eGain Corporation (EGAN) saw its loss narrow to $1.05 million, or $0.04 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.38 million, or $0.05 a share.
Revenue during the quarter dropped 21 percent to $15 million from $18.99 million in the previous year period. Gross margin for the quarter contracted 228 basis points over the previous year period to 66.24 percent. Operating margin for the quarter stood at negative 1.99 percent as compared to a negative 2.72 percent for the previous year period.
Operating loss for the quarter was $0.30 million, compared with an operating loss of $0.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.68 million compared with $1.04 million in the prior year period. At the same time, adjusted EBITDA margin contracted 93 basis points in the quarter to 4.56 percent from 5.49 percent in the last year period.
Ashu Roy, eGain chief executive officer, commented, "We made very good progress with our SaaS transition this quarter. Our subscription and support revenue comprised 73 percent of total revenue for the second quarter, up from 57 percent in the prior year quarter. Moving forward, we expect all new business to be SaaS based, except for a very small amount of legacy business. In addition, during the quarter we launched a new version of our software suite with enhanced AI, expanded analytics and a new chat SDK."
Working capital remains negative
Working capital of eGain Corporation was negative $2.44 million on Dec. 31, 2016 compared with negative $0.29 million on Dec. 31, 2015. Current ratio was at 0.89 as on Dec. 31, 2016, down from 0.99 on Dec. 31, 2015.
Days sales outstanding went down to 48 days for the quarter compared with 53 days for the same period last year.
At the same time, days payable outstanding went up to 33 days for the quarter from 30 for the same period last year.
Debt comes down
eGain Corporation has recorded a decline in total debt over the last one year. It stood at $21.28 million as on Dec. 31, 2016, down 10.23 percent or $2.42 million from $23.70 million on Dec. 31, 2015. Total debt was 52.61 percent of total assets as on Dec. 31, 2016, compared with 51.89 percent on Dec. 31, 2015.
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