E2open (EOPN) Prelim. FY15 Revs Miss Expectations

E2open (NASDAQ: EOPN) provided preliminary results for the second fiscal quarter ended August 31st and updated expectations for the full year fiscal 2015. In addition, the Company reported Rob Schoenthaler, E2open's Chief Customer Officer, has assumed responsibility for the sales organization.

"Our new business activity remains strong, as evidenced by our preliminary results for the second quarter with top-line results within our prior guidance range and earnings better than our prior guidance range, along with our continued confidence in our new and upsell subscription bookings targets for fiscal 2015. We are seeing strength across our product portfolio and signed seven new customers in the quarter," said Mark Woodward, E2open's President and CEO. "However, we have recently learned that three significant customers will not be renewing their contracts with E2open as a result of their having been acquired. In addition, one other client is delaying the rollout of their E2open solutions into the next year. This unexpected reduction in our business has caused us to lower our revenue expectations for the balance of the year."

"We are also announcing today that Rob Schoenthaler, our Chief Customer Officer, has assumed responsibility for the sales organization and will drive the continued evolution of our go-to-market efforts. Rob has been with E2open for seven years now and has been instrumental in spearheading our move to a more partner-centric model through his extensive relationships with both our customers and SI partners. Rob started his career at Accenture and prior to joining E2open led the North American supply chain practice at KPMG Consulting. As part of this transition, David Packer, our Chief Sales Officer, has resigned and will be transitioning out of the Company. We wish him the very best in his next endeavor."

Preliminary Results/Guidance:

• For the second quarter fiscal 2015 ended August 31, 2014, E2open now expects:
  • Total non-GAAP revenue to be in the range of $20.6 to $20.7 million and non-GAAP net loss per share to be in the range of ($0.13) to ($0.12). This compares to prior guidance of total non-GAAP revenue in the range of $20.2 million to $21.0 million and non-GAAP net loss per share in the range of ($0.20) to ($0.18).
• For the full year fiscal 2015 ending February 28, 2015, E2open now expects:
  • Total non-GAAP revenue to be in the range of $83.0 to $85.5 million. This compares to prior guidance of total non-GAAP revenue in the range of $89.0 million to $91.5 million.
  • New and upsell subscriptions and support bookings in the range of $91.5 million to $96.5 million, representing growth of approximately 29% to 36% compared to fiscal 2014. This is unchanged from prior guidance.

*** The Street sees Q2 revs of $20.6 million and loss of $0.19 per share and FY15 loss of $0.53 per share and revs of $89.6 million.

Reconciliations of second quarter fiscal 2015 non-GAAP revenue to GAAP revenue, and non-GAAP net loss per share to GAAP net loss per share is presented in Appendix I.

With respect to the Company's full year 2015 expectations under "Preliminary Results/Guidance" above, the Company has not reconciled non-GAAP revenue to GAAP revenue because this item cannot be reasonably predicted.

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