Interactive Intelligence reports 2010 first quarter operating results

Interactive Intelligence (Nasdaq: ININ), a global provider of unified IP business communications solutions, has announced operating results for the three months ended 31 March 2010.

The company reported revenue of $35 million, an increase of 19% compared to revenue for the first quarter of 2009; product revenue increased by 20%, while services revenue was up 18% compared to the first quarter of 2009.

On a generally accepted accounting principles (GAAP) basis, net income was $1.9 million, with diluted earnings per share (EPS) of $0.10, compared to $1.2 million, or EPS of $0.07, in the first quarter of 2009. Net income on a non-GAAP basis was $4.1 million, with EPS of $0.22, compared to $2.9 million, or EPS of $0.16, for the same quarter last year.

Cash and investment balances as of 31 March 2010 increased to $71.4 million with no debt.

“We had strong year-over-year order growth across all major geographies,” said Interactive Intelligence founder and CEO, Dr Donald E Brown. “These orders included significant new communications-as-a-service contracts. Revenue recognised from CaaS continued to build and contributed to our increase in services revenue. Our new Interaction Process Automation application was also a key differentiator for us in the marketplace, as it directly connects our communications platform to a customer's operational efficiency and profitability.”

Additional first quarter operating results included:

* An increase in gross margins to 70.3% in 2010 from 69.4% in 2009.
* GAAP operating income of $4 million in 2010, up 65% from $2.4 million in 2009.
* Non-GAAP operating income of $5 million in 2010, compared to $3.3 million in 2009.
* Other expenses of $733 000 in 2010, compared to $316 000 in 2009, reflecting foreign currency translation losses in both years. The amounts held in Euro deposit accounts were transferred to US dollar deposit accounts in early February 2010, reducing future exposure to Euro currency fluctuations.
* Cash flows from operations, which were reduced by $1.3 million related to tax expense for stock-based payments, still increased to $5.3 million in 2010, compared to $4.4 million in 2009.

For the first quarter of 2010, non-GAAP net income and EPS exclude charges for stock-based compensation of $1 million, or EPS of $0.05, and non-cash income tax expense of approximately $1.2 million, or EPS of $0.07. For the first quarter of 2009, non-GAAP net income and EPS exclude charges for stock-based compensation of $847 000, or EPS of $0.05, and non-cash income tax expense of $799 000, or EPS of $0.04.

During the first quarter of 2010 the company was also:

* Positioned in the leaders' quadrant of the Gartner Magic Quadrant for Contact Center Infrastructure, Worldwide report (Feb 22, 2010).
* Added to the S&P SmallCap 600 Index and the Nasdaq Global Select Market.
* Awarded Frost & Sullivan's 2010 Technology Company of the Year for Contact Centers in North America.
* Among CRM Magazine's 2010 Service Leaders for Contact Center Infrastructure.
* The recipient of the 2009 Customer Interaction Solutions magazine's Product of the Year Award.