Interactive Intelligence Inc. (Nasdaq: ININ), a global developer of
unified IP business communications solutions, announced results for
the quarter and six-month period ended June 30, 2008. The company
reported record 2008 second quarter revenues of $30.6 million, a 13
percent increase from $27.1 million in the same quarter last year.
Operating income for the 2008 second quarter was $1.3 million,
compared to $2.2 million in the 2007 second quarter. Non-GAAP
(non-generally accepted accounting principles) operating income was
$2.2 million, compared to $3.0 million in the second quarter of
2007. Non-GAAP operating income excludes charges for stock-based
compensation for the second quarter of $944,000 in 2008 and
$806,000 in 2007. Net income in the 2008 second quarter was
$845,000, with diluted earnings per share (EPS) of $0.04, compared
to $2.4 million and $0.12, respectively, in the 2007 second
quarter. Net income includes fully taxed earnings in 2008. Non-GAAP
net income was $2.4 million with EPS of $0.13, compared to $3.2
million and $0.17, respectively, in the 2007 second quarter.
Non-GAAP net income excludes charges for stock-based compensation
and non-cash tax expense. �We received an increased number of
orders in the second quarter and we were pleased with the number of
new customers licensing our solutions,� said Interactive
Intelligence founder and CEO, Dr. Donald E. Brown. �However, we did
see a lower dollar amount of orders from existing customers, which
we attribute to the current economic slowdown. While we see no
change in our long-term market opportunity or in the competitive
advantages our solutions offer, we are responding to this tougher
sales environment by adjusting our previously planned operating
expenses until general market conditions improve.� For the six
months ended June 30, 2008, revenues were a record $60.1 million, a
17 percent increase from $51.4 million in the same period in 2007.
Operating income for the first half of 2008 was $2.7 million,
compared to $3.6 million for the first half of 2007. For the first
half of 2008, non-GAAP operating income was $4.6 million, compared
to $5.1 million in the first half of 2007. Non-GAAP operating
income excludes charges for stock-based compensation of $1.9
million in 2008 and $1.5 million in 2007. Net income for the six
months ended June 30, 2008 was $2.0 million, with EPS of $0.10,
compared to $4.1 million and $0.22, respectively, in the first half
of 2007. Net income includes fully taxed earnings in 2008. Non-GAAP
net income was $5.3 million with EPS of $0.28, compared to $5.6
million and $0.29, respectively, in the first half of 2007.
Non-GAAP net income excludes charges for stock-based compensation
and non-cash tax expense. Cash and short-term investments as of
June 30, 2008 totaled $49.7 million, up from $46.3 million on Dec.
31, 2007. Cash flow from operations for the first six months of
2008 was $6.8 million, compared to $6.9 million in the first half
of 2007. Board Approves Share Repurchase Program Today, Interactive
Intelligence�s board of directors approved a share repurchase
program for its common stock under which the company may purchase
up to a maximum aggregate purchase price of $10 million from time
to time over the next year. The purchases under this program may be
made in the open market and in privately negotiated transactions.
The number of shares to be purchased and the timing of purchases
under the program will be based on both business and market
conditions. Any repurchases will be made using the company�s cash
resources, and the program may be amended, suspended or
discontinued at any time. Interactive Intelligence does not intend
to publicly announce any suspension of the program. Any shares
acquired will be available for stock-based compensation awards and
other corporate purposes. The program authorizes, but does not
commit, the company to repurchase shares of its common stock. �With
our share repurchase program announced today, we reaffirm our
confidence in the long-term future of the company,� Brown said.
�Our balance sheet and liquidity are strong and the value of our
products is being recognized by the market. We believe that we can
invest in the growth initiatives that are key to our future success
and take this step to enhance returns.� Additional Highlights To
further reinforce its existing customer relationships through
quality education and information, Interactive Intelligence hosted
a record number of attendees at its ninth annual User Forum in May.
More than 60 sessions were presented during the three-day event.
The conference attracted more than 300 customers, including Abbott
Labs, American Family Insurance, BMW, DialAmerica, Finish Line,
Harvard University, Kohl�s, Lockheed Martin, Nautilus, Perot
Systems, PETCO, Rolex, and Sony. Product highlights during the
quarter included the release of an upgraded version of Interaction
Dialer�, announcements of a new integration with Microsoft OCS, and
the introduction of a new automated customer satisfaction survey
module called Interaction Feedback�. Interactive Intelligence will
host a conference call today, July 28, at 4:30 p.m. Eastern time
(EDT), featuring Dr. Brown and the company's CFO, Stephen R. Head.
There will be a live Q&A session following opening remarks. To
access the teleconference, please dial 1 877.681.3371 at least five
minutes prior to the start of the call. Ask for the teleconference
by the following name: �Interactive Intelligence second quarter
earnings call.� The teleconference will also be broadcast live on
Interactive Intelligence's investor relations' page at
http://www.inin.com/investors. An archive of the teleconference
will be posted following the call. About Interactive Intelligence
Interactive Intelligence Inc. (Nasdaq: ININ) is a global provider
of unified business communications solutions for contact center
automation, enterprise IP telephony, and enterprise messaging. The
company was founded in 1994 and has more than 3,000 customers
worldwide. Interactive Intelligence is among Software Magazine�s
top 500 global software and services suppliers, is ranked among
NetworkWorld�s top 200 North American networking vendors, is a
BusinessWeek �hot growth 50� company, and is among FORTUNE Small
Business Magazine�s top 100 fastest growing companies. Interactive
Intelligence employs approximately 600 people and is headquartered
in Indianapolis, Indiana. It has six global corporate offices with
additional sales offices throughout North America, Europe, Middle
East, Africa and Asia Pacific. Interactive Intelligence can be
reached at +1 317.872.3000 or info@inin.com; on the Net:
www.inin.com. The non-GAAP measures shown in this release exclude
non-cash stock-based compensation expense for stock options and
non-cash income tax expense. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures are included
after the financial information included in this press release.
These measures are not in accordance with, or an alternative for,
GAAP and may be different from non-GAAP measures used by other
companies. Management believes that the presentation of non-GAAP
results, when shown in conjunction with corresponding GAAP
measures, provides useful information to management and investors
regarding financial and business trends related to the company�s
results of operations. Further, management believes that these
non-GAAP measures improve management�s and investors� ability to
compare the company�s financial performance with historical periods
because certain historical periods excluded stock-based
compensation expense for stock options (prior to 2007) and income
tax expense and benefits have varied significantly and are
primarily non-cash. Interactive Intelligence�s management uses
these non-GAAP results to compare its performance to its peers in
the software industry. Because stock-based compensation expense and
non-cash income tax expense amounts can vary significantly between
companies, it is useful to compare results excluding these amounts.
Management also uses financial statements that exclude stock-based
compensation expense related to stock options and non-cash income
tax amounts for its internal budgets. This release contains certain
forward-looking statements that involve a number of risks and
uncertainties. Among the factors that could cause actual results to
differ materially are the following: rapid technological changes in
the industry; the company's ability to maintain profitability; to
manage successfully its growth and increasingly complex third-party
relationships; to maintain successful relationships with its
current and any new partners; to maintain and improve its current
products; to develop new products; to protect its proprietary
rights adequately; and other factors described in the company's SEC
filings, including the company's latest annual report on Form 10-K.
Interactive Intelligence Inc. is the owner of the marks INTERACTIVE
INTELLIGENCE, its associated LOGO and numerous other marks. All
other trademarks mentioned in this document are the property of
their respective owners. ININ-G Interactive Intelligence, Inc.
Condensed Consolidated Statements of Income (in thousands, except
per share amounts) Unaudited � � � � Three Months Ended Six Months
Ended June 30, June 30, 2008 2007 2008 2007 (Note 1) (Note 1)
Revenues: Product $ 15,321 $ 14,602 $ 30,166 $ 26,958 Services �
15,289 � � 12,533 � � 29,927 � � 24,465 � Total revenues � 30,610 �
� 27,135 � � 60,093 � � 51,423 � Cost of revenues: Product 3,909
3,500 7,039 5,941 Services � 6,088 � � 5,145 � � 11,985 � � 9,942 �
Total cost of revenues � 9,997 � � 8,645 � � 19,024 � � 15,883 �
Gross profit � 20,613 � � 18,490 � � 41,069 � � 35,540 � Operating
expenses: Sales and marketing 10,142 8,822 20,320 17,476 Research
and development 5,336 4,227 10,301 8,124 General and administrative
� 3,882 � � 3,285 � � 7,709 � � 6,350 � Total operating expenses �
19,360 � � 16,334 � � 38,330 � � 31,950 � Operating income � 1,253
� � 2,156 � � 2,739 � � 3,590 � Other income: Interest income, net
344 384 803 856 Other income (expense), net � (52 ) � (42 ) � 45 �
� (98 ) Total other income � 292 � � 342 � � 848 � � 758 � Income
before income taxes 1,545 2,498 3,587 4,348 Income tax expense �
(700 ) � (103 ) � (1,625 ) � (200 ) Net income $ 845 � $ 2,395 � $
1,962 � $ 4,148 � � Net income per share: Basic $ 0.05 $ 0.14 $
0.11 $ 0.24 Diluted 0.04 0.12 0.10 0.22 � Shares used to compute
net income per share: Basic 17,972 17,401 17,956 17,325 Diluted
19,077 19,291 19,149 19,265 � � � Note 1: The 2007 amounts for the
three and six month periods have been changed to reflect
adjustments to product revenues and related commission expense.
These adjustments were deemed immaterial to the prior periods.
Interactive Intelligence, Inc. Reconciliation of Supplemental
Financial Information (in thousands, except per share amounts)
Unaudited � � � � Three Months Ended Six Months Ended June 30, June
30, 2008 2007 2008 2007 � Net income, as reported $ 845 $ 2,395 $
1,962 $ 4,148 Non-cash stock-based compensation expense: Cost of
services 69 68 141 114 Sales and marketing 382 330 744 630 Research
and development 224 158 432 258 General and administrative � 269 �
250 � 559 � 472 Total � 944 � 806 � 1,876 � 1,474 Non-cash income
tax expense � 656 � - � 1,477 � - Non-GAAP net income $ 2,445 $
3,201 $ 5,315 $ 5,622 � Operating income, as reported $ 1,253 $
2,156 $ 2,739 $ 3,590 Non-cash stock-based compensation expense �
944 � 806 � 1,876 � 1,474 Non-GAAP operating income $ 2,197 $ 2,962
$ 4,615 $ 5,064 � Diluted EPS, as reported 0.04 0.12 0.10 0.22
Non-cash stock-based compensation expense 0.05 0.05 0.10 0.07
Non-cash income tax expense � 0.04 � - � 0.08 � - Non-GAAP diluted
EPS $ 0.13 $ 0.17 $ 0.28 $ 0.29 Interactive Intelligence, Inc.
Condensed Consolidated Balance Sheets (in thousands) � � � June 30,
December 31, 2008 2007 (unaudited) (Note 1) Assets Current assets:
Cash and cash equivalents $ 35,684 $ 29,359 Short-term investments
13,967 16,968 Accounts receivable, net 25,764 27,527 Deferred tax
assets, net 5,833 5,833 Prepaid expenses 5,427 5,501 Other current
assets � 1,806 � � 1,414 � Total current assets 88,481 86,602
Property and equipment, net 9,361 6,932 Deferred tax assets, net
6,043 7,520 Other assets, net � 2,533 � � 2,384 � Total assets $
106,418 � $ 103,438 � � Liabilities and Shareholders' Equity
Current liabilities: Accounts payable and accrued liabilities $
11,104 $ 9,594 Accrued compensation and related expenses 3,263
4,381 Deferred product revenues 5,436 6,843 Deferred services
revenues � 27,708 � � 28,711 � Total current liabilities 47,511
49,529 Noncurrent deferred revenues � 5,930 � � 5,290 � Total
liabilities � 53,441 � � 54,819 � � Commitments and contingencies -
- � Shareholders' equity: Preferred stock - - Common stock 180 179
Additional paid-in-capital 81,800 79,405 Accumulated deficit �
(29,003 ) � (30,965 ) Total shareholders' equity � 52,977 � �
48,619 � Total liabilities and shareholders' equity $ 106,418 � $
103,438 � � � � � � � Note 1: December 31, 2007 amounts are derived
from the audited Consolidated Balance Sheet included in the 2007
Annual Report on Form 10-K of Interactive Intelligence, Inc.,
changed to reflect adjustments to cash and cash equivalents and
short-term investments. These adjustments were deemed immaterial to
the prior period. Interactive Intelligence, Inc. Condensed
Consolidated Statements of Cash Flows (in thousands) Unaudited � �
� Six Months Ended June 30, 2008 2007 Operating activities: Net
income $ 1,962 $ 4,148 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation 1,690 1,231
Accretion of investment income (89 ) (240 ) Stock-based
compensation expense 1,876 1,474 Deferred income tax 1,477 -
Changes in operating assets and liabilities: Accounts receivable
1,763 (2,714 ) Prepaid expenses 74 (57 ) Other current assets (392
) (151 ) Other assets (149 ) (196 ) Accounts payable and accrued
liabilities 1,438 1,087 Accrued compensation and related expenses
(1,118 ) 51 Deferred product revenues (1,407 ) (90 ) Deferred
services revenues � (363 ) � 2,372 � Net cash provided by operating
activities � 6,762 � � 6,915 � � Investing activities: Sales of
available-for-sale investments 17,650 10,315 Purchases of
available-for-sale investments (14,613 ) (10,214 ) Purchases of
property and equipment (4,047 ) (2,556 ) Acquisition of
professional services division � - � � (853 ) Net cash provided
(used) by investing activities � (1,010 ) � (3,308 ) � Financing
activities: Proceeds from stock options exercised 442 1,207
Proceeds from issuance of common stock � 131 � � 104 � Net cash
provided by financing activities � 573 � � 1,311 � � Net increase
in cash and cash equivalents 6,325 4,918 Cash and cash equivalents,
beginning of period � 29,359 � � 13,531 � Cash and cash
equivalents, end of period $ 35,684 � $ 18,449 � � Cash paid during
the period for: Income taxes $ 170 $ 78 � Other non-cash item:
Purchases of property and equipment payable at end of period $ (72
) $ -
Interactive Intelligence Grp., Inc. (NASDAQ:ININ)
Historical Stock Chart
From May 2024 to Jun 2024
Interactive Intelligence Grp., Inc. (NASDAQ:ININ)
Historical Stock Chart
From Jun 2023 to Jun 2024