Financial numbers for the third quarter of fiscal March 31, 2008 were recently released by eGain Communications Corporation (OTCBB: EGAN), a customer service provider and contact center software producer that assists companies in establishing customer interaction hubs worldwide. At the close of last Friday’s trading, the company’s stock rose 36.92%.
The company reported total revenue of $8.8 million, an increase of 64% from a year ago. License revenue skyrocketed by 273%, reported at $2.2 million. Support and services revenue rose by 37% to $6.6 million. Gross margin a year ago was at 56%, compared to this quarter’s 65%. Total operating costs and expenses came out to be $5 million, increasing by 2% over a year ago. Net income on a GAAP basis for this quarter was $542,000, or $0.04 basic net income per share, compared to last year’s GAAP numbers of $2.2 million, or $0.14 per share.
There was a decrease in total cash and cash equivalents from December 31, 2007 figures of $5.0 million to $4.0 million on March 31, 2008. The company attributes the decrease to a $910,000 reduction in bank borrowings in the quarter. The sales outstanding in receivables for the quarter ended March 31, 2008 were 30 days compared to 28 days from the comparable quarter a year ago. Deferred revenues totaled $5.2 million for this quarter, up from $5.0 million a year ago.
Ashu Roy, eGain CEO, said, “We are very pleased with our year-to-date financial performance. This was a record quarter for us on a number of fronts. We recorded the highest quarterly net income in the company’s history. In addition, revenue for first three quarters of fiscal 2008 exceeded total revenue for fiscal 2007; this means that revenue for fiscal 2008 will be at the highest level since fiscal 2001. Based upon this momentum we are updating our fiscal 2008 revenue guidance for the second time this fiscal year.”
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