-- Support and services revenue up 21% from the comparable year-ago
quarter
-- Hosting revenue up 19% from the comparable year-ago quarter
eGain Communications Corporation (
-- Over the last six months, eGain has continued to invest in its sales
force by adding headcount, ramping up its European presence, and
structuring the sales force into industry verticals and geographic groups.
-- eGain successfully released Service 7.6, a product eGain jointly
conceived and developed with its blue chip customers. With nine new
applications, Service 7.6 is the first to address short message service
(SMS) customer service interactions, as well as next-generation web self-
service including chatbot, agent-assisted chat, cobrowsing, email, fax,
postal mail, notification management, call tracking and resolution,
knowledge management, and service fulfillment, all based on a common
platform.
-- eGain's offerings continue to be one of the most acclaimed in the
industry. eGain recently won Customer Interaction Solutions magazine's
Product of the Year award, and was named to Software Magazine's Software
500 list. In addition, eGain's deployment at ABN AMRO was selected as an
InfoWorld 100 award winner.
-- The company also made significant progress in laying the foundation
for expanding its partnerships and distribution channels. The company
joined the EMC Documentum Application Developer Program. As an EMC
Documentum partner, eGain will receive specialized design consultation and
guidance, along with access to dedicated Documentum technical resources to
ensure that the integration of eGain's customer interaction hub (CIH)
software suite with Documentum's solutions meet the highest quality
standard. In addition, the company entered into several new partnerships
in Europe and Africa, including agreements with 4C Consulting to cover
customer service project implementations in Belgium and France and with
HappyCustomers to collaborate on customer service project implementations
in the Netherlands.
-- Finally, the company held its annual customer summit in November 2006
with active participation from customers and industry thought leaders.
Guidance for Fiscal Year
Based upon the increased sales and marketing investments made in the first
half of fiscal year 2007, management is projecting revenues to increase in
the second half of fiscal year 2007 and is maintaining the previously
announced guidance:
-- Management anticipates revenue to be in the range of $27 million to
$30 million or a 20% to 33% increase from fiscal year 2006.
-- Management anticipates GAAP income from operations to be positive for
fiscal year 2007.
About eGain Communications Corporation
eGain is a provider of customer service and contact center software and
services, trusted by world-class companies to achieve and sustain customer
service excellence for over a decade. eGain Service 7™, the company's
software suite, available licensed or hosted, includes integrated
applications for customer email management, live web collaboration, service
fulfillment, knowledge management, and web self-service. These robust
applications are built on the eGain Service Management Platform™ (eGain
SMP™), designed to be a scalable next-generation framework that includes
end-to-end service process management, multi-channel, multi-site contact
center management, a flexible integration approach, and certified
out-of-the-box integrations with leading call center, content and business
systems.
To find out more about eGain, visit http://www.eGain.com or call the
company's offices -- United States: (888) 603-4246 ext. 9; London: +44 (0)
1753-464646
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; 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 anticipated benefits to eGain from the
Cisco 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 27,
2006, 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)
December 31, June 30,
2006 2006
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 6,004 $ 6,916
Restricted cash 12 12
Accounts receivable, net 2,620 2,151
Prepaid and other current assets 731 623
------------- -------------
Total current assets 9,367 9,702
Property and equipment, net 1,333 1,169
Goodwill, net 4,880 4,880
Other assets 364 354
------------- -------------
Total assets $ 15,944 $ 16,105
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,080 $ 989
Accrued compensation 1,391 1,254
Accrued liabilities 1,318 1,156
Deferred revenue 5,216 4,259
Current portion of bank borrowings 1,983 1,697
------------- -------------
Total current liabilities 10,988 9,355
Related party notes payable 9,225 8,652
Bank borrowings, net of current portion 156 77
Other long term liabilities 200 217
------------- -------------
Total liabilities 20,569 18,301
Stockholders' deficit:
Common stock $ 15 $ 15
Additional paid-in capital 315,889 315,736
Notes receivable from stockholders (75) (74)
Accumulated other comprehensive loss (433) (456)
Accumulated deficit (320,021) (317,417)
------------- -------------
Total stockholders' deficit $ (4,625) $ (2,196)
------------- -------------
$ 15,944 $ 16,105
============= =============
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenue:
License $ 850 $ 2,013 $ 2,485 $ 3,390
Support and Services 4,833 3,996 9,201 7,842
-------- -------- -------- --------
Total revenue 5,683 6,009 11,686 11,232
Cost of license 18 133 59 186
Cost of support and services 2,206 1,578 4,147 3,302
-------- -------- -------- --------
Gross profit 3,459 4,298 7,480 7,744
-------- -------- -------- --------
Operating costs and expenses:
Research and development 833 704 1,858 1,417
Sales and marketing 2,921 2,258 6,208 4,385
General and administrative 484 779 1,424 1,408
-------- -------- --------
Total operating costs and
expenses 4,238 3,741 9,490 7,210
-------- -------- -------- --------
Income / (loss) from operations (779) 557 (2,010) 534
Interest expense, net (276) (259) (546) (513)
Other income (expense), net (5) 1 22 6
-------- -------- -------- --------
Income / (loss) before income taxes (1,060) 299 (2,534) 27
Provision for income taxes (54) (54) (69) (79)
-------- -------- -------- --------
Net income / (loss) $ (1,114) $ 245 $ (2,603) $ (52)
======== ======== ======== ========
Per share information:
Basic net income / (loss) per
common share $ (0.07) $ 0.02 $ (0.17) $ 0.00
======== ======== ======== ========
Diluted net income / (loss) per
common share $ (0.07) $ 0.02 $ (0.17) $ 0.00
======== ======== ======== ========
Weighted average shares used in
computing basic net income /
(loss) per common share 15,315 15,302 15,315 15,302
======== ======== ======== ========
Weighted average shares used in
computing diluted net income /
(loss) per common share 15,315 15,423 15,315 15,302
======== ======== ======== ========
Contact Information: Company Contact: Maeve Naughton 650-230-7449 PR@eGain.com Investor Contact: IRegain@eGain.com