Tuesday, 24 October 2017

eGain announces fiscal Q3 2014 financial results

eGain
Tuesday 13 May 14

eGain, a leading provider of cloud customer engagement solutions, today announced results for its fiscal 2014 third quarter ended March 31, 2014. Ashu Roy, eGain’s CEO, commented, “Our partner activity continues to grow, particularly with Cisco. In the quarter, we secured our first seven-figure Cisco SolutionsPlus deal. Also, with Cisco’s recent announcement of eGain Cloud through SolutionsPlus, we look forward to tapping cloud-based demand through this channel. “From a new business standpoint, we saw a number of deals slip into the fourth quarter…

eGain, a leading provider of cloud customer engagement solutions, today announced results for its fiscal 2014 third quarter ended March 31, 2014.

Ashu Roy, eGain’s CEO, commented, “Our partner activity continues to grow, particularly with Cisco. In the quarter, we secured our first seven-figure Cisco SolutionsPlus deal. Also, with Cisco’s recent announcement of eGain Cloud through SolutionsPlus, we look forward to tapping cloud-based demand through this channel.

“From a new business standpoint, we saw a number of deals slip into the fourth quarter, several of which have since closed. To improve forecasting and execution, we have reorganized and strengthened our sales leadership.”

Fiscal 2014 Third Quarter Results:
Revenue: Total revenue for the fiscal third quarter was $18.0 million, an increase of 17% on a year-over-year basis. Subscription and support revenue for the fiscal third quarter was $10.6 million, an increase of 27% on a year-over-year basis. The cloud portion of the subscription and support revenue was $7.0 million, an increase of 35% on a year-over-year basis. License revenue for the fiscal third quarter was $2.5 million, a decrease of 39% on a year-over-year basis. Professional services revenue for the fiscal third quarter was $4.9 million, an increase of 62% on a year-over-year basis.

For the nine months ended March 31, 2014, total revenue was $51.4 million, an increase of 26% from the same period last year. Subscription and support revenue was $30.3 million, an increase of 30% from the same period last year. The cloud portion of the subscription and support revenue was $19.8 million, an increase of 47% from the same period last year. License revenue was $9.4 million, an increase of 14% from the same period last year. Professional services revenue was $11.6 million, an increase of 24% from the same period last year.

Gross Profit: Gross profit for the fiscal third quarter was $12.0 million, compared to $10.9 million for the third quarter of fiscal 2013. Gross margin for the fiscal third quarter was 67%, compared to 70% in the third quarter last year. The subscription and support revenue gross margin for the fiscal third quarter was 79%, compared to 84% in the third quarter last year.

For the nine months ended March 31, 2014, gross profit was $34.0 million, compared to $27.7 million for the same period last year. Gross margin was 66%, compared to 68% for the same period last year. The subscription and support revenue gross margin was 80%, compared to 83% for the same period last year.

Earnings per Share: Net loss for the fiscal third quarter was $1.0 million, or a loss of $0.04 per share on a basic and diluted basis, compared to net income of $1.0 million, or $0.04 per share on a basic and diluted basis, for the third quarter of last year. Net loss for the fiscal third quarter includes stock-based compensation expense of $470,000 and interest and tax expense of $242,000, compared to stock-based compensation expense of $225,000 and interest and tax expense of $137,000 in the third quarter last year.

For the nine months ended March 31, 2014, net loss was $4.2 million, or a loss of $0.17 per share on a basic and diluted basis, compared to net loss of $1.2 million, or $0.05 per share on a basic and diluted basis, for the same period last year. Net loss for the nine months ended March 31, 2014 includes stock-based compensation expense of $1.2 million and interest and tax expense of $519,000, compared to stock-based compensation expense of $810,000 and interest and tax expense of $616,000 for the same period last year.

Cash: Total cash, cash equivalents and restricted cash decreased to $8.8 million as of March 31, 2014, from $17.2 million as of March 31, 2013. Cash used in operations was $2.5 million for the nine months ended March 31, 2014, compared to cash provided by operations of $9.0 million for the same period last year.

Deferred Revenue: Total deferred revenue (which includes both deferred revenue on the balance sheet of $15.8 million and unbilled deferred revenue that remains off balance sheet of $15.7 million, collectively representing contractual commitments that have not been recognized as revenue) was $31.5 million at March 31, 2014, compared to $40.8 million at March 31, 2013.
Fiscal 2014 Guidance: eGain reiterates its fiscal 2014 guidance for annual total revenue growth of between 20% and 25% and annual cloud revenue growth of between 35% and 40%.


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