EGAIN Corp

Previous wording

We have transitioned from a hybrid model, where we sold both SaaS and perpetual license solutions, to a SaaS only business model. Today, we only sell SaaS to new clients and are actively migrating our remaining perpetual license clients

Current wording

We have transitioned from a hybrid model, where we sold both SaaS and perpetual license solutions, to a SaaS only business model. Today, we only sell SaaS to new clients and are actively migrating our remaining perpetual license clients to SaaS. As we continue to migrate our legacy perpetual license clients to SaaS, we expect our legacy revenue, primarily comprising annual maintenance and support fees for legacy perpetual license clients to continue to decline.

Previous wording

Professional services revenue includes system implementation, consulting, training, and managed services. The transaction price is allocated to various performance obligations based on their standalone selling prices (SSP). Revenue allocated to each performance obligation is recognized as work is performed. Managed services include a comprehensive set of processes and activities that range from implementation to monitoring the evolution and support of our solutions in a company. Our consulting and implementation service contracts are bid either on a time-and-material basis or on a fixed-fee basis. Managed services contracts are bid on a time-and-material basis. Fixed fees are generally paid on milestone billing at pre-determined points in the contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred.

Current wording

Professional services revenue includes system implementation, consulting, training, and managed services. The transaction price is allocated to various performance obligations based on their SSP. Revenue allocated to each performance obligation is recognized as work is performed. Managed services include a comprehensive set of processes and activities that range from implementation to monitoring the evolution and support of our solutions in a company. Our consulting and implementation service contracts are bid either on a time-and-material basis or on a fixed-fee basis. Managed services contracts are bid on a time-and-material basis. Fixed fees are generally paid on milestone billing at pre-determined points in the contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred.

Previous wording

As of December 31, 2023, our remaining performance obligations were $77.9 million, of which we expect to recognize $55.8 million and $22.1 million as revenue within one year and beyond one year, respectively.

Current wording

As of March 31, 2024, our remaining performance obligations were $67.7 million, of which we expect to recognize $47.9 million and $19.8 million as revenue within one year and beyond one year, respectively.

Previous wording

We expect our remaining performance obligations to change quarterly for several reasons including the timing of new contracts and renewals, duration and size of our subscription and support arrangements, variable billing cycles and foreign exchange rate fluctuation. We typically issue renewal invoices in advance of the renewal service period. Depending on timing, the initial invoice and subsequent renewal invoices may occur in different quarters. This may result in an increase or decrease in our accounts receivable and deferred revenue.

Current wording

We expect our remaining performance obligations to change quarterly for several reasons including the timing of new contracts and renewals, duration and size of our subscription and support arrangements, variable billing cycles and foreign exchange rate fluctuation. We typically issue renewal invoices in advance of the renewal service period. Depending on

Previous wording

The following table presents our subscription and professional services revenue during the three and six months ended December 31, 2023 and 2022, respectively:

Current wording

The following table presents our subscription and professional services revenue during the three and nine months ended March 31, 2024 and 2023, respectively:

Previous wording

Total revenue for the three months ended December 31, 2023 decreased by $1.8 million, while SaaS revenue decreased $1.5 million, compared to the same period in fiscal year 2023. Total revenue for the six months ended December 31, 2023 decreased by $2.4 million, while SaaS revenue decreased by $1.9 million, compared to the same period in fiscal year 2023.

Current wording

Total revenue for the three months ended March 31, 2024 decreased by $663,000, while SaaS revenue decreased $577,000, compared to the same period in fiscal year 2023. Total revenue for the nine months ended March 31, 2024 decreased by $3.0 million, while SaaS revenue decreased by $2.4 million, compared to the same period in fiscal year 2023.

Previous wording

Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in an increase of $340,000 and a decrease of $863,000

Current wording

Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in an increase of $226,000 and a decrease of $534,000 in total revenue during the three months ended March 31, 2024 and 2023, respectively. Foreign exchange rate fluctuation resulted in an increase of $999,000 and a decrease of $2.4 million for the nine months ended March 31, 2024 and 2023, respectively.

Previous wording

SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenue from SaaS decreased by $1.5 million and $1.9 million during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023. This represented a decrease in SaaS revenue of 6% and 4% for the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023. In connection with our SaaS transition, we are actively migrating our remaining perpetual license clients to SaaS as we continue to sell SaaS to new customers.

Current wording

SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenue from SaaS decreased by $577,000 and $2.4 million during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023. This represented a decrease in SaaS revenue of 3% and 4% for the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023. In connection with our SaaS transition, we are actively migrating our remaining perpetual license clients to SaaS as we continue to sell SaaS to new customers.

Previous wording

SaaS revenue represents 92% of total revenue for the three and six months ended December 31, 2023, compared to 91% during the same periods in fiscal year 2023.

Current wording

SaaS revenue represents 91% and 92% of total revenue for the three and nine months ended March 31, 2024, respectively, compared to 91% during the same periods in fiscal year 2023.

Previous wording

Excluding an increase of $312,000 and $713,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $1.8 million and $2.6 million during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023.

Current wording

Excluding an increase of $208,000 and $925,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $785,000 and $3.4 million during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023.

Previous wording

Legacy revenue is associated with license, maintenance and support contracts on perpetual license arrangements that we no longer sell. We experienced decreases of $136,000 and $364,000 during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023. This decrease was primarily due to our focus in migrating our legacy customers to SaaS. We expect legacy fees to continue to decline in future quarters.

Current wording

Legacy revenue is associated with license, maintenance and support contracts on perpetual license arrangements that we no longer sell. We experienced decreases of $79,000 and $443,000 during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023. This decrease was primarily due to our focus in migrating our legacy customers to SaaS. We expect legacy fees to continue to decline in future quarters.

Previous wording

Excluding increases of $6,000 and $11,000 due to foreign exchange rate fluctuation, legacy revenue decreased by $142,000 and $375,000 during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023.

Current wording

Excluding increases of $3,000 and $14,000 due to foreign exchange rate fluctuation, legacy revenue decreased by $82,000 and $457,000 during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023.

Previous wording

Professional services revenue includes consulting, implementation, managed services and training. Revenue from professional services decreased by $167,000 and $154,000 during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023.

Current wording

Professional services revenue includes consulting, implementation, managed services and training. Revenue from professional services decreased by $7,000 and $161,000 during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023.

Previous wording

Excluding an increase of $21,000 and $45,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $188,000 and $199,000 during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023.

Current wording

Excluding an increase of $15,000 and $59,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $22,000 and $220,000 during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023.

Previous wording

Revenue from North America sales decreased by 5% from $19.8 million during the three months ended December 31, 2022 to $18.8 million during the three months ended December 31, 2023, due to decreases of (i) $872,000 in SaaS revenue, (ii) $48,000 in legacy revenue, and (iii) $46,000 in professional services revenue.

Current wording

Revenue from North America sales decreased by 2% from $17.9 million during the three months ended March 31, 2023 to $17.4 million during the three months ended March 31, 2024, due to decreases of (i) $498,000 in SaaS revenue and (ii) $29,000 in legacy revenue; partially offset by an increase of $88,000 in professional services revenue.

Previous wording

Revenue from North America sales decreased by 3% from $38.9 million during the six months ended December 31, 2022 to $37.8 million during the six months ended December 31, 2023, due to decreases of (i) $771,000 in SaaS revenue, (ii) $310,000 in legacy revenue, and (iii) $16,000 in professional services revenue.

Current wording

Revenue from North America sales decreased by 3% from $56.8 million during the nine months ended March 31, 2023 to $55.2 million during the nine months ended March 31, 2024, due to decreases of (i) $1.3 million in SaaS revenue and (ii) $339,000 in legacy revenue; partially offset by an increase of $72,000 in professional services revenue.

Previous wording

Revenue from EMEA sales decreased by 14% from $5.8 million for the three months ended December 31, 2022 to $5.0 million during the three months ended December 31, 2023, due to decreases of (i) $610,000 in SaaS revenue, (ii) $122,000 in professional services revenue, and (iii) $88,000 in legacy revenue.

Current wording

Revenue from EMEA sales decreased by 4% from $5.2 million for the three months ended March 31, 2023 to $4.9 million during the three months ended March 31, 2024, due to decreases of (i) $80,000 in SaaS revenue, (ii) $95,000 in professional services revenue, and (iii) $49,000 in legacy revenue.

Previous wording

Revenue from EMEA sales decreased by 11% from $11.4 million for the six months ended December 31, 2022 to $10.2 million during the six months ended December 31, 2023, due to decreases of (i) $1.1 million in SaaS revenue, (ii) $139,000 in professional services revenue, and (iii) $54,000 in legacy revenue.

Current wording

Revenue from EMEA sales decreased by 9% from $16.6 million for the nine months ended March 31, 2023 to $15.1 million during the nine months ended March 31, 2024, due to decreases of (i) $1.2 million in SaaS revenue, (ii) $233,000 in professional services revenue, and (iii) $103,000 in legacy revenue.

Previous wording

Cost of subscription revenue increased by $1.8 million during the six months ended December 31, 2023, from the same period in fiscal year 2023. This increase was primarily due to increases of (i) $1.1 million in cloud-computing costs, (ii) $572,000 in personnel related costs, and (iii) $34,000 in outside consulting costs.

Current wording

Cost of subscription revenue increased by $848,000 during the nine months ended March 31, 2024, from the same period in fiscal year 2023. This increase was primarily due to increases of (i) $984,000 in personnel related costs and (ii) $143,000 in outside consulting costs; partially offset by a decrease of $327,000 in cloud-computing costs.

Previous wording

Excluding an increase of $16,000 and $34,000 due to foreign exchange rate fluctuation, cost of subscription revenue increased by $669,000 and $1.7 million during the three and six months ended December 31, 2023, respectively, from the same periods in fiscal year 2023.

Current wording

Excluding an increase of $14,000 and $48,000 due to foreign exchange rate fluctuation, cost of subscription revenue decreased by $920,000 and increased by $800,000 during the three and nine months ended March 31, 2024, respectively, from the same periods in fiscal year 2023.

Previous wording

Cost of subscription revenue increased by $685,000 during the three months ended December 31, 2023, from the same period in fiscal year 2023. This increase was primarily due to increases of (i) $366,000 in cloud-computing costs, (ii) $222,000 in personnel-related costs, and (iii) $82,000 in outside consulting cost.

Current wording

Cost of professional services increased by $169,000 during the three months ended March 31, 2024, from the same period in fiscal year 2023. This increase was primarily due to an increase of $181,000 in personnel-related costs; partially offset by a decrease of $25,000 in outside consulting costs.

Previous wording

Excluding an increase of $21,000 and $56,000 due to foreign exchange rate fluctuation, cost of professional services revenue decreased by $468,000 and $1.0 million during the three and six months ended December 31, 2023, respectively, compared to the same periods in fiscal year 2023.

Current wording

Excluding increases of $15,000 and $72,000 due to foreign exchange rate fluctuation, cost of professional services revenue increased by $154,000 and decreased by $863,000 during the three and nine months ended March 31, 2024, respectively, compared to the same periods in fiscal year 2023.

Previous wording

Research and development expense decreased by 7% to $6.7 million for the three months ended December 31, 2023, from $7.2 million in the same period in fiscal year 2023. Excluding an increase of $26,000 due to foreign exchange rate fluctuation, research and development expense decreased primarily due to decreases of (i) $386,000 in personnel-related costs and (ii) $166,000 in outside consulting costs.

Current wording

Research and development expense remained consistent at $6.7 million for the three months ended March 31, 2024, from the same period in fiscal year 2023. Excluding an increase of $21,000 due to foreign exchange rate fluctuation, research and development expense decreased primarily due to a decrease of $76,000 in personnel-related costs; partially offset by an increase of $22,000 in outside consulting costs.

Previous wording

Research and development expense decreased by 5% to $13.3 million for the six months ended December 31, 2023, from $14.1 million in the same period in fiscal year 2023. Excluding an increase of $49,000 due to foreign exchange rate fluctuation, research and development expense decreased primarily due to decreases of (i) $539,000 in personnel-related costs and (ii) $279,000 from outside consulting costs.

Current wording

Research and development expense decreased by 4% to $19.9 million for the nine months ended March 31, 2024, from $20.7 million in the same period in fiscal year 2023. Excluding an increase of $71,000 due to foreign exchange rate fluctuation, research and development expense decreased primarily due to decreases of (i) $615,000 in personnel-related costs and (ii) $257,000 from outside consulting costs.

Previous wording

Sales and marketing expenses decreased by 40% to $5.3 million for the three months ended December 31, 2023, from $8.9 million in the same period in fiscal year 2023. Excluding an increase of $120,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $2.5 million in personnel-related costs, (ii) $950,000 in lead generation costs, and (iii) $200,000 in outside consulting costs.

Current wording

Sales and marketing expenses decreased by 20% to $5.4 million for the three months ended March 31, 2024, from $6.8 million in the same period in fiscal year 2023. Excluding an increase of $89,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $1.4 million in personnel-related costs, (ii) $69,000 in outside consulting costs, and (iii) $55,000 in lead generation costs.

Previous wording

Sales and marketing expenses decreased by 38% to $11.5 million for the six months ended December 31, 2023, from $18.4 million in the same period in fiscal year 2023. Excluding an increase of $275,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $5.8 million in personnel-related costs, (ii) $1.2 million in lead generation costs, and (iii) $219,000 in outside consulting costs.

Current wording

Sales and marketing expenses decreased by 33% to $16.9 million for the nine months ended March 31, 2024, from $25.2 million in the same period in fiscal year 2023. Excluding an increase of $362,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $7.1 million in personnel-related costs, (ii) $1.2 million in lead generation costs, and (iii) $288,000 in outside consulting costs.

Previous wording

General and administrative expenses decreased by 6% to $2.4 million for the three months ended December 31, 2023, from $2.6 million in the same period in fiscal year 2023. Excluding an increase of $10,000 due to foreign exchange rate fluctuation, general and administrative expense decreased primarily due to decreases of (i) $216,000 in personnel-related costs, (ii) $80,000 in legal related costs, and (iii) $50,000 in outside-consulting costs; partially offset by increases of (i) $99,000 in bad debt costs and (ii) $76,000 in accounting, audit, and administrative costs.

Current wording

General and administrative expenses increased by 2% to $2.5 million for the three months ended March 31, 2024, from $2.4 million in the same period in fiscal year 2023. Excluding an increase of $20,000 due to foreign exchange rate fluctuation, general and administrative expense increased primarily due to increases of (i) $37,000 in personnel-related costs, (ii) $27,000 in legal related costs, and (iii) $15,000 in bad debt costs; partially offset by decreases of (i) $38,000 in outside-consulting costs and (ii) $16,000 in accounting, audit, and administrative costs.

Previous wording

General and administrative expenses increased by 4% to $5.6 million for the six months ended December 31, 2023, from $5.4 million in the same period in fiscal year 2023. Excluding an increase of $44,000 due to foreign exchange rate fluctuation, general and administrative expense increased primarily due to increases of (i) $675,000 in legal related costs and (ii) $127,000 in accounting, audit, and administrative costs; partially offset by decreases of (i) $464,000 in personnel-related costs, (ii) $106,000 in bad debt costs, and (iii) $69,000 in outside consulting costs.

Current wording

General and administrative expenses increased by 3% to $8.0 million for the nine months ended March 31, 2024, from $7.8 million in the same period in fiscal year 2023. Excluding an increase of $63,000 due to foreign exchange rate fluctuation, general and administrative expense increased primarily due to increases of (i) $702,000 in legal related costs and (ii) $111,000 in accounting, audit, and administrative costs; partially offset by decreases of (i) $427,000 in personnel-related costs, (ii) $106,000 in outside consulting costs, and (iii) $91,000 in bad debt costs.

Previous wording

Income from operations was $2.4 million and $213,000 with an operating profit margin of 10% and 1% during the three months ended December 31, 2023 and 2022, respectively. Income from operations during the three months ended December 31, 2023 included $1.2 million of stock-based compensation and $345,000 of amortization of costs capitalized to obtain revenue contracts. Income from operations during the three months ended December 31, 2022 included $1.8 million of stock-based compensation and $395,000 of amortization of costs capitalized to obtain revenue contracts.

Current wording

Income (loss) from operations was income of $938,000 and loss of $512,000 with an operating profit margin of 4% and operating loss margin of 2% during the three months ended March 31, 2024 and 2023, respectively. Income from operations during the three months ended March 31, 2024 included $1.1 million of stock-based compensation and $325,000 of amortization of costs capitalized to obtain revenue contracts. Income from operations during the three months ended March 31, 2023 included $1.4 million of stock-based compensation and $381,000 of amortization of costs capitalized to obtain revenue contracts.

Previous wording

Income from operations was $3.8 million with an operating profit margin of 8% during the six months ended December 31, 2023. Loss from operations was $457,000 with an operationg loss margin of 1% during the six months ended December 31, 2022. Income from operations during the six months ended December 31, 2023 included $2.4 million of stock-based compensation and $845,000 of amortization of costs capitalized to obtain revenue contracts. Loss from operations during the six months ended December 31, 2022 included $3.8 million of stock-based compensation and $770,000 of amortization of costs capitalized to obtain revenue contracts.

Current wording

Income (loss) from operations was income of $4.8 million with an operating profit margin of 7% during the nine months ended March 31, 2024. Loss from operations was $969,000 with an operating loss margin of 1% during the nine months ended March 31, 2023. Income from operations during the nine months ended March 31, 2024 included $3.5 million of stock-based compensation and $1.2 million of amortization of costs capitalized to obtain revenue contracts. Loss from operations during the nine months ended March 31, 2023 included $5.3 million of stock-based compensation and $1.2 million of amortization of costs capitalized to obtain revenue contracts.

Previous wording

Interest income primarily consists of interest earned on money market accounts which have increased rates compared to prior years. Interest income was $982,000 and $529,000 during the three months ended December 31, 2023 and 2022,

Current wording

Interest income primarily consists of interest earned on money market accounts which have increased rates compared to prior years. Interest income was $1.0 million and $818,000 during the three months ended March 31, 2024 and 2023,

Previous wording

respectively. Interest income was $1.9 million and $815,000 during the six months ended December 31, 2023 and 2022, respectively.

Current wording

respectively. Interest income was $2.9 million and $1.6 million during the nine months ended March 31, 2024 and 2023, respectively.

Previous wording

Other (expense) income, net was expense of $697,000 and $545,000 during the three months ended December 31, 2023 and 2022, respectively. Other (expense) income, net was expense of $87,000 and income of $265,000 during the six months ended December 31, 2023 and 2022, respectively. Other (expense) income, net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.

Current wording

Other income (expense), net was income of $74,000 and expense of $245,000 during the three months ended March 31, 2024 and 2023, respectively. Other income (expense), net was expense of $13,000 and income of $20,000 during the nine months ended March 31, 2024 and 2023, respectively. Other income (expense), net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.

Previous wording

Provision for income taxes consists of state and foreign income taxes. Due to cumulative U.S. book losses, we maintain a valuation allowance against U.S. deferred tax assets as of December 31, 2023. We consider all available evidence, both positive and negative, including but not limited to earnings history, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets. We recorded income tax provision of $525,000 and $904,000 for the three and six months ended December 31, 2023, respectively. We recorded income tax provision of $301,000 and $743,000 for the three and six months ended December 31, 2022, respectively.

Current wording

Provision for income taxes consists of state and foreign income taxes. Due to cumulative U.S. book losses, we maintain a valuation allowance against U.S. deferred tax assets as of March 31, 2024. We consider all available evidence, both positive and negative, including but not limited to earnings history, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets. We recorded income tax provision of $521,000 and $1.4 million for the three and nine months ended March 31, 2024, respectively. We recorded income tax provision of $433,000 and $1.2 million for the three and nine months ended March 31, 2023, respectively.

Previous wording

As of December 31, 2023 and June 30, 2023, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $101.1 million and $104.8 million, respectively. Our cash, cash equivalents and restricted cash were $86.8 million and $73.2 million as of December 31, 2023 and June 30, 2023, respectively.

Current wording

As of March 31, 2024 and June 30, 2023, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $93.9 million and $104.8 million, respectively. Our cash, cash equivalents and restricted cash were $83.0 million and $73.2 million as of March 31, 2024 and June 30, 2023, respectively.

Previous wording

For the six months ended December 31, 2023 and 2022, our cash flows were as follows (in thousands):

Current wording

For the nine months ended March 31, 2024 and 2023, our cash flows were as follows (in thousands):

Previous wording

Net cash provided by operating activities increased by $7.7 million during the six months ended December 31, 2023, from the same period in fiscal year 2023, driven primarily by the timing of collections for accounts receivable.

Current wording

Net cash provided by operating activities increased by $8.5 million during the nine months ended March 31, 2024, from the same period in fiscal year 2023, driven primarily by net income, stock-based compensation expense, and the timing of collections for accounts receivable.

Previous wording

Net cash used in investing activities decreased by $158,000 during the six months ended December 31, 2023, from the same period in fiscal year 2023, driven primarily by activities related to the purchase of equipment for new employees

Current wording

Net cash used in investing activities decreased by $69,000 during the nine months ended March 31, 2024, from the same period in fiscal year 2023, driven primarily by activities related to the purchase of equipment for new employees and

Previous wording

and facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.

Current wording

facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.

Previous wording

Net cash used in financing activities was $2.1 million during the six months ended December 31, 2023, compared to the net cash provided by financing activities of $1.0 million for the same period in fiscal year 2023. Our current proceeds consist primarily of proceeds from the exercise of employee stock options, our employee stock purchase plan, and funds used for repurchases of our common stock of approximately $3.0 million.

Current wording

Net cash used in financing activities was $7.5 million during the nine months ended March 31, 2024, compared to the net cash provided by financing activities of $7,000 for the same period in fiscal year 2023. Our current proceeds consist primarily of proceeds from the exercise of employee stock options, our employee stock purchase plan, and funds used for repurchases of our common stock of approximately $8.5 million.