Mountain View, Calif. (August 31, 2011) – eGain Communications (OTC BB: EGAN.OB), a leading provider of cloud and on-premise customer interaction hub software, today announced financial results for the fiscal 2011 fourth quarter and year ended June 30, 2011.
Fiscal fourth quarter total revenue was $12.6 million, an increase of 89% from the comparable year-ago quarter. License revenue for the fiscal fourth quarter was $5.6 million, an increase of 272% from the comparable year-ago quarter. Recurring revenue for the fiscal fourth quarter was $5.2 million, an increase of 27% over the comparable year-ago quarter. Professional services revenue for the fiscal fourth quarter was $1.8 million, an increase of 69% from the comparable year-ago quarter.
Gross profit for the fiscal fourth quarter was $9.7 million, an increase of 124% from the comparable year-ago quarter. Gross margin for the fiscal fourth quarter increased to 77%, from 65% in the comparable year-ago quarter.
Net income for the fiscal fourth quarter was $2.1 million, or $0.09 per share on a basic and $0.08 on a diluted basis, compared to a net loss of $1.7 million, or a loss of $0.07 per share, for the comparable year-ago quarter. Net income for the fiscal fourth quarter included stock-based compensation expense of $60,000 and interest and tax expense of $478,000, compared to stock-based compensation expense of $53,000 and interest and tax expense of $324,000, in the comparable year-ago quarter.
Fiscal 2011 total revenue was $44.1 million, an increase of 47% from the prior year. License revenue for fiscal 2011 was $17.4 million, an increase of 135% from the prior year. Recurring revenue for fiscal 2011 was $20.0 million, an increase of 21% from the prior year. Professional services revenue for fiscal 2011 was $6.7 million, an increase of 13% from the prior year.
Gross profit for fiscal 2011 was $33.1 million, an increase of 64% from the prior year. Gross margin for fiscal 2011 increased to 75%, from 68% in the prior year.
Net income for fiscal 2011 was $8.5 million, or $0.37 per share on a basic and $0.35 on a diluted basis, compared to net loss of $127,000, or a loss of $0.01 per share, for the prior year. Net income for fiscal 2011 included stock-based compensation expense of $218,000 and interest and tax expense of $1.4 million, compared to stock-based compensation expense of $244,000 and interest and tax expense of $1.3 million, in the prior year.
Total cash and cash equivalents increased to $12.4 million at June 30, 2011, from $5.7 million at June 30, 2010. Cash provided by operations was $6.8 million for fiscal 2011, compared to cash provided by operations of $2.5 million in the prior year. Days sales outstanding in receivables for the fiscal fourth quarter was 59 days, compared to 40 days for the comparable year-ago quarter. Deferred revenue totaled $5.8 million at June 30, 2011, compared to $5.1 million at June 30, 2010.
“Our strong financial results reflect the significant progress we made during fiscal 2011,” said Ashu Roy, eGain’s CEO. “We grew top-line by 47%, drove strong operating profits, and generated significant cash, even as we began to expand our distribution capability. Equally important, we built and launched a new product suite to optimize interactive sales for B2C enterprises. With our industry-leading technology solutions and proven hybrid delivery model, we plan to capitalize on the growing market preference for customer interaction platforms like eGain’s by accelerating investment in distribution this year.”
New Hosting and License Bookings
New capabilities launched in fiscal 2011 as part of the Company’s eGain 10 release include:
eGain completed integration certifications of its knowledge management solution with the following CRM systems:
eGain continued to receive awards in fiscal 2011 for its sustained product innovation and business value creation. Among highlights are:
eGain continued to build new relationships with a wide range of enterprise customers in fiscal 2011. Notable new customer relationships include:
¹We 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.
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) 871-4879, or outside the U.S. (703) 639-1472, at least five minutes prior to the start time. A live webcast of the call be accessed from the investors section at www.egain.com. An audio replay of the conference call can be accessed until September 7, 2011 by dialing (888) 266-2081 (U.S. toll-free) or (703) 925-2533 (international) and entering the access code #1548440. An archive of the webcast will also be available on the investors section at www.egain.com.
eGain (OTCBB: EGAN.OB) is the leading provider of cloud and on-site customer interaction software for sales and service. For over a decade, eGain solutions have helped improve customer experience, grow sales, and optimize service processes across the web, social, and phone channels. Hundreds of global enterprises rely on eGain to transform fragmented sales engagement and customer service operations into unified Customer Interaction Hubs (CIHs). To find out more about eGain products, visit http://www.egain.com/products/index.asp.
Headquartered in Mountain View, 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). Also, follow us on Twitter (http://twitter.com/egain) and Facebook (http://facebook.com/egain).
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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 bookings and revenue; 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 23, 2010, 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.
Charles Messman or Todd Kehrli
MKR Group, Inc