eGain Corporation reported its financial results for the three months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same period in the previous fiscal year. Total revenue for the quarter was $21.8 million, down 10% from $24.2 million in Q3 2023. This decrease was primarily driven by an 11% drop in Software as a Service (SaaS) revenue, which fell to $19.8 million from $22.3 million. In contrast, professional services revenue saw a slight increase of $126,000, reaching $1.98 million.

Gross profit also declined, totaling $15.1 million, or 69% of total revenue, compared to $17.3 million and 72% in the prior year. Operating expenses decreased to $14.6 million from $15.9 million, leading to income from operations of $509,000, a significant drop from $1.4 million in Q3 2023. Net income for the quarter was $652,000, down from $2.6 million, resulting in basic earnings per share of $0.02, compared to $0.08 in the same period last year.

The company’s total current assets decreased to $94.7 million from $107.1 million, while total assets fell to $114.9 million from $127.9 million. Cash and cash equivalents also declined to $67.2 million from $70.0 million. Total current liabilities decreased to $52.9 million from $62.6 million, and total stockholders' equity was $55.7 million, down from $58.5 million.

eGain's operational performance was impacted by regional revenue fluctuations, with North America experiencing a 14% decline in sales, primarily due to the drop in SaaS revenue. Conversely, revenue from the Europe, Middle East, and Africa (EMEA) region increased by 4%. The company capitalized $189,000 in costs to obtain revenue contracts, up from $89,000 in the prior year, while amortization of these costs decreased to $354,000 from $500,000.

In terms of strategic developments, eGain continued its stock repurchase program, buying back 670,824 shares at an average cost of $6.84 per share, totaling $4.6 million. As of September 30, 2024, approximately $12.4 million remained available for repurchases under the program. The company also reported a full valuation allowance against its net deferred tax assets for its U.S. operations, reflecting ongoing market uncertainties.

Overall, eGain's financial results indicate challenges in revenue generation and profitability, alongside strategic efforts to manage costs and enhance shareholder value through stock repurchases.