Interactive Intelligence (Nasdaq: ININ), a global provider of unified IP business communications solutions, has announced operating results for the three months ended 31 March 2011.
The company reported revenue of $47.7 million, an increase of 36% from revenue of $35 million in the first quarter of 2010. Product revenue increased by 32%, recurring revenue by 30%, and services revenue by 88% compared to the 2010 first quarter.
First-quarter operating results included the following:
* On a generally accepted accounting principles (GAAP) basis, net income of $3.1 million in 2011, with diluted earnings per share (EPS) of $0.16, compared to net income of $1.9 million in 2010, or EPS of $0.10.
* Net income on a non-GAAP* basis of $5.5 million in 2011, with EPS of $0.28, compared to non-GAAP net income of $4.2 million in 2010, or EPS of $0.22.
* GAAP operating income of $4.9 million in 2011, up 23% from $4 million in 2010.
* Non-GAAP operating income of $6.8 million in 2011, up 34% from 2010.
* Other expense of $123 000 in 2011, compared to $733 000 in 2010, reflecting foreign currency translation losses in both years.
* An increase in cash flows from operations to $6.7 million in 2011, compared to $5.3 million in 2010.
For the first quarter of 2011, non-GAAP net income and EPS excluded charges for stock-based compensation of $1.3 million, or EPS of $0.07, purchase accounting adjustments of $510 000, or EPS of $0.03, and non-cash income tax expense of approximately $549 000, or EPS of $0.02.
For the first quarter of 2010, non-GAAP net income and EPS excluded charges for stock-based compensation of $1 million, or EPS of $0.05, and non-cash income tax expense of $1.2 million, or EPS of $0.07.
Cash and investment balances, including long-term investments, as of 31 March 2011, increased to $91.9 million with no debt.
“We again saw strong year-over-year order increases across all major geographies and product groups,” said Interactive Intelligence founder and CEO, Dr Donald E Brown. “Total orders were up 55% over the first quarter of 2010, which included a near tripling in cloud-based contracts year-over-year. We're executing well on our sales and marketing plans and are benefiting from an increase in new opportunities as a result of our relationships with key strategic partners.”
During the first quarter of 2011, the company was also named a “2011 Service Leader” by CRM Magazine and a "Need to Know Vendor” by Computer Reseller News.
On 11 April 2011, Interactive Intelligence announced that it will ask shareholders at its 2011 annual shareholder meeting to vote on a proposal to reorganise the company as a holding company incorporated in Indiana. The annual meeting is scheduled for 10 June 2011 at 9am, Eastern time (EDT) at the company's world headquarters, located at 7601 Interactive Way, Indianapolis, Indiana 46278. Shareholders of record as of the close of business on 21 April 2011 will be entitled to vote by proxy or in person at the annual meeting.
Interactive Intelligence and Interactive Intelligence Group, its wholly owned subsidiary, have filed a registration statement with the Securities and Exchange Commission (SEC) that includes a preliminary proxy statement/prospectus and other relevant documents in connection with the proposed reorganisation. More information regarding the proposed reorganisation is available on the company's Web site at http://www.inin.com, under the "About Us" tab.
A teleconference, held last week, was broadcast live on the company's investor relations' page at http://investors.inin.com. An archive of the teleconference will be posted.
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Interactive Intelligence
Interactive Intelligence (Nasdaq: ININ) is a global provider of unified business communications solutions for contact centre automation, enterprise IP telephony, and business process automation. The company's solutions, which can be deployed via an on-premise or hosted model, include vertical-specific applications for insurance and collections. Interactive Intelligence was founded in 1994 and has more than 4 000 customers worldwide. The company is among Software Magazine's 2010 Top 500 Global Software and Services Suppliers, and Forbes Magazine's 2010 Best Small Companies in America. Interactive Intelligence is also positioned in the leaders' quadrant of the Gartner Magic Quadrant for Contact Centre Infrastructure, Worldwide report (Feb. 22, 2010). The company 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: http://www.inin.com.
Interactive Intelligence Forward-Looking Statement Disclosure
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.
Non-GAAP measures
The non-GAAP measures shown in this release include revenue which was not recognised on a GAAP basis due to purchase accounting adjustments and exclude non-cash stock-based compensation expense for stock options, the amortisation 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 amortisation 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 amortisation of intangibles related to acquisitions for its internal budgets.
Where to find additional information:
Interactive Intelligence, Inc. and Interactive Intelligence Group, Inc. (ININ Group) have filed a registration statement that includes a preliminary proxy statement/prospectus and other relevant documents in connection with the proposed reorganisation. Interactive Intelligence shareholders are urged to carefully read these documents and the definitive proxy statement/prospectus, when filed and mailed, because they contain and will contain important information about the proposed reorganisation. The definitive proxy statement/prospectus will be mailed to Interactive Intelligence shareholders prior to the shareholder meeting. In addition, investors may obtain a free copy of the preliminary proxy statement/prospectus and other filings containing information about Interactive Intelligence, ININ Group, and the proposed reorganisation, from the SEC at the SEC's Web site at http://www.sec.gov. In addition, copies of the preliminary proxy statement/prospectus and other filings containing information about Interactive Intelligence, ININ Group, and the proposed reorganisation can be obtained without charge by sending a request to Interactive Intelligence, Inc., 7601 Interactive Way, Indianapolis, Indiana 46278, Attention: Investor Relations; by calling (317) 872-3000; or by accessing them on Interactive Intelligence, Inc.'s investor relations Web page at http://investors.inin.com/.
Participants in the Solicitation
Interactive Intelligence, its directors, executive officers, certain other members of management, and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Interactive Intelligence in favor of the proposed holding company reorganisation. Additional information regarding the interests of potential participants in the proxy solicitation is included in the preliminary proxy statement/prospectus and will be included in the definitive proxy statement/prospectus and other relevant documents that Interactive Intelligence and ININ Group have filed and intend to file with the SEC in connection with the annual meeting of shareholders of Interactive Intelligence, Inc.
This press release is being made pursuant to and in compliance with the Securities Act of 1933, as amended, and does not constitute an offer of any securities for sale or a solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offer of the securities will be made solely by means of a prospectus included in the registration statement and any prospectus supplement that may be issued in connection with such offering.
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.
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