EGAIN Corp (EGAN) saw its loss narrow to $2.41 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.24 million, or $0.12 a share.
Revenue during the quarter dropped 10.51 percent to $14.74 million from $16.48 million in the previous year period. Gross margin for the quarter expanded 494 basis points over the previous year period to 65.66 percent. Operating margin for the quarter stood at negative 8.58 percent as compared to a negative 17.06 percent for the previous year period.
Operating loss for the quarter was $1.26 million, compared with an operating loss of $2.81 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.08 million compared to negative $0.77 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 0.51 percent for the quarter compared to negative 4.67 percent in the last year period.
Ashu Roy, eGain chief executive officer, commented, "We are pleased with the continued acceleration in our shift to a SaaS based business model. As a result, during the quarter we saw a decrease in license revenue, reflecting our business mix shift to a SaaS model."
Working capital remains negative
Working capital of EGAIN Corp was negative $7.05 million on Sep. 30, 2016 compared with negative $0.76 million on Sep. 30, 2015. Current ratio was at 0.73 as on Sep. 30, 2016, down from 0.96 on Sep. 30, 2015.
Days sales outstanding went up to 64 days for the quarter compared with 37 days for the same period last year.
Debt comes down significantly
EGAIN Corp has recorded a decline in total debt over the last one year. It stood at $16.85 million as on Sep. 30, 2016, down 26.29 percent or $6.01 million from $22.86 million on Sep. 30, 2015. Total debt was 42.01 percent of total assets as on Sep. 30, 2016, compared with 51.42 percent on Sep. 30, 2015.
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