Welcome!

Virtualization Authors: Sandi Mappic, Lori MacVittie, Bernard Golden, Roger Strukhoff, Elizabeth White

News Feed Item

eGain Announces Fiscal 2013 First Quarter Financial Results

SUNNYVALE, CA -- (Marketwire) -- 11/06/12 -- eGain Communications (NASDAQ: EGAN)

  • Quarterly cloud software revenue up 14% sequentially and 42% year-over-year
  • Deferred revenue of $11.2 million up 59% year-over-year
  • Unbilled deferred revenue of $21.8 million up 148% year-over-year
  • Quarterly new business mix of 94% cloud contracts and 6% license contracts
  • eGain reiterates guidance for fiscal year 2013 cloud revenue growth of 40%
  • eGain reiterates guidance for fiscal year 2013 revenue growth of between 20% and 25%

eGain Communications (NASDAQ: EGAN), a leading provider of multichannel customer engagement solutions, today announced results for its fiscal 2013 first quarter ended September 30, 2012.

"We are pleased with the business momentum we achieved in the first quarter," said Ashu Roy, eGain's CEO. "We saw strong demand for our cloud solutions, which comprised 94% of new contracts during the quarter."

"Our cloud revenue for the quarter is up 42% year-over-year. Based upon first quarter bookings and our current pipeline, we now expect our business mix for fiscal 2013 to be 70% new cloud contracts and 30% new license contracts versus our prior outlook of 60% new cloud contracts and 40% new license contracts. Even with this secular mix shift in our new bookings from on-premise to cloud, which would typically delay revenue recognition, we are reiterating our annual guidance of 20% to 25% total revenue growth. We are especially pleased with performance for the quarter in light of it historically being a seasonally slow period for new sales."

Fiscal 2013 First Quarter Results:

Revenue: Total revenue for the fiscal first quarter was $10.7 million, compared to $10.4 million for the first quarter of fiscal 2012. License revenue for the fiscal first quarter was $713,000, compared to $2.9 million for the first quarter last year. Recurring revenue for the fiscal first quarter was $7.2 million, an increase of 24% on a year-over-year basis. Cloud software revenue was $3.7 million, an increase of 42% on a year-over-year basis. Professional services revenue for the fiscal first quarter was $2.8 million, an increase of 65% on a year-over-year basis. The significant increase in professional services was driven by a number of large customer deployments.

Gross Profit: Gross profit for the fiscal first quarter was $6.3 million, compared to $7.6 million for the first quarter of fiscal 2012. Gross margin for the fiscal first quarter was 59%, compared to 73% in the first quarter last year. The recurring revenue gross margin for the fiscal first quarter increased to 81%, compared to 78% in the first quarter last year.

Earnings per Share: Net loss for the fiscal first quarter was $2.9 million, or a loss of $0.12 per share on a basic and diluted basis, compared to net income of $516,000, or $0.02 per share on a basic and diluted basis, for the first quarter of last year. Effective this quarter, we made a voluntary change to our accounting policy for sales commissions related to non-cancellable cloud contracts, which resulted in a net decrease in commission expense of approximately $544,000 and a net increase of approximately $58,000 in the first quarter last year. Net loss for the fiscal first quarter included stock-based compensation expense of $304,000 and interest and tax expense of $214,000, compared to stock-based compensation expense of $130,000 and interest and tax expense of $206,000 in the first quarter last year.

Cash: Total cash, cash equivalents and restricted cash increased to $11.3 million at September 30, 2012, up from $10.9 million at June 30, 2012. Cash provided by operations was $824,000 for the fiscal first quarter, compared to cash provided by operations of $4.3 million for the first quarter of last year.

Deferred Revenue:
Deferred revenue increased 59% to $11.2 million at September 30, 2012, compared to $7.0 million at September 30, 2011. Unbilled deferred revenue, representing business that is contracted but not yet invoiced or collected and off balance sheet, was approximately $21.8 million, at September 30, 2012 up 148% from approximately $8.8 million at September 30, 2011.

Fiscal 2013 Guidance: Based upon first quarter bookings and the current pipeline eGain now expects the business mix for fiscal 2013 to be 70% new cloud contracts and 30% new license contracts. eGain reiterates it fiscal 2013 guidance of total revenue growth of between 20% and 25% and annual cloud revenue growth of 40%.

Quarterly Conference Call
eGain will discuss its quarterly results today via teleconference at 5:00 p.m. Eastern Daylight Time. To access the live call, please dial (866) 219-5829, or outside the U.S. (703) 639-1123, at least five minutes prior to the start time. A live webcast of the call can be accessed from the investors section at www.egain.com. An audio replay of the conference call can be accessed at (888) 266-2081 (U.S. toll-free) or (703) 925-2533 (international). The replay will be available starting two hours after the call and remain in effect for one week. The required pass code is #1594891. An archive of the webcast will also be available on the investors section at www.egain.com.

About eGain
eGain (EGAN) is a leading provider of cloud customer engagement software. Trusted by prominent enterprises worldwide, eGain has been helping businesses achieve and sustain customer service excellence for more than a decade.

To find out more about eGain, visit www.eGain.com or call the company's offices:
800-821-4358 (United States), 1753-464646 (UK and Continental Europe).

Note: 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.

Cautionary Note Regarding Forward-Looking Statements
All statements in this release that involve eGain's forecasts (including the above stated guidance), beliefs, projections, expectations, including but not limited to our financial performance and guidance, the anticipated growth of our business, market trends, plans to invest in our business and expectations regarding the market acceptance of our products, 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, including our guidance regarding revenue and mix of new license and cloud contracts; our expectations related to our operations; our ability to invest resources to improve our products and continue to innovate; our partnerships; our future markets; and other risks detailed from time to time in eGain's filings with the Securities and Exchange Commission, including eGain's annual report on Form 10-K filed on September 25, 2012, and eGain'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)
                                (unaudited)

                                               September 30,     June 30,
                                                    2012           2012
                                               -------------  -------------

ASSETS

Current assets:
  Cash and cash equivalents                    $      10,314  $       9,911
  Current portion of restricted cash                      37             35
  Accounts receivable, net                             6,254          6,535
  Deferred commissions                                 1,629            955
  Prepaid and other current assets                       849            795
                                               -------------  -------------
    Total current assets                              19,083         18,231

Property and equipment, net                            2,415          2,295
Deferred commissions, net of current portion             512            642
Goodwill, net                                          4,880          4,880
Restricted cash, net of current portion                1,000          1,000
Other assets                                             882            895
                                               -------------  -------------
    Total assets                               $      28,772  $      27,943
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $       1,520  $       1,875
  Accrued compensation                                 3,593          3,385
  Accrued liabilities                                  2,145          1,549
  Current portion of deferred revenue                 10,292          6,896
  Current portion of bank borrowings                   1,667          1,666
  Related party notes payable                          5,674              -
                                               -------------  -------------
    Total current liabilities                         24,891         15,371

Deferred revenue, net of current portion                 863          1,187
Related party notes payable                                -          5,563
Bank borrowings, net of current portion                1,250          1,667
Other long term liabilities                              270            242
                                               -------------  -------------
    Total liabilities                                 27,274         24,030

Stockholders' equity:
  Common stock                                            24             24
  Additional paid-in capital                         327,145        326,742
  Notes receivable from stockholders                     (85)           (85)
  Accumulated other comprehensive loss                  (684)          (750)
  Accumulated deficit                               (324,902)      (322,018)
                                               -------------  -------------
    Total stockholders' equity                         1,498          3,913
                                               -------------  -------------
    Total liabilities and stockholders' equity $      28,772  $      27,943
                                               =============  =============



                      eGain Communications Corporation
              Condensed Consolidated Statements of Operations
                  (in thousands, except per share amounts)
                                (unaudited)


                                                        Three Months Ended
                                                           September 30,
                                                       --------------------
                                                          2012       2011
                                                       ---------  ---------

Revenue:
  License                                              $     713  $   2,886
  Recurring services                                       7,174      5,781
  Professional services                                    2,836      1,717
                                                       ---------  ---------
    Total revenue                                         10,723     10,384
  Cost of license                                             45        (10)
  Cost of recurring services                               1,396      1,266
  Cost of professional services                            2,903      1,549
                                                       ---------  ---------
    Total cost of revenue                                  4,344      2,805
                                                       ---------  ---------
    Gross profit                                           6,379      7,579

Operating expenses:
  Research and development                                 1,950      1,430
  Sales and marketing                                      5,549      4,104
  General and administrative                               1,507      1,113
                                                       ---------  ---------
    Total operating expenses                               9,006      6,647
                                                       ---------  ---------
Income / (loss) from operations                           (2,627)       932
Interest expense, net                                       (141)      (175)
Other income (expense), net                                  (43)      (210)
                                                       ---------  ---------
Income / (loss) before income tax                         (2,811)       547
Income tax benefit / (expense)                               (73)       (31)
                                                       ---------  ---------
Net Income /(loss)                                     $  (2,884) $     516
                                                       =========  =========
Per share information:

Basic net income /(loss) per common share              $   (0.12) $    0.02
                                                       =========  =========
Diluted net income /(loss) per common share            $   (0.12) $    0.02
                                                       =========  =========

Weighted average shares used in computing basic
  net income /(loss) per common share                     24,516     24,141
                                                       =========  =========
Weighted average shares used in computing diluted
  net income / (loss) per common share                    24,516     25,977
                                                       =========  =========


    Summary of stock-based compensation included in
     the costs and expense above:
    Cost of professional services                             29         18
    Research and development                                  77         23
    Sales and marketing                                       96         43
    General and administrative                               102         46

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...