Interactive Intelligence Inc, a global developer of business communications software, today announced record financial results for its fourth quarter and fiscal year ended 31 December 2006.
The company reported record total revenues in the 2006 fourth quarter of $23.9 million, a 36% increase from $17.5 million in the fourth quarter of 2005. Revenues for the 2006 fiscal year totalled a record $83.2 million, up 32% from $62.9 million in 2005.
Net income for the 2006 fourth quarter was $1.6 million and diluted earnings per share (EPS) was $0.08. The 2006 fourth quarter results include $539 000 of expense related to employee stock options. Net income for the fourth quarter of 2005 was $1.8 million and EPS was $0.10.
Net income for the 2006 fiscal year was $10.2 million with EPS of $0.56, up from 2005 fiscal year net income of $2.1 million and EPS of $0.13. Net income for 2006 includes expense for employee stock options of $2.1 million as well as a tax benefit of $5 million recorded in the third quarter to reduce the valuation allowance for deferred tax assets related to tax operating loss carry forwards.
Cash and short-term investments as of 31 December 2006 totalled $27.1 million, up from $15.1 million on 31 December 2005, and cash flow from operating activities for fiscal year 2006 was $10.6 million.
"We had a strong fourth quarter to finish out an exceptional year," said Interactive Intelligence CEO, Dr Donald E Brown. "Our expanded sales and marketing activities paid off as the number of new customers and the average dollar value of initial contracts increased compared to the prior year. Our cash position and balance sheet strengthened significantly during the year. We also believe that we have increased our product leadership position during the year with major feature enhancements to our unified communications software suite, a new media server, and the addition of a new workforce management module.
"We continue to invest in the long-term success of the company. Looking forward to this year, we expect to continue our rapid revenue growth of 25% or more compared to 2006. We are committed to continued improvement of our operating earnings and believe that we have the proper expense disciplines and staffing plans in place. We improved our operating margin from 3.8% in 2005 to 6% in 2006, including stock option expense of $2.1 million, or 2.6% of revenue. We expect 2007 operating income to be at least 7% of revenues, including stock option expense," Brown concluded.
Interactive Intelligence will host a conference call on 12 February at 4.30pm EST, featuring Dr Brown, and the company's chief financial officer, Stephen R Head. There will be a live Q&A session following opening remarks.
To access the teleconference, please dial 1 800 530 8983 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://www.inin.com/investors. An archive of the teleconference will be posted following the call.
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Interactive Intelligence Inc (Nasdaq: ININ) is a global provider of business communications software and services for contact centre automation and enterprise IP telephony. The company was founded in 1994 and has more than 2 500 customers worldwide. Recent awards include the 2006 Network World 200, CRM Magazine's 2006 Rising Star Excellence Award, Network Computing Magazine's 2006 Well-Connected Award, and Software Magazine's 2006 Top 500 Global Software and Services Companies. Interactive Intelligence employs approximately 500 people and is headquartered in Indianapolis, Indiana. The company has five global corporate offices, with additional sales offices throughout North America, Europe and Asia Pacific. Interactive Intelligence can be reached at (+13) 17 872 3000 or info@inin.com; on the Net: http://www.inin.com.
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 and increasingly complex third party relationships, to maintain successful relationships with its current and any new resellers, to maintain and improve its current products and to develop new products and to protect its proprietary rights adequately; and other factors described in the company's SEC filings, including the company's latest annual report on Form 10-K and its quarterly reports on Form 10-Q.
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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