Daegis Q4 2015 earnings update 7/28/2015

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on July 28th. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year.  On a Non-GAAP basis they lost $65,000 a share versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious BUY.



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