MOUNTAIN VIEW, CA--(Marketwire - November 8, 2007) -
Quarter Highlights
-- Revenue up 8% from the comparable year-ago quarter and up 20%
sequentially from last quarter
-- Hosting revenue up 25% from the comparable year-ago quarter
-- Professional services revenue up 35% from the comparable year-ago
quarter
eGain Communications Corporation (
OTCBB:
EGAN), a leading provider of
customer service and contact center software, today announced financial
results for the first fiscal quarter ended September 30, 2007.
Total revenue for the first quarter of fiscal year 2008 was $6.5 million,
an increase of 8% from the comparable year-ago quarter. License revenue was
$1.4 million, a decrease of 13% from the comparable year-ago quarter.
Support and services revenue was $5.0 million, an increase of 16% from the
comparable year-ago quarter.
Gross margin for the first quarter of fiscal year 2008 was 58% compared to
67% in the comparable year-ago quarter. Total operating costs and expenses
for the first quarter of fiscal year 2008 was $5.7 million, an increase of
9% from the comparable year-ago quarter.
Net loss on a GAAP basis for the first quarter of fiscal year 2008 was $2.4
million, or $(0.16) per share, compared to a net loss on a GAAP basis of
$1.5 million, or $(0.10) per share, for the comparable year-ago quarter.
Net loss for the quarter included stock-based compensation of $53,000 and
interest and tax expense of $510,000, compared to stock-based compensation
expense of $75,000 and interest and tax expense of $285,000 for the
comparable year-ago quarter.
Total cash and cash equivalents were $3.6 million on September 30, 2007,
compared to $6.2 million on June 30, 2007. Days sales outstanding in
receivables for the quarter ended September 30, 2007 were 41 days compared
to 51 days for the comparable year-ago quarter. Deferred revenues totaled
$6.1 million at September 30, 2007, up from $5.5 million at June 30, 2007.
New hosting and license bookings(1) for the first quarter of fiscal year
2008 was $3.2 million, unchanged from the year-ago quarter. Of the total
new hosting and license bookings in the quarter, 60% was from new hosting
contracts and 40% from new license contracts, this compared to 55% hosting
and 45% license bookings in the same quarter a year ago.
"We are pleased with our start to fiscal year 2008 and the level of new
hosting and license bookings in our first fiscal quarter, especially
following the exceptionally strong bookings we recorded in our last fiscal
quarter of 2007," said Ashu Roy, CEO of eGain. "We continued to see a shift
toward enterprise-class hosting, with more than 60% of new bookings coming
from new hosting contracts."
Updated Guidance for Fiscal Year 2008
We expect new hosting and license bookings for fiscal year 2008 to be in
the range of $13 million to $15 million. We expect hosting bookings to be
in the range of 40% to 60% of total new hosting and license bookings.
Therefore, we expect our license revenue for fiscal year 2008 to be in the
range of $5.2 million to $9.0 million. We expect our support and services
revenue for fiscal year 2008 to be in the range of $21.0 million to $22.0
million.
(1) New Hosting and License Bookings is a non-GAAP measure we define as new
contractual commitments (excluding renewals) received by the company for
the purchase of product licenses and hosting services. Such contracts are
not cancelable for convenience but may be subject to termination by our
customers for cause or breach of contract by us. Furthermore, because we
offer a hybrid delivery model, the mix of new license and hosting business
in a quarter could also have an impact on our revenue in a particular
quarter. Due to effects that these trends have on our short-term revenue
and profitability, we believe that, in addition to the information
contained in the GAAP presentation of financial information, it is useful
to disclose New Hosting and License Bookings detail in this and future
financial releases. We internally use this metric to focus management on
the productivity of the sales team and period-to-period changes in our core
business. Therefore, we believe that this information is meaningful and
helpful in allowing individuals to better assess the ongoing nature of our
core operations. The presentation of this additional non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP.
About eGain Communications Corporation
eGain (
OTCBB:
EGAN) is a leading provider of customer service and contact
center software for in-house or on-demand SaaS deployment. For more than a
decade, several of the world's largest companies have relied on eGain to
transform their traditional call centers, help desks, and web customer
service operations into multichannel customer interaction hubs. Based on
the Power of One™, the concept of one unified platform for multichannel
customer interaction and knowledge management, these hubs enable
dramatically improved customer experience, unified multichannel customer
service, end-to-end service process efficiencies, and enhanced contact
center performance.
Headquartered in Mountain View, California, eGain has an operating presence
in 18 countries. To find out more about eGain, visit
www.eGain.com or call
the company's offices: 800-821-4358 (US headquarters), 1753-464646 (UK and
Continental Europe).
Cautionary Note Regarding Forward-looking Statements
All statements in this release that involve eGain's plans, forecasts,
beliefs, projections, expectations, strategies and intentions are
forward-looking statements within the meaning of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements, which are based on information available to
eGain at the time of this release, are not guarantees of future results;
rather, they are subject to risks and uncertainties that may cause actual
results to differ materially from those set forth in this release. These
risks include, but are not limited to, the uncertainty of demand for eGain
products including our guidance regarding bookings and revenue; the
anticipated customer benefits from eGain products; the actual mix in new
business between hosting and license transactions when compared with
management's projections; the increased complexity of certain transactions
and the timing of revenue recognition on such transactions; the anticipated
benefits to eGain from the Cisco OEM agreement; the ability to increase
revenues as a result of the increased investment in sales and marketing;
increased competition and technological changes in the markets in which
eGain competes; eGain's ability to manage its expenditures; and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission, including the Company's annual report on Form 10-K
filed on September 28, 2007, and the Company's quarterly reports on Form
10-Q. eGain assumes no obligation to update these forward-looking
statements.
Note: eGain is a registered trademark, and the other eGain product and
service names appearing in this release are trademarks or service marks, of
eGain Communications Corp. All other company names and products are
trademarks or registered trademarks of their respective companies.
eGain Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)
September 30, June 30,
2007 2007
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,552 $ 6,195
Restricted cash 13 13
Accounts receivable, net 2,973 1,790
Prepaid and other current assets 607 662
----------- -----------
Total current assets 7,145 8,660
Property and equipment, net 1,326 1,336
Goodwill, net 4,880 4,880
Other assets 488 486
----------- -----------
Total assets $ 13,839 $ 15,362
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,781 $ 1,557
Accrued compensation 1,627 1,884
Accrued liabilities 1,715 1,496
Deferred revenue 6,111 5,541
Current portion of bank borrowings 2,149 2,293
----------- -----------
Total current liabilities 13,383 12,771
Related party notes payable 12,045 11,653
Bank borrowings, net of current portion -- 167
Other long term liabilities 177 185
----------- -----------
Total liabilities 25,605 24,776
Stockholders' deficit:
Common stock 15 15
Additional paid-in capital 316,256 316,202
Notes receivable from stockholders (78) (77)
Accumulated other comprehensive loss (443) (438)
Accumulated deficit (327,516) (325,116)
----------- -----------
Total stockholders' deficit (11,766) (9,414)
----------- -----------
$ 13,839 $ 15,362
=========== ===========
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30,
------------------
2007 2006
-------- --------
Revenue:
License $ 1,423 $ 1,635
Support and services 5,048 4,368
-------- --------
Total revenue 6,471 6,003
Cost of license 20 41
Cost of support and services 2,675 1,941
-------- --------
Gross profit 3,776 4,021
Operating costs and expenses:
Research and development 1,144 1,025
Sales and marketing 3,141 3,287
General and administrative 1,423 940
-------- --------
Total operating costs and expenses 5,708 5,252
-------- --------
Loss from operations (1,932) (1,231)
Interest expense, net (404) (270)
Other income 42 27
-------- --------
Loss before income tax (2,294) (1,474)
Income tax (106) (15)
-------- --------
Net loss $ (2,400) $ (1,489)
======== ========
Per share information:
Basic and diluted net loss per common share $ (0.16) $ (0.10)
======== ========
Weighted average shares used in computing basic and
diluted net loss per common share 15,323 15,314
======== ========
Contact Information: Company Contact:
Jamie Abayan
650-230-7532
PR@eGain.com
Investor Contact:
IRegain@eGain.com