eGain Communications Corporation (EGAN)

[tradeologist]

1Q14 Results Disappoint

For sure most of the major holders have been unloading this past month after poor results for 1Q14,i.e, net loss of $2M. This is a problematic and reoccurring issue facing EGAN since its inception.

EGAN's CRM business model is a low profit margin market sector. Companies don't want to pay top dollar for CRM software that does not generate revenue. High customer turn over together with high sales/management expenses makes it difficult to be profitable.