* Total orders up 31% from 2012 first quarter.
* Cloud-based orders increased 42% to 31% of total orders.
* Total revenues up 39% to $73.2 million.
Interactive Intelligence Group, a global provider of unified IP business communications software and services, has announced financial results for the first quarter ended 31 March 2013.
"During the first quarter of 2013, we had solid order growth in all our geographies and booked twice as many orders greater than $250 000 as we did in the first quarter last year," said Interactive Intelligence founder and CEO, Dr Donald Brown. "Our year-over-year revenue growth further highlights our ongoing traction with some of the world's largest global companies as they adopt our technology with on-premises deployments or by joining the move to the cloud. The rapid growth of our cloud-based orders and revenues continued to enhance the scale of our overall recurring revenues. We will continue to make those investments that drive growth in market share, particularly with our cloud-based offering, which remains the highest growth segment of our market."
Brown added: "We remain committed to innovation and extending our product capabilities, as evidenced by the recent launch of our cloud-based product for small contact centres. Looking forward, we are confident in our long-term strategy to expand our cloud business, thereby increasing our recurring revenues and consistently gaining market share. Based on our strong global pipeline, we are maintaining our 2013 total order growth forecast of 20%, with cloud-based orders expected to represent approximately half of total orders."
First-quarter 2013 financial highlights:
* Orders: Total orders increased by 31% from the first quarter of 2012, while cloud-based orders were up 42% over the first quarter of 2012 and comprised 31% of total orders. The company signed 39 contracts over $250 000, which included eight orders over $1 million, up from 17 orders over $250 000, including six orders over $1 million, in the first quarter of 2012.
* Revenues: Total revenues were $73.2 million, an increase of 39% over the first quarter of 2012. Recurring revenues, which include both maintenance and support from perpetual licence agreements and cloud-based revenues, increased 22% to $33.8 million and accounted for 46% of total revenues. Cloud-based revenues increased 42% to $7.1 million. Product revenues were $28.0 million and services revenues were $11.4 million, up 44% and 101%, respectively, compared to the first quarter of 2012. During the first quarter of 2013, product revenues benefited from partial revenue recognition of a large order signed during the fourth quarter of 2012.
* Total deferred revenues: Deferred revenues increased to $110.2 million as of 31 March 2013, from $77.8 million as of 31 March 2012. In addition, the amount of unbilled future cloud-based revenues as of 31 March 2013 increased to $95.8 million from $40.6 million at the end of the 2012 first quarter. The combination of deferred revenues and unbilled future cloud-based revenues was $206.0 million, up 74% from $118.4 million as of 31 March 2012.
* Operating income: GAAP operating income was $3.4 million for the first quarter of 2013, compared to $276 000 in the same quarter last year. Non-GAAP* operating income was $6.2 million for the first quarter of 2013, with a non-GAAP operating margin of 8.5%, compared to $2.4 million and 4.6%, respectively, in the first quarter of 2012.
* Net income: GAAP net income for the first quarter of 2013 was $1.5 million, or $0.07 per diluted share based on 20.7 million weighted average diluted shares outstanding, and included a tax credit related to 2012 research and development of $600 000. These results compare to GAAP net income for the same quarter in 2012 of $189 000, or $0.01 per diluted share, based on 20.0 million weighted average diluted shares outstanding.
Non-GAAP net income for the first quarter of 2013 was $3.6 million, or $0.17 per diluted share, compared to non-GAAP net income of $1.9 million, or $0.09 per diluted share, for the same quarter in 2012.
* Cash, cash equivalents and investments: As of 31 March 2013, the company had cash, cash equivalents and investments of $81.9 million.
* Cash flows: The company used $1.0 million in cash flow for operating activities in the first quarter of 2013, and $3.6 million for capital expenditures, which included expansion of its cloud infrastructure, and received $5.7 million from the exercise of stock options.
* A reconciliation of GAAP to non-GAAP financial measures is included below under the heading "Non-GAAP measures".
Additional first-quarter 2013 and recent highlights:
* Interactive Intelligence launched CaaS Small Center, a new cloud solution designed to give contact centres with under 50 agents a simple, cost-effective way to access the same sophisticated communications applications as the largest global centres.
* Interactive Intelligence released an enhanced version of its Bay Bridge Decisions contact centre forecasting, capacity planning and analysis product suite, which was designed to help customers reduce costs and improve service.
* Interactive Intelligence purchased the customer support agreements of Amtel Communications, its New Zealand-based reseller, effective 1 April 2013.
Interactive Intelligence will host a conference call today at 4:30pm Eastern time (EDT) featuring 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 first-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.
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