eGain Announces Fiscal 2012 Third Quarter Financial Results - Page 2
New bookings, comprising new license, support and hosting, for the fiscal third quarter were $7.5 million, an increase of 98% from the comparable year-ago quarter. The Company continues to see the trend towards more hosting transactions. Of the total new bookings in the fiscal third quarter, 63% were from new hosting bookings and 37% from new license and support bookings. This compares to 44% from new hosting bookings and 56% from new license and support bookings in the comparable year-ago quarter. Gross bookings, comprising new bookings plus existing renewals and billed professional services, for the fiscal third quarter were $12.6 million, an increase of 27% from the comparable year-ago quarter.
New bookings for the nine months ended March 31, 2012 were $21.1 million, an increase of 12% from the same period last year. Of the total new bookings for the nine months ended March 31, 2012, 44% were from new hosting bookings and 56% were from new license and support bookings, compared to 26% from new hosting bookings and 74% from new license and support bookings in the same period last year. Gross bookings for the nine months ended March 31, 2012 were $35.1 million, an increase of 3% from the same period last year. Note that the nine-month comparison is adversely impacted by a very large license deal that occurred in the first quarter of fiscal 2011.
- Signed a hosting agreement with a Fortune 50 leading global technology provider for multichannel service, representing the first deal signed through the company's new strategic partner SAP AG
- Signed a hosting agreement with leading healthcare provider in the US for secure, paperless member communication and notification
- Signed a hosting agreement with a top auto manufacturer to enable interactive sales and service on branded websites
- Signed a hosting agreement with a European telecom operator for online self-service
- A large European retailer went live with eGain hosting to enable multichannel service
- A top US e-tailer went live with eGain hosting to enhance up-selling and online sales conversion
- Entered into new distribution partnership agreement with Nokia Siemens Network, a leading global technology company focused on the telecom vertical
- eGain rated a Leader in Web Support and Contact Center Search categories by premier industry publication CRM magazine, earning top scores for product functionality and customer satisfaction
- eGain featured in the 2012 KMWorld list of "100 Companies that Matter in Knowledge Management" for the sixth consecutive year and recognized for continued innovation in multichannel knowledge management for sales and service
Fiscal 2012 Updated Guidance
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.
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