Interactive Intelligence (Nasdaq: ININ), a global provider of unified IP business communications solutions, has announced operating results for the three and six months ended 30 June 2010.
The company reported revenue of $38.8 million, an increase of 18% over the second quarter of 2009. Product revenue was up 10% and services revenue increased 26% compared to the same quarter last year.
During the 2010 second quarter, the company's analysis of the collectability of invoiced services increased current quarter services revenue by $673 000.
“We again experienced an increase in the dollar amount of orders from last year, which is what drives the growth in our revenue,” said Interactive Intelligence founder and CEO, Dr Donald E Brown.
“Communications as a service continues to gain momentum, representing 14% of orders received. CaaS revenue was up 87% this quarter compared to the second quarter of 2009. The ongoing signing of new customers in turn is driving increases in support and professional services revenue.”
The company reported operating income on a generally accepted accounting principles (GAAP) basis of $4.7 million for the 2010 second quarter, up 56% from $3 million in the same quarter last year. Non-GAAP operating income was $5.6 million for the second quarter of 2010, compared to $3.7 million for the second quarter of 2009.
GAAP net income was $2.5 million, with diluted earnings per share (EPS) of $0.13, compared to $2.1 million, or EPS of $0.12, for the second quarter of 2009. Net income on a non-GAAP basis was $5 million, with EPS of $0.26, compared to $4.4 million, or EPS of $0.24, for the same quarter last year.
Non-GAAP net income and EPS for the 2010 second quarter exclude charges for stock-based compensation of $964 000, or EPS of $0.05, and non-cash income tax expense of approximately $1.5 million, or EPS of $0.08. For the second quarter of 2009, 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.
These results include other expenses of $523 000 in the 2010 second quarter primarily due to foreign exchange losses, compared to other income of $722 000, primarily from foreign exchange gains, in the same quarter last year. In the second quarter of 2010, the company instituted a currency hedging programme to help mitigate future effects of fluctuations in the foreign exchange rates on cash and receivables.
Cash and investment balances as of 30 June 2010 increased to $75.5 million. The company has no debt.
First half 2010 results included:
* Total revenue of $73.8 million, an 18% increase over revenue of $62.4 million in the first half of 2009.
* GAAP operating income of $8.6 million, up from $5.4 million for the first half of 2009.
* Non-GAAP operating income of $10.6 million compared to $7 million for the first half of 2009.
* Other expense, principally due to foreign exchange losses, of $1.3 million for the first half of 2010, compared to other income, due to foreign exchange gains, of $406 000 for the first half of 2009.
* GAAP net income of $4.3 million, or EPS of $0.23, compared to $3.3 million, or EPS of $0.19, for the first half of 2009.
* Non-GAAP net income of $9.1 million, or EPS of $0.48, compared to $7.2 million, or EPS of $0.41, for the same period last year.
For the first six months of 2010, non-GAAP net income and EPS exclude charges for stock-based compensation of $2 million, or EPS of $0.11, and non-cash income tax expense of $2.8 million, or EPS of $0.14.
For the first half of 2009, 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.
Other 2010 second quarter highlights included:
* The signing of a partnership with Buzzient to offer integrated social media monitoring, routing and reporting solutions.
* A record number of attendees at the 2010 Interactive Intelligence User Forum in May.
* The company's designation as one of the "Best Places to Work in Indiana" by the Chamber of Commerce for the fourth consecutive year.
* The honouring of Interactive Intelligence founder and CEO, Dr Donald E Brown, by the Indiana University School of Informatics with its “Career Achievement Award”.
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