Exhibit 99.1

For Further Information, Contact:

Investor Relations: Todd Friedman or Stacie Bosinoff The Blueshirt Group 415.217.7722 todd@blueshirtgroup.com stacie@blueshirtgroup.com Corporate Communications: Katie O’Connell RightNow Technologies 925.674.1487 Desk 925.270.6107 Cell koconnell@rightnow.com

 

RightNow Technologies Announces

First Quarter 2009 Financial Results

BOZEMAN, Mont. (April 29, 2009) — RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the first quarter ended March 31, 2009.  Total revenue was $36.0 million in the first quarter of 2009, compared to $32.9 million in the first quarter of 2008, reflecting 10% growth in revenue.

Net income in the first quarter of 2009 was $1.3 million or $0.04 per share, compared to a net loss of $(3.4) million or $(0.10) per share, in the first quarter of 2008.  Non-GAAP net income in the first quarter of 2009, which excludes stock-based compensation charges of $1.5 million, was $2.8 million or $0.09 per share, as compared to non-GAAP net loss of $(2.1) million or $(0.06) per share, in the first quarter of 2008.

New, renewed and expanded customer relationships during the first quarter of 2009 included Activision Blizzard, Inc., Alienware, drugstore.com, eHarmony, Fasthosts, Federal Aviation Administration, Lean Logistics, Sony Computer Entertainment America, Sprint Nextel and Seventh Generation.

“We are pleased to report earnings per share ahead of guidance as we maintained our commitment to improving operating margins.  That said, we saw some impact from the current macroeconomic conditions on our sales in the first quarter,” stated Greg Gianforte, CEO and founder.  “While we remain cautious in the current environment, we believe the pipeline for Q2 is strong with a good mix of opportunities across deal sizes, verticals and geographies.  We continue to focus on two primary objectives for 2009;  taking care of the customer and growing profitability.”

Guidance

·   For the full year 2009, revenue is expected to be in the range of $147 to $151 million compared to previous guidance of $150 to $155 million.

·   Net income (loss) per share for the full year 2009 is expected to be in the range of $(0.02) to $0.03 compared to previous guidance of $(0.07) to $0.01.

·   Non-GAAP net income per share for the full year 2009, which excludes stock-based compensation, is expected to be in the range of $0.20 to $0.25 compared to previous guidance of $0.15 to $0.23.

·   For the second quarter of 2009, revenue is expected to be approximately $36 million, comprised of an increase in recurring revenue offset by a decrease in professional services revenue.  Second quarter net loss per share is expected to be in the range of $(0.04) to $(0.02). Second quarter non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.03 to $0.05.

Quarterly Conference Call

RightNow Technologies will discuss its quarterly results today via teleconference at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time.)To access the call, please dial (877) 718-5108, or outside the U.S. (719) 325-4842, at least five minutes prior to the 2:30 p.m. MT start time.  A live webcast of the call will also be available at http://investor.rightnow.com/index.cfm under the Events & Presentations menu. An audio replay will be available between 5:30 p.m. MT April 29, 2009 and 9:59 p.m. MT May 13, 2009 by calling (888) 203-1112 or (719) 457-0820, with passcode 6873947. The replay will also be available on the Company’s website at http://investor.rightnow.com.

About RightNow Technologies

RightNow (NASDAQ: RNOW) delivers the high-impact technology solutions and services organizations need to cost-efficiently deliver a consistently superior customer experience across their frontline service, sales and marketing touch-points. Approximately 1,900 corporations and government agencies worldwide depend on RightNow to achieve their strategic objectives and better meet the needs of those they serve. RightNow is headquartered in Bozeman, Montana.  For more information, please visit www.rightnow.com.

RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of The NASDAQ Stock Market LLC.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements.  These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change.  Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these wordsand include, but are not limited to, statements regarding projected results of operations and management’s future strategic plans.  These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to, risks associated with general economic conditions; fluctuations in foreign currency exchange; our business model; our ability to develop or acquire, and gain market acceptance for, new products in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand or contract operations and to grow profitability; fluctuations in our earnings as a result of the impact of stock-based compensation expense; interruptions or delays in our hosting operations; breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing on the intellectual property rights of third parties; our ability to manage and expand our partner relationships; any unanticipated ambiguities in fair value accounting standards; and our ability to expand, retain and motivate our employees.  Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports of Form 10-Q, and in other filings with the Securities and Exchange Commission.  The forward-looking statements in this release speak only as of the date they are made.  We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

FRNOW

RightNow Technologies, Inc.

Consolidated Balance Sheets

(In thousands) (Unaudited)

	March 31,			Dec 31,
	2009			2008
Assets
Cash and cash equivalents	$	51,462		$	51,405
Short-term investments		36,517			34,412
Accounts receivable		24,220			36,770
Term receivables, current		4,810			5,752
Allowance for doubtful accounts		(1,901	)		(2,277	)
Net receivables		27,129			40,245
Deferred commissions		5,331			5,381
Prepaid and other current assets		2,262			2,150
Total current assets		122,701			133,593
Long-term investments Property and equipment, net		4,980 9,187			4,963  10,141
Term receivables, non-current		2,804			3,547
Intangible assets, net		6,104			6,399
Deferred commissions, non-current		2,322			2,840
Other		848			854
Total Assets	$	148,946		$	162,337
Liabilities and Stockholders’ Equity
Accounts payable	$	3,932		$	5,058
Commissions and bonuses payable		3,084			5,665
Other accrued liabilities		10,377			11,165
Current portion of long-term debt		46			46
Current portion of deferred revenue		72,885			77,584
Total current liabilities		90,324			99,518
Long-term debt, less current portion		10			22
Deferred revenue, net of current portion		30,322			35,614
Stockholders’ equity:
Common stock		34			34
Additional paid-in capital		104,345			102,662
Treasury stock, at cost		(15,007	)		(13,209	)
Accumulated other comprehensive income		1,875			1,916
Accumulated deficit		(62,957	)		(64,220	)
Total stockholders’ equity		28,290			27,183
Total Liabilities and Stockholders’ Equity	$	148,946		$	162,337

RightNow Technologies, Inc.

Consolidated Operating Statements

(In thousands, except per share amounts) (Unaudited)

	Three Months Ended March 31,
	2009			2008
Revenue:
Software, hosting and support	$	26,045		$	24,556
Professional services		9,992			8,342
Total revenue		36,037			32,898
Cost of revenue:
Software, hosting and support		4,949			5,035
Professional services		7,008			7,285
Total cost of revenue		11,957			12,320
Gross profit		24,080			20,578
Operating expenses:
Sales and marketing		14,863			16,818
Research and development		4,756			4,486
General and administrative		3,446			3,516
Total operating expenses		23,065			24,820
Income (loss) from operations		1,015			(4,242	)
Interest and other income, net		401			938
Income (loss) before income taxes		1,416			(3,304	)
Provision for income taxes		(153	)		(92	)
Net income (loss)	$	1,263		$	(3,396	)
Net income (loss) per share:
Basic	$	0.04		$	(0.10	)
Diluted	$	0.04		$	(0.10	)
Shares used in the computation:
Basic		31,784			33,532
Diluted		32,249			33,532

Supplemental information of stock-based compensation expense included in:
Cost of software, hosting and support	$	96	$	77
Cost of professional services		133		153
Sales and marketing		622		538
Research and development		262		235
General and administrative		403		263
Total stock-based compensation	$	1,516	$	1,266

RightNow Technologies, Inc.

Consolidated Statements of Cash Flow

(In thousands) (Unaudited)

	Three Months Ended March 31,
	2009			2008
Operating activities:
Net income (loss)	$	1,263		$	(3,396	)
Non-cash adjustments:
Depreciation and amortization		1,887			1,954
Stock-based compensation		1,516			1,266
Provision  for  losses on accounts receivable		57			89
Changes in operating accounts:
Receivables		13,569			7,447
Prepaid and other current assets		(126	)		(448	)
Deferred commissions		525			(404	)
Accounts payable		(1,107	)		1,758
Commissions and bonuses payable		(2,553	)		(1,523	)
Other accrued liabilities		(716	)		534
Deferred revenue		(9,429	)		(3,434	)
Other		--			(173	)
Cash provided by operating activities		4,886			3,670
Investing activities:
Net change in investments		(2,251	)		(1,970	)
Acquisition of property and equipment		(685	)		(1,522	)
Cash used in investing activities		(2,936	)		(3,492	)
Financing activities:
Proceeds from issuance of common stock		78			414
Common stock repurchase		(1,798	)		--
Excess tax benefit of stock options exercised		89			51
Payments on long-term debt		(11	)		(11	)
Cash provided (used) by financing activities		(1,642	)		454
Effect of foreign exchange rates on cash and
cash equivalents		(251	)		278
Increase in cash and cash equivalents		57			910
Cash and cash equivalents at beginning of period		51,405			43,681
Cash and cash equivalents at end of period	$	51,462		$	44,591

RightNow Technologies, Inc.

Reconciliation of Non-GAAP Measurements

 (Amounts in thousands, except per share amounts) (Unaudited)

Diluted Earnings Per Share Reconciliation

	Three Months Ended March 31,
	2009		2008
Net income (loss) as reported	$	1,263	$	(3,396	)
Add stock-based compensation (“SBC”)		1,516		1,266
Net income (loss) before SBC	$	2,779	$	(2,130	)
Net income (loss) per share, as reported (basic and diluted)	$	0.04	$	(0.10	)
Net income (loss) per share, before SBC (basic and diluted)	$	0.09	$	(0.06	)
Shares outstanding (basic), as reported		31,784		33,532
Shares outstanding (diluted), as reported		32,249		33,532

Forward-Looking Guidance Reconciliation

	GAAP Guidance									Non-GAAP Guidance
Second quarter ending June 30, 2009	From			To			Adjustment			From		To
Net income (loss)	$	(1,175	)	$	(500	)	$	2,000 [a	]	$	825	$	1,500
Net income (loss) per share	$	(0.04	)	$	(0.02	)				$	0.03	$	0.05
Shares (diluted)		32,000			32,000						33,000		33,000
Year ending December 31, 2009
Net income (loss)	$	(500	)	$	1,100		$	7,000 [a	]	$	6,500	$	8,100
Net income (loss) per share	$	(0.02	)	$	0.03					$	0.20	$	0.25
Shares (diluted)		32,000			33,000						33,000		33,000

[a] Estimated stock-based compensation expense to be recorded for the periods indicated in accordance with Statement of Financial Accounting Standards No. 123R, Share-Based Payments, (“SFAS 123R”) which is effective for periods beginning January 1, 2006.

About Non-GAAP Financial Measures

Non-GAAP net income (loss) and diluted net income (loss) per share are supplemental measures of our performance that are not required by, or presented in accordance with GAAP.  These non-GAAP financial measures are not intended to be used in isolation and should not be considered a substitute for net income (loss) and net income (loss) per share or any other performance measure determined in accordance with GAAP.  We present non-GAAP net income (loss) and net income (loss) per share because we consider each to be an important supplemental measure of our performance.

Management uses these non-GAAP financial measures to make operational decisions, evaluate the Company’s performance, prepare forecasts and determine compensation.  Further, management believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance when planning, forecasting and analyzing future periods.  Our stock-based compensation expenses are expected to vary depending on the number of new grants issued, changes in our stock price, stock market volatility, expected option lives and risk-free rates of return, all of which are difficult to estimate.  In calculating non-GAAP net income (loss) and net income (loss) per share, management excludes stock-based compensation expenses to facilitate its review of the comparability of the Company’s operating performance on a period-to-period basis because such expenses are not, in management’s view, related to the Company’s ongoing operating performance.  Management uses this view of its operating performance for purposes of comparison with its business plan and individual operating budgets and resource allocation.

Management further believes that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision making.  We believe that the use of non-GAAP net income (loss) and net income (loss) per share also facilitate a comparison of RightNow’s underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

Calculating non-GAAP net income (loss) and net income (loss) per share have limitations as an analytical tool, and readers should not consider these measures in isolation or as substitutes for GAAP net income (loss) and GAAP net income (loss) per share.  In the future, we expect to incur additional stock-based compensation expenses and the exclusion of these expenses in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.  Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool, which include:

·   Other companies inside and outside of our industry may calculate non-GAAP net income (loss) and net income (loss) per share differently than we do, limiting their usefulness as a comparative tool; and

·   The Company’s income tax expense or benefit will be ultimately based on its GAAP taxable income and actual tax rates in effect, which may differ significantly from the effective tax rate used in our non-GAAP financial measures.

In addition, the adjustments to our GAAP financial measures reflect the exclusion of stock-based compensation expenses that are recurring and will be reflected in the Company’s financial results for the foreseeable future.  The Company compensates for these limitations by providing specific information regarding the GAAP amount excluded from the non-GAAP financial measures.  The Company further compensates for the limitations of our use of non-GAAP financial measures by presenting comparable GAAP measures more prominently.  The Company evaluates the non-GAAP financial measures together with the most directly comparable GAAP financial measures.

Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with our GAAP net income (loss) and net income (loss) per share.  For more information, see the consolidated operating statements and reconciliation of non-GAAP measurements contained in this press release.

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