CollabRx Reports Second Quarter Fiscal Year 2014 Financial Results

CollabRx Reports Second Quarter Fiscal Year 2014 Financial Results

SAN FRANCISCO, Nov. 13, 2013 (GLOBE NEWSWIRE) -- CollabRx, Inc. (the
"Company") (Nasdaq:CLRX) today announced financial results for the second
quarter of fiscal year 2014, which ended September 30, 2013.

Though subsequent to the end of the second quarter, CollabRx announced a
multi-year, non-exclusive agreement with Quest Diagnostics (NYSE:DGX) to
provide medical and scientific content for its Next Generation Sequencing
(NGS)-based tests. Quest Diagnostics will incorporate genomic-related content
aggregated and annotated by CollabRx into the reports provided in connection
with one or more diagnostic tests to be offered to its commercial and
pharmaceutical clients. The agreement gives Quest the right to incorporate a
range of content provided by CollabRx, including medical guidelines, published
therapeutic protocols and scientific and medical literature citations.
Additional terms of the agreement were not disclosed. Quest Diagnostics is the
world's leading provider of diagnostic information services. It generated
revenues of about $7.4 billion in 2012, serving about half the physicians and
hospitals and one in three adults in the U.S. annually.

Second quarter Business Highlights

Throughout the second fiscal quarter, the Company made significant progress in
building revenues and increasing its commercial reach through several
agreements and announcements, including:

  *CollabRx announced the launch of its Genetic Variant Annotation™ (GVA™)
    service, which provides for a fully automated and scalable medical
    informatics solution that seamlessly pairs the results of genetic
    sequencing tests with clinically actionable and dynamically updated
    knowledge to inform patient treatment planning.
    
  *A multi-year agreement with MedPage Today, a property of Everyday Health,
    Inc., to develop and market a mobile app targeting physicians and patients
    that focuses on genetic tests, biomarkers and associated therapies.
    
  *CollabRx announced the appointment of George Lundberg, M.D. as its Chief
    Medical Officer.Dr. Lundberg will continue in his position as
    Editor-in-Chief and Chair of the Editorial Advisory Board of CollabRx.
    
  *CollabRx was featured in a Forbes article "Can We Build A Kickstarter For
    Cancer?," written by Paul Howard,
    http://www.forbes.com/sites/theapothecary/2013/08/01/can-we-build-a-kickstarter-for-cancer/
    and was also featured on an NBC Bay Area news segment, Tech Now!, with
    business and tech reporter Scott Budman.
    http://www.nbcbayarea.com/news/local/Can-We-Kickstart-The-Fight-Against-Cancer-218388941.html?_osource=SocialFlowTwt_BAYBrand

Fiscal 2014 Qtr 2 Financial Statement Highlights

  *Total operating revenue for the quarter was $251,000, with the entire
    amount representing the Company's commercialization of its content
    services and on-line media products. Revenue for the same quarter of the
    prior fiscal year was $75,000.
    
  *Gross margins for the quarter were 93% of revenue or $233,000, compared to
    73% of revenue or $55,000 in the same quarter of the prior fiscal year.
    
  *The Company's net loss for the second quarter of fiscal year 2014 was
    ($563,000) or ($0.29) per share, compared with net loss of ($1,284,000) or
    ($0.68) per share for the same period in the prior fiscal year.
    
  *Operating expenses totaled $1,105,000 for the second quarter.Of that
    amount, $152,000 were non-cash charges for depreciation, amortization, and
    stock compensation expense.This represented a decrease in operating
    expenses from the second quarter of fiscal year2013, which came in at
    $1,347,000 and included $276,000 of non-cash charges, and an increase from
    the immediately preceding quarter (Q1FY'14) which came in at $961,000,
    including $143,000 of non-cash charges.The quarter to quarter increase of
    $144,000 of operating expenses resulted primarily from increased
    engineering personnel.
    
  *The operating loss for fiscal year 2014 second quarter was ($872,000),
    compared to ($1,292,000) in the prior year and ($709,000) in the
    immediately preceding quarter.
    
  *During the second fiscal quarter, the Company recorded income from
    discontinued operations, net of taxes of $273,000, consisting of the sale
    of the last two patent lots related to the NLD technology for
    $365,000.The net gain related to this sale was $267,000.With this sale,
    the Company has no remaining intellectual property related to discontinued
    operations.The Company also recognized a $6,000 gain in outstanding
    discontinued operations.The receivable for the revenue from the sale of
    these patents is included in Other assets of discontinued operations on
    the Company's balance sheet.
    
  *CollabRx ended the second quarter with approximately $2.8 million in cash
    and cash equivalents.

Business Outlook

In the third quarter of fiscal year 2014 and beyond, CollabRx expects to build
revenue primarily related to the sale of its content in connection with its
recently launched Genetic Variant Annotation Service, advertising related to
its web-based Therapy Finders™, and late in the fiscal year additional
advertising revenue related to the mobile app under development with MedPage
Today and scheduled for launch in the fourth quarter.

CollabRx continues to expect quarterly cash operating expenses to be in the
range of $750,000 to $1.0 million. The Company also expects its operating
expenses in near-term quarters to be materially offset in fiscal year 2014 by
revenue both from agreements with its current partners and customers, as well
as new agreements.

"We worked very hard to win the agreements with Quest Diagnostics and MedPage
Today, and believe that these two partnerships totally validate our approach
and prospects for revenue in each of these two major areas of our business,"
said CollabRx Chairman and Chief Executive Officer, Thomas Mika."We believe
that our overall growth trajectory will be strongly positive."

Investor Conference Call Today at 5 p.m. EST (2 p.m. PST)

CollabRx will hold an investor conference call today to discuss the Company's
financial results for the second quarter of fiscal year 2014 and to provide an
update to the business.

The dial-in number for the live audio call beginning on Wednesday, November
13, 2013, at 5:00 p.m. EST (2:00 p.m. PST) is (877) 369-6591 in the U.S. and
(253) 237-1176 for international participants.The conference identification
number is 26933867.A live webcast of the conference call will also be
available at: http://www.media-server.com/m/p/r389mmy8

About CollabRx

CollabRx, Inc. (Nasdaq:CLRX) is a leader in cloud-based expert systems to
inform health care decision-making. CollabRx uses information technology to
aggregate and contextualize the world's knowledge on genomics-based medicine
with specific insights from the nation's top cancer experts starting with the
area of greatest need: advanced cancers in patients who have effectively
exhausted the standard of care. More information may be obtained at
http://www.collabrx.com.

CollabRx Safe Harbor Statement

This press release includes forward-looking statements about CollabRx's
anticipated results that involve risks and uncertainties. Some of the
information contained in this press release, including, but not limited to,
statements as to industry trends and CollabRx's plans, objectives,
expectations and strategy for its business, contains forward-looking
statements that are subject to risks and uncertainties that could cause actual
results or events to differ materially from those expressed or implied by such
forward-looking statements. Any statements that are not statements of
historical fact are forward-looking statements. When used, the words
"believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and
the like, and/or future tense or conditional constructions ("will," "may,"
"could," "should," etc.), or similar expressions, identify certain of these
forward-looking statements. Important factors which could cause actual results
to differ materially from those in the forward-looking statements are detailed
in filings made by CollabRx with the Securities and Exchange Commission.
CollabRx undertakes no obligation to update or revise any such forward-looking
statements to reflect subsequent events or circumstances.

COLLABRX, INC. AND SUBSIDIARIES
(formerly TEGAL CORPORATION)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
                                                               
                                                               
                                                      Sept. 30, March 31,
                                                       2013      2013 *
ASSETS                                                          
Current assets:                                                 
Cash and cash equivalents                              $ 2,791   $ 4,039
Accounts receivable                                    250       250
Prepaid expenses and other current assets             110       102
Other assets of discontinued operations                365       11
Total current assets                                  3,516     4,402
Property and equipment, net                            138       142
Intangible assets, net                                 1,385     1,490
Goodwill                                               603       603
Investment in convertible promissory note              362       345
Total assets                                          $ 6,004   $ 6,982
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Accounts payable, accrued expenses and other current   $ 195     $ 167
liabilities
Common stock warrant liability                         --       10
Liabilities of discontinued operations                 89        16
Total current liabilities                             284       193
Deferred tax liability                                 540       581
Promissory note                                       507       504
Other long term liabilities                            12        --
Total liabilities                                      1,343     1,278
                                                               
Stockholders' equity:                                           
Preferred stock, $0.01 par value; 5,000,000 shares     --       --
authorized; none issued and outstanding
Common stock, $0.01 par value; 50,000,000 shares
authorized;1,952,960 sharesissued and outstanding at 19        19
September 30, 2013 and March 31, 2013, respectively
Additional paid-in capital                            130,777   130,602
Accumulated other comprehensive loss                   --       (142)
Accumulated deficit                                   (126,135) (124,775)
Total stockholders' equity                            4,661     5,704
Total liabilities and stockholders' equity            $ 6,004   $ 6,982
                                                               
*Derived from the Company's audited consolidated balance sheet as of March  
31, 2013.


COLLABRX, INC. AND SUBSIDIARIES
(formerly TEGAL CORPORATION)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share data)
                                                                  
                                         Three Months Ended Six Months Ended
                                          September 30,      September 30,
                                         2013     2012      2013     2012
                                                                  
Revenue                                  $ 251    $ 50      $ 521    $ 50
Revenue - related party                   --      25        --      50
Total revenue                             251      75        521      100
Cost of revenue                          18       20        36       20
Gross profit                              233      55        485      80
Operating expenses:                                                
Engineering                               457      328       671      328
Research and development                  27       --       157      --
Sales and marketing                      63       49        122      49
General and administrative               558      970       1,117    1,682
Total operating expenses                 1,105    1,347     2,067    2,059
Operating loss                            (872)    (1,292)   (1,582)  (1,979)
Other income, net                        16       11        26       20
Loss before income tax benefit            (856)    (1,281)   (1,556)  (1,959)
Income tax benefit                        (20)     --       (41)     --
Loss from continuing operations           (836)    (1,281)   (1,515)  (1,959)
Gain on sale of discontinued operations,  267      --       267      --
net of taxes
Income (loss) from discontinued           6        (3)       (112)    (4)
operations, net of taxes
Net income (loss) from discontinued       273      (3)       155      (4)
operations, net of taxes
                                                                  
Net loss                                  (563)    (1,284)   (1,360)  (1,963)
                                                                  
Foreign currency translation             --      --       --      --
Comprehensive loss                        $(563)   $(1,284)  $(1,360) $(1,963)
                                                                  
Net loss per share from continuing                                 
operations:
Basic and diluted                         $(0.43)  $(0.68)   $(0.78)  $(1.13)
Net income (loss) per share from                                   
discontinued operations:
Basic and diluted                         $ 0.14   $--     $ 0.08   $--
Net loss per share:                                                
Basic and diluted                         $(0.29)  $(0.68)   $(0.70)  $(1.13)
                                                                  
Weighted-average shares used in per share                          
computation:
Basic and diluted                         1,953    1,884     1,953    1,738

CONTACT: Investor Relations Contacts:
        
         Thomas R. Mika, CEO
         CollabRx, Inc.
         415-248-5350
         tmika@collabrx.com

         or

         James Carbonara, Regional Vice President
         Hayden IR
         646-755-7412
         James@haydenir.com

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