Kanen CEO issues letter to eGain board of directors

Kanen Wealth Management CEO David Kanen send the board of directors of eGain a letter. “We, Kanen Wealth Management, LLC, owner of approximately 7% of eGain Corporation’s common shares, are calling on the board to formally hire an investment banker and form a special committee to pursue a sale of the Company. Under CEO Ashu Roy’s leadership, EGAN‘s stock is down approximately 40% since the Company’s IPO 24 years ago in 1999 versus the NASDAQ gain of approximately 500%. The above scorecard speaks for itself! We will attempt to provide some insight into the various reasons we believe the Company has materially underperformed and how Mr. Roy is incapable, in our opinion, of realizing the potential of EGAN for shareholders, despite the Company’s high-quality products, the Company’s position in the “magic quadrant,” and recent momentum in EGAN’s sales funnel. We believe the problem is Ashu Roy and he has failed shareholders! Some examples of his arrogant, ineffective, and unsuccessful behavior for shareholders are below: failure in building a thriving sales organization… holding a major sales conference on yom kippur… ashu’s obtuse, unengaged behavior with counterparties, when introductions were made earlier this year… improper handling of a recent introduction to a board candidate that is a proven software ceo and rockstar… In summary, EGAN directors, we ask that you kindly act on your fiduciary responsibility to shareholders and run a legitimate process to sell the company – a process that doesn’t rely exclusively on Mr. Roy’s lack of talent in generating a positive outcome. “