Quarter Highlights
-- Total revenue up 64% from the comparable year-ago quarter and up 9%
sequentially from last quarter
-- License revenue up 273% from the comparable year-ago quarter
-- Hosting revenue up 50% from the comparable year-ago quarter
-- Net income of $542,000 compared to a net loss of $2.2 million in the
same quarter a year ago
eGain Communications Corporation (
-- The company currently expects new hosting and license bookings for
fiscal year 2008 to be in the range of $12.0 million to $14.0 million,
compared to the previously announced guidance of $13.0 million to $15.0
million.
-- The company currently expects total revenue for fiscal year 2008 to be
in the range of $30.0 million to $32.5 million, compared to the previously
announced guidance of $27.2 million to $31.0 million.
-- The company currently expects support and services revenue for fiscal
year 2008 to be in the range of $23.0 million to $24.0 million compared to
the previously announced guidance of $22.0 million to $23.0 million.
-- The company currently expects license revenue for fiscal year 2008 to
be in the range of $7.0 million to $9.0 million, compared to the previously
announced guidance of $5.2 million to $9.0 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 (
eGain Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, June 30,
2008 2007
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 3,956 $ 6,195
Restricted cash 13 13
Accounts receivable, net 2,918 1,790
Prepaid and other current assets 862 662
--------- ---------
Total current assets 7,749 8,660
Property and equipment, net 1,175 1,336
Goodwill, net 4,880 4,880
Other assets 452 486
--------- ---------
Total assets $ 14,256 $ 15,362
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 1,572 $ 1,557
Accrued compensation 1,539 1,884
Accrued liabilities 2,059 1,496
Deferred revenue 5,185 5,541
Current portion of bank borrowings 2,323 2,293
--------- ---------
Total current liabilities 12,678 12,771
Related party notes payable 12,857 11,653
Bank borrowings, net of current portion -- 167
Other long term liabilities 161 185
--------- ---------
Total liabilities 25,696 24,776
Stockholders' deficit:
Common stock $ 15 $ 15
Additional paid-in capital 316,450 316,202
Notes receivable from stockholders (76) (77)
Accumulated other comprehensive loss (423) (438)
Accumulated deficit (327,406) (325,116)
--------- ---------
Total stockholders' deficit $ (11,440) $ (9,414)
--------- ---------
$ 14,256 $ 15,362
========= =========
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue:
License $ 2,234 $ 599 $ 5,849 $ 3,084
Support and Services 6,585 4,794 17,566 13,995
-------- -------- -------- --------
Total revenue 8,819 5,393 23,415 17,079
Cost of license 20 20 60 79
Cost of support and services 3,087 2,372 8,682 6,519
-------- -------- -------- --------
Gross profit 5,712 3,001 14,673 10,481
Operating costs and expenses:
Research and development 1,266 933 3,665 2,791
Sales and marketing 2,763 3,161 8,904 9,369
General and administrative 942 802 3,328 2,226
-------- -------- -------- --------
Total operating costs and
expenses 4,971 4,896 15,897 14,386
-------- -------- -------- --------
Income / (loss) from operations 741 (1,895) (1,224) (3,905)
Interest expense, net (421) (294) (1,227) (840)
Other income (expense), net 222 11 257 33
-------- -------- -------- --------
Income / (loss) before income tax 542 (2,178) (2,194) (4,712)
Income tax -- (3) (96) (72)
-------- -------- -------- --------
Net income / (loss) $ 542 $ (2,181) $ (2,290) $ (4,784)
======== ======== ======== ========
Per share information:
Basic net income / (loss) per
common share $ 0.04 $ (0.14) $ (0.15) $ (0.31)
======== ======== ======== ========
Diluted net income / (loss) per
common share $ 0.03 $ (0.14) $ (0.15) $ (0.31)
======== ======== ======== ========
Weighted average shares used in
computing basic net income /
(loss) per common share 15,333 15,317 15,330 15,315
======== ======== ======== ========
Weighted average shares used in
computing diluted net income /
(loss) per common share 15,514 15,317 15,330 15,315
======== ======== ======== ========
Contact Information: Company Contact: Jamie Abayan 650-230-7532 PR@eGain.com Investor Contact: IRegain@eGain.com