eGain increases stock repurchase program by $20 million to $60 million

SUNNYVALE, Calif. - eGain Corporation (NASDAQ:EGAN), an AI knowledge platform provider for customer service with a market capitalization of $171.22 million, announced Thursday a $20 million increase to its stock repurchase program, bringing the total authorization from $40 million to $60 million. InvestingPro data confirms management’s commitment to shareholder returns through aggressive share buybacks.

The company has already repurchased approximately $39.8 million of its common stock, leaving about $20.2 million available for future repurchases after this increase. The program will be funded using existing cash or future cash flows. According to InvestingPro analysis, eGain maintains a strong financial position with a healthy current ratio of 1.72 and more cash than debt on its balance sheet.

"Our strong balance sheet allows us to focus on driving long-term shareholder value. This increased authorization underscores our belief that our shares are undervalued and demonstrates our confidence in the AI knowledge market opportunity," said Ashu Roy, eGain’s CEO. With annual revenue of $87.66 million and minimal debt of just $3.8 million, InvestingPro analysis reveals 12 additional key insights about eGain’s financial health and growth prospects, available exclusively to subscribers.

The Board of Directors also approved extending the stock repurchase program until either all authorized shares have been repurchased or the Board decides to terminate the program.

Under the repurchase program, eGain may purchase shares through open market transactions or privately negotiated transactions at prices deemed appropriate by the company. The company may also implement a Rule 10b5-1 plan, which would permit stock repurchases when eGain might otherwise be restricted from doing so under insider trading laws.

The timing and volume of repurchases will be determined based on market conditions and other factors including stock price and trading volume. The program does not obligate eGain to acquire any specific number of shares and may be modified or discontinued at any time.

This announcement was made in a press release statement issued by the company.

In other recent news, eGain Corporation reported a significant increase in its fourth-quarter net income, reaching $30.9 million, compared to $1.5 million in the previous year. This surge was mainly due to a $29 million tax benefit from the release of a valuation allowance. The company also reported total revenue of $23.2 million for the quarter ending June 30, marking a 3% year-over-year increase and an 11% rise sequentially. SaaS revenue, which makes up a large portion of eGain’s business, grew by 6% to $21.7 million.

Additionally, eGain expanded its buyback program, although further details were not disclosed. In another development, eGain issued a warrant to JPMC Strategic Investments I Corporation for the purchase of up to 500,000 shares of eGain’s common stock at an exercise price of $7.10 per share. This transaction is expected to be exempt from registration under the Securities Act of 1933. JPMC Strategic Investments I Corporation, identified as an accredited investor, acquired the warrant for investment purposes.

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