8-K - EGAN - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

Date of Report: November 10, 2020

(Date of earliest event reported)

eGain Corporation

(Exact name of registrant as specified in its charter)


Delaware	001-35314	77-0466366

(State or other jurisdiction	(Commission	(I.R.S. employer
of incorporation)	File Number)	Identification Number)

1252 Borregas Avenue, Sunnyvale, California 94089

(Address of principal executive offices, including zip code)

(Former Name or Former Address, if Changed Since Last Report)<br><br>
(408) 636-4500<br><br>(Registrant’s telephone number, including area code)<br><br>(Former Name or Former Address, if Changed Since Last Report)<br><br>

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, par value $0.001 par value	EGAN	The Nasdaq Stock Market LLC

Item 2.02Results of Operations and Financial Condition.

The following information in this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On November 10, 2020, eGain Corporation (“eGain” or the “Company”) issued a press release announcing results for its fiscal first quarter September 30, 2020. The press release contains forward-looking statements regarding eGain and includes cautionary statements identifying important factors that may cause actual results to differ materially from those anticipated. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


EXHIBIT NO.		DESCRIPTION
99.1		Press release, dated November 10, 2020, of eGain Corporation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

<br><br>		<br><br>
<br><br>Date: November 10, 2020		<br><br>eGain Corporation
		<br><br>
	By:	/s/ Eric N. Smit
		Eric N. Smit<br><br>Chief Financial Officer <br>(Duly Authorized Officer and<br><br>Principal Financial and Accounting Officer)

Exhibit 99.1

eGain Reports SaaS Revenue Growth of 29% Year over Year

and an Operating Cash Flow Margin of 30% in Q1 2021

Sunnyvale, CA (November 10, 2020) – eGain (NASDAQ: EGAN), a leading provider of omnichannel customer engagement solutions, today announced financial results for its fiscal 2021 first quarter ended September 30, 2020.

“We are excited about our SaaS logo growth this quarter,” said Ashu Roy, eGain’s CEO. “In an uncertain economy, enterprises are automating engagement to support contactless commerce and remote work models. With our digital-first platform, unique offers and expanding sales coverage, we look forward to growing our market share.”

Fiscal 2021 First Quarter Financial Highlights

●	SaaS revenue was $16 million, up 29% year over year.
●	SaaS and professional services revenue was $17.3 million, up 23% year over year and comprised 91% of total revenue.
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●	Total revenue was $19.1 million, up 11% year over year.
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●	GAAP net income was $2.0 million, or $0.07 per basic share and $0.06 per diluted share, compared to GAAP net income of $1.2 million, or $0.04 per basic and diluted share, in the year ago quarter.
---	---
●	Non-GAAP net income was $2.5 million, or $0.08 per basic and diluted share, compared to non-GAAP net income of $1.7 million, or $0.06 per basic share and $0.05 per diluted share, in the year ago quarter.
---	---
●	Cash provided by operations was $5.7 million, compared to cash provided by operations of $2.7 million in the year ago quarter.
---	---

Fiscal 2021 Second Quarter Financial Guidance

For the second quarter of fiscal 2021 ending December 31, 2020, eGain expects:

●	SaaS revenue of between $15.2 million to $15.6 million, which would represent growth between 8% and 11% year over year;
●	SaaS and professional services revenue of between $16.6 million and $17.1 million, which would represent growth of between 5% and 8% year over year;
---	---
●	Total revenue of $18.1 million to $18.7 million, which would represent growth between 0% and 3% year over year;
---	---
●	GAAP net loss of $1.0 million to breakeven, or $(0.03) to $0.00 per basic share; and
---	---
●	Non-GAAP net loss of $0.5 million to net income of $0.5 million, or $(0.02) per basic share to $0.02 per diluted share.
---	---

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results. Such non-GAAP financial measures are adjusted for stock-based compensation expense and amortization of acquired intangible assets. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the Company’s business.

Conference Call Information

eGain will discuss its fiscal 2021 first quarter results today via teleconference at 2:00 p.m., Pacific Time. To access the live call, dial 800-353-6461 (US and Canada) or +1 334-323-0501 (international) and give the participant passcode 8589013. A live and archived webcast of the call will also be accessible on the “Investor relations” section of the Company’s website at www.egain.com. In addition, a phone replay will be available approximately two hours following the end of the call and will remain available for one week.

About eGain

eGain customer engagement solutions deliver digital transformation for leading brands – powered by virtual assistance, AI, knowledge, and analytics. Our comprehensive suite of applications helps clients deliver memorable, digital-first customer experiences in an omnichannel world. To find out more about eGain, visit http://www.egain.com.

Cautionary Note Regarding Forward-Looking Statements.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and include our beliefs regarding demand for our products and services, including, without limitation: our beliefs regarding solid business pipeline and our market opportunity; and our expectations with respect to revenue growth and GAAP and non-GAAP net income for the second quarter of fiscal year 2021. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the second quarter of fiscal year 2021. The risks and uncertainties referred to above include, but are not limited to: risks associated with current economic uncertainties tied to the COVID-19 pandemic, including but not limited to its effect on customer demand for the Company’s products and services and the impact of potential delays in customer payments; risks associated with the transition to a work-from-home environment; risks associated with new product releases and new services and products features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the current economic environment; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; current general economic and market conditions associated with the COVID-19 pandemic and otherwise, which may adversely affect our industry; general political or destabilizing events, including war, conflict or acts of terrorism; the effect of evolving domestic and foreign government regulations, including those addressing data privacy and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K filed on September 11, 2020 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s Web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

MKR Investor Relations

Todd Kehrli or Jim Byers

Phone: 323-468-2300

Email: [email protected]

eGain Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)


	September 30,			June 30,
	2020		****	2020
ASSETS
Current assets:
Cash and cash equivalents	$	53,099		$	46,609
Restricted cash		7			6
Accounts receivable, net		15,478			22,708
Costs capitalized to obtain revenue contracts, net		1,070			1,066
Prepaid expenses		2,018			2,514
Other current assets		801			617
Total current assets		72,473			73,520
Property and equipment, net		710			713
Operating lease right-of-use assets		2,592			2,962
Costs capitalized to obtain revenue contracts, net of current portion		2,199			2,380
Intangible assets, net		—			26
Goodwill		13,186			13,186
Other assets		1,057			918
Total assets	$	92,217		$	93,705
****
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,116		$	2,429
Accrued compensation		7,261			7,916
Accrued liabilities		4,007			3,423
Operating lease liabilities		1,698			1,753
Deferred revenue		34,016			36,644
Total current liabilities		48,098			52,165
Deferred revenue, net of current portion		4,565			4,826
Operating lease liabilities, net of current portion		1,045			1,385
Other long-term liabilities		723			688
Total liabilities		54,431			59,064
Commitments and contingencies
Stockholders' equity:
Common stock		31			31
Additional paid-in capital		375,357			374,399
Notes receivable from stockholders		(91)			(90)
Accumulated other comprehensive loss		(1,487)			(1,631)
Accumulated deficit		(336,024)			(338,068)
Total stockholders' equity		37,786			34,641
Total liabilities and stockholders' equity	$	92,217		$	93,705

eGain Corporation

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)


	Three Months Ended
	September 30,
	2020		****	2019
Revenue:
Subscription	$	17,747		$	15,572
Professional services		1,316			1,618
Total revenue		19,063			17,190
Cost of revenue:
Cost of subscription		3,222			3,750
Cost of professional services		1,409			1,565
Total cost of revenue		4,631			5,315
Gross profit		14,432			11,875
Operating expenses:
Research and development		4,505			3,998
Sales and marketing		5,631			4,738
General and administrative		1,944			2,044
Total operating expenses		12,080			10,780
Income from operations		2,352			1,095
Interest income, net		3			147
Other income (expense), net		(163)			164
Income before income tax provision		2,192			1,406
Income tax provision		(148)			(189)
Net income	$	2,044		$	1,217
Per share information:
Earnings per share:
Basic	$	0.07		$	0.04
Diluted	$	0.06		$	0.04
Weighted-average shares used in computation:
Basic		30,853			30,507
Diluted		32,508			31,883

Stock-based compensation included in above costs and expenses:
Cost of revenue	$	74		$	33
Research and development		158			176
Sales and marketing		133			148
General and administrative		105			94
	$	470		$	451

Amortization of intangible assets included in above costs and expenses:
Cost of revenue	$	26		$	67
Research and development		—			—
	$	26		$	67

eGain Corporation

GAAP to Non-GAAP Reconciliation Table

(in thousands, except per share data)

(unaudited)


	Three Months EndedSeptember 30,
	2020		2019
Income from operations	$	2,352	$	1,095
Add:
Stock-based compensation		470		451
Amortization of intangibles assets		26		67
Non-GAAP income from operations	$	2,848	$	1,613

Net income	$	2,044	$	1,217
Add:
Stock-based compensation		470		451
Amortization of intangibles assets		26		67
Non-GAAP net income	$	2,540	$	1,735
Per share information:
Non-GAAP earnings per share:
Basic	$	0.08	$	0.06
Diluted	$	0.08	$	0.05
Weighted-average shares used in computation:
Basic		30,853		30,507
Diluted		32,508		31,883

eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information

(in thousands)

(unaudited)


	Three Months EndedSeptember 30,				Growth Rates		Constant Currency Growth Rates [1]
	2020		2019
Revenue:
SaaS revenue	$	15,970	$	12,418		29%		27%
Legacy revenue		1,777		3,154		(44%)		(44%)
GAAP subscription		17,747		15,572		14%		12%
GAAP professional services		1,316		1,618		(19%)		(20%)
Total GAAP revenue	$	19,063	$	17,190		11%		9%

SaaS and professional services revenue:
SaaS revenue	$	15,970	$	12,418		29%		27%
Professional Services		1,316		1,618		(19%)		(20%)
Total SaaS and professional services revenue	$	17,286	$	14,036		23%		21%

Cost of Revenue:
GAAP subscription	$	3,222	$	3,750
Add back:
Amortization of intangible assets		(26)		(67)
Non-GAAP subscription	$	3,196	$	3,683

GAAP professional services	$	1,409	$	1,565
Add back:
Stock-based compensation		(74)		(33)
Non-GAAP professional services	$	1,335	$	1,532

GAAP total cost of revenue	$	4,631	$	5,315
Add back:
Stock-based compensation		(74)		(33)
Amortization of intangible assets		(26)		(67)
Non-GAAP total cost of revenue	$	4,531	$	5,215		(13%)		(13%)

Gross Profit:
Non-GAAP subscription	$	14,551	$	11,889
Non-GAAP professional services		(19)		86
Non-GAAP gross profit	$	14,532	$	11,975		21%		19%

Operating expenses:
GAAP research and development	$	4,505	$	3,998
Add back:
Stock-based compensation expense		(158)		(176)
Amortization of acquired intangible assets		-		-
Non-GAAP research and development	$	4,347	$	3,822		14%		14%

GAAP sales and marketing	$	5,631	$	4,738
Add back:
Stock-based compensation expense		(133)		(148)
Amortization of acquired intangible assets		—		-
Non-GAAP sales and marketing	$	5,498	$	4,590		20%		19%

GAAP general and administrative	$	1,944	$	2,044
Add back:
Stock-based compensation expense		(105)		(94)
Amortization of acquired intangible assets		—		—
Non-GAAP general and administrative	$	1,839	$	1,950		(6%)		(6%)

GAAP operating expenses	$	12,080	$	10,780
Add back:
Stock-based compensation expense		(396)		(418)
Amortization of acquired intangible assets		—		—
Non-GAAP operating expenses	$	11,684	$	10,362		13%		12%

[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period. 6