Interactive Intelligence (Nasdaq: ININ), a global provider of
unified IP business communications solutions, has announced
operating results for the three and six months ended June 30,
2009.
The company reported revenues of $32.9 million for the second
quarter of 2009, an increase of 7.5 percent over revenues of $30.6
million for the second quarter of 2008.
“As previously announced, we received several significant orders
in the quarter, including three exceeding $1 million,” said
Interactive Intelligence chairman and CEO, Dr. Donald E. Brown. “At
the same time, we had continued year-over-year growth in services
revenues driven by increasing maintenance and support fees
resulting in record total revenues.”
Second quarter 2009 results included:
- Operating income on a generally
accepted accounting principles (GAAP) basis of $3.0 million, up
from $1.3 million in the second quarter of 2008;
- Non-GAAP operating income of
$3.7 million, compared to $2.2 million in the same quarter last
year;
- Gross margins of 67.9 percent,
compared to 67.3 percent in the second quarter of 2008;
- GAAP net income of $2.1 million,
or diluted earnings per share (EPS) of $0.12, up from $845,000, or
EPS of $0.04, in the second quarter of 2008;
- Non-GAAP net income of $4.4
million, or EPS of $0.24, compared to $2.4 million, or EPS of
$0.13, for the same quarter last year; and
- Cash and investment balances at
quarter-end of $54.1 million with no debt.
Non-GAAP net income and EPS exclude charges for stock-based
compensation of $725,000, or EPS of $0.04, and non-cash income tax
expense of $1.5 million, or EPS of $0.08, for the second quarter of
2009, and charges for stock-based compensation expense of $944,000,
or EPS of $0.05, and non-cash income tax expense of $656,000, or
EPS of $0.04, for the second quarter of 2008.
“We continue to focus on new product development and expanding
our existing offerings,” Dr. Brown said. “These activities include
our acquisition in May 2009 of insurance content management
solutions company AcroSoft, and the expected launch of our
communications-based process automation solution later this year.
We believe these initiatives will help drive more value to our
existing customers and prospects, and generate additional revenues
in 2010.”
First half 2009 results included:
- Total revenues of $62.4 million,
a 3.8 percent increase over revenues of $60.1 million for the first
half of 2008;
- GAAP operating income of $5.4
million, up from $2.7 million in the first half of 2008;
- Non-GAAP operating income of
$7.0 million, compared to $4.5 million in the first half of
2008;
- Gross margins of 68.6 percent,
compared to 68.3 percent for the first half of 2008;
- GAAP net income of $3.3 million,
or EPS of $0.19, compared to $2.0 million, or EPS of $0.10, for the
first half of 2008;
- Non-GAAP net income of $7.2
million, or EPS of $0.41, compared to $5.3 million, or EPS of
$0.28, for the same period last year.
Non-GAAP net income and EPS exclude charges for stock-based
compensation of $1.6 million, or EPS of $0.09, and non-cash income
tax expense of $2.3 million, or EPS of $0.13, for the first six
months of 2009, and charges for stock-based compensation expense of
$1.9 million, or EPS of $0.10, and non-cash income tax expense of
$1.5 million, or EPS of $0.08, for the first six months of
2008.
Second quarter 2009 operating results also included:
- A drop in interest income to
$73,000, compared to $344,000 in the second quarter of 2008, due to
lower yields on investments;
- Other income, principally
related to foreign exchange gains, of $649,000, compared to a loss
of $90,000 in the second quarter of 2008; and
- Cash flows from operations of
$4.9 million, up from $1.4 million in the second quarter of
2008.
Non-financial highlights from the second quarter of 2009
included:
- Interactive Intelligence
acquired insurance content management solutions company AcroSoft to
strengthen its insurance offering and incorporate document
management capabilities into its all-in-one IP communications
software suite;
- Interactive Intelligence
announced its communications-based process automation product,
Interaction Process Automation™ (IPA);
- Interactive Intelligence signed
national reseller, Ronco Communications & Electronics;
- Interactive Intelligence was
named among the Indiana Chamber of Commerce’s 2009 "Best Places to
Work"; and
- Interactive Intelligence
received the 2009 “Unified Communications TMC Labs Innovation
Award” recognizing the company’s IPA product.
Interactive Intelligence will host a conference call July 30 at
4:30 p.m. Eastern Time (EDT), featuring Dr. Brown and the company’s
CFO, Stephen R. Head. A live Q&A session will follow opening
remarks.
To access the teleconference, please dial 1.877.545.1490 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 the company's
investor relations’ page at http://investors.inin.com. An archive
of the teleconference will be posted following the call.
About Interactive IntelligenceInteractive Intelligence
Inc. (Nasdaq: ININ) is a global provider of unified business
communications solutions for contact center automation, enterprise
IP telephony, and business process automation. The company was
founded in 1994 and has approximately 3,000 customers worldwide.
Interactive Intelligence is among Software Magazine’s top 500
global software and services suppliers, is ranked among Network
World’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. The company
is also positioned in the leaders’ quadrant of the Gartner 2008
Contact Center Infrastructure, Worldwide Magic Quadrant report.
Interactive Intelligence employs more than 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.
* Non-GAAP MeasuresThe 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. Stock-based compensation expense is non-cash and income
tax expense is primarily non-cash. 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 other companies in the technology 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; to
manage successfully its increasingly complex third-party
relationships resulting from the software and hardware components
being licensed or sold with its solutions; to maintain successful
relationships with certain suppliers which may be impacted by the
competition in the technology industry; 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; to successfully
integrate acquired businesses; 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, 2009 2008 2009
2008 Revenues: Product $ 16,494 $ 15,321 $ 29,543 $ 30,166
Services 16,401 15,289 32,828
29,927 Total revenues 32,895 30,610
62,371 60,093 Costs of revenues: Product 4,841 3,909 8,369
7,039 Services 5,708 6,088 11,210
11,985 Total cost of revenues 10,549 9,997
19,579 19,024 Gross profit 22,346
20,613 42,792 41,069 Operating
expenses: Sales and marketing 9,965 10,138 19,179 20,322 Research
and development 5,986 5,336 11,613 10,301 General and
administrative 3,416 3,848 6,604
7,786 Total operating expenses 19,367 19,322
37,396 38,409 Operating income 2,979 1,291 5,396
2,660 Other income (expense): Interest income 73 344 181 803 Other
income (expense) 649 (90 ) 225 124
Total other income 722 254 406
927 Income before income taxes 3,701 1,545 5,802 3,587 Income tax
expense 1,604 700 2,482 1,625
Net income $ 2,097 $ 845 $ 3,320 $ 1,962 Net income
per share: Basic $ 0.12 $ 0.05 $ 0.20 $ 0.11 Diluted 0.12 0.04 0.19
0.10 Shares used to compute net income per share: Basic
17,015 17,972 16,981 17,956 Diluted 18,070 19,077 17,859 19,149
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, 2009 2008
2009 2008 Net income, as reported $
2,097 $ 845 $ 3,320 $ 1,962 Non-cash stock-based compensation
expense: Cost of services 50 69 115 141 Sales and marketing 230 382
538 744 Research and development 227 224 472 432 General and
administrative 218 269 447 559 Total
725 944 1,572 1,876 Non-cash income tax
expense 1,544 656 2,343 1,477
Non-GAAP net income $ 4,366 $ 2,445 $ 7,235 $ 5,315
Operating income, as reported $ 2,979 $ 1,291 $ 5,396 $
2,660 Non-cash stock-based compensation expense 725
944 1,572 1,876
Non-GAAP operating income $
3,704 $ 2,235 $ 6,968 $ 4,536
Diluted EPS, as
reported $ 0.12 $ 0.04 $ 0.19 $ 0.10 Non-cash stock-based
compensation expense 0.04 0.05 0.09 0.10 Non-cash income tax
expense 0.08 0.04 0.13 0.08
Non-GAAP
diluted EPS $ 0.24 $ 0.13 $ 0.41 $ 0.28
Interactive Intelligence, Inc. Condensed
Consolidated Balance Sheets (in thousands)
June 30, December 31, 2009 2008
(unaudited) Assets Current assets: Cash and cash
equivalents $ 48,062 $ 34,705 Short-term investments 5,989 10,805
Accounts receivable, net 24,626 27,533 Deferred tax assets, net
6,139 6,017 Prepaid expenses 4,915 5,507 Other current assets
3,308 1,995 Total current assets 93,039
86,562 Property and equipment, net 9,546 10,762 Deferred tax
assets, net 4,476 5,136 Other assets, net 4,837
2,723 Total assets $ 111,898 $ 105,183
Liabilities and Shareholders' Equity Current
liabilities: Accounts payable and accrued liabilities $ 11,934 $
11,361 Accrued compensation and related expenses 3,854 3,486
Deferred product revenues 4,835 4,754 Deferred services revenues
30,679 31,457 Total current liabilities
51,302 51,058 Deferred revenue 6,323 6,878
Total liabilities 57,625 57,936
Shareholders' equity: Preferred stock - - Common stock 171
169 Treasury stock (8,470 ) (9,714 ) Additional paid-in-capital
86,577 83,604 Accumulated deficit (24,005 ) (26,812 )
Total shareholders' equity 54,273 47,247
Total liabilities and shareholders' equity $ 111,898
$ 105,183
Interactive
Intelligence, Inc. Condensed Consolidated Statements of Cash
Flows (in thousands) Unaudited
Six Months Ended June 30, 2009 2008
Operating activities: Net income $ 3,320 $ 1,962
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 2,094 1,690 Stock-based
compensation expense 1,572 1,876 Tax benefits from stock-based
payment arrangements (1,278 ) - Deferred income tax 538 1,477
Accretion of investment income (142 ) (89 ) Changes in operating
assets and liabilities: Accounts receivable 2,969 1,763 Prepaid
expenses 622 74 Other current assets (1,312 ) (392 ) Other assets
308 (149 ) Accounts payable and accrued liabilities 1,824 1,438
Accrued compensation and related expenses 368 (1,118 ) Deferred
product revenues 168 (1,407 ) Deferred services revenues
(1,704 ) (363 ) Net cash provided by operating activities
9,347 6,762
Investing
activities: Sales of available-for-sale investments 10,800
17,650 Purchases of available-for-sale investments (5,850 ) (14,613
) Purchases of property and equipment (833 ) (4,047 )
Acquisition of intangible and
other assets, net of cash andcash equivalents acquired
(2,249 ) - Net cash provided by (used in)
investing activities 1,868 (1,010 )
Financing activities: Proceeds from stock options exercised
732 442 Proceeds from issuance of common stock 132 131 Tax benefits
from stock-based payment arrangements 1,278 -
Net cash provided by financing activities 2,142
573 Net increase in cash and cash
equivalents 13,357 6,325 Cash and cash equivalents, beginning of
period 34,705 29,359 Cash and cash
equivalents, end of period $ 48,062 $ 35,684
Cash paid during the period for: Income taxes $ 199 $ 170
Other non-cash item: Purchases of property and
equipment payable at end of period $ (78 ) $ (72 )
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