eGain announces financial results for first fiscal quarter ended September 30, 2006
Mountain View, Calif. (November 09, 2006) - eGain Communications (OTC BB: EGAN.OB), a leading provider of customer service and contact center software, today announced financial results for the first fiscal quarter ended September 30, 2006.
Total revenue for the first quarter of fiscal year 2007 was $6.0 million, an increase of 15% or $780,000 from the comparable year-ago quarter. License revenue was $1.6 million, an increase of 19% or $258,000 from the comparable year-ago quarter. Support and services revenue was $4.4 million, an increase of 14% or $522,000 from the comparable year-ago quarter.
Cost of revenue for the first quarter of fiscal year 2007 was $2.0 million, an increase of 12% or $205,000 from the comparable year-ago quarter. Gross margin for the quarter was 67% compared to 66% in the comparable year-ago quarter. Research and development expense for the quarter was $1.0 million, an increase of 44% or $312,000 from the comparable year-ago quarter. Sales and marketing expense for the quarter was $3.3 million, an increase of 55% or $1.2 million from the comparable year-ago quarter. General and administrative expense for the quarter was $940,000, an increase of 49% or $311,000 from the comparable year-ago quarter.
Net loss for the first quarter of fiscal year 2007 was $1.5 million, or $(0.10) per share, compared to a net loss of $297,000, or $(0.02) per share, for the same quarter a year ago. Net loss for the quarter included stock-based compensation of $75,000 and interest and tax expense of $285,000, compared to stock-based compensation expense of $76,000 and interest and tax expense of $276,000, for the same quarter a year ago.
Total cash and cash equivalents were $5.2 million at September 30, 2006 compared to $6.9 million at June 30, 2006. Days sales outstanding in receivables for the quarter ended September 30, 2006 were 51 days compared to 69 days for the comparable year-ago quarter. Deferred revenues totaled $3.9 million at September 30, 2006, down from $4.3 million at June 30, 2006.
“We are pleased with our revenue growth in the quarter,” said Ashu Roy, eGain CEO. “As planned, we are ramping our investment in the first half of fiscal year 2007 across direct sales, channel development—especially with Cisco, and product development.”
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