EGAN announces results
eGain Communications Announces Fiscal Q1 2000 Financial Results
Business Wire - October 26, 1999 14:40
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 26, 1999--eGain Communications Corp. (Nasdaq:EGAN) today announced financial results for its first quarter ended September 30, 1999.
Net revenues for the first quarter of fiscal year 2000 were $1.39 million, an increase of 125 percent from net revenues of $619,000 in the fourth quarter of fiscal 1999. Net loss, excluding amortization of goodwill and deferred compensation, equaled $7.85 million or $0.39 per share on a pro-forma basic weighted share count of approximately 20.2 million shares outstanding. This compares with a net loss of $3.39 million or a loss of $0.23 per share on approximately 14.9 million shares outstanding for the fourth quarter of fiscal 1999.
"We are very pleased with our strong growth this past quarter," said Ashutosh Roy, chairman and chief executive officer of eGain Communications. "Our financial results highlight our momentum in the four key areas of our business strategy: customers, partnerships, international expansion and continued product development. As a pioneer in hosting mission-critical online customer service solutions, we are rapidly being embraced as the solution of choice for eCommerce customer service."
Quarterly Highlights
Financing
In September, eGain completed its initial public offering, raising approximately $64 million in net proceeds to the company.
Customers
eGain added 45 new customers in the first quarter, a significant increase over the 30 customers added during the prior quarter. Of the new customers, over 50 percent were hosted - in line with the company's goal for the quarter. eGain remains the world's largest network for hosted eCommerce customer service. In total, the company today has over 125 customers.
Partnerships
During the first quarter, eGain continued to aggressively pursue new partnerships. The company signed significant partnership agreements with Aspect Communications and Harte-Hanks. The multi-million dollar, multi-year agreement signed with Aspect combines eGain's Email Management System with the Aspect Customer Relationship Portal as an out-of-the-box integrated solution. Under the terms of the agreement with Harte-Hanks, eGain will be the exclusive provider of inbound email marketing technology to complement Harte-Hanks' full range of direct marketing services.
International Expansion
During the first quarter, eGain expanded its international operations into Europe and Canada by opening new sales and service offices in London and Toronto.
Products
In the first quarter, eGain integrated its Email Management System with the Web Collaboration System it acquired when it purchased Sitebridge Corporation in May 1999. eGain now has the leading integrated platform that offers both an email management and real-time customer service solution for eCommerce companies.
Conference Call
eGain's first quarter fiscal 2000 conference call will be held on Tuesday, October 26th at 1:30 p.m. PDT/ 4:30 p.m. EDT. To participate in the call, please dial (712) 271-0562. A replay of the call will be available for 48 hours at (402) 530-7775, code: 4123703.
About eGain Communications Corp.
eGain is a leading provider of customer service infrastructure for eCommerce. eGain's products and services help companies manage high volumes of customer emails and provide live assistance to website visitors. The solutions are available through the eGain Hosted Network, the world's largest network for hosted eCommerce customer service applications, or through customer site deployment. Companies use eGain solutions to build customer loyalty, to convert online visitors to online buyers, and to leverage customer information. eGain's world headquarters is located in Sunnyvale, Calif. For more information about eGain, please visit egain.com.
The statements in this news release, other than the historical financial information, contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect the company's results is detailed in the company's Registration Statement, as filed with the Securities and Exchange Commission, as well as the Form 10-Q for the quarter ended September 30, 1999, to be filed with the Securities and Exchange Commission.
eGain Communications Corporation
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Sept 30, 1999 Sept 30, 1998
Revenue
Hosting $ 277 $ --
License fees 570 --
Service 541 --
Total revenue 1,388 --
Cost of revenue 2,202 143
Gross profit (814) (143)
Operating expenses
Research and development 1,979 214
Sales and marketing 3,724 508
General and administrative 1,261 225
Amortization of goodwill 1,826 --
Amortization of
deferred compensation 3,007 89
Total operating expenses 11,797 1,036
Loss from operations (12,611) (1,179)
Non-operating income (expense), net (76) 24
Net loss $ (12,687) $ (1,155)
Net loss per share
Pro forma basic and diluted
excluding amortization of goodwill
and deferred compensation (i) and (ii) $ (39.00) $ (0.12)
Pro forma basic and diluted
including amortization of
goodwill and deferred compensation (i) $ (63.00) $ (0.13)
Basic and diluted excluding
amortization of goodwill
and deferred compensation (ii) $ (76.00) $ (0.28)
Basic and diluted including
amortization of goodwill
and deferred compensation $ (1.22) $ (0.31)
Weighted-average shares
outstanding used
in per share calculation
Pro forma (i) 20,182,018 9,188,024
Basic 10,388,835 3,781,439
(i) Pro forma basic and diluted shares outstanding include
convertible stock using the if-converted method from the original
date of issuance
(ii) Excludes amortization of goodwill and deferred compensation
eGain Communications Corporation
Condensed Consolidated Balance Sheet
(in thousands)
(unaudited)
Sept 30, June 30,
1999 1999
Assets
Current assets:
Cash and cash equivalents $56,752 $ 1,265
Accounts receivable 1,267 705
Prepaid and
other current assets 499 513
Total current assets 58,518 2,483
Property and equipment, net 2,556 1,133
Goodwill and other
intangibles, net 18,369 20,195
Other assets 166 154
Total assets $79,609 $23,965
Liabilities and
stockholders' equity
Current liabilities:
Notes payable
and bank borrowings $ 1,544 $ 1,435
Accounts payable 3,322 684
Deferred revenue 905 302
Accrued expenses 2,466 818
Total current liabilities $ 8,237 $ 3,239
Long-terms liabilities 496 243
Total stockholders' equity 70,876 20,483
Total liabilities and
stockholders' equity $79,609 $23,965
CONTACT: eGain Communications Corp.
Harpreet Grewal, Chief Financial Officer, 408/212-3362
Paul Gross, Public Relations Director, 408/212-3417
or
Stapleton Communications Inc.
Julie Myers, Investor Relations, 650/470-4226
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