eGain (EGAN) 10-Q 13 Feb 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 12, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	EGAIN Corp
Entity Central Index Key	1,066,194
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,284,144

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 10,769	$ 10,627
Restricted cash	6	6
Accounts receivable, less allowance for doubtful accounts of $344 and $357 as of December 31, 2017 and June 30, 2017, respectively	6,464	7,201
Deferred commissions	732	690
Prepaid expenses	1,064	1,737
Other current assets	558	370
Total current assets	19,593	20,631
Property and equipment, net	818	1,059
Deferred commissions, net of current portion	668	694
Intangible assets, net	1,741	2,748
Goodwill	13,186	13,186
Other assets	1,386	1,433
Total assets	37,392	39,751
Current liabilities:
Accounts payable	2,043	2,363
Accrued compensation	4,429	4,339
Accrued liabilities	3,086	2,364
Deferred revenue	22,842	18,332
Capital lease obligations	82	108
Bank borrowings, net of deferred financing costs	867	805
Total current liabilities	33,349	28,311
Deferred revenue, net of current portion	6,271	4,887
Capital lease obligations, net of current portion	7	42
Bank borrowings, net of current portion and deferred financing costs	6,324	14,802
Other long term liabilities	1,284	1,330
Total liabilities	47,235	49,372
Commitments and contingencies (Note 5)
Stockholders' deficit:
Common stock, $0.001 par value - authorized: 50,000 shares; outstanding: 27,258 shares as of December 31, 2017 and 27,127 shares as of June 30, 2017	27	27
Additional paid-in capital	344,561	343,367
Notes receivable from stockholders	(84)	(83)
Accumulated other comprehensive loss	(1,722)	(1,663)
Accumulated deficit	(352,625)	(351,269)
Total stockholders' deficit	(9,843)	(9,621)
Total liabilities and stockholders' deficit	$ 37,392	$ 39,751

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 344	$ 357
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	27,258,000	27,127,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenue:
Recurring	$ 12,565	$ 10,982	$ 24,207	$ 21,845
Legacy license	64	1,418	252	3,068
Professional services	2,769	2,599	5,514	4,831
Total revenue	15,398	14,999	29,973	29,744
Cost of recurring	3,166	2,800	6,186	5,727
Cost of legacy license	22	4	40	11
Cost of professional services	2,401	2,259	4,789	4,389
Total cost of revenue	5,589	5,063	11,015	10,127
Gross profit	9,809	9,936	18,958	19,617
Operating expenses:
Research and development	3,708	3,231	7,139	6,906
Sales and marketing	4,729	5,541	8,895	10,781
General and administrative	1,768	1,462	3,574	3,493
Total operating expenses	10,205	10,234	19,608	21,180
Loss from operations	(396)	(298)	(650)	(1,563)
Interest expense, net	(239)	(459)	(583)	(881)
Other income (expense), net	(30)	(73)	(161)	35
Loss before income tax benefit (provision)	(665)	(830)	(1,394)	(2,409)
Income tax benefit (provision)	(123)	(219)	38	(1,051)
Net loss	$ (788)	$ (1,049)	$ (1,356)	$ (3,460)
Per share information:
Basic and diluted net loss per common share	$ (0.03)	$ (0.04)	$ (0.05)	$ (0.13)
Weighted average shares used in computing basic and diluted net loss per common share	27,241	27,106	27,213	27,107

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (788)	$ (1,049)	$ (1,356)	$ (3,460)
Foreign currency translation adjustments	(7)	1	(59)	119
Total comprehensive loss	$ (795)	$ (1,048)	$ (1,415)	$ (3,341)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (1,356,000)	$ (3,460,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	347,000	674,000
Amortization of intangible assets	1,007,000	1,083,000
Amortization of deferred commissions	459,000	455,000
Amortization of deferred financing costs	108,000	87,000
Deferred income taxes	(2,000)	(7,000)
Stock-based compensation	1,055,000	459,000
Provision (recovery) for doubtful accounts	(20,000)	38,000
Loss on disposal of fixed assets	2,000
Changes in operating assets and liabilities
Accounts receivable	902,000	2,817,000
Deferred commissions	(455,000)	(453,000)
Prepaid expenses	683,000	745,000
Other current assets	(173,000)	(35,000)
Other non-current assets	60,000	25,000
Accounts payable	(331,000)	(426,000)
Accrued compensation	25,000	(1,950,000)
Accrued liabilities	627,000	(3,204,000)
Deferred revenue	5,601,000	1,704,000
Other long term liabilities	(63,000)	122,000
Net cash provided by (used in) operating activities	8,476,000	(1,326,000)
Cash flows from investing activities:
Purchases of property and equipment	(91,000)	(223,000)
Net cash used in investing activities	(91,000)	(223,000)
Cash flows from financing activities:
Payments on bank borrowings	(11,219,000)	(5,500,000)
Proceeds from bank borrowings	2,726,000	5,227,000
Payments on capital lease obligations	(63,000)	(175,000)
Payments on common stock repurchased		(5,000)
Proceeds from exercise of stock options	138,000	2,000
Net cash used in financing activities	(8,418,000)	(451,000)
Effect of change in exchange rates on cash and cash equivalents	175,000	(53,000)
Net increase (decrease) in cash and cash equivalents	142,000	(2,053,000)
Cash and cash equivalents at beginning of year	10,627,000	11,780,000
Cash and cash equivalents at end of year	10,769,000	9,727,000
Supplemental cash flow disclosures:
Cash paid for interest	498,000	808,000
Cash paid for taxes	$ 94,000	136,000
Non-cash items:
Purchases of equipment through trade accounts payable		90,000
Property and equipment acquired under a capital lease		$ 117,000

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	6 Months Ended
	Dec. 31, 2017
Summary of Business and Significant Accounting Policies [Abstract]
Summary of Business and Significant Accounting Policies	1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business eGain Corporation (“eGain”, the “Company”, “our”, “we” or “us”) is a leading provider of cloud-based customer engagement software. We help business-to-consumer (B2C) brands deliver connected customer journeys in an omnichannel world. Our suite includes rich applications for digital interaction, knowledge management, and AI-based process guidance. We also provide advanced, integrated analytics for contact centers and digital properties to holistically measure, manage, and optimize resources. We believe the benefits of our solution include reduced customer effort, customer satisfaction, connected service processes, converted upsell opportunities, and improved compliance—across mobile, social, web, and phone. Hundreds of global enterprises rely on eGain to transform fragmented customer service systems into unified Customer Engagement Hubs. We have operations in the United States, United Kingdom and India. Basis of Presentation We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and included the accounts of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), have been condensed or omitted pursuant to such rules and regulations although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, the unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial position, results of operations and cash flows for the periods presented. These condensed consolidated financial statements and notes should be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2017, included in our Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2017 was derived from audited consolidated financial statements as of that date but does not include all the information and footnotes required by GAAP for complete financial statements. The results of our operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending June 30, 2018. Reclassification Certain reclassifications were made to the condensed consolidated financial statements to conform to the current period presentation. As of June 30, 2017, we classify subscription and support revenue as recurring revenue due to the strategic decision to move to a ratable or cloud delivery business model from the hybrid model that included legacy perpetual licenses. These reclassifications did not result in any change in previously reported net losses, total assets or stockholders’ deficit. Business Combinations Business combinations are accounted for at fair value under the purchase method of accounting. Acquisition costs are expensed as incurred and recorded in general and administrative expenses and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the condensed consolidated financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. Segment Information We operate in one segment, the development, license, implementation and support of our customer interaction software solutions. Operating segments are identified as components of an enterprise for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision-makers in order to make decisions about resources to be allocated to the segment and assess its performance. Our chief operating decision-makers, under Accounting Standards Codification (ASC) 280, Segment Reporting , are our executive management team. Our chief operating decision-makers review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company operates in one operating segment and all required financial segment information can be found in the condensed consolidated financial statements. Information relating to our geographic areas for the three and six months ended December 31, 2017 and 2016 is as follows (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Total Revenue: North America $ 8,581 $ 7,600 $ 15,844 $ 14,862 EMEA 6,552 7,289 13,549 14,267 Asia Pacific 265 110 580 615 $ 15,398 $ 14,999 $ 29,973 $ 29,744 Operating Income (Loss): North America $ (1,503) $ (1,468) $ (1,496) $ (3,807) EMEA 2,192 2,247 2,760 4,036 Asia Pacific* (1,085) (1,077) (1,914) (1,792) $ (396) $ (298) $ (650) $ (1,563) * In addition, long-lived assets corresponding to our geographic areas are as follows (unaudited, in thousands): December 31, June 30, 2017 2017 Long-Lived Assets: North America $ 294 $ 463 EMEA 383 497 Asia Pacific 141 99 $ 818 $ 1,059 Concentration of Credit Risks For the three months ended December 31, 2017, one customer accounted for 15% of total revenue. For the three months ended December 31, 2016, one customer accounted for 10% of total revenue. For the six months ended December 31, 2017, one customer accounted for 15% of total revenue. For the six months ended December 31, 2016, two customers each accounted for 10% of total revenue. Revenue Recognition We enter into arrangements to deliver multiple products or services (multiple-elements). We apply software revenue recognition rules and multiple-elements arrangement revenue guidance. Significant management judgments and estimates are made and used to determine the revenue recognized in any accounting period. Material differences may result in changes to the amount and timing of our revenue for any period if different conditions were to prevail. We present revenue, net of taxes collected from customers and remitted to governmental authorities. We derive revenue from three sources: i. Recurring fees (previously referred to as subscription and support) primarily consist of cloud revenue from customers accessing our enterprise cloud computing services, term and ratable license revenue, and maintenance and support revenue; ii. Legacy license fees primarily consist of perpetual software license revenue which we no longer sell to new customers; and iii. Professional services primarily consist of consulting, implementation services and training. Revenue is recognized when all of the following criteria are met: · Persuasive evidence of an arrangement exists: Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. We use signed software licenses, services agreements and order forms as evidence of an arrangement for sales of software, cloud, maintenance and support. We use a signed statement of work as evidence of arrangement for professional services. · Delivery or performance has occurred : Software is delivered to customers electronically, and license files are delivered electronically. Delivery is considered to have occurred when we provide the customer access to the software along with a license file and/or login credentials. · Fees are fixed or determinable: We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are generally not considered to be fixed or determinable. · Collectibility is probable: We assess collectibility based on a number of factors, including the customer’s past payment history and current creditworthiness. Payment terms generally range from 30 to 90 days from invoice date. If we determine that collection of a fee is not reasonably assured, we defer the revenue and recognize it at the time collection becomes reasonably assured, which is generally upon receipt of cash payment. Revenue from sales to resellers is generally recognized upon delivery to the reseller dependent on the facts and circumstances of the transaction, such as our understanding of the reseller’s plans to sell the software, existence of return provisions, price protection or other allowances, the reseller’s financial status and our experience with the reseller. Historically sales to resellers have not included any return provisions, price protections or other allowances. We apply the provisions of Accounting Standards Codification, or ASC, 985-605, Software Revenue Recognition , to all transactions involving the licensing of software products. In the event of a multiple element arrangement for a license transaction, we evaluate the transaction as if each element represents a separate unit of accounting taking into account all factors following the accounting standards. We apply ASC 605, Revenue Recognition, for cloud transactions to determine the accounting treatment for multiple elements. We also apply ASC 605-35 for fixed fee arrangements in which we use the percentage of completion method to recognize revenue when reliable estimates are available for the costs and efforts necessary to complete the implementation services. When such estimates are not available, the completed contract method is utilized. Under the completed contract method, revenue is recognized only when a contract is completed or substantially complete. When legacy perpetual licenses were sold together with system implementation and consulting services, legacy license fees were recognized upon shipment, provided that (i) payment of the license fees were not dependent upon the performance of the consulting and implementation services, (ii) the services were available from other vendors, (iii) the services qualified for separate accounting as we have sufficient experience in providing such services, had the ability to estimate cost of providing such services, and we had vendor-specific objective evidence, or VSOE, of fair value, and (iv) the services were not essential to the functionality of the software. We enter into arrangements with multiple-deliverables that generally include subscription, maintenance and support, and professional services. We evaluate whether each of the elements in these arrangements represents a separate unit of accounting, as defined by ASC 605, using all applicable facts and circumstances, including whether (i) we sell or could readily sell the element unaccompanied by the other elements, (ii) the element has stand-alone value to the customer, and (iii) there is a general right of return. For revenue recognition with multiple-deliverable elements, we apply the selling price hierarchy, which includes VSOE, third-party evidence of selling price, or TPE, and best estimate of selling price, or BESP. We determine the relative selling price for a deliverable based on VSOE, if available, or BESP, if VSOE is not available. We determined that TPE is not a practical alternative due to differences in our service offerings compared to other parties and the availability of relevant third-party pricing information. We determine BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration include our discounting practices, the size and volume of our transactions, customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by our management, taking into consideration the go-to-market strategy. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP. Recurring Revenue Cloud Revenue Cloud revenue consists of subscription fees along with bundled maintenance and support revenue from customers accessing our cloud-based service offerings. We recognize cloud services revenue ratably over the period of the applicable agreement as services are provided. Cloud agreements typically have an initial term of 12 to 36 months and automatically renew unless either party cancels the agreement. The majority of the cloud services customers purchase a combination of our cloud service and professional services. In some cases, the customer may also acquire a license for our software. We consider the applicability of ASC 985-605, on a contract-by-contract basis. In cloud-based agreements, where the customer does not have the contractual right to take possession of the software, the revenue is recognized on a monthly basis over the term of the contract. Invoiced amounts are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. We consider a software element to exist when we determine that the customer has the contractual right to take possession of our software at any time during the cloud period without significant penalty and can feasibly run the software on its own hardware or enter into another arrangement with a third party to host the software. Additionally, we have established VSOE for the cloud and maintenance and support elements of perpetual license sales, based on the prices charged when sold separately and substantive renewal terms. Accordingly, when a software element exists in a cloud services arrangement, license revenue for the perpetual software license element is determined using the residual method and is recognized upon delivery. Revenue for the cloud and maintenance and support elements is recognized ratably over the contractual time period. Professional services are recognized as described below under Professional Services Revenue. If VSOE of fair value cannot be established for the undelivered elements of an agreement, the entire amount of revenue from the arrangement is recognized ratably over the period that these elements are delivered. Term and Ratable License Revenue Term and ratable license revenue includes arrangements where our customers receive license rights to use our software along with bundled maintenance and support services for the term of the contract or the Company has not established VSOE for the bundled multi-year maintenance and support services. The majority of our contracts provide customers with the right to use one or more products up to a specific license capacity. Certain terms of our license agreements stipulate that customers can exceed pre-determined base capacity levels, in which case additional fees are specified in the license agreement. Term license revenue is recognized ratably over the term of the license contract, and ratable license revenue is recognized over the term of the associated bundled maintenance and support contract. Our release of version 15.5 of the perpetual license is a cloud and perpetual license hybrid software which represents a service contract under ASC 605-25. The cloud components are essential to the functionality of the version 15.5 release, and we have a contractual obligation to deliver these cloud components. Per ASC 605-25, a delivered item is considered a separate unit of accounting only if (i) the delivered item has standalone value; and (ii) if the service contract has a general right of return, then delivery and performance of the undelivered item is probable and substantially within the vendor’s control. We cannot separate the cloud components because there is no standalone value of the cloud components. The perpetual license revenue is recognized over the economic life of the software which was determined to be three years. Maintenance and Support Revenue Maintenance and support revenue consists of customers purchasing maintenance and support for our on-premise software. We use VSOE of fair value for maintenance and support to account for the arrangement using the residual method, regardless of any separate prices stated within the contract for each element. Maintenance and support revenue is recognized ratably over the term of the maintenance contract, which is typically one year. Maintenance and support is renewable by the customer on an annual basis. Maintenance and support rates, including subsequent renewal rates, are typically established based upon a specified percentage of net license fees as set forth in the arrangement. Legacy License Revenue Legacy license revenue consists of perpetual license rights sold to customers to use our software in conjunction with related maintenance and support services. If an acceptance period is required, revenue is recognized upon the earlier of customer acceptance or the expiration of the acceptance period. In software arrangements that include rights to multiple software products and/or services, we use the residual method for perpetual licenses released as version 15 or prior under which revenue is allocated to the undelivered elements based on VSOE of the fair value of such undelivered elements. The residual amount of revenue is allocated to the delivered elements and recognized as revenue, assuming all other criteria for revenue recognition have been met. Such undelivered elements in these arrangements typically consist of software maintenance and support, implementation and consulting services and, in some cases, cloud services. Professional Services Revenue Professional services revenue includes system implementation, consulting and training. For license transactions, the majority of our consulting and implementation services qualify for separate accounting. We use VSOE of fair value for the services to account for the arrangement using the residual method, regardless of any separate prices stated within the contract for each element. Our consulting and implementation service contracts are bid either on a fixed-fee basis or on a time-and-materials basis. Substantially all of our contracts are on a time-and-materials basis. For time-and-materials contracts, where the services are not essential to the functionality, we recognize revenue as services are performed. If the services are essential to functionality, then both the product license revenue and the service revenue are recognized under the percentage of completion method. For a fixed-fee contract, we recognize revenue based upon the costs and efforts to complete the services in accordance with the percentage of completion method, provided we are able to estimate such cost and efforts. Under ASC 605-25, in order to account for deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. For cloud services, in determining whether professional services have standalone value, we consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. We have standalone value for consulting and implementation services. For those contracts that have standalone value, we recognized the services revenue when rendered for time and material contracts, when the milestones are achieved and accepted by the customer for fixed price contracts or by percentage of completion basis if there is no acceptance criteria. Training revenue that meets the criteria to be accounted for separately is recognized when training is provided. Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from cloud, term and ratable license, and maintenance and support services and is recognized as the revenue recognition criteria are met. We generally invoice customers in annual or quarterly installments. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements. Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the quarter. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent. Deferred Commissions Deferred commissions are costs associated with cloud and term license contracts with customers and consist of sales commissions to our sales force. Commission expenses are deferred and amortized over the terms of the related customer contracts, which are typically 12 to 36 months. The deferred commission amounts are recognized as sales and marketing expense in the condensed consolidated statements of operations over the terms of the related customer contracts in proportion to the recognition of the associated revenue. Accounts Receivable and Allowance for Doubtful Accounts We extend unsecured credit to our customers on a regular basis. Our accounts receivable are derived from revenue earned from customers and are not interest bearing. We also maintain an allowance for doubtful accounts to reserve for potential uncollectible trade receivables. We review our trade receivables by aging category to identify specific customers with known disputes or collectibility issues. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the U.S. and internationally, and changes in customer financial conditions. If we made different judgments or utilized different estimates, material differences may result in additional reserves for trade receivables, which would be reflected by charges in general and administrative expenses for any period presented. We write off a receivable after all collection efforts have been exhausted and the amount is deemed uncollectible. Deferred Financing Costs Costs relating to obtaining the credit agreement with Wells Fargo Bank are capitalized and amortized over the term of the related debt using the effective interest method. As of December 31, 2017 and June 30, 2017, deferred financing costs were $981,000 and $950,000, respectively, and accumulated amortization was $609,000 and $501,000, respectively. Deferred financing costs are included net of bank borrowings in the accompanying condensed consolidated balance sheets. Amortization of deferred financing costs recorded as interest expense was $46,000 and $43,000 for the three months ended December 31, 2017 and 2016, respectively. Amortization of deferred financing costs recorded as interest expense was $108,000 and $87,000 for the six months ended December 31, 2017 and 2016, respectively. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations as interest expense. Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with ASC 840, Leases . When any one of the four test criteria in ASC 840 is met, the lease then qualifies as a capital lease. Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with our normal depreciation policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. Below is a summary of stock-based compensation included in the costs and expenses (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Stock-Based Compensation: Cost of revenue $ 146 $ 34 $ 209 $ 79 Research and development 275 81 385 169 Sales and marketing 129 58 192 116 General and administrative 186 50 269 95 Total stock-based compensation expense: $ 736 $ 223 $ 1,055 $ 459 We utilized the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted. All shares of our common stock issued pursuant to our stock option plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the Securities and Exchange Commission on a Registration Statement on Form S-8. On September 19, 2017, our board of directors approved a repricing to $2.50 of certain outstanding options under our 2005 Stock Incentive Plan held by employees who are not executive officers or directors of the Company. The repricing applied to options held by such employees with an exercise price greater than $2.50 per share which was the closing stock price as reported on Nasdaq on September 19, 2017. In accordance with ASC 718, as applicable to the repricing on September 19, 2017, a modification to the price of an option should be treated as an exchange of the original option for a new option. The calculation of the incremental value associated with the new option is based on the excess of the fair value of the modified option based on current assumptions over the fair value of the original option measured immediately before its price is modified based on current assumptions. As of December 31, 2017, we finalized our accounting estimates related to the repricing. Total incremental stock-based compensation expense was $445,000. We recognized $276,000 and $414,000 in incremental stock-based compensation expense during the three and six months ended December 31, 2017, respectively. Unrecognized incremental stock-based compensation expense was $31,000 as of December 31, 2017. During the three months ended December 31, 2017 and 2016, we granted options to purchase 357,400 and 46,100 shares of common stock with a weighted-average fair value of $1.65 and $1.17 per share, respectively. During the six months ended December 31, 2017 and 2016, we granted options to purchase 1,472,541 and 86,100 shares of common stock with a weighted-average fair value of $1.26 and $1.21 per share, respectively. In connection with the repricing and finalizing our estimates as of December 31, 2017, we repriced options to purchase 804,172 shares of common stock which were previously granted between May 2011 through September 2016, with a weighted-average fair value of $1.19 per share. We used the following assumptions: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Dividend yield — — — — Expected volatility 59 % 52 % 57 % 54 % Average risk-free interest rate 2.07 % 1.61 % 1.88 % 1.39 % Expected life (in years) 4.36 5.03 4.51 5.98 The dividend yield of zero is based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. We determined the appropriate measure of expected volatility by reviewing historic volatility in the share price of our common stock, as adjusted for certain events that management deemed to be non-recurring and non-indicative of future events. The risk-free interest rate is derived from the average U.S. Treasury Strips rate with maturities approximating the expected lives of the awards during the period, which approximate the rate in effect at the time of the grant. We base our estimate of expected life of a stock option on the historical exercise behavior, and cancellations of all past option grants made by the Company during the time period which its equity shares have been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options. In accordance with Accounting Standards Updates (ASU) 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense. Total compensation cost, net of forfeitures, of all options granted but not yet vested as of December 31, 2017 was $1.3 million, which is expected to be recognized over the weighted-average period of 1.73 years. There were 34,899 and 1,600 options exercised during the three months ended December 31, 2017 and 2016, respectively. There were 138,049 and 1,600 options exercised during the six months ended December 31, 2017 and 2016, respectively. New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides guidance about which changes to the terms or conditions of a shared-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from goodwill impairment testing. The FASB also eliminated requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019 (our fiscal 2021), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We early adopted this guidance in fiscal year 2017. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which provides specific guidance on how to classify restricted cash. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting

Net Loss per Common Share

Net Loss per Common Share	6 Months Ended
	Dec. 31, 2017
Net Loss per Common Share
Net Loss per Common Share	2. NET LOSS PER COMMON SHARE Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding. In periods where net income is reported, the weighted average number of shares is increased by warrants and options in the money to calculate diluted net income per common share. The following table represents the calculation of basic and diluted net loss per common share (unaudited, in thousands, except per share data): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Net loss applicable to common stockholders $ (788) $ (1,049) $ (1,356) $ (3,460) Basic and diluted net loss per common stock $ (0.03) $ (0.04) $ (0.05) $ (0.13) Weighted-average common shares used in computing basic and diluted net loss per common share 27,241 27,106 27,213 27,107 Weighted-average shares of stock options to purchase 3,505,992 and 2,397,027 shares of common stock for the three months ended December 31, 2017 and 2016, respectively, and weighted-average shares of stock options to purchase 2,926,900 and 2,437,979 for the six months ended December 31, 2017 and 2016, respectively, were not included in the computation of diluted net loss per common share due to their anti-dilutive effect. Such securities could have a dilutive effect in future periods.

Bank Borrowings

Bank Borrowings	6 Months Ended
	Dec. 31, 2017
Bank Borrowings [Abstract]
Bank Borrowings	3. BANK BORROWINGS On November 21, 2014, we entered into a Credit Agreement (as further amended, restated, supplemented or otherwise modified from time to time, the Credit Agreement) with Wells Fargo Bank, as administrative agent and the lenders party thereto. The Credit Agreement provides for the extension of revolving loans (Revolving Loans) in an aggregate principal amount not to exceed $10.0 million, and a term loan (Term Loan) in an aggregate principal amount not to exceed $10.0 million, but in each case limited by an amount not to exceed 60% of our trailing twelve month recurring revenue from subscription and support fees attributable to software, as calculated under the Credit Agreement. The obligations under the Credit Agreement mature on November 21, 2019. Borrowings under the Credit Agreement bear interest, in the case of LIBOR rate loans, at a per annum rate equal to the applicable LIBOR rate, plus 4.75%. Borrowings under the Credit Agreement that are not LIBOR rate loans bear interest at a per annum rate equal to (i) the greatest of (A) the Federal Funds Rate plus 0.50%, (B) the one month LIBOR rate plus 1.00% per annum, and (C) the rate of interest announced, from time to time, by Wells Fargo Bank, National Association as its “prime rate,” plus (ii) 3.75%. We will pay certain recurring fees with respect to the Credit Agreement, including servicing fees to the administrative agent. Prior to the first anniversary of the closing date of the Credit Agreement, voluntary repayments of the Term Loan, voluntary permanent reductions of the commitment related to the Revolving Loans and certain mandatory prepayments are subject a prepayment premium of 1.0% of the amount prepaid or reduced. Subject to certain exceptions, the loans extended under the Credit Agreement are subject to customary mandatory prepayment provisions with respect to the following: net proceeds from certain asset sales; net proceeds from certain issuances or incurrences of debt (other than debt permitted to be incurred under the terms of the Credit Agreement); net proceeds of certain judgments, settlements and other claims or causes of action of us; and a portion with step-downs based upon the achievement of a financial covenant linked to the Leverage Ratio (as such term is defined in the Credit Agreement) of our annual excess cash flow and our subsidiaries, and with such required prepayment amount to be reduced dollar-for-dollar by any voluntary prepayments of the Term Loans. The Credit Agreement contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting our ability and our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers or other fundamental changes; consummate acquisitions; sell certain property or assets; change the nature of their business; prepay or amend certain indebtedness; pay dividends, other distributions or repurchase our equity interests or our subsidiaries; make investments; or engage in certain transactions with affiliates. In addition, the Credit Agreement contains financial covenants which initially require us to achieve minimum EBITDA and liquidity levels. However, subject to the conditions of the Credit Agreement, once we have achieved a minimum Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of 1.50 to 1.00 and a Leverage Ratio of less than 2.50 to 1.00, we will be required to comply with a minimum Fixed Charge Coverage Ratio and a specific Leverage Ratio. The Credit Agreement contains customary events of default, including with respect to: nonpayment of principal, interest, fees or other amounts; failure to perform or observe covenants; monetary judgment defaults; bankruptcy, insolvency and dissolution events; cross-default to other material indebtedness; material inaccuracy of a representation or warranty when made; failure to perfect a lien; actual or asserted invalidity or impairment of any definitive loan documentation or repudiation of guaranties; or a change of control. As a condition to entering into the Credit Agreement, we pledged substantially all assets such as accounts receivable and property and equipment as collateral for the benefit of Wells Fargo Bank. On September 2, 2015, the Company entered into Amendment Number One to the Credit Agreement (the Amendment No. 1), which amends the Credit Agreement. Pursuant to the Amendment No. 1, we increased the total maximum Revolving Loan commitments thereunder from $10.0 million to $15.0 million and increased the quarterly amortization payments of the Term Loan under the Credit Agreement to $187,500 for the quarters ended September 30, 2015 through December 31, 2015 and $250,000 in each quarter ending thereafter. Borrowings under the Credit Agreement bear interest, in the case of LIBOR rate loans, at a per annum rate equal to the applicable LIBOR rate, plus 7.0%. Borrowings under the Credit Agreement that are not LIBOR rate loans bear interest at a per annum rate equal to the rate of interest announced, from time to time, by Wells Fargo Bank, National Association as its “prime rate,” plus 6.0%. In connection with the Amendment No. 1, certain fees were also modified such that prior to the first anniversary of the Amendment No. 1, voluntary repayments of the Term Loan, voluntary permanent reductions of the commitment related to the Revolving Loans and certain mandatory prepayments will be subject a prepayment premium of 1.0% of the amount prepaid or reduced. On January 27, 2017, the Company entered into Amendment Number Two to the Credit Agreement (the Amendment No. 2), which amends the Credit Agreement. Pursuant to the Amendment No. 2, the Applicable Margin (as defined in the Credit Agreement) at which LIBOR loans advanced under the Credit Agreement bear interest may be either the applicable LIBOR rate plus 5.5% per annum or 7.0% per annum, depending on the Company’s TTM Recurring Revenue Calculation (as defined in the Credit Agreement). The TTM Recurring Revenue Calculation is based on the Company’s consolidated trailing twelve months of revenue relating to recurring revenue attributable to the Company’s software. Loans may also bear interest under the Credit Agreement at the applicable Base Rate (as defined in the Credit Agreement) and the corresponding Applicable Margin for Base Rate loans is 1.0% per annum less than for LIBOR loans. Under the Amendment No. 2, a 1.0% fee will also be payable until the first anniversary of the Amendment No. 2 on the amount of any voluntary prepayment of the Term Loan advanced under the Credit Agreement or the amount of any voluntary reduction of Revolving Loan commitments provided under the Credit Agreement. The Amendment No. 2 modifies the two financial covenants the Company is required to comply with until the Financial Covenant Replacement Date (as defined in the Credit Agreement) has occurred. The Financial Covenant Replacement Date is the first day of the fiscal quarter following the date on which the Company has achieved (i) a Fixed Charge Coverage Ratio equal to or greater than 1.50 to 1.00 and (ii) a Leverage Ratio of less than 2.50 to 1.00 for the immediately preceding two consecutive fiscal quarters (as such terms are defined in the Credit Agreement). In addition, the Financial Covenant Replacement Date will not be deemed to occur unless the Company is in compliance with the applicable Leverage Ratio as of the last day of the fiscal quarter preceding the test date. As of December 31, 2017, the Fixed Charge Coverage Ratio and Leverage Ratio financial covenants were not applicable, and the Financial Covenant Replacement Date was not deemed to have occurred. Under the Amendment No. 2 the minimum EBITDA (as defined in the Credit Agreement) levels the Company is required to achieve on and prior to the Financial Covenant Replacement Date were modified to be, as of the end of each fiscal quarter, at the least the amount set forth in the table below for the applicable period opposite such amount (unaudited, in thousands): For the four quarter period ending Applicable Amount December 31, 2017 (5,100) March 31, 2018 (3,800) June 30, 2018 (3,000) September 30, 2018 (1,500) December 31, 2018 — March 31, 2019 1,500 June 30, 2019 3,000 September 30, 2019 4,000 In addition, the amount of Liquidity (as defined in the Credit Agreement) which the Company is required to maintain on and prior to the Financial Covenant Replacement Date was reduced from $10.0 million to $4.0 million. Liquidity is calculated based on available credit under the Revolving Loan commitments and balances in certain bank accounts used for operations. The amount of Liquidity was $21.7 million as of December 31, 2017. As of December 31, 2017, we were in compliance with these financial covenant terms. As of December 31, 2017, balances on the Term Loan, Revolving Loans and debt maturities were (unaudited, in thousands): December 31, June 30, 2017 2017 Bank Borrowings: Term Loan $ 7,375 $ 7,875 Revolving Loan 188 8,181 Subtotal of bank borrowings 7,563 16,056 Less amounts representing deferred financing costs (372) (449) Total bank borrowings 7,191 15,607 Less current maturities (867) (805) Bank borrowings, net of current portion and deferred financing costs $ 6,324 $ 14,802

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2017
Income Taxes [Abstract]
Income Taxes	4. INCOME TAXES Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Tax (“ASC 740”). Under this method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance and the reported cumulative net losses in all prior years, we have provided a full valuation allowance against our net deferred tax assets. For the legacy eGain business in the United Kingdom, the Company has determined based on the positive evidence it would be able to utilize the deferred tax assets and therefore released the valuation allowance against the deferred tax assets in the United Kingdom in fiscal year 2016. The remaining eGain foreign operations including Exony Ltd.’s business historically have been profitable, and we believe it is more likely than not that those assets will be realized. Our tax provision primarily relates to foreign operations and realized benefits of amortized book intangibles as well as state income taxes. Our income tax rate differs from the statutory tax rates primarily due to the utilization of net operating loss carry-forwards which had previously been valued against as well as different tax rates in our foreign operations. The Company accounts for uncertain tax positions according to the provisions of ASC 740. ASC 740 contains a two-step approach for recognizing and measuring uncertain tax positions. Tax positions are evaluated for recognition by determining if the weight of available evidence indicates that it is probable that the position will be sustained on audit, including resolution of related appeals or litigation. Tax benefits are then measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. No material changes have occurred in the Company’s tax positions taken as of December 31, 2017 and during the six months ended December 31, 2017. We adopted ASU 2016-09 , Compensation – Stock Compensation: Improvements to Employee Share-Based Accounting , in the first quarter of our fiscal 2018. No cumulative effect adjustment was recorded to our accumulated deficit as the U.S. deferred tax assets from previously unrecognized excess tax benefits were fully offset by a full valuation allowance, and we did not elect to change our policy of estimating expected forfeitures. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act revised the taxation of U.S. and multinational corporations, which, among other things, significantly reduced the statutory corporate U.S. federal income tax rate from 35% to 21%, imposed limitations on the ability of corporations to deduct interest expense, and made changes to the way a U.S. multinational’s foreign operations are taxed. The provisions of the Act are complex and likely will be the subject of regulatory and administrative guidance. As the Company has a June 30 fiscal year end, the lower corporate tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. As part of the transition to the new territorial tax system, the Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate will cause us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21%. We are currently evaluating the financial impact that this new tax legislation will have on our consolidated financial statements and accompanying notes for our fiscal year ending June 30, 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	5. COMMITMENTS AND CONTINGENCIES Leases We entered into a sublease agreement that commenced on August 8, 2015 and that expired on August 31, 2016. Rental income from the sublease was approximately $426,000 for the year ended June 30, 2016. The sublease tenant did not renew and in accordance with ASC 420, Exit or Disposal Cost Obligations, we recorded a $305,000 lease exit liability and related rent expense on June 30, 2016 for an expected loss on the sublease for approximately 22,000 square feet of space as we will not receive sublease payments until another sublease tenant is found. The sublease is under our master lease agreement for our Sunnyvale facility. We classified the $305,000 lease exit liability in current liabilities in the accompanying condensed consolidated balance sheets as of June 30, 2016. Future minimum lease payments under non-cancellable operating leases are offset with sublease income when tenancy is secured. In December 2016, we entered into a two-year sublease agreement for the 22,000 square feet of space with a subtenant that commenced on January 1, 2017. As a result, the remaining lease exit liability was reversed as a credit to rent expense during the three months ended December 31, 2016. Rental income from the sublease was $154,000 and $309,000 during the three and six months ended December 31, 2017. Warranty We generally warrant that the program portion of our software will perform substantially in accordance with certain specifications for a period up to one year from the date of delivery. Our liability for a breach of this warranty is either a return of the license fee or providing a fix, patch, work-around or replacement of the software. We also provide standard warranties against and indemnification for the potential infringement of third party intellectual property rights to our customers relating to the use of our products, as well as indemnification agreements with certain officers and employees under which we may be required to indemnify such persons for liabilities arising out of their duties to us. The terms of such obligations vary. Generally, the maximum obligation is the amount permitted by law. Historically, costs related to these warranties have not been significant. Accordingly, we have no liabilities recorded for these costs as of December 31, 2017 and June 30, 2017. However, we cannot guarantee that a warranty reserve will not become necessary in the future. Indemnification We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. Transfer pricing We have received transfer pricing assessments from tax authorities with regard to transfer pricing issues for certain fiscal years, which we have appealed with the appropriate authority. We believe that such assessments are without merit and would not have a significant impact on our condensed consolidated financial statements. Litigation In the ordinary course of business, we are from time to time involved in various legal proceedings and claims related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour, and other claims. We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to injunction if they are found to infringe the rights of a third party. In addition, our agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could increase the cost to us of an adverse ruling on such a claim.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Dec. 31, 2017
Fair Value Measurement [Abstract]
Fair Value Measurement	6. FAIR VALUE MEASUREMENT ASC 820, Fair Value Measurement (“ASC 820”), defines fair value, establishes a framework for measuring fair value of assets and liabilities, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the assets or liabilities in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. ASC 820 applies whenever other statements require or permit assets or liabilities to be measured at fair value. ASC 820 includes a fair value hierarchy, of which the first two are considered observable and the last unobservable, that is intended to increase the consistency and comparability in fair value measurements and related disclosures. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: Level 1 – instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 – instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 – instrument valuations are obtained without observable market value and require a high level of judgment to determine the fair value. As of December 31, 2017 and June 30, 2017, we did not have any material Level 1, 2, or 3 assets or liabilities.

Share Repurchase Program

Share Repurchase Program	6 Months Ended
	Dec. 31, 2017
Share Repurchase Program
Share Repurchase Program	7. SHARE REPURCHASE PROGRAM On September 14, 2009, we announced that our board of directors approved a repurchase program under which we may purchase up to 1,000,000 shares of our common stock. The duration of the repurchase program is open-ended. Under the program, we purchase shares of common stock from time to time through the open market and privately negotiated transactions at prices deemed appropriate by management. The repurchase is funded by cash on hand. No shares were repurchased during the three and six months ended December 31, 2017. We repurchased 4,557 shares of common stock related to a departed employee during the three and six months ended December 31, 2016.

Intangible Assets

Intangible Assets	6 Months Ended
	Dec. 31, 2017
Intangible Assets
Intangible assets	8. INTANGIBLE ASSETS Intangible assets will be amortized over the estimated lives, as follows (in thousands): Intangible Asset Gross Carrying Amount Accumulated Amortization Net Balance December 31, 2017 Life Income Statement Category Developed technology $6,990 $(5,946) $1,044 4 Research and development expense Customer relationships - software contracts 1,380 (1,380) — 2 Sales and marketing expense Customer relationships - maintenance contracts 1,610 (913) 697 6 Cost of sales Trade name 150 (150) — 2 General and administrative expense $10,130 $(8,389) $1,741 Intangible Asset Gross Carrying Amount Accumulated Amortization Net Balance June 30, 2017 Life Income Statement Category Developed technology $6,990 $(5,073) $1,917 4 Research and development expense Customer relationships - software contracts 1,380 (1,380) — 2 Sales and marketing expense Customer relationships - maintenance contracts 1,610 (779) 831 6 Cost of sales Trade name 150 (150) — 2 General and administrative expense $10,130 $(7,382) $2,748 Amortization expense related to the above intangible assets for each of the three months ended December 31, 2017 and 2016 was $503,000 and $504,000, respectively. Amortization expense related to the above intangible assets for the six months ended December 31, 2017 and 2016 was $1.0 million and $1.1 million, respectively. Estimated future amortization expense remaining as of December 31, 2017 for intangible assets acquired is as follows: Year Ending June 30, 2018 $ 1,009 2019 438 2020 268 2021 26 Total future amortization expense $ 1,741

Summary of Business and Signi15

Summary of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2017
Summary of Business and Significant Accounting Policies [Abstract]
Organization and Nature of Business	Organization and Nature of Business eGain Corporation (“eGain”, the “Company”, “our”, “we” or “us”) is a leading provider of cloud-based customer engagement software. We help business-to-consumer (B2C) brands deliver connected customer journeys in an omnichannel world. Our suite includes rich applications for digital interaction, knowledge management, and AI-based process guidance. We also provide advanced, integrated analytics for contact centers and digital properties to holistically measure, manage, and optimize resources. We believe the benefits of our solution include reduced customer effort, customer satisfaction, connected service processes, converted upsell opportunities, and improved compliance—across mobile, social, web, and phone. Hundreds of global enterprises rely on eGain to transform fragmented customer service systems into unified Customer Engagement Hubs. We have operations in the United States, United Kingdom and India.
Basis of Presentation	Basis of Presentation We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and included the accounts of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), have been condensed or omitted pursuant to such rules and regulations although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, the unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial position, results of operations and cash flows for the periods presented. These condensed consolidated financial statements and notes should be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2017, included in our Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2017 was derived from audited consolidated financial statements as of that date but does not include all the information and footnotes required by GAAP for complete financial statements. The results of our operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending June 30, 2018.
Reclassification	Reclassification Certain reclassifications were made to the condensed consolidated financial statements to conform to the current period presentation. As of June 30, 2017, we classify subscription and support revenue as recurring revenue due to the strategic decision to move to a ratable or cloud delivery business model from the hybrid model that included legacy perpetual licenses. These reclassifications did not result in any change in previously reported net losses, total assets or stockholders’ deficit.
Business Combinations	Business Combinations Business combinations are accounted for at fair value under the purchase method of accounting. Acquisition costs are expensed as incurred and recorded in general and administrative expenses and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the condensed consolidated financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets.
Segment Information	Segment Information We operate in one segment, the development, license, implementation and support of our customer interaction software solutions. Operating segments are identified as components of an enterprise for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision-makers in order to make decisions about resources to be allocated to the segment and assess its performance. Our chief operating decision-makers, under Accounting Standards Codification (ASC) 280, Segment Reporting , are our executive management team. Our chief operating decision-makers review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company operates in one operating segment and all required financial segment information can be found in the condensed consolidated financial statements. Information relating to our geographic areas for the three and six months ended December 31, 2017 and 2016 is as follows (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Total Revenue: North America $ 8,581 $ 7,600 $ 15,844 $ 14,862 EMEA 6,552 7,289 13,549 14,267 Asia Pacific 265 110 580 615 $ 15,398 $ 14,999 $ 29,973 $ 29,744 Operating Income (Loss): North America $ (1,503) $ (1,468) $ (1,496) $ (3,807) EMEA 2,192 2,247 2,760 4,036 Asia Pacific* (1,085) (1,077) (1,914) (1,792) $ (396) $ (298) $ (650) $ (1,563) * In addition, long-lived assets corresponding to our geographic areas are as follows (unaudited, in thousands): December 31, June 30, 2017 2017 Long-Lived Assets: North America $ 294 $ 463 EMEA 383 497 Asia Pacific 141 99 $ 818 $ 1,059
Concentration Risk Credit Risk	Concentration of Credit Risks For the three months ended December 31, 2017, one customer accounted for 15% of total revenue. For the three months ended December 31, 2016, one customer accounted for 10% of total revenue. For the six months ended December 31, 2017, one customer accounted for 15% of total revenue. For the six months ended December 31, 2016, two customers each accounted for 10% of total revenue.
Revenue Recognition	Revenue Recognition We enter into arrangements to deliver multiple products or services (multiple-elements). We apply software revenue recognition rules and multiple-elements arrangement revenue guidance. Significant management judgments and estimates are made and used to determine the revenue recognized in any accounting period. Material differences may result in changes to the amount and timing of our revenue for any period if different conditions were to prevail. We present revenue, net of taxes collected from customers and remitted to governmental authorities. We derive revenue from three sources: i. Recurring fees (previously referred to as subscription and support) primarily consist of cloud revenue from customers accessing our enterprise cloud computing services, term and ratable license revenue, and maintenance and support revenue; ii. Legacy license fees primarily consist of perpetual software license revenue which we no longer sell to new customers; and iii. Professional services primarily consist of consulting, implementation services and training. Revenue is recognized when all of the following criteria are met: · Persuasive evidence of an arrangement exists: Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. We use signed software licenses, services agreements and order forms as evidence of an arrangement for sales of software, cloud, maintenance and support. We use a signed statement of work as evidence of arrangement for professional services. · Delivery or performance has occurred : Software is delivered to customers electronically, and license files are delivered electronically. Delivery is considered to have occurred when we provide the customer access to the software along with a license file and/or login credentials. · Fees are fixed or determinable: We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are generally not considered to be fixed or determinable. · Collectibility is probable: We assess collectibility based on a number of factors, including the customer’s past payment history and current creditworthiness. Payment terms generally range from 30 to 90 days from invoice date. If we determine that collection of a fee is not reasonably assured, we defer the revenue and recognize it at the time collection becomes reasonably assured, which is generally upon receipt of cash payment. Revenue from sales to resellers is generally recognized upon delivery to the reseller dependent on the facts and circumstances of the transaction, such as our understanding of the reseller’s plans to sell the software, existence of return provisions, price protection or other allowances, the reseller’s financial status and our experience with the reseller. Historically sales to resellers have not included any return provisions, price protections or other allowances. We apply the provisions of Accounting Standards Codification, or ASC, 985-605, Software Revenue Recognition , to all transactions involving the licensing of software products. In the event of a multiple element arrangement for a license transaction, we evaluate the transaction as if each element represents a separate unit of accounting taking into account all factors following the accounting standards. We apply ASC 605, Revenue Recognition, for cloud transactions to determine the accounting treatment for multiple elements. We also apply ASC 605-35 for fixed fee arrangements in which we use the percentage of completion method to recognize revenue when reliable estimates are available for the costs and efforts necessary to complete the implementation services. When such estimates are not available, the completed contract method is utilized. Under the completed contract method, revenue is recognized only when a contract is completed or substantially complete. When legacy perpetual licenses were sold together with system implementation and consulting services, legacy license fees were recognized upon shipment, provided that (i) payment of the license fees were not dependent upon the performance of the consulting and implementation services, (ii) the services were available from other vendors, (iii) the services qualified for separate accounting as we have sufficient experience in providing such services, had the ability to estimate cost of providing such services, and we had vendor-specific objective evidence, or VSOE, of fair value, and (iv) the services were not essential to the functionality of the software. We enter into arrangements with multiple-deliverables that generally include subscription, maintenance and support, and professional services. We evaluate whether each of the elements in these arrangements represents a separate unit of accounting, as defined by ASC 605, using all applicable facts and circumstances, including whether (i) we sell or could readily sell the element unaccompanied by the other elements, (ii) the element has stand-alone value to the customer, and (iii) there is a general right of return. For revenue recognition with multiple-deliverable elements, we apply the selling price hierarchy, which includes VSOE, third-party evidence of selling price, or TPE, and best estimate of selling price, or BESP. We determine the relative selling price for a deliverable based on VSOE, if available, or BESP, if VSOE is not available. We determined that TPE is not a practical alternative due to differences in our service offerings compared to other parties and the availability of relevant third-party pricing information. We determine BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration include our discounting practices, the size and volume of our transactions, customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by our management, taking into consideration the go-to-market strategy. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP. Recurring Revenue Cloud Revenue Cloud revenue consists of subscription fees along with bundled maintenance and support revenue from customers accessing our cloud-based service offerings. We recognize cloud services revenue ratably over the period of the applicable agreement as services are provided. Cloud agreements typically have an initial term of 12 to 36 months and automatically renew unless either party cancels the agreement. The majority of the cloud services customers purchase a combination of our cloud service and professional services. In some cases, the customer may also acquire a license for our software. We consider the applicability of ASC 985-605, on a contract-by-contract basis. In cloud-based agreements, where the customer does not have the contractual right to take possession of the software, the revenue is recognized on a monthly basis over the term of the contract. Invoiced amounts are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. We consider a software element to exist when we determine that the customer has the contractual right to take possession of our software at any time during the cloud period without significant penalty and can feasibly run the software on its own hardware or enter into another arrangement with a third party to host the software. Additionally, we have established VSOE for the cloud and maintenance and support elements of perpetual license sales, based on the prices charged when sold separately and substantive renewal terms. Accordingly, when a software element exists in a cloud services arrangement, license revenue for the perpetual software license element is determined using the residual method and is recognized upon delivery. Revenue for the cloud and maintenance and support elements is recognized ratably over the contractual time period. Professional services are recognized as described below under Professional Services Revenue. If VSOE of fair value cannot be established for the undelivered elements of an agreement, the entire amount of revenue from the arrangement is recognized ratably over the period that these elements are delivered. Term and Ratable License Revenue Term and ratable license revenue includes arrangements where our customers receive license rights to use our software along with bundled maintenance and support services for the term of the contract or the Company has not established VSOE for the bundled multi-year maintenance and support services. The majority of our contracts provide customers with the right to use one or more products up to a specific license capacity. Certain terms of our license agreements stipulate that customers can exceed pre-determined base capacity levels, in which case additional fees are specified in the license agreement. Term license revenue is recognized ratably over the term of the license contract, and ratable license revenue is recognized over the term of the associated bundled maintenance and support contract. Our release of version 15.5 of the perpetual license is a cloud and perpetual license hybrid software which represents a service contract under ASC 605-25. The cloud components are essential to the functionality of the version 15.5 release, and we have a contractual obligation to deliver these cloud components. Per ASC 605-25, a delivered item is considered a separate unit of accounting only if (i) the delivered item has standalone value; and (ii) if the service contract has a general right of return, then delivery and performance of the undelivered item is probable and substantially within the vendor’s control. We cannot separate the cloud components because there is no standalone value of the cloud components. The perpetual license revenue is recognized over the economic life of the software which was determined to be three years. Maintenance and Support Revenue Maintenance and support revenue consists of customers purchasing maintenance and support for our on-premise software. We use VSOE of fair value for maintenance and support to account for the arrangement using the residual method, regardless of any separate prices stated within the contract for each element. Maintenance and support revenue is recognized ratably over the term of the maintenance contract, which is typically one year. Maintenance and support is renewable by the customer on an annual basis. Maintenance and support rates, including subsequent renewal rates, are typically established based upon a specified percentage of net license fees as set forth in the arrangement. Legacy License Revenue Legacy license revenue consists of perpetual license rights sold to customers to use our software in conjunction with related maintenance and support services. If an acceptance period is required, revenue is recognized upon the earlier of customer acceptance or the expiration of the acceptance period. In software arrangements that include rights to multiple software products and/or services, we use the residual method for perpetual licenses released as version 15 or prior under which revenue is allocated to the undelivered elements based on VSOE of the fair value of such undelivered elements. The residual amount of revenue is allocated to the delivered elements and recognized as revenue, assuming all other criteria for revenue recognition have been met. Such undelivered elements in these arrangements typically consist of software maintenance and support, implementation and consulting services and, in some cases, cloud services. Professional Services Revenue Professional services revenue includes system implementation, consulting and training. For license transactions, the majority of our consulting and implementation services qualify for separate accounting. We use VSOE of fair value for the services to account for the arrangement using the residual method, regardless of any separate prices stated within the contract for each element. Our consulting and implementation service contracts are bid either on a fixed-fee basis or on a time-and-materials basis. Substantially all of our contracts are on a time-and-materials basis. For time-and-materials contracts, where the services are not essential to the functionality, we recognize revenue as services are performed. If the services are essential to functionality, then both the product license revenue and the service revenue are recognized under the percentage of completion method. For a fixed-fee contract, we recognize revenue based upon the costs and efforts to complete the services in accordance with the percentage of completion method, provided we are able to estimate such cost and efforts. Under ASC 605-25, in order to account for deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. For cloud services, in determining whether professional services have standalone value, we consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. We have standalone value for consulting and implementation services. For those contracts that have standalone value, we recognized the services revenue when rendered for time and material contracts, when the milestones are achieved and accepted by the customer for fixed price contracts or by percentage of completion basis if there is no acceptance criteria. Training revenue that meets the criteria to be accounted for separately is recognized when training is provided.
Deferred Revenue	Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from cloud, term and ratable license, and maintenance and support services and is recognized as the revenue recognition criteria are met. We generally invoice customers in annual or quarterly installments. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements. Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the quarter. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent.
Deferred Commissions	Deferred Commissions Deferred commissions are costs associated with cloud and term license contracts with customers and consist of sales commissions to our sales force. Commission expenses are deferred and amortized over the terms of the related customer contracts, which are typically 12 to 36 months. The deferred commission amounts are recognized as sales and marketing expense in the condensed consolidated statements of operations over the terms of the related customer contracts in proportion to the recognition of the associated revenue.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts We extend unsecured credit to our customers on a regular basis. Our accounts receivable are derived from revenue earned from customers and are not interest bearing. We also maintain an allowance for doubtful accounts to reserve for potential uncollectible trade receivables. We review our trade receivables by aging category to identify specific customers with known disputes or collectibility issues. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the U.S. and internationally, and changes in customer financial conditions. If we made different judgments or utilized different estimates, material differences may result in additional reserves for trade receivables, which would be reflected by charges in general and administrative expenses for any period presented. We write off a receivable after all collection efforts have been exhausted and the amount is deemed uncollectible.
Deferred Financing Costs	Deferred Financing Costs Costs relating to obtaining the credit agreement with Wells Fargo Bank are capitalized and amortized over the term of the related debt using the effective interest method. As of December 31, 2017 and June 30, 2017, deferred financing costs were $981,000 and $950,000, respectively, and accumulated amortization was $609,000 and $501,000, respectively. Deferred financing costs are included net of bank borrowings in the accompanying condensed consolidated balance sheets. Amortization of deferred financing costs recorded as interest expense was $46,000 and $43,000 for the three months ended December 31, 2017 and 2016, respectively. Amortization of deferred financing costs recorded as interest expense was $108,000 and $87,000 for the six months ended December 31, 2017 and 2016, respectively. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations as interest expense.
Leases	Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with ASC 840, Leases . When any one of the four test criteria in ASC 840 is met, the lease then qualifies as a capital lease. Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with our normal depreciation policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term.
Stock-Based Compensation	Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. Below is a summary of stock-based compensation included in the costs and expenses (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Stock-Based Compensation: Cost of revenue $ 146 $ 34 $ 209 $ 79 Research and development 275 81 385 169 Sales and marketing 129 58 192 116 General and administrative 186 50 269 95 Total stock-based compensation expense: $ 736 $ 223 $ 1,055 $ 459 We utilized the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted. All shares of our common stock issued pursuant to our stock option plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the Securities and Exchange Commission on a Registration Statement on Form S-8. On September 19, 2017, our board of directors approved a repricing to $2.50 of certain outstanding options under our 2005 Stock Incentive Plan held by employees who are not executive officers or directors of the Company. The repricing applied to options held by such employees with an exercise price greater than $2.50 per share which was the closing stock price as reported on Nasdaq on September 19, 2017. In accordance with ASC 718, as applicable to the repricing on September 19, 2017, a modification to the price of an option should be treated as an exchange of the original option for a new option. The calculation of the incremental value associated with the new option is based on the excess of the fair value of the modified option based on current assumptions over the fair value of the original option measured immediately before its price is modified based on current assumptions. As of December 31, 2017, we finalized our accounting estimates related to the repricing. Total incremental stock-based compensation expense was $445,000. We recognized $276,000 and $414,000 in incremental stock-based compensation expense during the three and six months ended December 31, 2017, respectively. Unrecognized incremental stock-based compensation expense was $31,000 as of December 31, 2017. During the three months ended December 31, 2017 and 2016, we granted options to purchase 357,400 and 46,100 shares of common stock with a weighted-average fair value of $1.65 and $1.17 per share, respectively. During the six months ended December 31, 2017 and 2016, we granted options to purchase 1,472,541 and 86,100 shares of common stock with a weighted-average fair value of $1.26 and $1.21 per share, respectively. In connection with the repricing and finalizing our estimates as of December 31, 2017, we repriced options to purchase 804,172 shares of common stock which were previously granted between May 2011 through September 2016, with a weighted-average fair value of $1.19 per share. We used the following assumptions: Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Dividend yield — — — — Expected volatility 59 % 52 % 57 % 54 % Average risk-free interest rate 2.07 % 1.61 % 1.88 % 1.39 % Expected life (in years) 4.36 5.03 4.51 5.98 The dividend yield of zero is based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. We determined the appropriate measure of expected volatility by reviewing historic volatility in the share price of our common stock, as adjusted for certain events that management deemed to be non-recurring and non-indicative of future events. The risk-free interest rate is derived from the average U.S. Treasury Strips rate with maturities approximating the expected lives of the awards during the period, which approximate the rate in effect at the time of the grant. We base our estimate of expected life of a stock option on the historical exercise behavior, and cancellations of all past option grants made by the Company during the time period which its equity shares have been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options. In accordance with Accounting Standards Updates (ASU) 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense. Total compensation cost, net of forfeitures, of all options granted but not yet vested as of December 31, 2017 was $1.3 million, which is expected to be recognized over the weighted-average period of 1.73 years. There were 34,899 and 1,600 options exercised during the three months ended December 31, 2017 and 2016, respectively. There were 138,049 and 1,600 options exercised during the six months ended December 31, 2017 and 2016, respectively.
New Accounting Pronouncements	New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides guidance about which changes to the terms or conditions of a shared-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from goodwill impairment testing. The FASB also eliminated requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019 (our fiscal 2021), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We early adopted this guidance in fiscal year 2017. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which provides specific guidance on how to classify restricted cash. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which provides that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 (our fiscal 2019), and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which requires that we recognize lease assets and liabilities on the balance sheet. This standard is effective for annual periods beginning after December 15, 2018 (our fiscal 2020), and interim periods within those annual periods. Early adoption is permitted. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017 (our fiscal 2019), including interim periods within that reporting period, with early application permitted for periods beginning after December 31, 2016. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations (Reporting Revenue Gross versus Net ), which clarifies how to apply the implementation guidance on principal versus agent considerations related to the sale of goods or services to a customer as updated by ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers ( Topic 606 ) Identifying Performance Obligations and Licensing, which clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas, as updated by ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which makes narrow scope amendments to Topic 606 including implementation issues on collectability, non-cash consideration and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which provides technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. In November 2017, the FASB issued ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), which aligns SEC guidance with guidance in Topic 606. The effective date and transition requirements for the amendments are equivalent to those for Topic 606. Topic 606 is effective for our fiscal year 2019 beginning on July 1, 2018 using either one of two transition methods including several practical expedients: (i) full retrospective method, in which the new standard would be applied to each prior reporting period presented; or (ii) the modified retrospective method, in which the cumulative effect of initially applying the new standard would be recognized at the date of initial application and providing certain additional disclosures as defined in the guidance. We have not selected a transition method yet. We are still evaluating the overall effect that the standard will have on our consolidated financial statements and accompanying notes to the consolidated financial statements. In December 2017, the SEC issued Staff Accounting Bulletin (SAB) No. 118 which expresses views of the staff regarding the application of ASC Topic 740, Income Taxes , in the reporting period that includes December 22, 2017 which is the date that the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act includes changes that impact U.S corporate tax rates, business-related exclusions, and deductions and credits. Additionally, the Act will have an impact on international taxes for companies that operate internationally. Registrants have a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of related tax impacts. We are currently evaluating the financial impact that this new tax legislation will have on our consolidated financial statements and accompanying notes for our fiscal year ending June 30, 2018.

Summary of Business and Signi16

Summary of Business and Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2017
Summary of Business and Significant Accounting Policies [Abstract]
Revenues and operating income by geographic location	Information relating to our geographic areas for the three and six months ended December 31, 2017 and 2016 is as follows (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Total Revenue: North America $ 8,581 $ 7,600 $ 15,844 $ 14,862 EMEA 6,552 7,289 13,549 14,267 Asia Pacific 265 110 580 615 $ 15,398 $ 14,999 $ 29,973 $ 29,744 Operating Income (Loss): North America $ (1,503) $ (1,468) $ (1,496) $ (3,807) EMEA 2,192 2,247 2,760 4,036 Asia Pacific* (1,085) (1,077) (1,914) (1,792) $ (396) $ (298) $ (650) $ (1,563) *
Long-lived assets by geographic location	In addition, long-lived assets corresponding to our geographic areas are as follows (unaudited, in thousands): December 31, June 30, 2017 2017 Long-Lived Assets: North America $ 294 $ 463 EMEA 383 497 Asia Pacific 141 99 $ 818 $ 1,059
Summary of stock-based compensation included in costs and expenses	Below is a summary of stock-based compensation included in the costs and expenses (unaudited, in thousands): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Stock-Based Compensation: Cost of revenue $ 146 $ 34 $ 209 $ 79 Research and development 275 81 385 169 Sales and marketing 129 58 192 116 General and administrative 186 50 269 95 Total stock-based compensation expense: $ 736 $ 223 $ 1,055 $ 459
Summary of stock option assumptions	Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Dividend yield — — — — Expected volatility 59 % 52 % 57 % 54 % Average risk-free interest rate 2.07 % 1.61 % 1.88 % 1.39 % Expected life (in years) 4.36 5.03 4.51 5.98

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	6 Months Ended
	Dec. 31, 2017
Net Loss per Common Share
Schedule of calculation of basic and diluted net loss per common share	The following table represents the calculation of basic and diluted net loss per common share (unaudited, in thousands, except per share data): Three Months Ended Six Months Ended December 31, December 31, 2017 2016 2017 2016 Net loss applicable to common stockholders $ (788) $ (1,049) $ (1,356) $ (3,460) Basic and diluted net loss per common stock $ (0.03) $ (0.04) $ (0.05) $ (0.13) Weighted-average common shares used in computing basic and diluted net loss per common share 27,241 27,106 27,213 27,107

Bank Borrowings (Tables)

Bank Borrowings (Tables)	6 Months Ended
	Dec. 31, 2017
Bank Borrowings [Abstract]
Schedule of minimum EBITDA required in financial covenants	Under the Amendment No. 2 the minimum EBITDA (as defined in the Credit Agreement) levels the Company is required to achieve on and prior to the Financial Covenant Replacement Date were modified to be, as of the end of each fiscal quarter, at the least the amount set forth in the table below for the applicable period opposite such amount (unaudited, in thousands): For the four quarter period ending Applicable Amount December 31, 2017 (5,100) March 31, 2018 (3,800) June 30, 2018 (3,000) September 30, 2018 (1,500) December 31, 2018 — March 31, 2019 1,500 June 30, 2019 3,000 September 30, 2019 4,000
Summary of debt maturities	As of December 31, 2017, balances on the Term Loan, Revolving Loans and debt maturities were (unaudited, in thousands): December 31, June 30, 2017 2017 Bank Borrowings: Term Loan $ 7,375 $ 7,875 Revolving Loan 188 8,181 Subtotal of bank borrowings 7,563 16,056 Less amounts representing deferred financing costs (372) (449) Total bank borrowings 7,191 15,607 Less current maturities (867) (805) Bank borrowings, net of current portion and deferred financing costs $ 6,324 $ 14,802

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Dec. 31, 2017
Intangible Assets
Intangible assets and estimated lives for amortization	Intangible assets will be amortized over the estimated lives, as follows (in thousands): Intangible Asset Gross Carrying Amount Accumulated Amortization Net Balance December 31, 2017 Life Income Statement Category Developed technology $6,990 $(5,946) $1,044 4 Research and development expense Customer relationships - software contracts 1,380 (1,380) — 2 Sales and marketing expense Customer relationships - maintenance contracts 1,610 (913) 697 6 Cost of sales Trade name 150 (150) — 2 General and administrative expense $10,130 $(8,389) $1,741 Intangible Asset Gross Carrying Amount Accumulated Amortization Net Balance June 30, 2017 Life Income Statement Category Developed technology $6,990 $(5,073) $1,917 4 Research and development expense Customer relationships - software contracts 1,380 (1,380) — 2 Sales and marketing expense Customer relationships - maintenance contracts 1,610 (779) 831 6 Cost of sales Trade name 150 (150) — 2 General and administrative expense $10,130 $(7,382) $2,748
Schedule of estimated future amortization expense for intangible assets acquired	Estimated future amortization expense remaining as of December 31, 2017 for intangible assets acquired is as follows: Year Ending June 30, 2018 $ 1,009 2019 438 2020 268 2021 26 Total future amortization expense $ 1,741

Summary of Business and Signi20

Summary of Business and Significant Accounting Policies - Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)
Segment Information
Number of operating segments | segment			1
Revenues	$ 15,398	$ 14,999	$ 29,973	$ 29,744
Operating Income (Loss)	(396)	(298)	(650)	(1,563)
Long-Lived Assets	818	1,059	818	1,059
North America
Segment Information
Revenues	8,581	7,600	15,844	14,862
Operating Income (Loss)	(1,503)	(1,468)	(1,496)	(3,807)
Long-Lived Assets	294	463	294	463
EMEA
Segment Information
Revenues	6,552	7,289	13,549	14,267
Operating Income (Loss)	2,192	2,247	2,760	4,036
Long-Lived Assets	383	497	383	497
Asia Pacific
Segment Information
Revenues	265	110	580	615
Operating Income (Loss)	(1,085)	(1,077)	(1,914)	(1,792)
Long-Lived Assets	$ 141	$ 99	$ 141	$ 99

Summary of Business and Signi21

Summary of Business and Significant Accounting Policies - Concentration of Credit Risk (Detail) - Sales - Customer Concentration Risk - customer	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Concentration of Credit Risk
Number of customers that accounted for more than ten percent of total revenue	1	1	1	2
Customer One
Concentration of Credit Risk
Concentration risk, percentage	15.00%	10.00%	15.00%	10.00%
Customer Two
Concentration of Credit Risk
Concentration risk, percentage				10.00%

Summary of Business and Signi22

Summary of Business and Significant Accounting Policies - Revenue Recognition (Detail)	6 Months Ended
	Dec. 31, 2017
Revenue Recognition
Customer maintenance contract term	1 year
Economic life of software product	3 years
Minimum
Revenue Recognition
Payment term range	30 days
Cloud agreements initial term	12 months
Maximum
Revenue Recognition
Payment term range	90 days
Cloud agreements initial term	36 months

Summary of Business and Signi23

Summary of Business and Significant Accounting Policies - Costs (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Costs
Deferred financing costs	$ 981,000		$ 981,000		$ 950,000
Accumulated amortization of deferred financing costs	609,000		609,000		$ 501,000
Amortization of deferred financing costs	$ 46,000	$ 43,000	$ 108,000	$ 87,000
Minimum
Costs
Amortization period based on related customer contracts			12 months
Maximum
Costs
Amortization period based on related customer contracts			36 months

Summary of Business and Signi24

Summary of Business and Significant Accounting Policies - Summary of Stock-Based Compensation Included in Costs and Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Stock-based Compensation
Total stock-based compensation expense	$ 736	$ 223	$ 1,055	$ 459
Cost of sales
Stock-based Compensation
Total stock-based compensation expense	146	34	209	79
Research and Development
Stock-based Compensation
Total stock-based compensation expense	275	81	385	169
Sales and marketing expense
Stock-based Compensation
Total stock-based compensation expense	129	58	192	116
General and administrative expense
Stock-based Compensation
Total stock-based compensation expense	$ 186	$ 50	$ 269	$ 95

Summary of Business and Signi25

Summary of Business and Significant Accounting Policies - Summary of Stock Option Assumptions (Details) - USD ($)	Sep. 19, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Stock-based Compensation
Closing stock price (in dollars per share)	$ 2.50
Options granted during period		357,400	46,100	1,472,541	86,100
Options granted during period, weighted-average price (in dollars per share)		$ 1.65	$ 1.17	$ 1.26	$ 1.21
Total compensation cost, net of forfeitures, of all options granted but not yet vested		$ 1,300,000		$ 1,300,000
Weighted average period over which unrecognized compensation is expected to be recognized				1 year 8 months 23 days
Exercise of stock options (in shares)		34,899	1,600	138,049	1,600
Stock-based compensation assumptions
Dividend yield		0.00%	0.00%	0.00%	0.00%
Expected volatility		59.00%	52.00%	57.00%	54.00%
Average risk-free interest rate		2.07%	1.61%	1.88%	1.39%
Expected life (in years)		4 years 4 months 10 days	5 years 11 days	4 years 6 months 4 days	5 years 11 months 23 days
Employee, Not Executive or Director | 2005 Management Stock Option Plan
Stock-based Compensation
Modified exercise price approved for previously issued options with higher grant date exercise price (in dollars per share)	$ 2.50
Incremental stock-based compensation				$ 445,000
Incremental stock-based compensation recognized		$ 276,000		414,000
Incremental stock-based compensation not yet recognized		$ 31,000		$ 31,000
Number of repriced shares	804,172
Modified weighted-average fair value (in dollars per share)	$ 1.19

Net Loss per Common Share - Sch

Net Loss per Common Share - Schedule of Calculation of Basic and Diluted Net Loss per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net Loss per Common Share
Net loss applicable to common stockholders	$ (788)	$ (1,049)	$ (1,356)	$ (3,460)
Earnings Per Share Basic And Diluted	$ (0.03)	$ (0.04)	$ (0.05)	$ (0.13)
Weighted Average Number Of Share Outstanding Basic And Diluted	27,241	27,106	27,213	27,107

Net Loss per Common Share - Add

Net Loss per Common Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, share amount	3,505,992	2,397,027	2,926,900	2,437,979

Bank Borrowings - Narrative (De

Bank Borrowings - Narrative (Details)	Jan. 27, 2017	Sep. 02, 2015USD ($)	Nov. 21, 2014USD ($)
Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate basis	LIBOR	LIBOR	LIBOR
Debt instrument variable rate		7.00%	4.75%
Credit Agreement | Variable Rates Other Than LIBOR
Bank Borrowings
Debt instrument variable rate			3.75%
Credit Agreement | Prime Rate
Bank Borrowings
Debt instrument variable rate basis		prime rate	prime rate
Debt instrument variable rate		6.00%
Credit Agreement | Federal Funds Rate
Bank Borrowings
Debt instrument variable rate basis			Federal Funds Rate
Debt instrument variable rate			0.50%
Credit Agreement | One Month LIBOR
Bank Borrowings
Debt instrument variable rate basis			one month LIBOR
Debt instrument variable rate			1.00%
Revolving Loan
Bank Borrowings
Prepayment premium	1.00%	1.00%	1.00%
Term Loan
Bank Borrowings
Prepayment premium	1.00%	1.00%	1.00%
Quarterly amortization payment, quarters ended September 30, 2015 through December 31, 2015		$ 187,500
Quarterly amortization payment after December 31, 2015		250,000
Minimum | Credit Agreement
Bank Borrowings
Fixed charge coverage ratio	1.50		1.50
Minimum | Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate	5.50%
Maximum | Credit Agreement
Bank Borrowings
Leverage ratio	2.50		2.50
Maximum | Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate	7.00%
Maximum | Revolving Loan
Bank Borrowings
Revolving loan principal amount		$ 15,000,000	$ 10,000,000
Borrowing limit as a percentage of trailing 12 month recurring revenue			60.00%
Maximum | Term Loan
Bank Borrowings
Term loan principal amount			$ 10,000,000
Borrowing limit as a percentage of trailing 12 month recurring revenue			60.00%

Bank Borrowings - Amendment No.

Bank Borrowings - Amendment No. 2 (Details) $ in Thousands	Jan. 27, 2017USD ($)item	Jan. 26, 2017USD ($)	Sep. 02, 2015	Nov. 21, 2014	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Bank Borrowings
Amount of Liquidity											$ 21,700
Credit Agreement
Bank Borrowings
TTM Recurring Revenue, covenant, number of months	12 months
Number of financial covenants modified by Amendment Number Two | item	2
Number of immediately preceding consecutive fiscal quarters leverage ratio must be met | item	2
Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate basis	LIBOR		LIBOR	LIBOR
Debt instrument variable rate			7.00%	4.75%
Credit Agreement | Base Rate
Bank Borrowings
Debt instrument variable rate basis	Base Rate
Debt instrument variable rate, percent below LIBOR variable rate	1.00%
Revolving Loan
Bank Borrowings
Prepayment premium	1.00%		1.00%	1.00%
Term Loan
Bank Borrowings
Prepayment premium	1.00%		1.00%	1.00%
Minimum | Credit Agreement
Bank Borrowings
Fixed charge coverage ratio	1.50			1.50
Financial covenant, minimum liquidity	$ 4,000	$ 10,000
Minimum | Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate	5.50%
Minimum | Amendment Number Two | Scenario Plan
Bank Borrowings
Financial covenant, minimum EBITDA					$ 4,000	$ 3,000	$ 1,500	$ (1,500)	$ (3,000)	$ (3,800)	$ (5,100)
Maximum | Credit Agreement
Bank Borrowings
Leverage ratio	2.50			2.50
Maximum | Credit Agreement | LIBOR
Bank Borrowings
Debt instrument variable rate	7.00%

Bank Borrowings - Balances on t

Bank Borrowings - Balances on the Term Loan and Revolving Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Bank borrowings
Bank Borrowings	$ 7,563	$ 16,056
Less amounts representing deferred financing costs, net	(372)	(449)
Total bank borrowings	7,191	15,607
Less current debt maturities	(867)	(805)
Bank borrowings, net of current portion and deferred financing costs	6,324	14,802
Term Loan
Bank borrowings
Bank Borrowings	7,375	7,875
Revolving Loan
Bank borrowings
Bank Borrowings	$ 188	$ 8,181

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Federal statutory income tax rate	35.00%
Forecast
Federal statutory income tax rate		21.00%	28.00%

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2016ft²	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Jun. 30, 2016USD ($)ft²	Jun. 30, 2017USD ($)
Leases
Rental income from sublease		$ 154,000
Warranty
Warranty period, maximum			1 year
Liabilities for warranty costs		0	$ 0		$ 0
Sublease One
Leases
Rental income from sublease				$ 426,000
Rental expense net of rental income				$ 305,000
Area subleased | ft²				22,000
Sublease One | Current Liabilities
Leases
Sublease exit liability				$ 305,000
Sublease Two
Leases
Rental income from sublease		$ 154,000	$ 309,000
Area subleased | ft²	22,000
Sublease term	2 years

Share Repurchase Program - Addi

Share Repurchase Program - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Sep. 14, 2009
Share repurchase program
Number of shares authorized to be purchased under the repurchase program					1,000,000
Number of shares repurchased	0	4,557	0	4,557

Intangible Assets (Intangible a

Intangible Assets (Intangible assets and estimated amortizable lives) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Intangible assets
Gross Carrying Amount	$ 10,130,000		$ 10,130,000		$ 10,130,000
Accumulated Amortization	(8,389,000)		(8,389,000)		(7,382,000)
Net Balance	1,741,000		1,741,000		2,748,000
Amortization expense	503,000	$ 504,000	1,007,000	$ 1,083,000
Research and Development | Developed technology
Intangible assets
Gross Carrying Amount	6,990,000		6,990,000		6,990,000
Accumulated Amortization	(5,946,000)		(5,946,000)		(5,073,000)
Net Balance	1,044,000		$ 1,044,000		$ 1,917,000
Life			4 years		4 years
Sales and marketing expense | Customer relationships - software license
Intangible assets
Gross Carrying Amount	1,380,000		$ 1,380,000		$ 1,380,000
Accumulated Amortization	(1,380,000)		$ (1,380,000)		$ (1,380,000)
Life			2 years		2 years
Cost of sales | Customer relationships - maintenance license
Intangible assets
Gross Carrying Amount	1,610,000		$ 1,610,000		$ 1,610,000
Accumulated Amortization	(913,000)		(913,000)		(779,000)
Net Balance	697,000		$ 697,000		$ 831,000
Life			6 years		6 years
General and administrative expense | Trade name
Intangible assets
Gross Carrying Amount	150,000		$ 150,000		$ 150,000
Accumulated Amortization	$ (150,000)		$ (150,000)		$ (150,000)
Life			2 years		2 years

Intangible Assets - Estimated f

Intangible Assets - Estimated future amortization expense (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Intangible Assets
2,018	$ 1,009
2,019	438
2,020	268
2,021	26
Total future amortization expense	$ 1,741	$ 2,748