-- Total revenue of $8.9 million up 33% from the comparable year-ago
quarter
-- GAAP net income of $929,000 compared to a net loss of $1.9 million in
the comparable year-ago quarter
Fiscal Year 2009 Highlights
-- Total revenue of $33.2 million up 10% from the prior year
-- GAAP net income of $2.2 million compared to a net loss of $4.1 million
in the prior year
eGain Communications Corporation (
-- New hosting and license bookings for the fourth quarter of fiscal year
2009 were $4.5 million, an increase of 261% from the comparable year-ago
quarter. Of the total new hosting and license bookings in the fourth
quarter of fiscal year 2009, 28% was from new hosting bookings and 72% was
from new license bookings, compared to 19% from new hosting bookings and
81% from new license bookings in the comparable year-ago quarter. If
currency exchange rates had remained constant from June 30, 2008 (the last
day of our prior fiscal year) through June 30, 2009, bookings for the
fourth quarter of fiscal year 2009 would have been up approximately 328%,
rather than up 261% when compared to the same period last year.
-- New hosting and license bookings for the fiscal year 2009 were $15.2
million, an increase of 65% from the prior year. Of the total new hosting
and license bookings in the fiscal year 2009, 29% was from new hosting
bookings and 71% was from new license bookings, compared to 38% from new
hosting bookings and 62% from new license bookings in the prior last year.
If currency exchange rates had remained constant from June 30, 2008 through
June 30, 2009, bookings for the fiscal year 2009 would have been up
approximately 92%, rather than up 65% when compared to the same period last
year.
New milestones, products and industry recognition
-- eGain was selected by Forrester as a leader in interaction-centric
customer service software solutions in the October 2008 report.
-- eGain was positioned in the Leaders Quadrant by Gartner, Inc. in the
"Magic Quadrant for E-Service Suites 2008" report.
-- eGain released eGain Service™ 8 suite, the company's most advanced
Customer Interaction Hub solution with rich functional enhancement and
significant platform improvement.
-- eGain introduced a unique "Solution-as-a-Service" offering called
"eGain SLaaS™." "Solution-as-a-Service is a unique combination of value-
based pricing with hosted software and bundled services on tap," said Johan
Jacobs, Research Director at Gartner, Inc. "SLaaS has the potential to
transform enterprise software adoption in a tough economic climate."
Partnerships
-- Our steady investment in partnerships is showing results. For fiscal
year 2009, new hosting and license bookings through partners grew to 45% of
total new hosting and license bookings.
-- We extended our multi-year relationship with Cisco to be their OEM
supplier for email management and web collaboration products as part of the
Cisco Contact Center Suite.
Customer Momentum
eGain continued to acquire marquee enterprise customers in fiscal year
2009. Notable customer acquisitions include:
-- A fortune 100 personal lines insurer
-- A fortune 100 leader in networking for the Internet
-- One of the nation's top 10 financial holding companies
-- One of the world's foremost nutrition companies
-- A multinational insurance group
-- Multiple subsidiaries of a world leading mobile telecommunications
company
-- A leading European entertainment and communications company
Market and Business Outlook
According to market analysts, the market for Customer Interaction Hub
solutions continues to grow -- based on the need for improved efficiency
and better customer experience. Businesses are looking for integrated
solutions for multi-channel service that are scalable, quick to deploy, and
cost-effective. We continue to extend our product leadership by leveraging
our proven, scalable J2EE platform architecture and rapid innovation
capability to deliver unified, feature-rich solutions for demanding
enterprise clients.
Even though the economic environment seems to be stabilizing, we believe
that many businesses will continue to be cautious in increasing their
investment in the near future. So in fiscal year 2010, we will remain
prudent in our sales and marketing investment -- choosing selective growth
opportunities in new geographies and specific verticals. Further, the mix
of on-premise (one time license deals) and on-demand (steady subscription
revenue stream) deployments in the enterprise will be difficult to predict.
Therefore, instead of fixating on the short-term revenue impact of license
versus hosted bookings on our business, we will measure our progress in
terms of new bookings growth and operating cash flow.
For fiscal year 2010 we currently expect an increase in new license and
hosting bookings when compared to fiscal 2009. In addition, we currently
expect to generate positive cash flows from operations in fiscal year 2010.
(1) We define New Hosting and License Bookings 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 it is useful to disclose New Hosting and
License Bookings detail in this and future financial releases. We use this
metric internally 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.
About eGain Communications Corporation
eGain (
eGain Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, June 30,
2009 2008
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 7,511 $ 3,790
Restricted cash 13 13
Accounts receivable, net 4,308 2,749
Prepaid and other current assets 538 818
-------- --------
Total current assets 12,370 7,370
Property and equipment, net 995 1,230
Goodwill, net 4,880 4,880
Other assets 391 434
-------- --------
Total assets $ 18,636 $ 13,914
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 979 $ 1,669
Accrued compensation 2,429 1,712
Accrued liabilities 2,141 1,632
Deferred revenue 5,398 4,871
Current portion of capital lease obligation 181 52
Current portion of bank borrowings 3,125 100
-------- --------
Total current liabilities 14,253 10,036
Deferred revenue, net of current portion 133 293
Capital lease obligation, net of current portion 187 78
Related party notes payable 7,697 13,283
Bank borrowings, net of current portion 115 3,192
Other long term liabilities 344 321
-------- --------
Total liabilities 22,729 27,203
Stockholders' deficit:
Common stock $ 22 $ 15
Additional paid-in capital 323,550 316,527
Notes receivable from stockholders (76) (74)
Accumulated other comprehensive loss (506) (494)
Accumulated deficit (327,083) (329,263)
-------- --------
Total stockholders' deficit (4,093) (13,289)
-------- --------
$ 18,636 $ 13,914
======== ========
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Twelve Months
Three Months Ended Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenue:
License $ 3,022 $ 721 $ 8,613 $ 6,570
Support and services 5,888 5,971 24,606 23,537
-------- -------- -------- --------
Total revenue 8,910 6,692 33,219 30,107
Cost of license 209 20 263 80
Cost of support and services 2,623 2,874 10,483 11,556
-------- -------- -------- --------
Gross profit 6,078 3,798 22,473 18,471
Operating costs and expenses:
Research and development 1,178 1,433 5,481 5,098
Sales and marketing 2,731 2,843 10,465 11,747
General and administrative 735 912 3,271 4,240
-------- -------- -------- --------
Total operating costs and
expenses 4,644 5,188 19,217 21,085
Income / (Loss) from operations 1,434 (1,390) 3,256 (2,614)
Interest expense, net (297) (432) (1,435) (1,659)
Other income (expense), net (265) 75 230 332
-------- -------- -------- --------
Income / (Loss) before income tax 872 (1,747) 2,051 (3,941)
Income tax benefit / (expense), net 57 (110) 129 (206)
-------- -------- -------- --------
Net Income / (Loss) $ 929 $ (1,857) $ 2,180 $ (4,147)
======== ======== ======== ========
Per share information:
Basic net income / (loss) per
common share $ 0.04 $ (0.12) $ 0.11 $ (0.27)
======== ======== ======== ========
Diluted net income / (loss) per
common share $ 0.04 $ (0.12) $ 0.11 $ (0.27)
======== ======== ======== ========
Weighted average shares used in
computing basic net income /
(loss) per common share 22,213 15,333 20,611 15,330
======== ======== ======== ========
Weighted average shares used in
computing diluted net income /
(loss) per common share 22,214 15,333 20,612 15,330
======== ======== ======== ========
Summary of stock-based
compensation included in the
costs and expense above:
Cost of support and services $ 7 $ 11 $ 29 $ 42
Research and development 8 12 46 57
Sales and marketing 3 8 25 66
General and administrative 1 46 141 153
-------- -------- -------- --------
$ 19 $ 77 $ 241 $ 318
-------- -------- -------- --------
eGain Communications Corporation
Supplemental Financial Information
(in thousands)
(unaudited)
Three Months Ended
June 30,
-------------------------------------
2008 2009 2009
----------- ------------ ------------
Constant
Actual Actual Currency (1)
Total revenue $ 6,692 $ 8,910 $ 10,096
Gross profit 3,798 6,078 7,125
Total operating costs and expenses 5,188 4,644 5,323
Income / (loss) from operations (1,390) 1,434 1,802
Net Income / (loss) $ (1,857) $ 929 $ 1,058
Twelve Months Ended
June 30,
-------------------------------------
2008 2009 2009
----------- ------------ ------------
Constant
Actual Actual Currency
Total revenue $ 30,107 $ 33,219 $ 37,311
Gross profit 18,471 22,473 26,047
Total operating costs and expenses 21,085 19,217 21,514
Income / (loss) from operations (2,614) 3,256 4,533
Net Income / (loss) $ (4,147) $ 2,180 $ 2,857
(1) We present constant currency information to provide a framework for
assessing how our underlying business performed excluding the effect of
foreign currency rate fluctuations. To present this information,
current period results for entities reporting in currencies other than
United States dollars are converted into United States dollars at the
exchange rate in effect June 30, 2008, which was the last day of our
prior fiscal year, rather than the actual exchange rates in effect
during the respective periods.
Contact Information: Company Contact: Jamie Abayan 650-230-7532 PR@eGain.com Investor Contact: IRegain@eGain.com