EGain Posts Loss In Q4; Sees FY15 Revenue Above View - Update

(RTTNews) - eGain Corp. (EGAN), a provider of cloud customer engagement solutions, reported Wednesday a net loss in its fourth quarter, compared to profit last year, despite growth in revenues. For fiscal 2015, the company projects revenues above Wall Street analysts' estimates.

For the fourth quarter, net loss was $1.02 million or $0.04 per share, compared to net income of $1.90 million or $0.07 per share a year ago.

The latest results included 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 last year.

On average, four analysts polled by Thomson Reuters expected breakeven per share for the quarter. Analysts' estimates exclude special items.

Total quarterly revenue was $18.89 million, 5 percent higher than last year's $17.97 million. Analysts expected revenues of $19.48 million.

Subscription and support revenue was $10.16 million, an increase of 13 percent on a year-over-year basis. Subscription revenue increased 10 percent and license revenue climbed 17 percent. Meanwhile, professional services revenue decreased 24 percent.

Total deferred revenue was $36.3 million as of June 30, 2014, compared to $44.5 million as of June 30, 2013.

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.

For the full fiscal year 2014, net loss was $5.2 million, or $0.21 per share, compared to net income of $684,000, or $0.03 per share in fiscal 2013. Annual revenues climbed 19 percent to $70.3 million.

Looking ahead for fiscal 2015, eGain is estimating total revenue between $90.0 million and $95.0 million and annual subscription and support revenue between $44.5 million and $46.5 million. This includes revenue from the Exony acquisition but prior to the impact of any purchase accounting adjustment to deferred revenue related to the acquisition. Analysts expect revenues of $82.45 million for the year.

Ashu Roy, eGain's CEO, said, "I was also pleased to see the growth in bookings during the fourth quarter, which grew 98 percent sequentially and 5 percent over the record bookings achieved in the prior year quarters. We are focused on building on this positive momentum in the new fiscal year."

On Nasdaq, eGain shares were settled at $6.57 on Tuesday, up $0.04 or 0.61 percent.