 2006.
As a result
of the delay in the filing of such Form 10-KSB, the Company
received a Nasdaq Stock Market (“Nasdaq”) Staff Determination
letter on July 18, 2006 indicating that the Company was not
in compliance with Nasdaq Marketplace Rule 4310(c)(14). Nasdaq
Marketplace Rule 4310(c)(14) requires the Company to file with
Nasdaq copies of all reports filed or required to be filed with
the U.S. Securities and Exchange Commission (the “SEC”). The
Nasdaq Staff Determination letter stated that as a result of
the Company’s non-compliance with Nasdaq Marketplace Rule 4310(c)(14),
the Company’s securities will be delisted from Nasdaq at the
opening of business on July 27, 2006, unless the Company requests
a hearing in accordance with Nasdaq Marketplace Rules. As a
result of the filing of such Form 10-KSB with the SEC on the
date hereof, the Company expects that Nasdaq will terminate
any further delisting proceedings with respect to this matter.
In the event such proceedings are not terminated, the Company
intends to request a hearing before a Nasdaq Listing Qualifications
Panel to appeal the Nasdaq’s Staff determination which will
stay the delisting until the Nasdaq Listing Qualifications Panel
has reached a decision. There can be no assurance that the Nasdaq
Listing Qualifications Panel would grant the Company’s request
for continued listing.
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® 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® Universal Data Model
(Pick UDM) based database management systems and components,
including D3®, mvEnterprise® and
mvBase® 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®, 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 160 employees and contractors in five countries, Raining
Data offers 24x7 customer support and maintains a strong international
presence. More information about Raining Data Corporation and
its products can be found at 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 and fiscal year ended
March 31, 2006 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.
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