I believe that this stock is dead money but you have to give Ashu Roy credit as he has kept ths company going when most all .coms closed up.
They have a good product but have never been able to execute.
At one times they had a hard core group of seasoned professionals in those areas but they all were asked to leave when they cut most of their American staff to reduce their burn rate.
If you look at the CRM industry there are a lot of companies, including a lot of hosted solutions, with inferior products that are going gang busters with cash rolling in. eGain is still starving so that should tell you something about its management.
If Oak Hill Capital brought in all new management and made a few changes to the applications it would be a $150mm company in three years.
Good luck to all
They didn't have any choice on the cuts. I'd blame the old CFO for not stopping the burn much earlier but that is ancient history and not worth talking about.
Why has Hresko failed to deliver sales? So far it would appear as though he has brought absolutely nothing to the table.
Can you think of any reason why the conversion happpened for 11.5 million shares to replace 90 million dollar debt. Why can't OAK take them private ?
The other scenario is for Egain to apply for Nasdaq small cap listing.
What do you think ?
Mountain View, Calif. (September 29, 2004) � eGain Communications Corporation (OTC: EGAN.OB), a leading provider of customer service and contact center software, today announced that it and certain holders of its 6.75% Series A Cumulative Convertible Preferred Stock (�Series A Preferred�) have entered into a restructuring agreement and a voting agreement and proxy whereby such Series A Preferred holders have agreed to vote in favor of an amendment to the Company�s certificate of incorporation providing for the conversion of all outstanding shares of Series A Preferred into approximately 11.6 million shares of common stock. The holders of the converted shares would have rights to register the shares of common stock received in such conversion for resale. The proposed conversion is subject to the approval of a majority of eGain�s outstanding common stockholders and the details are outlined in a Form 8-K filed with the Securities and Exchange Commission on September 29, 2004.
�We are pleased to have reached this agreement with the Series A holders,� said Ashu Roy, Chairman and Chief Executive Officer of eGain. �We look forward to completing the early conversion of our preferred stock into common stock, which we believe will eliminate the uncertainty in our capital structure and help build confidence among our investors and customers.�
Think this explains the bookings comment but I still wish eGain would have provided more detail last quarter. Moving to a subscription based model reduces short-term revenue but longer term (assuming you keep your customers) should be comparable.
The transition can be painful and it is possible that eGain is doing this (I don't see how they can avoid it). Will be interesting to see if RNOW gets hammered tomorrow.
I think they meant the License revenues were up 80% YOY.
The CSCO partnership should bode well for the company. There is still 8 million load that Ashu gave. Not sure how they are going to handle this.
It would be great if they apply for the Nasdaq small market and get rid of the .OB
I have been around a long time, almost from day #1! I am not ready to take a tax write-off. If the pps gets down to a few pennies and has a couple of more reverse splits, I might CONSIDER taking a write-off.
As you can see, I might be viewed as a glutton for punishment. As much as I am out with this stock, I seriously am willing to consider writing it off perhaps only when I am out 99.99%.
At this point in time, one big move to the downside really will not faze me; although it may strengthen my resolve to hang tough! I believe this stock should be ready for a big move soon, but I really cannot imagine in which direction?
Don't know if I'm part of the "old gang" or not but I'm still following and actually still own. Keep saying one or two more quarters and then I will try to bail but I always find an excuse to continue holding.
This time I mean it. If the Cisco deal and the new sales VP do not start to deliver by the third quarter I'm selling. That last quarter was pretty ugly.
Still holding after 6 turbulent years. Finally, I think they have come out of the coffin. Down over 25K but have a feeling I will break even or go down will Oak hill (They converted at 11+)
Looking for someone to a healthy debate on Egain.