ININ Interactive Intelligence Grp., Inc.

Interactive Intelligence (Nasdaq: ININ), a global provider of unified IP business communications solutions, has announced results for its fourth quarter and full year ended Dec. 31, 2010.

The company reported 2010 fourth-quarter revenues of $50.7 million, an increase of 41 percent from $35.9 million in the fourth quarter of 2009. Revenues for 2010 were $166.3 million, an increase of 27 percent from $131.4 million in 2009.

The financial results noted in this release and the accompanying financial statements, reflect a change in the company’s presentation of its revenues, with three revenue lines presented: product revenues; recurring revenues, which include support and cloud-based revenues; and services revenues, which include professional services and education.

Fourth-quarter 2010 financial results compared to fourth quarter 2009 results include:

• Product revenues of $25.0 million, up 38 percent from $18.1 million.
• Recurring revenues of $19.9 million, up 34 percent from $14.8 million.
• Services revenues of $5.7 million, up 91 percent from $3.0 million.
• Gross profit margin of 69.1 percent versus 69.9 percent.

Full-year 2010 financial results compared to full-year 2009 results include:

• Product revenues of $79.8 million, up 26 percent from $63.3 million.
• Recurring revenues of $68.7 million, up 23 percent from $55.8 million.
• Services revenues of $17.8 million, up 44 percent from $12.3 million.
• Gross profit margins of 69.5 percent versus 69.6 percent.

“Our fourth-quarter orders were very strong from both new and existing customers, with good contributions from North America, Europe and Australia,” said Interactive Intelligence founder and CEO, Dr. Donald E. Brown. “Particularly impressive was the increase in the number of our transactions of $250,000 or more, which jumped from 19 in the fourth quarter of 2009 to 31 in the fourth quarter of 2010. While order activity propelled product revenue growth, recurring revenues increased significantly as well. Services revenue growth was also notable.

“For the year we recorded a 25 percent increase in product orders from both new and existing customers, and a 150 percent-plus increase in our cloud-based orders,” Brown said. “We more than doubled the number of $1 million orders, from nine in 2009 to 19 in 2010, and the number of orders over $250,000, from 55 to 90. We plan to build on this momentum by continuing to focus on moving up-market,” Brown said.

For the fourth quarter of 2010, net income on a generally accepted accounting principles (GAAP) basis was $7.1 million, with diluted earnings per share (EPS) of $0.37, compared to net income of $2.5 million, with EPS of $0.14 in the fourth quarter of 2009. Net income on a non-GAAP* basis for the fourth quarter of 2010 was $10.4 million, with EPS of $0.54, compared to non-GAAP net income of $5.1 million and EPS of $0.28 in the fourth quarter of 2009.

For the fourth quarter of 2010, non-GAAP net income and EPS exclude purchase accounting-related adjustments of $388,000, or EPS of $0.02, charges for stock-based compensation of $974,000, or EPS of $0.05, and non-cash income tax expense of approximately $2.0 million, or EPS of $0.10. For the fourth quarter of 2009, non-GAAP net income and EPS exclude purchase accounting-related adjustments of $58,000, charges for stock-based compensation of $775,000, or EPS of $0.04, and non-cash income tax expense of $1.8 million, or EPS of $0.10.

Net income for 2010 on a GAAP basis was $14.9 million, with EPS of $0.79, compared to net income of $8.6 million, with EPS of $0.47 in 2009. Net income on a non-GAAP basis was $26.5 million, with EPS of $1.40, compared to non-GAAP net income of $18.2 million, and EPS of $1.00 in 2009.

For the full year of 2010, non-GAAP net income and EPS exclude purchase accounting-related adjustments of $475,000, or EPS of $0.03, charges for stock-based compensation of $4.0 million, or EPS of $0.21, and non-cash income tax expense of approximately $7.2 million, or EPS of $0.38. For 2009, non-GAAP net income and EPS exclude purchase accounting-related adjustments of $232,000, or EPS of $0.01, charges for stock-based compensation of $3.3 million, or EPS of $0.18, and non-cash income tax expense of $6.0 million, or EPS of $0.34.

“Looking forward, we see a healthy pipeline of business,” Brown said. “We expect 2011 revenues to be boosted by the next major release of our flagship all-in-one IP communications software suite, which is due for general availability in the first half of the year. We anticipate growth in our cloud-based orders, with increases in both recurring and services revenues. We currently expect total revenues for 2011 to increase by at least 20 percent, moving past the $200 million mark.

“Our growth strategy calls for continued investment in our cloud-based infrastructure, as well as research and development, and sales and marketing, in order to further capitalize on the momentum that we have built while achieving a non-GAAP operating margin of approximately 14 percent,” Brown concluded.

Other 2010 financial highlights include:

• Cash flows from operations of $28.7 million, up from $15.1 million in 2009.
• Deferred revenues totaling $54.1 million as of Dec. 31, 2010, up from $48.2 million as of Dec. 31, 2009.
• The acquisition of Latitude Software for net cash of $15.3 million in the fourth quarter.
• Cash and investment balances as of Dec. 31, 2010 totaling $85.9 million, up from $65.0 million as of Dec. 31, 2009, with no debt.

The company will host a conference call Friday, Jan. 28 at 8:30 a.m. Eastern time (EST), featuring Dr. Donald E. Brown, and the company’s CFO, Stephen R. Head. A live Q&A session will follow opening remarks.

To access the teleconference, please dial 1.877.324.1969 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: "Interactive Intelligence fourth 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 Intelligence

Interactive 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 more than 4,000 customers worldwide. Interactive Intelligence is among Software Magazine’s 2010 Top 500 Global Software and Services Suppliers, and Forbes Magazine’s 2010 Best Small Companies in America. The company is also positioned in the leaders’ quadrant of the Gartner Magic Quadrant for Contact Center Infrastructure, Worldwide report (Feb. 22, 2010). Interactive Intelligence employs more than 800 people and is headquartered in Indianapolis, Indiana. It has 19 offices throughout North America, Latin 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 Measures

The non-GAAP measures shown in this release include revenue which was not recognized on a GAAP basis due to purchase accounting adjustments and exclude non-cash stock-based compensation expense for stock options, the amortization of certain intangible assets related to acquisitions by the company and non-cash income tax expense. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included with 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 and amortization of intangibles related to acquisitions are 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, non-cash income tax expense amounts and amortization of intangibles related to acquisitions 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, non-cash income tax amounts and amortization of intangibles related to acquisitions 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)               Three Months EndedDecember 31, Year EndedDecember 31, 2010 2009 2010 2009 (unaudited) (unaudited) (unaudited) Revenues: Product $ 25,045 $ 18,087 $ 79,817 $

63,327

 

Recurring 19,898 14,807 68,740 55,798 Services   5,707     2,983     17,758     12,293   Total revenues   50,650     35,877     166,315     131,418   Costs of revenues: Product 7,369 5,131 23,868 17,452 Recurring 5,223 3,570 16,991 12,913 Services 3,005 2,074 9,788 9,489 Amortization of intangible assets   35     16     83     40   Total cost of revenues   15,632     10,791     50,730     39,894   Gross profit   35,018     25,086     115,585     91,524   Operating expenses: Sales and marketing 13,134 10,264 47,072 39,141 Research and development 7,786 6,355 28,349 24,103 General and administrative 4,800 3,688 16,584 13,817 Amortization of intangible assets   184     9     211     22   Total operating expenses   25,904     20,316     92,216     77,083   Operating income 9,114 4,770 23,369 14,441 Other income (expense): Interest income, net 111 48 340 281 Other income (expense)   (118 )   (406 )   (1,146 )   298   Total other income (expense)   (7 )   (358 )   (806 )   579   Income before income taxes 9,107 4,412 22,563 15,020 Income tax expense   2,033     1,893     7,662     6,380   Net income $ 7,074   $ 2,519   $ 14,901   $ 8,640     Net income per share: Basic $ 0.39 $ 0.15 $ 0.85 $ 0.51 Diluted 0.37 0.14 0.79 0.47   Shares used to compute net income per share: Basic 17,956 17,267 17,563 17,096 Diluted 19,302 18,643 18,894 18,268     Interactive Intelligence, Inc. Reconciliation of Supplemental Financial Information (in thousands, except per share amounts) Unaudited               Three Months EndedDecember 31, Year EndedDecember 31, 2010 2009 2010 2009   Net income, as reported

$

7,074

 

$

2,519

 

$

14,901

 

$

8,640

 

Purchase accounting adjustments: Increase to revenues: Recurring 80 32 88 100 Services - 1 4 5 Reduction of operating expenses: Customer Relationships 139 9 166 22 Technology 35 16 83 40 Non-compete agreements 45 - 45 - Acquisition Costs   89     -     89     65   Total   388     58     475     232   Non-cash stock-based compensation expense: Cost of recurring revenues 93 53 321 239 Sales and marketing 256 238 1,230 1,128 Research and development 297 226 1,178 952 General and administrative   328     258     1,250     1,003   Total   974     775     3,979     3,322   Non-cash income tax expense   1,978     1,780     7,176     6,036   Non-GAAP net income $ 10,414   $ 5,132   $ 26,531   $ 18,230     Operating income, as reported $ 9,114 $ 4,770 $ 23,369 $ 14,441 Purchase accounting adjustments 388 58 475 232 Non-cash stock-based compensation expense   974     775     3,979     3,322   Non-GAAP operating income $ 10,476   $ 5,603   $ 27,823   $ 17,995     Diluted EPS, as reported $ 0.37 $ 0.14 $ 0.79 $ 0.47 Purchase accounting adjustments 0.02 0.00 0.03 0.01 Non-cash stock-based compensation expense 0.05 0.04 0.21 0.18 Non-cash income tax expense   0.10     0.10     0.37     0.34   Non-GAAP diluted EPS $ 0.54   $ 0.28   $ 1.40   $ 1.00       Interactive Intelligence, Inc. Condensed Consolidated Balance Sheets (in thousands)         December 31, 2010 2009 (unaudited) Assets Current assets: Cash and cash equivalents $ 48,300 $ 48,497 Short-term investments 37,582 16,482 Accounts receivable, net 36,130 32,092 Deferred tax assets, net 5,499 5,808 Prepaid expenses 7,456 5,976 Other current assets   4,989     3,935   Total current assets 139,956 112,790 Property and equipment, net 10,336 8,499 Deferred tax assets, net 2,765 6,505 Goodwill 11,371 2,842 Intangible assets, net 11,001 1,343 Other assets, net   803     689   Total assets $ 176,232   $ 132,668     Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 16,364 $ 11,903 Accrued compensation and related expenses 6,553 4,946 Deferred product revenues 3,350 5,567 Deferred services revenues   43,281     36,225   Total current liabilities 69,548 58,641 Deferred revenue   7,420     6,420   Total liabilities   76,968     65,061     Shareholders' equity: Preferred stock - - Common stock 182 173 Treasury stock - (6,242 ) Additional paid-in-capital 103,547 92,815 Accumulated deficit   (4,465 )   (19,139 ) Total shareholders' equity   99,264     67,607   Total liabilities and shareholders' equity $ 176,232   $ 132,668       Interactive Intelligence, Inc. Condensed Consolidated Statements of Cash Flows (in thousands)       Year EndedDecember 31, 2010 2009 (unaudited) Operating activities: Net income $

14,901

$ 8,640

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other non-cash items

4,621

4,287 Stock-based compensation expense

3,979

3,322 Tax benefits from stock-based payment arrangements (6,285 ) (5,970 ) Deferred income tax (515 ) (1,114 ) Accretion of investment income (235 ) (149 ) Changes in operating assets and liabilities: Accounts receivable (2,040 ) (4,497 ) Prepaid expenses (1,423 ) (439 ) Other current assets (1,054 ) (1,939 ) Other assets (114 ) 109 Accounts payable and accrued liabilities

10,350

6,534 Accrued compensation and related expenses

1,370

1,460 Deferred product revenues

(2,329

) 918 Deferred services revenues  

7,471

   

3,921

  Net cash provided by operating activities  

28,697

    15,083     Investing activities: Sales of available-for-sale investments

21,815

14,300 Purchases of available-for-sale investments (42,978 ) (19,815 ) Purchases of property and equipment (5,478 ) (1,912 )

Acquisition of intangible and other assets, net of cash and cash equivalents acquired

 

(15,328

)   (2,249 ) Net cash used in investing activities   (41,969 )   (9,676 )   Financing activities: Proceeds from stock options exercised

6,440

2,163 Proceeds from issuance of common stock

350

252 Tax benefits from stock-based payment arrangements  

6,285

    5,970   Net cash provided by financing activities  

13,075

    8,385     Net (decrease) increase in cash and cash equivalents (197 ) 13,792 Cash and cash equivalents, beginning of period  

48,497

    34,705   Cash and cash equivalents, end of period $

48,300

  $ 48,497     Cash paid during the period for: Interest $

1

$ - Income taxes

853

743   Other non-cash item: Purchases of property and equipment payable at end of period $ (23 ) $ 29     Condensed Consolidated Statements of Income - GAAP (in thousands, except per share amounts) (unaudited)     2009       2010   Q1   Q2   Q3   Q4   Total Q1   Q2   Q3   Q4   Total                 Revenues: Product $ 13,080 $ 16,558 $ 15,602 $ 18,087 $ 63,327 $ 15,786 $ 18,315 $ 20,671 $ 25,045 $ 79,817 Recurring 13,403 13,245 14,343 14,807 55,798 15,925 16,322 16,595 19,898 68,740 Services   2,993       3,092       3,225       2,983       12,293     3,312       4,174       4,565       5,707       17,758   Total revenues   29,476       32,895       33,170       35,877       131,418     35,023       38,811       41,831       50,650       166,315   Costs of revenues: Product 3,528 4,841 3,952 5,131 17,452 4,799 5,502 6,198 7,369 23,868 Recurring 2,975 3,190 3,178 3,570 12,913 3,423 4,043 4,302 5,223 16,991 Services 2,527 2,518 2,370 2,074 9,489 2,174 2,144 2,465 3,005 9,788 Amortization of intangibles   -       8       16       16       40     16       16       16       35       83   Total cost of revenues   9,030       10,557       9,516       10,791       39,894     10,412       11,705       12,981       15,632       50,730   Gross profit   20,446       22,338       23,654       25,086       91,524     24,611       27,106       28,850       35,018       115,585   Operating expenses: Sales and marketing 9,214 9,965 9,698 10,264 39,141 10,352 11,480 12,106 13,134 47,072 Research and development 5,626 5,986 6,136 6,355 24,103 6,425 6,945 7,193 7,786 28,349 General and administrative 3,189 3,404 3,536 3,688 13,817 3,836 4,013 3,935 4,800 16,584 Amortization of intangibles   -       4       9       9       22     9       9       9       184       211   Total operating expenses   18,029       19,359       19,379       20,316       77,083     20,622       22,447       23,243       25,904       92,216   Operating income   2,417       2,979       4,275       4,770       14,441     3,989       4,659       5,607       9,114       23,369   Other income (expense): Interest income, net 108 73 52 48 281 42 67 120 111 340 Other income (expense)   (424 )     649       479       (406 )     298     (775 )     (590 )     337       (118 )     (1,146 ) Total other income (expense)   (316 )     722       531       (358 )     579     (733 )     (523 )     457       (7 )     (806 ) Income before income taxes 2,101 3,701 4,806 4,412 15,020 3,256 4,136 6,064 9,107 22,563 Income tax expense   878       1,604       2,005       1,893       6,380     1,388       1,680       2,561       2,033       7,662   Net income $ 1,223     $ 2,097     $ 2,801     $ 2,519     $ 8,640   $ 1,868     $ 2,456     $ 3,503     $ 7,074     $ 14,901     Net income per share: Basic $ 0.07 $ 0.12 $ 0.16 $ 0.15 $ 0.51 $ 0.11 $ 0.14 $ 0.20 $ 0.39 $ 0.85 Diluted $ 0.07 $ 0.12 $ 0.15 $ 0.14 $ 0.47 $ 0.10 $ 0.13 $ 0.19 $ 0.37 $ 0.79   Shares used to compute net income per share: Basic 16,948 17,015 17,148 17,267 17,096 17,320 17,445 17,524 17,956 17,563 Diluted 17,635 18,070 18,486 18,643 18,268 18,708 18,772 18,695 19,302 18,894     Condensed Consolidated Statements of Income - Non-GAAP (in thousands, except per share amounts) (unaudited) 2009 2010 Q1   Q2   Q3   Q4   Total Q1   Q2   Q3   Q4   Total   Revenues: Product $ 13,080 $ 16,558 $ 15,602 $ 18,087 $ 63,327 $ 15,786 $ 18,315 $ 20,671 $ 25,045 $ 79,817 Recurring 13,403 13,271 14,385 14,839 55,898 15,932 16,323 16,595 19,978 68,828 Services   2,993       3,093       3,228       2,984       12,298     3,314       4,175       4,566       5,707       17,762   Total revenues   29,476       32,922       33,215       35,910       131,523     35,032       38,813       41,832       50,730       166,407   Costs of revenues: Product 3,528 4,841 3,952 5,131 17,452 4,799 5,502 6,198 7,369 23,868 Recurring 2,910 3,140 3,107 3,517 12,674 3,344 3,980 4,216 5,130 16,670 Services   2,527       2,518       2,370       2,074       9,489     2,174       2,144       2,465       3,005       9,788   Total cost of revenues   8,965       10,499       9,429       10,722       39,615     10,317       11,626       12,879       15,504       50,326   Gross profit   20,511       22,423       23,786       25,188       91,908     24,715       27,187       28,953       35,226       116,081   Operating expenses: Sales and marketing 8,906 9,735 9,346 10,026 38,013 10,028 11,162 11,774 12,878 45,842 Research and development 5,381 5,759 5,881 6,129 23,150 6,127 6,647 6,908 7,489 27,171 General and administrative   2,960       3,134       3,226       3,430       12,750     3,525       3,728       3,609       4,383       15,245   Total operating expenses   17,247       18,628       18,453       19,585       73,913     19,680       21,537       22,291       24,750       88,258   Operating income   3,264       3,795       5,333       5,603       17,995     5,035       5,650       6,662       10,476       27,823   Other income (expense): Interest income, net 108 73 52 48 281 42 67 120 111 340 Other income (expense)   (424 )     649       479       (406 )     298     (775 )     (590 )     337       (118 )     (1,146 ) Total other income (expense)   (316 )     722       531       (358 )     579     (733 )     (523 )     457       (7 )     (806 ) Income before income taxes 2,948 4,517 5,864 5,245 18,574 4,302 5,127 7,119 10,469 27,017 Income tax expense   79       60       92       113       344     147       133       151       55       486   Net income $ 2,869     $ 4,457     $ 5,772     $ 5,132     $ 18,230   $ 4,155     $ 4,994     $ 6,968     $ 10,414     $ 26,531     Net income per share: Basic $ 0.17 $ 0.26 $ 0.34 $ 0.30 $ 1.07 $ 0.24 $ 0.29 $ 0.40 $ 0.58 $ 1.51 Diluted 0.16 0.25 0.31 0.28 1.00 0.22 0.27 0.37 0.54 1.40   Shares used to compute net income per share: Basic 16,948 17,015 17,148 17,267 17,096 17,320 17,445 17,524 17,956 17,563 Diluted 17,635 18,070 18,486 18,643 18,268 18,708 18,772 18,695 19,302 18,894     Supplemental Data (Dollars in thousands) 2009 2010 Q1   Q2   Q3   Q4   Total Q1   Q2   Q3   Q4   Total

Non-GAAP Adjustments:

Purchase accounting adjustments: Increase to revenues: Recurring $ - $ 26 $ 42 $ 32 $ 100 $ 7 $ 1 $ - $ 80 $ 88 Services - 1 3 1 5 2 1 1 4   Reduction of operating expenses: Customer Relationships - 4 9 9 22 9 9 9 139 166 Technology - 8 16 16 40 16 16 16 35 83 Non-compete agreements - - - - - - - - 45 45 Acquisition Costs   -       52       13       -       65     -       -       -       89       89   Total purchase accounting adjustments $ -     $ 91     $ 83     $ 58     $ 232   $ 25     $ 27     $ 26     $ 388     $ 475     Stock-Based Compensation Expense: Costs of recurring revenues $ 65 $ 50 $ 71 $ 53 $ 239 $ 79 $ 63 $ 86 $ 93 $ 321 Sales and marketing 308 230 352 238 1,128 324 318 332 256 1,230 Research and development 245 227 254 226 952 298 298 285 297 1,178 General and administrative   229       218       298       258       1,003     311       285       326       328       1,250   Total $ 847     $ 725     $ 975     $ 775     $ 3,322   $ 1,012     $ 964     $ 1,029     $ 974     $ 3,979     Non-cash income tax expense $ 799     $ 1,544     $ 1,913     $ 1,780     $ 6,036   $ 1,241     $ 1,547     $ 2,410     $ 1,978     $ 7,176    

Other Information:

Margins (GAAP): Product 73.0 % 70.8 % 74.7 % 71.6 % 72.4 % 69.6 % 70.0 % 70.0 % 70.6 % 70.1 % Recurring 77.8 % 75.9 % 77.8 % 75.9 % 76.9 % 78.5 % 75.2 % 74.1 % 73.8 % 75.3 % Services 15.6 % 18.6 % 26.5 % 30.5 % 22.8 % 34.4 % 48.6 % 46.0 % 47.3 % 44.9 % Overall 69.4 % 67.9 % 71.3 % 69.9 % 69.6 % 70.3 % 69.8 % 69.0 % 69.1 % 69.5 %   Year-over-year Revenue Growth (GAAP): Product -12.2 % 7.6 % 5.7 % 17.1 % 4.7 % 20.7 % 10.6 % 32.5 % 38.5 % 26.0 % Recurring 14.3 % 6.0 % 15.8 % 15.9 % 13.0 % 18.8 % 23.2 % 15.7 % 34.4 % 23.2 % Services 4.9 % 13.3 % 10.9 % -1.5 % 6.7 % 10.7 % 35.0 % 41.6 % 91.3 % 44.5 % Overall 0.0 % 7.5 % 10.4 % 14.8 % 8.2 % 18.8 % 18.0 % 26.1 % 41.2 % 26.6 %   Orders: Over $1 million - 3 4 2 9 3 2 9 5 19 Between $250,000 and $1 million 10 11 8 17 46 11 18 16 26 71   Number of new customers 62 78 67 72 279 71 62 48 77 258   Average new customer order: Overall $ 98 $ 115 $ 174 $ 187 $ 144 $ 135 $ 178 $ 318 $ 225 $ 206 CaaS 260 35 1,233 47 465 535 446 617 139 401