|By Marketwired .||
|November 6, 2012 05:07 PM EST||
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 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.
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
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Jan. 16, 2017 03:15 PM EST Reads: 318
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 16, 2017 02:30 PM EST Reads: 1,542
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 16, 2017 01:45 PM EST Reads: 3,586
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 16, 2017 12:30 PM EST Reads: 5,003
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 16, 2017 12:30 PM EST Reads: 5,467
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 16, 2017 12:00 PM EST Reads: 1,374
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 16, 2017 11:30 AM EST Reads: 4,126
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 16, 2017 11:30 AM EST Reads: 5,670
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Jan. 16, 2017 11:30 AM EST Reads: 1,868
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Jan. 16, 2017 08:30 AM EST Reads: 3,024
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 16, 2017 06:30 AM EST Reads: 4,502
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 16, 2017 06:30 AM EST Reads: 5,847
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
Jan. 16, 2017 05:30 AM EST Reads: 1,095
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Jan. 16, 2017 04:30 AM EST Reads: 4,514
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Jan. 16, 2017 03:30 AM EST Reads: 2,844
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
Jan. 16, 2017 03:30 AM EST Reads: 5,235
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
Jan. 16, 2017 03:15 AM EST Reads: 5,747
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Jan. 16, 2017 02:30 AM EST Reads: 3,933
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Jan. 16, 2017 01:45 AM EST Reads: 2,679
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Jan. 16, 2017 01:15 AM EST Reads: 4,163