-- Total revenue up 6% from comparable year-ago quarter -- Recurring services revenue up 15% from comparable year-ago quarter -- License revenue up 204% from comparable year-ago quartereGain Communications Corporation (
-- New hosting and license bookings for the third quarter of fiscal year
2010 were $1.9 million, an increase of 18% from the comparable year-ago
quarter. Of the total new hosting and license bookings in the third
quarter of fiscal year 2010, 31% were from new hosting bookings and 69%
were from new license bookings, compared to 55% from new hosting
bookings and 45% 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 third quarter of fiscal year
2010 would have been up approximately 20%, rather than up 18%, when
compared to the comparable year-ago quarter.
-- New hosting and license bookings for the nine months ended March 31,
2010 were $10.3 million, a decrease of 4% from the same period last
year. Of the total new hosting and license bookings in the nine months
ended March 31, 2010, 37% were from new hosting bookings and 63% were
from new license bookings, compared to 30% from new hosting bookings
and 70% 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 nine months ended March 31, 2010 would
have been up approximately 6%, rather than down 4%, 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)
March 31, June 30,
2010 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 7,587 $ 7,511
Restricted cash 13 13
Accounts receivable, net 2,735 4,308
Prepaid and other current assets 325 538
----------- -----------
Total current assets 10,660 12,370
Property and equipment, net 955 995
Goodwill, net 4,880 4,880
Other assets 462 391
----------- -----------
Total assets $ 16,957 $ 18,636
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 786 $ 979
Accrued compensation 1,432 2,429
Accrued liabilities 1,831 2,141
Current portion of deferred revenue 6,040 5,398
Current portion of capital lease obligation 166 181
Current portion of bank borrowings 125 3,125
----------- -----------
Total current liabilities 10,380 14,253
Deferred revenue, net of current portion 224 133
Capital lease obligation, net of current portion 63 187
Related party notes payable 8,459 7,697
Bank borrowings, net of current portion 21 115
Other long term liabilities 304 344
----------- -----------
Total liabilities 19,451 22,729
Stockholders' deficit:
Common stock 22 22
Additional paid-in capital 323,666 323,550
Notes receivable from stockholders (78) (76)
Accumulated other comprehensive loss (551) (506)
Accumulated deficit (325,553) (327,083)
----------- -----------
Total stockholders' deficit (2,494) (4,093)
----------- -----------
Total liabilities and stockholders' deficit $ 16,957 $ 18,636
=========== ===========
eGain Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Nine Months
Ended Ended
March 31, March 31,
-------------- --------------
2010 2009 2010 2009
------ ------ ------ ------
Revenue:
License $1,407 $ 463 $5,877 $5,591
Recurring services 4,248 3,708 12,524 11,456
Professional services 1,288 2,410 4,829 7,262
------ ------ ------ ------
Total revenue 6,943 6,581 23,230 24,309
Cost of license 1 16 152 54
Cost of recurring services 1,104 1,035 3,385 3,239
Cost of professional services 1,225 1,405 3,857 4,621
------ ------ ------ ------
Gross profit 4,613 4,125 15,836 16,395
Operating costs and expenses:
Research and development 1,402 1,378 3,857 4,303
Sales and marketing 2,461 2,101 7,245 7,734
General and administrative 755 616 2,272 2,536
------ ------ ------ ------
Total operating costs and expenses 4,618 4,095 13,374 14,573
Income / (loss) from operations (5) 30 2,462 1,822
Interest expense, net (282) (318) (837) (1,138)
Other income / (expense), net (5) 130 25 495
------ ------ ------ ------
Income / (loss) before income tax (292) (158) 1,650 1,179
Benefit / (provision) for income taxes (26) (38) (120) 72
------ ------ ------ ------
Net income / (loss) $ (318) $ (196) $1,530 $1,251
====== ====== ====== ======
Per share information:
Basic net income/ (loss) per common share $(0.01) $(0.01) $ 0.07 $ 0.06
====== ====== ====== ======
Diluted net income / (loss) per common
share $(0.01) $(0.01) $ 0.07 $ 0.06
====== ====== ====== ======
Weighted average shares used in computing
basic net income / (loss) per common
share 22,162 22,213 22,194 20,079
====== ====== ====== ======
Weighted average shares used in computing
diluted net income / (loss) per common
share 22,162 22,213 22,513 20,080
====== ====== ====== ======
eGain Communications Corporation
Supplemental Financial Information
(in thousands)
(unaudited)
Three Months Ended % Increase
March 31, (Decrease)
---------------------------------- % Increase in Constant
% of % of (Decrease) Currency
2010 revenue 2009 revenue in US$ (1)
------- ------- ------- ------- ----------- -----------
Total revenue $ 6,943 100% $ 6,581 100% 6% 2%
Gross profit $ 4,613 66% $ 4,125 63% 12% 6%
Total
operating
costs and
expenses $ 4,618 67% $ 4,095 62% 13% 6%
Income /
(loss) from
operations $ (5) 0% $ 30 0% NM NM
Net Income /
(loss) $ (318) -5% $ (196) -3% NM NM
Nine Months Ended % Increase
March 31, (Decrease)
---------------------------------- % Increase in Constant
% of % of (Decrease) Currency
2010 revenue 2009 revenue in US$ (1)
------- ------- ------- ------- ----------- -----------
Total revenue $23,230 100% $24,309 100% -4% -7%
Gross profit $15,836 68% $16,395 68% -3% -6%
Total
operating
costs and
expenses $13,374 58% $14,573 60% -8% -10%
Income from
operations $ 2,462 11% $ 1,822 7% 35% 23%
Net Income $ 1,530 7% $ 1,251 5% 22% 12%
(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