eGain posts $5.2 M revenue in Q4

By siliconindia   |   Friday, 15 August 2003, 19:30 IST
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SUNNYVALE: eGain Communications Corporation, a provider of eService software for the Global 2000, today announced financial results for the fourth quarter and fiscal year ended June 30, 2003. Revenue for the quarter was $5.4 million, an increase of 3% compared to $5.2 million for the quarter ended March 31, 2003. For the fiscal year ended June 2003, revenue was $22.1 million, a decrease of 27% compared to revenue of $30.4 million in fiscal 2002. On a generally accepted accounting principles ("GAAP") basis, including depreciation, amortization, other non-cash and restructuring charges, net loss applicable to common stockholders for the quarter ended June 30, 2003, was $3.6 million, or $0.10 per share, compared to $4.2 million, or $0.11 per share for the quarter ended March 31, 2003. For the fiscal year ended June 30, 2003, net loss applicable to common stockholders on a GAAP basis was $18.4 million, or $0.50 per share, compared to a net loss applicable to common stockholders of $166.1 million, or $4.58 per share in fiscal 2002. In fiscal 2002 the net loss applicable to common stockholders on GAAP basis included $36.8 million impairment of long-lived assets, $33.2 million amortization of goodwill and $43.8 million beneficial conversion on preferred stock. Pro forma net loss was $149,000 or $0.00 per share for the quarter ended June 30, 2003, compared to a pro forma net loss of $120,000, or $0.00 per share, for the quarter ended March 31, 2003. For the fiscal year ended June 2003, pro forma net loss was $3.1 million, or $0.09 per share, compared to $25.0 million, or $0.69 per share, in fiscal 2002. Pro forma net income (loss) figures exclude depreciation, amortization, accreted dividends and restructuring charges. A table reconciling the pro forma net income (loss) to GAAP net loss is included in the condensed consolidated financial statements in this release. Total cash and cash equivalents increased by $900,000 during the June 2003 quarter to approximately $5.2 million at June 30, 2003. Reverse Stock Split eGain also announced that its Board of Directors has voted to execute a one-for-ten reverse stock split. Stockholders granted the board authority to do so at the Company's annual meeting held in November. To effect the reverse stock split, the Company intends to file an amendment to its Certificate of Incorporation on August 19, 2003. The Company will begin trading under the new symbol, "EGAND" on Wednesday, August 20, 2003. After 20 trading days, the symbol will revert back to "EGAN." Fiscal 2003 in Review "In July 2002, we set two goals for fiscal 2003: first, to achieve pro forma operating breakeven in the December 2002 quarter and to sustain it; and second, to further enhance our product leadership in the customer service and contact center market," said Ashu Roy, CEO of eGain. "We substantially achieved both goals -- thanks to the efficiency of our proven global operating model, the support of our blue-chip customers, and the commitment of our team. In fiscal 2003, we delivered three consecutive quarters of near break-even operating performance in a tough market. To put it in perspective, even with a 27% decrease in revenues in fiscal 2003, our pro forma operating loss of $3.1 million improved by almost 90% from $25 million in fiscal 2002. What makes this more significant is we achieved these financial results without compromising our ongoing commitment to product innovation and in the March quarter, we successfully launched eGain Service 6 -- the biggest product enhancement in the company's history."