|By Marketwired .||
|September 3, 2014 06:30 AM EDT||
SUNNYVALE, CA -- (Marketwired) -- 09/03/14 -- eGain (NASDAQ: EGAN)
- 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
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.
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 Corporation Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, June 30, 2014 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 =========== =========== eGain Corporation Condensed Consolidated Statements of Operation (in thousands, except per share data) (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
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