-- GAAP net income of $787,000 compared to a net loss of $522,000 in the
comparable year-ago quarter
-- eGain placed in the Leaders quadrant of the Gartner Magic Quadrant for
E-Service Suites 2009 report
eGain Communications Corporation (
-- New hosting and license bookings for the first quarter of fiscal year
2010 were $4.2 million, a decrease of 9% from the comparable year-ago
quarter. Of the total new hosting and license bookings in the first quarter
of fiscal year 2010, 47% was from new hosting bookings and 53% was from new
license bookings, compared to 36% from new hosting bookings and 64% 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 first quarter of fiscal year 2010 would have been up
approximately 2%, rather than down 9%, when compared to the same period
last year.
Industry Recognition
-- eGain was placed in the Leaders(2) quadrant of the Gartner Magic
Quadrant for E-Service Suites 2009 report, authored by Johan Jacobs and
Michael Maoz (published September 11, 2009).
-- eGain Service was selected as KMWorld Trend-Setting Product of 2009.
(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.
(2) Gartner defines Magic Quadrant leaders as companies that "demonstrate
market-defining vision and the ability to execute against that vision
through products, services, demonstrable sales figures and solid new
references for multiple geographies and vertical industries. Leaders
provide functionally diverse and rich e-service suites that can be deployed
and supported globally, and have at least five of the six e-service
components supported by OEMs. They are suitable for all sizes and
complexities of enterprises, and have broad industry coverage. Revenue is
strong, and new references are readily available. When asked, their clients
reply that this product has affected the organization's competitive
position in the market."
About eGain Communications Corporation
eGain (
eGain Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, June 30,
2009 2009
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 4,678 $ 7,511
Restricted cash 13 13
Accounts receivable, net 4,573 4,308
Prepaid and other current assets 446 538
-------------- --------------
Total current assets 9,710 12,370
Property and equipment, net 992 995
Goodwill, net 4,880 4,880
Other assets 391 391
-------------- --------------
Total assets $ 15,973 $ 18,636
============== ==============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,123 $ 979
Accrued compensation 2,066 2,429
Accrued liabilities 1,667 2,141
Current portion of deferred revenue 5,328 5,398
Current portion of capital lease
obligation 180 181
Current portion of bank borrowings 125 3,125
-------------- --------------
Total current liabilities 10,489 14,253
Deferred revenue, net of current portion 207 133
Capital lease obligation, net of current
portion 141 187
Related party notes payable 7,944 7,697
Bank borrowings, net of current portion 83 115
Other long term liabilities 349 344
-------------- --------------
Total liabilities 19,213 22,729
Stockholders' deficit:
Common stock 22 22
Additional paid-in capital 323,605 323,550
Notes receivable from stockholders (77) (76)
Accumulated other comprehensive loss (494) (506)
Accumulated deficit (326,296) (327,083)
-------------- --------------
Total stockholders' deficit (3,240) (4,093)
-------------- --------------
Total liabilities and stockholders'
deficit $ 15,973 $ 18,636
============== ==============
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30,
------------------------------
2009 2008
-------------- --------------
Revenue:
License $ 1,954 $ 1,599
Recurring services 3,984 4,110
Professional services 2,037 2,430
-------------- --------------
Total revenue 7,975 8,139
Cost of license 68 19
Cost of recurring services 1,152 1,128
Cost of professional services 1,295 1,713
-------------- --------------
Gross profit 5,460 5,279
Operating costs and expenses:
Research and development 1,170 1,525
Sales and marketing 2,434 2,782
General and administrative 786 1,047
-------------- --------------
Total operating costs and expenses 4,390 5,354
Income / (Loss) from operations 1,070 (75)
Interest expense, net (277) (485)
Other income (expense), net (6) 24
-------------- --------------
Income / (Loss) before income tax 787 (536)
Income tax benefit -- 14
-------------- --------------
Net Income / (Loss) $ 787 $ (522)
============== ==============
Per share information:
Basic net income / (loss) per common
share $ 0.04 $ (0.03)
============== ==============
Diluted net income / (loss) per common
share $ 0.04 $ (0.03)
============== ==============
Weighted average shares used in
computing basic net income / (loss)
per common share 22,213 15,857
============== ==============
Weighted average shares used in
computing diluted net income / (loss)
per common share 22,221 15,857
============== ==============
eGain Communications Corporation
Supplemental Financial Information
(in thousands)
(unaudited)
Three Months Ended
September 30,
---------------------------------
% Increase
% Increase (Decrease)
% of % of (Decrease) in Constant
2009 revenue 2008 revenue in US$ Currency (1)
------- ------- ------- ------- ------------ ------------
Total
revenue $ 7,975 100% $ 8,139 100% (2%) 4%
Gross profit 5,460 68% 5,279 65% 3% 6%
Total
operating
costs and
expenses 4,390 55% 5,354 66% (18%) (16%)
Income /
(loss) from
operations 1,070 13% (75) (1%) NM NM
Net Income /
(loss) $ 787 10% $ (522) (6%) NM NM
(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