EGain Announces $1.9 Million Net Loss for Q4

By David Sims

TMCnet Contributing Editor

 

EGain Communications Corporation has announced financial results for the fourth quarter and fiscal year ended June 30, 2008.

 

Total revenue for the fourth quarter of fiscal year 2008 was $6.7 million, an increase of 24 percent from the comparable year-ago quarter. License revenue was $721,000, an increase of 124 percent from the comparable year-ago quarter.

 

Support and services revenue was $6.0 million, an increase of 18 percent from the comparable year-ago quarter. Total revenue for the fiscal year 2008 was $30.1 million, an increase of 34 percent from the prior year. License revenue was $6.6 million, an increase of 93 percent from the prior year. Support and services revenue was $23.5 million, an increase of 23 percent from the prior year.

 

Gross margin for the fourth quarter of fiscal year 2008 was 57 percent compared to 51 percent in the comparable year-ago quarter. Gross margin for the fiscal year 2008 was 61 percent compared to 59 percent in the prior year. Total operating costs and expenses for the fourth quarter of fiscal year 2008 were $5.2 million, a decrease of 3 percent from the comparable year-ago quarter. Total operating costs and expenses for the fiscal year 2008 were $21.1 million, an increase of 7 percent from the prior year.

 

Net loss on a GAAP basis for the fourth quarter of fiscal year 2008 was $1.9 million, or $(0.12) per share, compared to a net loss on a GAAP basis of $2.9 million, or $(0.19) per share, for the comparable year-ago quarter. Net loss on a GAAP basis for the fiscal year 2008 was $4.1 million, or $(0.27) per share compared to a net loss on a GAAP basis of $7.7 million, or $(0.50) per share for the prior year.

 

In June EGain marked the 10-year anniversary of eGain OnDemand, the hosted version of its eGain Service software suite.

 

EGain has been selling its set of deployment options for customer service software, including on-premise, on-demand, and managed service, since 1998.

 

EGain OnDemand, which company officials refer to as "the industry's first-ever hosted enterprise applications software," is based on "the Power of One," they say, "the concept of one unified platform for multichannel customer interaction and knowledge management."

 

EGain OnDemand customers over the last decade include financial services, retail, communications, consumer goods, technology, healthcare, media and consumer services.

 

Many of these are clients took a hybrid approach to deployment, starting with one approach and seamlessly migrating to the other.

 

"As CRM SaaS (News - Alert) products have gained more acceptance and usage, buyers are starting to consider using SaaS in more creative ways," wrote William Band, VP and Principal Analyst and Pete Marston, Analyst for Forrester Research (News - Alert) in the report "Best Practices: The Smart Way To Implement CRM SaaS Solutions," dated May 7, 2008.