MOUNTAIN VIEW, CA--(Marketwire - July 9, 2007) - On June 29, 2007, eGain Communications
(
OTCBB:
EGAN), a leading provider of customer service and contact center
software for in-house or on-demand SaaS deployment, entered into a Note and
Warrant Purchase Agreement and Amendment to Subordinated Secured Promissory
Notes (the "Purchase Agreement") with Mr. Ashutosh Roy, a director, major
stockholder and chief executive officer of eGain. In accordance with the
Purchase Agreement, Mr. Roy has made an additional loan to eGain evidenced
by a subordinated secured promissory note in an aggregate principal amount
of $2,000,000. Mr. Roy has received a warrant to purchase up to 333,333
shares of Common Stock at an exercise price equal to $1.20 per share in
connection with this loan. In addition, Mr. Roy has agreed to extend the
maturity date of certain subordinated secured promissory notes which were
previously issued to Mr. Roy, until March 31, 2009.
Business Highlights for the June Quarter Include:
-- The company has made headway in customer acquisitions and closing
large deals. In the June quarter, eGain acquired eight new enterprise
customers and closed three seven-figure transactions, involving contractual
payouts over the life of the agreements subject to certain terms and
conditions contained in such agreements. In contrast, the company closed
one seven-figure deal in the first three quarters of fiscal 2007.
-- eGain was named a leader in The Forrester Wave: Customer Service
Management Software, Q2 2007 for Interaction-Centric CSM Software. The
company received the number one rating in the category of "strategy," as
well as in the sub-categories of "customer service" product capabilities,
"architecture and platform," "product strategy," "corporate strategy," and
"customer base" in interaction-centric customer service management
software.
-- To support its Cisco partnership, eGain expanded its partner
recruitment and training efforts to scale implementation capabilities.
"The company is ending fiscal 2007 on a positive note and looks forward to
increasing this momentum in fiscal 2008," stated Eric Smit, chief financial
officer of eGain. "In the quarter, eGain made headway on a number of
initiatives, including infusing additional financing, garnering further
product accolades, winning unprecedented customer deals, and expanding our
partner recruitment and training efforts."
The company will provide a further financial and business update on the
fourth quarter and fiscal 2007 results when it issues its scheduled
earnings release later in the quarter.
About eGain
eGain (
OTCBB:
EGAN) is a leading provider of customer service and contact
center software for in-house or on-demand SaaS deployment. For over a
decade, several of the world's largest companies have relied on eGain to
transform their traditional call centers, help desks, and web customer
service operations into multichannel customer interaction hubs. These hubs
enable dramatically improved customer experience, unified multichannel
customer service, end-to-end service process efficiencies, and enhanced
contact center performance.
Headquartered in Mountain View, California, eGain has an operating presence
in 18 countries. To find out more about eGain, visit
www.eGain.com or call
the company's offices: London: +44 (0) 1753 464646; Dublin: +353 1 8472290;
United States: +1 800 821 4358.
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, eGain's ability to expand its
business with the use of the additional debt financing; eGain's ability to
continue the positive momentum experienced in the quarter ended June 30,
2007 into fiscal 2008; 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 and the expanded
efforts by eGain to support this partnership; the ability to increase
revenues as a result of the increased investment in sales and marketing;
the uncertainty of demand for eGain products; the anticipated customer
benefits from eGain products; 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.
eGain, the eGain logo, and all other eGain product names and slogans are
trademarks or registered trademarks of eGain Communications Corp. in the
United States and/or other countries. All other company names and products
mentioned in this release may be trademarks or registered trademarks of the
respective companies.
Contact Information: eGain Investor Relations contact:
Email: iregain@eGain.com