Good day and welcome to the eGain Fiscal 2014 Fourth Quarter and Full Year Financial Results Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Charles Messman, VP of Finance. Please go ahead, sir.

Good morning ladies and gentlemen, and thank you for joining us today for eGain’s conference call to discuss results for our fiscal 2014 fourth quarter and year ended June 30, 2014. Please note this call is being recorded and will be available for replay from the Investor Relations section of our website at www.egain.com for seven days following this call. Before I begin, I’d like to remind all listeners this conference call contains forward-looking statements within the meaning of the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. This conference call contains forward-looking statements that involve risk and uncertainties. These forward-looking statements include among other matters, statements about the Company’s market opportunities, statements pertaining to the Company’s partnership with Cisco, statements referring to our organizational changes, statements referring to the Company’s recent acquisition, statements about the Company’s expected financial results for the fiscal fourth quarter and year ended June 30, 2014 with respect to total revenue, deferred revenue, subscription and support revenue, license revenue and statements regarding our fiscal 2015 guidance including sources of revenue and business mix. The achievement or success of these matters covered by such forward-looking statements involve risks and uncertainties and assumptions. If any such risk and uncertainties materialize or if any assumptions prove incorrect, the Company’s results could differ materially from results expressed or implied by forward-looking statements we make. The risks and uncertainties refer to include, but are not limited to, risks with our hybrid revenue model and lengthy sales cycles may negatively affect our operating results, uncertainties associated with purchase adjustment that may result when we complete our integration of Exony’s financial results, risk related to our reliance on relatively small number of customers for a substantial portion of our revenue. Risks associated with the efforts to operate and integrate Exony’s business successfully, our ability to compete successfully and manage growth, our ability to develop and expand strategic and third-party distribution channel, risk associated with new product releases, risk related to international operations, our ability to invest resources to improve our product and continue to innovate, and other risks detailed from time to time in eGain’s filings with the Securities and Exchange Commission including eGain’s Annual Report, Form 10-K filed on September 23, 2013 and eGain’s Quarterly Report on Form 10-Q, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectation and speak only as of the date hereof. The Company assumes no obligation to update these forward-looking statements. With me today are, Ashu Roy, Chairman and Chief Executive Officer; and Eric Smit, Chief Financial Officer of eGain. To begin the discussion, I will now turn the call over to Ashu. Ashu?

Thank you, Charles and good morning everyone. Thank you for joining us today. First, some financial highlights, our revenue for the fourth quarter was 18.9 million, up 5% over prior year. Revenue for the fiscal year came in at 70.3 million, up 19% over the prior year. Cloud revenue increased 36% over last year and total recurring revenue was up 25% year-over-year. Our Q4 bookings grew 98% sequentially and 5% year-over-year which was a turnaround from the trend of prior three quarters. So, we look forward to building on this momentum as we launch into fiscal ‘15. Reflecting on fiscal ‘14, it was a year of investment for us. Looking at our product investments, over the past year, we saw a growing interest from clients who access our platform through API, to embed our customer engagement capability more tightly into their business process. In response, we delivered a full set of knowledge management APIs that are now being used by several clients like LexisNexis and Vodafone. Mobile was another area of product investment for us. All our customer facing capabilities are now mobile ready. We also recently this quarter announced our eGain SDK for mobile apps. This allows our clients to easily embed our customer facing self-service and assistance capabilities inside their mobile apps. Mobile apps based customer engagement is an emerging area of innovation and our solution will help clients easily differentiate their mobile customer experience. Finally, in the product category, as part of eGain analytics, we launched eGain one tag capability in early fiscal ‘14 to easily track customer journeys on the web. As a version one capability, eGain one tag attracted a lot of interest. As we engage with clients, we discovered that while they loved the notion of integrated analytics and engagement tools, they also wanted…

Our total subscription and support revenue ACV at the end of the fourth quarter was 41.9 million, up 5% year-over-year. As we noted on our last call, the ACV for last year included approximately 2.4 million from a customer paying for geo-cloud deployments while they’re upgrading to Version 11. Excluding the impacts of the second system, the year-over-year increase was approximately 12%. The ACV for our cloud subscription revenue at the end of the fourth quarter was 25.7 million which compares to 26.7 million at the end of the fourth quarter last year and 25.2 million for the third quarter of fiscal 2014. The ACV for our support revenue at the end of the fourth quarter were 16.2 million which compared to 13.2 million at the end of the fourth quarter last year and 15.4 million for the third quarter of fiscal 2014. Now turning to our bookings, total gross bookings or revenue plus the change in deferred for the fourth quarter was 23.2 million, up from 11.8 million last quarter and 21.7 million in the fourth quarter last year. Backlog as of June 30, 2014 or total deferred revenue plus unbilled and uncollected revenue was 36.3 million compared to 44.5 million at the end of last fiscal year and 31.5 million at the end of last quarter. Included in this, backlog is approximately 500,000 of bookings from a perpetual license deal with the new government clients. Due to certain terms in this agreement revenue recognition was deferred and saw certain future deliverables on that. Now turning our financial results, total revenue for the fourth quarter was 18.9 million, up 5% from 18 million in the comparable year ago quarter. For fiscal 2014, total revenue was 70.3 million, an increase of 19.3% from fiscal 2013. Although slightly below our annual…

(Operator Instructions). We will take our first question from Jeff Van Rhee with Craig-Hallum.

A couple of initial questions I guess. One, Ashu, as it relates to the forward guide, what is the bookings growth that’s implicit to get there and a little sense of maybe color around what you -- what at least the early pipeline suggestions are for club versus prim splits?

So Jeff the first thing is as Eric mentioned, the initial booking momentum for Q1 is looking reasonably good, so that’s one comment just reiterating that. From a bookings split across, is that something that we want to talk about, Eric?

Yes. I think that Journey from the direct business, we’re seeing the bookings split still, slanted more towards the license. So I think closer to the 60-40 range license to cloud. And on the channel side Jeff as we have mentioned before, the Cisco channel we are now -- we have the cloud option available but that’s still been only four months in the SKU list. So we are hoping that starts to make its way through some deal soon.

Okay. Bust just get back to the sort of a sense of overall bookings growth, how are you thinking about the forward year? I mean based on the expected splits, what kind of bookings growth are you saying essentially is implicit here to get to the guide?

I think at this stage, Jeff, we aren’t going to be providing any bookings for our guidance.

Okay. And then as it relates to AJ coming in and taking the sales leadership position, a couple of things there I mean, I guess out of the gate, what are the key asks there? What are the key things that he is changing or has asked to change? And then secondly maybe just circling back to the pipeline, can you give us a little better quantification of the pipeline momentum and build? It seems like things at Cisco have gotten quite a bit better and have continued to build, but just a little more quantification still seems a little hazy there, any color would be great.

So, I would say three areas that he is focusing on, number one is the push to drive more direct sales funnel building and that’s something that the whole sales and marketing and business development teams are being goaled on to drive direct sales funnel building. And so that’s a much more concerted push rather than looking at it more broadly across to partner, so that’s one. The second thing is from an account management perspective, he has got the whole worldwide key sales team to get more engaged on existing accounts to start to kind of expand and develop some of the existing accounts into bigger deals. So that’s another concerted program that he has got underway. And the third piece is worldwide much faster decision making around deals and opportunities and escalation and escalation and that's something that we then -- we take that feedback back into tightening up and rationalizing the functional reporting structure to me. So that those worldwide functional leaders can work in a small team with AJ to provide that speed of response on opportunities and accounts. So, those are three major things that he has been driving. From a pipeline standpoint, I think the best way to characterize it would be to say that it’s maturing the way we expect it to from an existing accounts, just sort of developing more and more to large deals in those opportunities. The area that I think we will see more progress in on the pipeline side is some of the early deals that we have won in the last fiscal year like new logos but small accounts. Those are the ones where I see us getting larger deal opportunities in the next 12 months. So, that’s kind of acquired the customer but now to expand in those accounts is where the big focus is from a pipeline standpoint.

Okay, all right and then last one from me. I guess can you just circle back and say the details around this large customer that has a renewal here in Q1. Can you give us a sense of the scope of this customer? You said the ACV reduction on my note was at 3 million or 4 million, just if you can hit that again with little more detail would be great. Thanks.

So, I think Jeff maybe the number was 3 million, so again what we stated is that this was one of the early customers that was driving us to effectively come up with this premium program which we are now looking to standardize. So, the pricing was more of on a one-off basis, so as we went through the renewal with them, we have come up with a more standardized pricing. I think this is a multiyear booking and so from that perspective we feel good about the visibility that is providing to the revenue but obviously having some impact of course in the ACV number as a result of this renewal.

We will take our next question from Michael Huang with Needham & Company. Michael Huang - Needham & Company: Just another question on that large customer [indiscernible]. In terms of the standardized pricing and how it ripples through other renewals, I mean is there a potential for other customer renewals kind of through the balance of the year which might face the same pricing dynamics?

This one was fairly unique, Michael, but what we expect is that the pricing we have put forward now, the standard pricing that we are putting forward should actually help us upsell the capability to more customers as part of the standard package as opposed to have to do a one-off kind of deal with them. Michael Huang - Needham & Company: Can you share with us -- I'm not sure if you provide specifics on the split metric, but can you share with us kind of the volume of new logos that were signed in the quarter and maybe share with us kind of the mix between new and existing customer in-bookings in Q4?

So we haven’t really broken it down broadly. You may want to provide some color, Eric?

Sure. So I think that for this quarter we’re seeing a pretty healthy mix between the new and existing logos. So it’s roughly I would say close to 50-50 splits of new businesses coming from new and existing. I think to Ashu’s point we saw a nice increase on the number of logos coming from the Cisco Solutions Plus sites. So there is both a combination of mainly new logos with some full on purchases but for the most part there were new logos from the Cisco Solutions Plus angle.

Yes. For the fiscal year overall we think we had about a little over 50 new logos that we signed up for the whole fiscal year, 50. Michael Huang - Needham & Company: And strength here the momentum that -- are you -- do you believe that close to full strength that's kind of the Cisco partnership heading into fiscal ’15 or the Exony acquisition does it all kind of drive some potential to track kind of go to market with Cisco and maybe you could share with us a little bit on kind of what you’ve learned so far on working with Cisco and how that gets applied kind of through fiscal ’15? Thanks.

So as we have mentioned earlier, when we talked about Exony upon the acquisition, their go to market historically has been 100% through the Cisco network, Cisco channel. We believe that, that’s something we want to continue to drive and make sure that we maximize that opportunity. At the same time there is a -- we think that there is good sort of cross-selling opportunity between Exony customer base and eGain customer base, so that’s a program that is underway now. And the last piece is that for us to -- and then this is something that we are now working with an enhanced team sort of eGain classic, Exony classic all working together as one team and figuring out ways that we can create this new sort of product capability that then goes to market. So that’s probably going to be fiscal ’16 business but the early signs in terms of interest from clients and partners is quite encouraging about that sort of voice plus digital engagement capability.

We will take our next question from Mark Chappell with Benchmark.

Eric starting with you, with respect to the cloud revenue growth, I believe it was up about 10% year-over-year in the quarter I think that’s what you stated. Going forward, what can we expect on a more normalized basis in the coming fiscal year?

So I think one item that we are looking at is sort of combining the subscription and supports to include the maintenance stream when we are looking at the recurring revenue I think the given the fact that we’ve got the VS Plus again to date has been primarily on the license side. So I think that’s the reason why we provided the guidance in the blended range of between 10% to 15% for fiscal '15.

Okay. And then I know you don’t give guidance on this front but with respect to how you expect to run the business on a cash flow basis, is it fair to assume that you are looking to break -- run the business on a cash flow breakeven basis each quarter next year?

So I think certainly from an annual basis, that’s where we will be targeting in that range, I think there are some quarters where just from a timing standpoint there may be some fluctuations but definitely on an annual basis that would be the target.

Okay. And then finally I believe the share count is going to bounce around next quarter through the acquisition. Can you give us some help on how to model that?

I think it is approximately an additional 1.5 million.

We will take our next question from Mike Latimore with Northland Capital.

I just wanted to clarify that you are still assuming Exony contributes about 15 million for the year, is that right?

So we didn’t break out that number, so I think we’ve provided a combined number. I think obviously we will continue to work through the details, but at this moment that’s a combined number, that we'll be providing.

And then Eric, you mentioned your combined SaaS and support going forward, do you mean you are going to combine that from a forecast standpoint or are you going to combine that from a reporting standpoint as well? Are we going to be able to see the SaaS or the cloud definitely on a reported basis going forward?

So I think our preference at the moment is to look at in on a combined basis. I think as the business expands where I think we are looking at a term-based licensing as an option as well where we do the on-premise. So I think for us the metric of the recurring revenue we believe over time is going to become more relevant than just the cloud component.

And then the bookings momentum that you referenced in the first quarter, is that a common on organic basis or does that include acquired bookings as well?

So ultimately they will be a component of the combined bookings but obviously for us most of the visibility we've had to-date has been from eGain.

And then the Cisco, the new logo coming from Cisco, I think you said ‘14 into the second half of the year maybe do you know how many of those are -- where Cisco sells into a brand new customer versus Cisco selling your product back into their base of installed customers?

I think the number we said was 12 but hard to say off the top, I know quite a few of those are net new for Cisco as well but I couldn’t give you a quick number of the top.

We will take our next question from Jon Hickman with Ladenburg.

Hi. Ashu, could you explain or give us a little more color on exactly what happened to give you such a big increase in the quarter in the bookings?

Yes, it’s a combination, Jon, organic -- the new bookings as well as the renewals, the strong renewal bookings as well as new bookings.

Okay. And then so just give us a little more clarity on this large renewal for the first quarter, what you are saying is that the company is giving you a good lift in bookings for the quarter but overall during the multiyear life of the contract it’s going to be 3 million lower than it was before that we are selling that?

That is correct.

Okay and then let’s see I think most of my other questions have been asked and answered. So, just to maybe play a few more words in your mouth, since you are saying that the bookings for the Q1 here are trending as in Q4, does that mean you expect bookings in the $20 plus million range for the quarter, should I draw that in, is it safe to draw that inference?

I don’t think we would be comfortable providing a specific number I think at this point.

And we have no further questions at this time. I will turn the conference back over to today’s speakers for any additional or closing remarks.

I want to thank everybody for joining us today. Should you have any further questions give us a call. We also have some upcoming events that we hope to see you at. We are presenting at the Craig-Hallum Conference in New York on September 18th and also wanted to chat about our Analyst and Investor Day that Ashu mentioned at eGain World that’s scheduled for November 4th and 5th. We will be saying our details here very soon. So, look forward to seeing you and thanks for joining us.

That does conclude today’s conference. We appreciate your participation. You may now disconnect.