eGain Communications (EGAN) Misses Q1 EPS by 7c; Updates Outlook
eGain Communications (NASDAQ: EGAN) reported Q1 EPS of ($0.05), $0.07 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $11.5 million versus the consensus estimate of $12.15 million.
At the start of fiscal 2012, based on an initial estimate of 65% license and 35% hosting split for fiscal 2012, we estimated our revenue growth for fiscal 2012 to be between 22% and 27%. In the first nine months of fiscal 2012, the booking split has been 51% license and 49% hosting. Looking ahead, we see a continuing trend toward more hosting deals and estimate that our booking split for fiscal 2012 will be in the range of 45% license and 55% hosting. As a result, with our fiscal 2012 second quarter financial results we revised our estimate for fiscal 2012 revenue growth to be in the range of 5% to 10%. At the same time, we estimate that recurring revenue will improve in the next two fiscal years due to increased hosting bookings this fiscal year. Note that if this booking mix were to differ from our current estimate, there will be a corresponding impact on revenue timing. Based on this bookings split we estimate new hosting bookings to increase between 160% and 180% for fiscal 2012 and new license bookings to decrease between 25% and 30% for fiscal 2012. With the mix shift to more hosting bookings we now estimate fiscal 2012 new bookings growth to be in the range of 20% to 30%. This decrease from our original guidance of bookings growth in the range of 40% to 50% is due in part to the relatively higher economic value of new license and support bookings in the short term when compared to new hosting bookings where the economic value of the bookings increases over time.
At the start of fiscal 2012, based on an initial estimate of 65% license and 35% hosting split for fiscal 2012, we estimated our revenue growth for fiscal 2012 to be between 22% and 27%. In the first nine months of fiscal 2012, the booking split has been 51% license and 49% hosting. Looking ahead, we see a continuing trend toward more hosting deals and estimate that our booking split for fiscal 2012 will be in the range of 45% license and 55% hosting. As a result, with our fiscal 2012 second quarter financial results we revised our estimate for fiscal 2012 revenue growth to be in the range of 5% to 10%. At the same time, we estimate that recurring revenue will improve in the next two fiscal years due to increased hosting bookings this fiscal year. Note that if this booking mix were to differ from our current estimate, there will be a corresponding impact on revenue timing. Based on this bookings split we estimate new hosting bookings to increase between 160% and 180% for fiscal 2012 and new license bookings to decrease between 25% and 30% for fiscal 2012. With the mix shift to more hosting bookings we now estimate fiscal 2012 new bookings growth to be in the range of 20% to 30%. This decrease from our original guidance of bookings growth in the range of 40% to 50% is due in part to the relatively higher economic value of new license and support bookings in the short term when compared to new hosting bookings where the economic value of the bookings increases over time.
For earnings history and earnings-related data on eGain Communications (EGAN) click here.