-- Recurring services revenue up 8% from the prior year -- Income from operations of $1.2 million -- Cash flow from operations of $2.5 millioneGain Communications Corporation (
-- New hosting and license bookings for the fourth quarter of fiscal year
2010 were $2.8 million, a decrease of 38% from the comparable year-ago
quarter. Of the total new hosting and license bookings in the fourth
quarter of fiscal year 2010, 61% were from new hosting bookings and 39%
were from new license bookings, compared to 28% from new hosting
bookings and 72% from new license bookings in the comparable year-ago
quarter.
-- New hosting and license bookings for the fiscal year 2010 were $13.1
million, a decrease of 14% from the prior year. Of the total new
hosting and license bookings in the fiscal year 2010, 42% were from new
hosting bookings and 58% were from new license bookings, compared to
29% from new hosting bookings and 71% from new license bookings in the
prior year.
New milestones, products and industry recognition
-- eGain was positioned in the Leaders Quadrant by Gartner, Inc. in the
"Magic Quadrant for E-Service Suites 2009" report. In the 2010 Gartner
report (renamed "Magic Quadrant for Web Customer Service") released in
September 2010, eGain further improved its position in the Leaders
Quadrant.
-- eGain released eGain Service™ 9 suite, the company's most advanced
Customer Interaction Hub solution with rich functional enhancement and
significant platform improvement.
Partnerships
-- We have had an active and growing partner program in EMEA for some
time. In fiscal year 2010, we expanded our efforts in developing North
America partners. We believe the eGain proposition is compelling for
value-added resellers (VARs) who have traditionally sold contact center
technologies to enterprises. In fiscal year 2010 we signed agreements
with 9 new partners.
-- We extended our multi-year relationship with Cisco Systems, Inc. to be
their OEM supplier for email management and web collaboration products
as part of the Cisco Contact Center Suite. Our partnership with Cisco
continues to grow. We gain from Cisco's global market reach.
Conversely, Cisco benefits from our agile innovation and proven product
leadership.
Customer Momentum
eGain continued to build new relationships with a wide range of enterprise
customers in fiscal year 2010. Notable new customer relationships include:
-- One of the nation's largest energy companies
-- One of the nation's largest health insurers
-- A world-leading mobile telecommunications company
-- One of the world's leading providers of fully integrated mobile
communication services
-- A leading global provider of comprehensive testing and assessment
services
-- A leading global beauty company
-- A premier online luxury fashion retailer
-- One of the UK's largest customer management outsourcing companies
Market and Business Outlook
We are optimistic about our prospects for fiscal year 2011. Beyond the
obvious running start -- the one we got from the large deal that slipped
from last quarter -- we see growing market interest in our recently
launched products. In response, we are increasing our investment in direct
sales and partner development.
For fiscal year 2011 we currently expect an increase in new total revenue
of 20% when compared to fiscal year 2010. In addition, we currently expect
to generate positive cash flows from operations in fiscal year 2011, while
planning to invest a significant portion of our anticipated top-line growth
back into growing our distribution capability.
(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,
2010 2009
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 5,733 $ 7,511
Restricted cash 13 13
Accounts receivable, net 2,955 4,308
Prepaid and other current assets 512 538
-------- --------
Total current assets 9,213 12,370
Property and equipment, net 869 995
Goodwill, net 4,880 4,880
Other assets 354 391
-------- --------
Total assets $ 15,316 $ 18,636
======== ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,146 $ 979
Accrued compensation 1,987 2,429
Accrued liabilities 1,946 2,141
Current portion of deferred revenue 4,917 5,398
Current portion of capital lease obligation 157 181
Current portion of bank borrowings 115 3,125
-------- --------
Total current liabilities 10,268 14,253
Deferred revenue, net of current portion 186 133
Capital lease obligation, net of current portion 28 187
Related party notes payable 8,724 7,697
Bank borrowings, net of current portion -- 115
Other long term liabilities 273 344
-------- --------
Total liabilities 19,479 22,729
Stockholders' deficit:
Common stock 22 22
Additional paid-in capital 323,700 323,550
Notes receivable from stockholders (79) (76)
Accumulated other comprehensive loss (596) (506)
Accumulated deficit (327,210) (327,083)
-------- --------
Total stockholders' deficit (4,163) (4,093)
-------- --------
Total liabilities and stockholders' deficit $ 15,316 $ 18,636
======== ========
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,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Revenue:
License $ 1,512 $ 3,022 $ 7,389 $ 8,613
Recurring services 4,093 3,926 16,617 15,382
Professional services 1,042 1,962 5,871 9,224
-------- -------- -------- --------
Total revenue 6,647 8,910 29,877 33,219
Cost of license 16 209 168 263
Cost of recurring services 1,107 1,130 4,492 4,371
Cost of professional services 1,192 1,493 5,048 6,112
-------- -------- -------- --------
Gross profit 4,332 6,078 20,169 22,473
Operating costs and expenses:
Research and development 1,653 1,178 5,510 5,481
Sales and marketing 2,981 2,731 10,226 10,465
General and administrative 939 735 3,211 3,271
-------- -------- -------- --------
Total operating costs and
expenses 5,573 4,644 18,947 19,217
-------- -------- -------- --------
Income / (loss) from operations (1,241) 1,434 1,222 3,256
Interest expense, net (285) (297) (1,123) (1,435)
Other income / (expense), net (92) (265) (67) 230
-------- -------- -------- --------
Income / (loss) before income tax (1,618) 872 32 2,051
Benefit / (provision) for income
taxes (39) 57 (159) 129
-------- -------- -------- --------
Net income / (loss) $ (1,657) $ 929 $ (127) $ 2,180
======== ======== ======== ========
Per share information:
Basic net income / (loss) per
common share $ (0.07) $ 0.04 $ (0.01) $ 0.11
======== ======== ======== ========
Diluted net income / (loss) per
common share $ (0.07) $ 0.04 $ (0.01) $ 0.11
======== ======== ======== ========
Weighted average shares used in
computing basic net income /
(loss) per common share 22,137 22,213 22,180 20,611
======== ======== ======== ========
Weighted average shares used in
computing diluted net income /
(loss) per common share 22,137 22,214 22,180 20,612
======== ======== ======== ========
Contact Information: Company Contact: Jamie Abayan 650-230-7532 PR@eGain.com Investor Contact: IRegain@eGain.com