EGAIN Corp 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is traded on the Nasdaq Capital Market under the symbol “EGAN”. Holders ​ As of September 10, 2020, there were approximately 143 stockholders of record. ​ Dividends ​ We have never declared or paid any cash dividends on our common stock. We currently anticipate that we will retain all available funds for use in the operation of our business and do not intend to pay any cash dividends in the foreseeable future. ​ Stock Performance Graph ​ The following shall not be deemed incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended. The graph below compares the cumulative total stockholder return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index and the Nasdaq Composite Total Return Index for each of the last five fiscal years ended June 30, 2020, assuming an initial investment of $100. Data for the Standard & Poor’s 500 Index and the Nasdaq Composite Total Return Index assume no dividends. ​ 29 Table of Contents The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 06/30/15 06/30/16 06/30/17 06/30/18 06/30/19 6/30/2020 eGain Corporation $ 100.00 $ 56.29 $ 32.93 $ 301.40 $ 162.48 $ 221.76 Nasdaq Composite $ 100.00 $ 98.32 $ 126.14 $ 155.91 $ 168.04 $ 212.83 S&P Software & Services Select Industry Index $ 100.00 $ 99.74 $ 124.57 $ 162.25 $ 193.96 $ 226.46 ​ Equity Compensation Plan Information See Item 12 of Part III of this Annual Report regarding information about securities authorized for issuance under our equity compensation plan. ​ 30 Table of Contents ITEM 6. SELECTED FINANCIAL DATA The selected consolidated financial data should be read in conjunction with the information under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” our consolidated financial statements and the related notes which are included in “Item 8. Financial Statements and Supplementary Data.” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended June 30, ​ ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ 2016 ​ ​ (in thousands, except per share information) Revenue: ​ ​ ​ ​ ​ ​ ​ Subscription ​ $ 66,129 ​ $ 60,013 ​ $ 51,352 ​ $ 48,142 ​ $ 57,249 Professional services ​ 6,600 ​ ​ 7,219 ​ 9,955 ​ 10,073 ​ 12,126 Total revenue ​ 72,729 ​ ​ 67,232 ​ 61,307 ​ 58,215 ​ 69,375 Cost of revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of subscription ​ 14,398 ​ ​ 14,976 ​ 13,152 ​ 12,006 ​ 12,430 Cost of professional services ​ 6,683 ​ ​ 6,865 ​ 9,184 ​ 9,193 ​ 11,259 Total cost of revenue ​ 21,081 ​ ​ 21,841 ​ 22,336 ​ 21,199 ​ 23,689 Gross profit ​ 51,648 ​ ​ 45,391 ​ 38,971 ​ 37,016 ​ 45,686 Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 16,638 ​ ​ 14,369 ​ 14,711 ​ 13,753 ​ 16,063 Sales and marketing ​ 19,623 ​ ​ 17,302 ​ 17,681 ​ 20,436 ​ 27,722 General and administrative ​ 7,981 ​ ​ 8,198 ​ 7,567 ​ 6,552 ​ 7,774 Total operating expenses ​ 44,242 ​ ​ 39,869 ​ 39,959 ​ 40,741 ​ 51,559 Income (loss) from operations ​ 7,406 ​ ​ 5,522 ​ (988) ​ (3,725) ​ (5,873) Interest income (expense), net ​ 395 ​ ​ (319) ​ (983) ​ (1,730) ​ (1,958) Other income (expense), net ​ 185 ​ ​ (202) ​ (206) ​ (32) ​ 728 Income (loss) before income benefit (provision) ​ 7,986 ​ ​ 5,001 ​ (2,177) ​ (5,487) ​ (7,103) Income tax benefit (provision) ​ (778) ​ ​ (833) ​ 186 ​ (533) ​ 863 Net income (loss) ​ $ 7,208 ​ $ 4,168 ​ $ (1,991) ​ $ (6,020) ​ $ (6,240) Per share information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.24 ​ $ 0.15 ​ $ (0.07) ​ $ (0.22) ​ $ (0.23) Diluted ​ $ 0.23 ​ $ 0.14 ​ $ (0.07) ​ $ (0.22) ​ $ (0.23) Weighted-average shares used in computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 30,620 ​ ​ 28,579 ​ 27,333 ​ 27,108 ​ 27,056 Diluted ​ 31,956 ​ ​ 30,363 ​ 27,333 ​ 27,108 ​ 27,056 Below is a summary of stock-based compensation included in the costs and expenses above: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of revenue ​ $ 205 ​ $ 323 ​ $ 323 ​ $ 131 ​ $ 249 Research and development ​ $ 706 ​ $ 519 ​ $ 493 ​ $ 281 ​ $ 472 Sales and marketing ​ $ 551 ​ $ 313 ​ $ 341 ​ $ 80 ​ $ 169 General and administrative ​ $ 399 ​ $ 468 ​ $ 538 ​ $ 175 ​ $ 298 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, ​ ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ 2016 Consolidated Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents and short-term investments (including restricted cash) ​ $ 46,615 ​ $ 31,867 ​ $ 11,504 ​ $ 10,633 ​ $ 11,785 Working capital ​ $ 21,355 ​ $ 13,895 ​ $ (8,023) ​ $ (7,680) ​ $ (886) Total assets ​ $ 93,705 ​ $ 73,754 ​ $ 39,622 ​ $ 39,751 ​ $ 48,063 Deferred revenue ​ $ 41,470 ​ $ 36,489 ​ $ 26,197 ​ $ 23,219 ​ $ 15,717 Long-term debt (bank borrowings and capital lease obligations) ​ $ — ​ $ — ​ $ 8,941 ​ $ 14,844 ​ $ 20,376 ​ ​ ​ 31 Table of Contents ​