-- Recurring services revenue up 18% from comparable year-ago quarter -- Operating margin of 17% -- GAAP net income of $1.1 millioneGain Communications Corporation (
-- New hosting and license bookings for the second quarter of fiscal year
2010 were $4.2 million, a decrease of 7% from the comparable year-ago
quarter. Of the total new hosting and license bookings in the second
quarter of fiscal year 2010, 29% was from new hosting bookings and 71%
was from new license bookings, compared to 15% from new hosting
bookings and 85% from new license bookings in the comparable year-ago
quarter. On a constant currency basis, using the exchange rates in
effect on June 30, 2009, bookings for the second quarter of fiscal
year 2010 would have been down approximately 9%, rather than down 7%,
when compared to the comparable year-ago quarter.
-- New hosting and license bookings for the six months ended December 31,
2009 were $8.4 million, a decrease of 8% from the same period last
year. Of the total new hosting and license bookings in the six months
ended December 31, 2009, 38% was from new hosting bookings and 62% was
from new license bookings, compared to 25% from new hosting bookings
and 75% from new license bookings in the same period last year. On a
constant currency basis, using the exchange rates in effect on June 30,
2009, bookings for the six months ended December 31, 2009 would have
been down approximately 4%, rather than down 8%, when compared to the
comparable year-ago quarter.
(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)
December 31, June 30,
2009 2009
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 5,970 $ 7,511
Restricted cash 13 13
Accounts receivable, net 4,688 4,308
Prepaid and other current assets 437 538
------------ ------------
Total current assets 11,108 12,370
Property and equipment, net 968 995
Goodwill, net 4,880 4,880
Other assets 398 391
------------ ------------
Total assets $ 17,354 $ 18,636
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 801 $ 979
Accrued compensation 1,787 2,429
Accrued liabilities 1,662 2,141
Current portion of deferred revenue 6,118 5,398
Current portion of capital lease obligation 177 181
Current portion of bank borrowings 125 3,125
------------ ------------
Total current liabilities 10,670 14,253
Deferred revenue, net of current portion 223 133
Capital lease obligation, net of current
portion 99 187
Related party notes payable 8,199 7,697
Bank borrowings, net of current portion 52 115
Other long term liabilities 338 344
------------ ------------
Total liabilities 19,581 22,729
Stockholders' deficit:
Common stock 22 22
Additional paid-in capital 323,644 323,550
Notes receivable from stockholders (78) (76)
Accumulated other comprehensive loss (580) (506)
Accumulated deficit (325,235) (327,083)
------------ ------------
Total stockholders' deficit (2,227) (4,093)
------------ ------------
Total liabilities and stockholders'
deficit $ 17,354 $ 18,636
============ ============
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Six Months
Ended Ended
December 31, December 31,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
Revenue:
License $ 2,516 $ 3,529 $ 4,470 $ 5,128
Recurring services 4,292 3,637 8,276 7,748
Professional services 1,504 2,423 3,541 4,852
------- ------- ------- -------
Total revenue 8,312 9,589 16,287 17,728
Cost of license 83 19 151 38
Cost of recurring services 1,129 1,078 2,281 2,204
Cost of professional services 1,336 1,501 2,631 3,216
------- ------- ------- -------
Gross profit 5,764 6,991 11,224 12,270
Operating costs and expenses:
Research and development 1,285 1,400 2,455 2,925
Sales and marketing 2,350 2,851 4,784 5,633
General and administrative 731 873 1,517 1,920
------- ------- ------- -------
Total operating costs and expenses 4,366 5,124 8,756 10,478
Income from operations 1,398 1,867 2,468 1,792
Interest expense, net (279) (335) (556) (820)
Other income net 36 341 30 365
------- ------- ------- -------
Income before income tax 1,155 1,873 1,942 1,337
Benefit / (provision) for income taxes (94) 96 (94) 110
------- ------- ------- -------
Net Income $ 1,061 $ 1,969 $ 1,848 $ 1,447
======= ======= ======= =======
Per share information:
Basic net income per common share $ 0.05 $ 0.09 $ 0.08 $ 0.08
======= ======= ======= =======
Diluted net income per common share $ 0.04 $ 0.09 $ 0.08 $ 0.08
======= ======= ======= =======
Weighted average shares used in
computing basic net income per
common share 22,205 22,213 22,209 19,035
======= ======= ======= =======
Weighted average shares used in
computing diluted net income per
common share 24,232 22,213 22,444 19,035
======= ======= ======= =======
eGain Communications Corporation
Supplemental Financial Information
(in thousands)
(unaudited)
Three Months Ended
December 31,
---------------------------------
% Increase
% Increase (Decrease)
% of % of (Decrease) in Constant
2009 revenue 2008 revenue in US$ Currency (1)
------- ------- ------- ------- ---------- ------------
Total revenue $ 8,312 100% $ 9,589 100% -13% -14%
Gross profit $ 5,764 69% $ 6,991 73% -18% -20%
Total operating
costs and
expenses $ 4,366 53% $ 5,124 53% -15% -19%
Income from
operations $ 1,398 17% $ 1,867 19% -25% -24%
Net Income $ 1,061 13% $ 1,969 21% -46% -33%
Six Months Ended
December 31,
---------------------------------
% Increase
% Increase (Decrease)
% of % of (Decrease) in Constant
2009 revenue 2008 revenue in US$ Currency (1)
------- ------- ------- ------- ---------- ------------
Total revenue $16,287 100% $17,728 100% -8% -6%
Gross profit $11,224 69% $12,270 69% -9% -9%
Total operating
costs and
expenses $ 8,756 54% $10,478 59% -16% -17%
Income from
operations $ 2,468 15% $ 1,792 10% 38% 40%
Net Income $ 1,848 11% $ 1,447 8% 28% 21%
(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 and comparable year-ago 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, 2009,
which was the last day of our prior fiscal year, rather than the actual
exchange rates in effect during the respective periods.
NM - Not Meaningful
Contact Information: Company Contact: Jamie Abayan 650-230-7532 PR@eGain.com Investor Contact: IRegain@eGain.com