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Exhibit 99.1

eGain Announces Fiscal 2014 Fourth Quarter and Full Year Financial Results

·

Total quarterly revenue of $18.9 million, up 5% both sequentially and year-over-year

·

Total fiscal 2014 revenue of $70.3 million, up 19% over fiscal 2013

·

Fiscal 2014 cloud software revenue up 36% year-over-year

·

Fiscal 2014 total subscription and support revenue up 25% year-over year

Sunnyvale, Calif. (September 3, 2014) – eGain (NASDAQ: EGAN), the leading provider of cloud customer engagement solutions, today announced financial results for its fiscal 2014 fourth quarter and full year ended June 30, 2014.

Ashu Roy, eGain’s CEO, commented, “During the past fiscal year, we invested heavily throughout the organization, particularly in sales, marketing, products, cloud infrastructure and partner relationships to further strengthen our capabilities. We saw increased momentum with our Cisco partnership during the year with significant new customer wins and a growing pipeline worldwide, with geographic expansion that included our first significant wins in both India and Australia in the fourth quarter.

“Our recent acquisition of Exony combines voice and digital platforms to deliver a single view of the customer to our clients, with real time actionable analytics. Exony represents a market first solution to help enterprises take the effort out of omnichannel customer engagement. We believe the resulting scale and expanded technology offering will create significant new opportunities to further accelerate our growth.”

Mr. Roy, concluded, “I was also pleased to see the growth in bookings during the fourth quarter, which grew 98% sequentially and 5% over the record bookings achieved in the prior year quarters. We are focused on building on this positive momentum in the new fiscal year.”

Fiscal 2014 Fourth Quarter and Full Year Results:

Revenue: Total revenue for the fiscal fourth quarter was $18.9 million, an increase of 5% on a year-over-year basis. Subscription and support revenue for the fiscal fourth quarter was $10.2 million, an increase of 13% on a year-over-year basis. Subscription revenue was $6.2 million, an increase of 10% on a year-over-year basis. License revenue for the fiscal fourth quarter was $5.4 million, an increase of 17% on a year-over-year basis. Professional services revenue for the fiscal fourth quarter was $3.4 million, a decrease of 24% on a year-over-year basis.

For the full fiscal year 2014, total revenue was $70.3 million, an increase of 19% over fiscal 2013. Subscription and support revenue was $40.5 million, an increase of 25% over the prior year.  Subscription revenue was $26.0 million, an increase of 36% over the prior year.  License revenue was $14.8 million, an increase of 15% over the prior year.  Professional services revenue was $15.0 million, an increase of 9% over the prior year.

Gross Profit: Gross profit for the fiscal fourth quarter was $12.8 million, compared to $13.1 million for the fourth quarter of fiscal 2013. Gross margin for the fiscal fourth quarter was 68%, compared to 73% in the fourth quarter last year. The subscription and support revenue gross margin for the fiscal fourth quarter was 77%, compared to 83% in the fourth quarter last year.

For the full fiscal year 2014, gross profit was $46.8 million, compared to $40.9 million for fiscal 2013.  Gross margin was 67%, compared to 69% for the prior year. The subscription and support revenue gross margin was 79%, compared to 83% for the prior year.

Earnings per Share: Net loss for the fiscal fourth quarter was $1.0 million, or a loss of $0.04 per share on a basic and diluted basis, compared to net income of $1.9 million, or $0.08 per share on a basic basis and $0.07 per share on a diluted basis, for the fourth quarter of last year. Net loss for the fiscal fourth quarter includes stock-based compensation expense of $317,000 and interest, net and tax expense of $253,000, compared to stock-based compensation expense of $271,000 and interest, net and tax expense of $246,000 in the fourth quarter last year.

For the full fiscal year 2014, net loss was $5.2 million, or a loss of $0.21 per share on a basic and diluted basis, compared to net income of $684,000, or $0.03 per share on a basic and diluted basis, for fiscal 2013. Net loss for fiscal 2014 includes stock-based compensation expense of $1.5 million and interest, net and tax expense of $772,000, compared to stock-based compensation expense of $1.1 million and interest, net and tax expense of $862,000 for the prior year.


Cash: Total cash, cash equivalents and restricted cash decreased to $8.8 million as of June 30, 2014, from $17.2 million as of June 30, 2013. Cash used in operations was $4.7 million for fiscal 2014, compared to cash provided by operations of $10.0 million for fiscal 2013.

Deferred Revenue: Total deferred revenue (which includes both deferred revenue on the balance sheet of $13.7 million and unbilled deferred revenue that remains off balance sheet of $22.6 million, collectively representing contractual commitments that have not been recognized as revenue) was $36.3 million as of June 30, 2014, compared to $44.5 million as of June 30, 2013.

Fiscal 2015 Guidance: eGain is estimating fiscal 2015 annual total revenue between $90.0 million and $95.0 million and annual subscription and support revenue between $44.5 million and $46.5 million, inclusive of revenue from the Exony acquisition but prior to the impact of any purchase accounting adjustment to deferred revenue related to the acquisition.

Quarterly Conference Call

eGain will discuss its quarterly results today via teleconference at 8:00 a.m. Eastern Daylight Time. To access the live call, please dial (888) 401-4668 (U.S. toll free) or (719) 325-2308 (international), and give the participant pass code 9395326. 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) 203-1112 (U.S. toll-free) or (719) 457-0820 (international). The replay will be available starting two hours after the call and remain in effect for one week. The required pass code is # 9395326. An archive of the webcast will also be available on the investors section at www.egain.com.

About eGain

eGain’s customer engagement solutions power digital transformation for leading brands. Our top-rated cloud applications for social, mobile, web, and contact centers help clients deliver connected customer journeys in a multichannel world. To find out more about eGain Corporation, visit http://www.egain.com/company/investors/

Headquartered in Sunnyvale, California, eGain has operating presence in North America, EMEA, and APAC. To learn more about us, visit www.eGain.com or call our offices: +1-800-821-4358 (US), +44-(0)-1753-464646 (EMEA), or +91-(0)-20-6608-9200 (APAC).

Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include, among other matters, statements about the Company’s market opportunities, statements pertaining to Company’s partnership with Cisco, statements referring to organizational changes, statements referring to the Company’s recent acquisition, statements about the Company’s expected financial results for the fiscal quarter and year ended June 30, 2014, with respect to total revenue, statements regarding deferred revenue, subscription and support revenue, license revenue and statements regarding our fiscal 2015 guidance, including sources of revenue and business mix. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include, but are not limited to;  risks that our hybrid revenue model and lengthy sales cycles may negatively affect our operating results; uncertainties associated with purchase adjustments that may result when we complete our integration of Exony’s financial results; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; risks associated with our efforts to operate and integrate Exony’s business successfully; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks associated with new product releases; risks related to our international operations; our ability to invest resources to improve our products and continue to innovate; 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 23, 2013, and eGain’s quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission’s Web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. The Company 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. All other company names and products are trademarks or registered trademarks of their respective companies.

 

eGain

MKR Group Investor Relations

Charles Messman, VP Finance

Todd Kehrli or Jim Byers

Phone: 408-636-4500

Phone: 323-468-2300

Email: iregain@egain.com

Email: egan@mkr-group.com

 



eGain Corporation

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended

 

 

Year Ended

 

 

June 30,

 

 

June 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

$

10,157

 

 

$

8,955

 

 

$

40,477

 

 

$

32,281

 

License

 

5,378

 

 

 

4,616

 

 

 

14,800

 

 

 

12,853

 

Professional services

 

3,354

 

 

 

4,398

 

 

 

14,985

 

 

 

13,755

 

Total revenue

 

18,889

 

 

 

17,969

 

 

 

70,262

 

 

 

58,889

 

Cost of subscription and support

 

2,358

 

 

 

1,536

 

 

 

8,518

 

 

 

5,495

 

Cost of license

 

24

 

 

 

26

 

 

 

104

 

 

 

151

 

Cost of professional services

 

3,729

 

 

 

3,265

 

 

 

14,840

 

 

 

12,360

 

Total cost of revenue

 

6,111

 

 

 

4,827

 

 

 

23,462

 

 

 

18,006

 

Gross profit

 

12,778

 

 

 

13,142

 

 

 

46,800

 

 

 

40,883

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

2,799

 

 

 

2,226

 

 

 

9,963

 

 

 

8,419

 

Sales and marketing

 

8,727

 

 

 

6,912

 

 

 

33,367

 

 

 

24,434

 

General and administrative

 

1,957

 

 

 

1,858

 

 

 

7,529

 

 

 

6,787

 

Total operating expenses

 

13,483

 

 

 

10,996

 

 

 

50,859

 

 

 

39,640

 

Income (loss) from operations

 

(705

)

 

 

2,146

 

 

 

(4,059

)

 

 

1,243

 

Interest expense, net

 

(35

)

 

 

(107

)

 

 

(181

)

 

 

(483

)

Other income (expense), net

 

(60

)

 

 

(3

)

 

 

(415

)

 

 

303

 

Income (loss) before income tax provision

 

(800

)

 

 

2,036

 

 

 

(4,655

)

 

 

1,063

 

Income tax provision

 

(218

)

 

 

(139

)

 

 

(591

)

 

 

(379

)

Net income (loss)

$

(1,018

)

 

$

1,897

 

 

$

(5,246

)

 

$

684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per common share

$

(0.04

)

 

$

0.08

 

 

$

(0.21

)

 

$

0.03

 

Diluted net income (loss) per common share

$

(0.04

)

 

$

0.07

 

 

$

(0.21

)

 

$

0.03

 

Weighted average shares used in computing basic

net income (loss) per common share

 

25,462

 

 

 

25,050

 

 

 

25,353

 

 

 

24,780

 

Weighted average shares used in computing diluted

net income (loss) per common share

 

25,462

 

 

 

26,504

 

 

 

25,353

 

 

 

26,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of stock-based compensation included in the costs and expenses above:

 

Cost of revenue

$

36

 

 

$

34

 

 

$

280

 

 

$

121

 

Research and development

$

185

 

 

$

49

 

 

$

386

 

 

$

261

 

Sales and marketing

$

(8

)

 

$

104

 

 

$

464

 

 

$

360

 

General and administrative

$

104

 

 

$

84

 

 

$

397

 

 

$

339

 

 



eGain Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

June 30,

2014

 

 

June 30,

2013

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

8,785

 

 

$

16,206

 

Restricted cash

 

30

 

 

 

29

 

Accounts receivable, net

 

11,163

 

 

 

12,307

 

Deferred commissions

 

865

 

 

 

1,745

 

Prepaid and other current assets

 

1,348

 

 

 

2,377

 

Total current assets

 

22,191

 

 

 

32,664

 

Property and equipment, net

 

4,489

 

 

 

3,544

 

Deferred commission, net of current portion

 

337

 

 

 

776

 

Goodwill

 

4,880

 

 

 

4,880

 

Restricted cash, net of current portion

 

 

 

 

1,000

 

Other assets

 

750

 

 

 

672

 

Total assets

$

32,647

 

 

$

43,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

2,162

 

 

$

2,583

 

Accrued compensation

 

5,729

 

 

 

4,624

 

Accrued liabilities

 

1,456

 

 

 

2,193

 

Deferred revenue

 

12,920

 

 

 

15,679

 

Capital lease obligation

 

392

 

 

 

 

Bank borrowings

 

1,417

 

 

 

2,667

 

Related party notes payable

 

 

 

 

2,897

 

Total current liabilities

 

24,076

 

 

 

30,643

 

Deferred revenue, net of current portion

 

793

 

 

 

4,057

 

Capital lease obligation, net of current portion

 

625

 

 

 

 

Bank borrowings, net of current portion

 

3,583

 

 

 

2,000

 

Other long term liabilities

 

521

 

 

 

848

 

Total liabilities

 

29,598

 

 

 

37,548

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

25

 

 

 

25

 

Additional paid-in capital

 

330,657

 

 

 

328,552

 

Notes receivable from stockholders

 

(83

)

 

 

(87

)

Accumulated other comprehensive loss

 

(970

)

 

 

(1,168

)

Accumulated deficit

 

(326,580

)

 

 

(321,334

)

Total stockholders' equity

 

3,049

 

 

 

5,988

 

Total liabilities and stockholders' equity

$

32,647

 

 

$

43,536