Good afternoon. My name is Chanelle [ph] and I will be your conference operator today. At this time I would like to welcome everyone to the TigerLogic Third Quarter Fiscal Year 2015 Earnings Conference Call. [Operator Instructions] Before I hand the call off to the TigerLogic management team, let me remind you that this conference call includes predictions, estimates or other information that may be considered forward-looking. These forward-looking statements are based on the company's current estimates and they're subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond the company's control. Please do not place undue reliance on these forward-looking statements, and note that the company does not undertake any obligation to revise or update these forward-looking statements. Please review the company's SEC filings for a more complete discussion of its risk factors. I would now like to turn the call over to Brad Timchuk, our Chief Executive Officer. Mr. Timchuk, you may begin your conference.

Thank you, operator. I appreciate everyone joining us on today's call to review the financial results of TigerLogic for the third fiscal quarter ended December 31st, 2014. With me today on the call are Justin Garrity, our President, and Roger Rowe. Roger joined us as Chief Financial Officer last month and brings over 30 years of financial and operational experience in the technology industry to TigerLogic. Roger has been with both larger global public companies, as well as smaller entrepreneurial companies, and I believe that that blend of experience will benefit us as we execute our business plan. For today's call, I will start by providing highlights for the quarter and summarize our priorities and focus areas in the near term. Roger will then provide an overview of our financial results and Justin will provide additional details on our Postano business. After our prepared remarks, we'll open the call up for Q&A. As I stated during last quarter's conference call, our focus is pretty straightforward. We need to continue to grow our revenues from Omnis and Postano while controlling our operating expenses in order to reduce our cash burn, and return to profitability sooner rather than later. As we move in that direction, we expect these initiatives will drive improved shareholder value and an increase to our stock price. At this time, I'd like to take a moment to discuss Postano and remind everyone of the challenges we are tackling for businesses and brands. The world of consumer communications and engagement has changed radically in the past 48 months due to mobile and social proliferation. Consumers are bombarded today with offers and incentives and they only have so much time and money available to evaluate these options. Brands and agencies continue to look for innovative ways to ensure their communications…

Thanks, Brad. I'm thrilled to be here at TigerLogic and look forward to contributing to the company's success. I'm impressed with our product offerings and the customers we are working with. I believe TigerLogic has great potential, and I'm happy to be part of the team. Before I cover the financial results for the quarter, let me provide a brief update on the delisting notice we received in October 2014 from NASDAQ requiring us to meet the minimum $1 per share bid price by April 6, 2015. To date we have not yet achieved this requirement and are continuing to monitor our bid price and evaluate different options for resolving this situation, including requesting an extension to the deadline for us to meet the minimum requirement. Earlier today we issued a press release and filed our Form 10-Q, both of which provide details regarding our financial results for the third fiscal quarter. I will next provide a summary of our results and encourage you to review those documents for additional information. Let me start with a review of the income statement. Total revenues for the third quarter were $1.9 million, an increase of 33% year over year. Sequentially, total revenues were up 5%. Revenues from our Omnis business accounted for 46% of our total revenues for the quarter and declined 9% both year over year and sequentially. Revenues from our social platform, which historically includes both Postano subscription and Storycode services revenues, accounted for 54% of our total revenues and increased 113% year over year and 20% sequentially. Year-to-date revenues from our Omnis business accounted for 55% of total revenues and increased 1% from the prior year. Year-to-date revenues from our social platform accounted for 45% of our total revenues and increased 86% year over year. As we disclosed in…

Thank you, Roger. Postano was a driving platform with many customers. The collaboration with our customers leads to great product innovation, and our ability to productize and release new features is a key differentiator. We continue to make progress in enhancing the Postano product. As Brad mentioned earlier, we previously announced the release of Postano 2.6 and the Postano Command Center. These offerings build a unique power, ease of use and flexibility that Postano brings to make a measurable difference for our customers in their marketing and customer engagement efforts. To recap, Postano 2.6 introduced many new features. The key new feature was speed and performance. It is blazing fast. From the moment you log in to setting up a new visualization, to curating a proven content, Postano works in real-time, critical for live events. Postano 2.6 also provide the customers the ability to have multiple team members curate content at the same time, allowing brands to promote user-generated content and a workflow that is faster and easier than ever. Postano 2.6 introduced visualization formats, including highly animated visualizations for social voting and hashtag content. These are broadcast-quality animations and tailored for stadiums, lower third overlays for television and concert venue. Our entire Postano visualization engine was also optimized for iPad output, perfect for in-store displays and kiosks. Today I am pleased to announce the release of Postano 2.7, and we are introducing some of the breakthrough new features. Our flagship feature for this release is the addition of fan permissions. Fan permissions allows brands to request additional approval for use from fans for their social content, including tweets and Instagram posts. With 2.7, we are also introducing a new feature called Stay Alive. This technology is built into every Posano visualization, enabling it to continue to display and approve…

Thank you, Justin. We believe TigerLogic has tremendous potential as a company. We are focused on serving customers, working to capitalize on the rapid shift of the empowerment of the consumer through social media and mobile devices. We have great technology, a global footprint, and impressive customer list of worldwide brands and extensive installed base of loyal users, no debt, and very passionate employees. While a lot of work remains to be done to achieve our goals, I'm excited about our future prospects and look forward to sharing our progress with you. That concludes our formal remarks. Operator, we are ready to open the call for questions.

[Operator Instructions] Your first question is from the line of Richard Ree [ph] who is a private investor.

Yes, hello. I'm calling, really we have $13 million in cash and no debt, and, you know, from everything you guys say, I just don't feel the business is worth nothing, that's what it's valued at right now if you take out the cash. And it's just the stock price is ridiculous. You know, many people lost a lot of money. And there's no reason why you can't use $2 million or $3 million for a stock buyback, while you control costs, the people costs that you guys control yourself. That's question one. And question two, Brad, you named the same names, Cleveland Cavaliers, Arizona State last two conference calls, the same names, the same exact names. No new customer. You say you have all these new customers but you have not named them. So, to go along with your saying you're being more transparent, there must be a few companies that will allow you to name them. Thank you.

So, regarding the first comment on cash, obviously we are also disappointed with the current valuation of the company. As a management team, we're focused on executing the business, growing revenues and controlling our costs to return the company to cash flow breakeven as soon as practical. Obviously that's probably going to take a few quarters before we can -- before we get there. But in the interim, while we understand the request to potentially use some of the cash to do a stock buyback, there are no plans to do a buyback at this time, but obviously that is something that that management team and the Board will consider moving forward.

Hi, Richard [ph]. It's Brad. Thank you for the questions. I certainly want to address your second part of the question in terms of names. As Justin had mentioned while he was speaking, one of the challenges that we have is, when we work with the brands that we're working with, exposing brands is something we have to be extremely sensitive to. It is deemed by brands as some of them view some of their strategies as strategic differentiators in the marketplace, and they're not particularly interested in coming forth with that. So we have to be sensitive to their requests and their needs, but we are, you know, we're pleased with the relationships we have and the ones that we continue to gain within the brands and the level of clients that we're working with.

Next question is from the line of David Kingsburg, Creative Library Concepts.

Hi, gentlemen. How are you today?

Doing well, thank you.

The conference call seems very, very upbeat, a lot of excitement about the future. But my first question is, we have very feeble growth with this company. For all these products and all these opportunities, we're growing so slow. I don't understand it. I know you can't mention wins based upon relationships with brands, but what can you tell us about what are you doing, I mean you're hiring more salesmen, we hear that, but what are you doing to grow this into at least a $1 million a month business, a $2 million a month business. That's my first question, is the slow growth. The second part of my question has to do with the new Command Center. What growth are you going to see from that? Is that going to be incremental growth to the company? Is that going to help you sell more Postano? Was that a product that the industry was asking for, and not buying Postano with the lack of not having that product, could you shed some light on that for me also?

Yeah, definitely, David. Thank you for the question. You know, you asked about growth, and one of the things that we shared earlier and in my statement when I talked about how much a market has shifted in the last 48 months and in some cases that's even been a shorter period of time, we are really working with brands, and I would call it somewhat of a pioneering and education phase, social media has been around, providing the tools to get brands to interact with their customers, what we call fans today, is an evolutionary process. So we built a very scalable, adaptable program and platform for brands to work with. One of the realities is we don't just get up in the morning and everyone's at that stage in terms of wanting to engage with the customers in that way. We know that the need and the requirements are there in the marketplace, and that's why we're all, you know, positive and upbeat. And I've spent the last 15 years of my career in customer engagement solutions and I'm very optimistic about some of the opportunities that lie in front of us to work with brands. But it's a process. So we continue to focus and execute on the core elements of our business, and we see that as something that will continue to grow. For the Command Center, I know Justin has some comments on that.

Well, let me just follow up on that if I could. Everybody today is aware of social media. I mean everywhere you go, it's social media, social media. Why would there be this learning curve problem when the industry is so turned on to social media applications?

Yeah, this is Justin. I'll answer that. Good questions. So the growth, specifically where we're focused is fan engagement. And social media obviously has been around for a while now and brands are very familiar with the many aspects of it and how it works and how to engage with their customers through those social media platforms. Our solution is unique in the sense that we are helping brands to discover their most positive fans and the things that they say in social media, the photos that they're sharing through the hashtags that they're activating. So when you see the hashtags that are promoted through commercials and through other marketing efforts, our platform allows these brands to essentially leverage that content and promote it to create kind of an endorsement engine for all the other consumers. That is the aspect that is unique and new and that's where we work with brands and exciting strategies to essentially amplify the campaigns that they have by incorporating this kind of crowd-sourced fan content. And that is where there's tremendous growth, because you can take a campaign, and by incorporating this type of activity, really amplify it beyond its normal reach.

Justin, what is -- Justin, what is the typical order size for you?

You're just looking for ASP across the board or you're looking for specifically on --

Yeah. Let's say, you know, I come to you, I want fan engagement, I'm a college, I'm some sort of sports program. What is a typical order gross to you? Is it $20,000, is it $30,000, is it $10,000, is it more? I mean how would you characterize that.

No, it's a good question. So it ranges quite a bit depending on the relationship. So we have some that are annual subscriptions, some that are event-based, you know, ranges anywhere in the thousands, like you mentioned, all the way into the six-digit figures for very high engagements with customers.

Are we reaching more of those high-end customers now? Because that's where your growth is going to be. I mean if you've got --

Exactly. We are. Yes, yes. And I'd like to specifically then talk about the Command Center. The Command Center is one of those offerings in that's higher tier. It is a product that was based on quite a bit of collaboration, innovation with our customer base. And as we introduced it to customers just this last month, we have already been working with customers using the Command Center, and we see a lot of potential for it. It is a very innovative product. And it's built on our existing Postano platform. So it really leverages the power that we've invested in that platform over the last few years in an exciting new format that has high value to these brands.

In round numbers, if a client would purchase Command Center, what are you talking in the range of, $50,000, $100,000? Where would it be? What I'm trying to do is trying to say, okay, how can we get this company to generate $1 million to $2 million in sales per month. And I see that we need a high-end customer that's willing to spend $50,000 to $100,000 to make that happen. So, is this Command Center going to generate that kind of income?

The Command Center is priced at -- it's a subscription-based product, and so, you know, typically it starts with a year subscription, and it starts at $20,000 a month.

Well, that's exciting. I mean that's a major hit for you guys.

Yeah, we're very excited about this product. It's received very positive reactions with our customer base. We have multiple engagements right now in the phase of discussing using the Command Center for many different brands and their operations.

Last question. By having the Command Center, does that enable you to sell more Postano? Even though it's a part of Postano? Even though it's a part of -- yeah, I'm sorry.

It's the same platform underpinning but as a different outlet. It's a little more sophisticated. It actually makes the Postano product more sophisticated by the innovations that were introduced with it. I believe the two work very symbiotic and we'll see customers that will start with one and then grow into the other offerings that we have.

Okay. That's what we want to know. Well, thank you very much. I mean I agree with the last caller, $0.34, $0.40 doesn't represent this company. Somehow the word is not getting out there. Part of it is that we haven't turned a profit in years, you know. But somehow, someway, through your PR, the value proposition on what we're doing here is so damn exciting, this company could be growing faster.

Well, thank you, David. We won't -- we wouldn't disagree with that statement.

Okay, thanks so much.

Your next question is a follow-up from Richard Ree [ph].

Yes, hi. A follow-up. You say you can't name new company -- some companies in terms of the brand, that they don't want to be known. But what you can do is you can name, say, for example, the number of customer that use the Command Center. For example, you say this quarter we have 25 customers, then you come in three months later, we have 42 customers. That way we can, as a shareholder, we can -- you can say, we have no new brands and we know this, if you can understand. If you cannot tell us the name, you can tell us the number. I don't see any reason why you can't use a number. And one other question I have is, with your two businesses, Omnis, Postano, I don't see why -- you said last quarter that you were going to cut down the Omnis offering, and I don't see why you just don't sell the whole thing and just concentrate on the Postano offering with your money, you cut down the expenses, and you just focus on one, sell the other one. It makes a lot of sense. We said this -- I think I've heard this before, over the last nine months, I've heard this more than once. But same thing each month. I don't think you need two parts to this company. I think just the Postano, and grow that, and cut expense. What do you say to this?

Yeah, Richard [ph], thank you for the follow-up question. I mean the first one, in regards to customers, certainly I'll take that under advisement going forward. As Justin had mentioned, this was a product that literally was released, you know, within the last two weeks. So we're just at the very early stage of that. In terms of Omnis, you know, we're committed to our customer base and the continued support of Omnis. That's a point that isn't the first time, and I believe you've brought it up in the past, that, you know, we always need to look at all options in front of the business, and that we continue to do. But it's important that we stay focused on the fundamentals that we're currently engaged with to get value back to the shareholders.

Your next question is from the line of Joe Pratt with Stifel.

Hi. Perhaps this is for Justin. Justin, I'm trying to imagine what the Command Center does. And let's say I'm a big -- you're in front of a big brand, like a Nestle or a Procter & Gamble or something like that, and they said, what bad things could happen to us in the social media world if we don't have this Command Center. What would your response be?

Really good question. My response would be the Command Center is a unique offering that addresses the problems we see with many brands today, and that is that they've got multiple silos of data available to each team within the organization. So, somebody might be looking at as a social conversation but somebody else might be looking at marketing performance, somebody else will be looking at the website performance. And these are often reported through PowerPoint slides up towards management and executives. And what the Command Center does is gives you a real-time view across your brand, across all your products, essentially any dimension that has a specific name. You know, it could be a product name or that company's name or the multi-tiered brands that exist. That you can put all that in with very little effort. It is so easy to use. And all of a sudden you've got a panoramic view across your entire brand on how it's performing in terms of amount of conversation, what the conversation is, who the most influential people are that are talking about your company, what the most important post is that other people are retweeting and mentioning, as well as tying in web data, marketing data, e-commerce data. It is a truly powerful platform for visibility. And I think if a brand is using that, what they're going to avoid is they're going to avoid getting caught not knowing that a trend was happening around that brand in real time. It really is a super-powerful tool.

Well, I can imagine something like, let's say, something like Perrier Water, I mean this is just, you know, just as an example, an imaginary example, but let's say somebody out there tweeted, you know, the well in Italy is carcinogenic. You know, if I'm Nestle, I want to know about that. Is that the kind of thing you're talking about?

Potentially I'd love to get their business but I won't comment on a well, but in a hypothetical situation, I would say, if it was a brand that was concerned about let's say a negative conversation happening in social, the Command Center would definitely reveal that as part of its display. And I think you could easily see that happening in real time unfold, both through volume but also the influential posts that start to pick up on social media channels. It is something where really both the positive and the negative, kind of a general conversation around the brand. And because it's so easy to pivot, there's never been a solution like this where through the use of your phone or tablet, it's essentially a remote control through this very large display of information. And just by pivoting from one product to another or comparing one product to another, you can see all the metrics associated with that brand or product all at once. And so, yes, it could be negative conversation, it could be positive. A lot of times brands want to take advantage of a positive conversation and not aware that it's happening. You know, many times a brand starts to become part of a meme or some kind of popular conversation, and being able to jump in and see that happen in real time is extremely useful. So we're very excited about its potential, and working directly with brands on the product. We have learned so much. And those learnings have been built into the innovation that powers the Command Center.

Okay. How long have you had the Command Center?

We've been working on it, like I said, for a couple of years now, ever since I joined Postano. It's been part of the 2.0 platform as the discovery portion, but we really introduced in earnest in September of this last year privately with customers, and we just released it now two weeks ago for all customers to see this new product.

Okay. So is it valid to ask, how many have you sold so far -- how many times have you sold it so far? And how many times do you foresee selling in the next 12 months? I mean obviously that's, you know, the questions here from the shareholders are clamoring and that's what -- because we'd like to stop seeing quarters with $2 million cash burns.

I would say that, you know, as of the time we're not disclosing the number of customers that we're in the beta program with the product, but we're very excited about the response that we received when launching the product, and very excited about the momentum it has in our sales channel.

Okay. Thank you.

[Operator Instructions] There are no further questions at this time.

Thank you. I'd like to thank everyone for joining the call, and we look forward to talk with you in future earning calls.

Thank you for joining today's conference call. You may now disconnect.