Interactive Intelligence reports record revenue for second quarter

Interactive Intelligence Inc (Nasdaq: ININ), a global developer of business communications software, has reported record revenue of $27 million for the second quarter, a 40% increase from $19.3 million in the same period last year. Product revenues were $14.4 million, an increase of 51% from the same quarter last year.

Net income was $2.3 million, with diluted earnings per share (EPS) of $0.12, for the 2007 second quarter, up from $1 million and $0.05, respectively, in the 2006 second quarter. Net income includes expense for employee stock options for the second quarter of $806 000 in 2007 and $668 000 in 2006.

"We're very pleased with our strong revenue growth and increasing profitability," said Dr Donald E Brown, Interactive Intelligence CEO. "Our success during the quarter included a large number of new customer wins across our target markets. There were three orders totalling over $1 million, among several significant customer orders, demonstrating our continued move upmarket. To complement this progress, we're nearing the release of another significant version of our software, which will provide the largest enterprises even greater benefits related to security, scalability and ease of deployment."

For the six months ended 30 June 2007, revenue was $51.2 million, a 38% increase from $37.2 million in the same period in 2006. Net income for the six months ended 30 June 2007 was $3.9 million, with diluted earnings per share (EPS) of $0.20, up from $2 million and $0.11, respectively, in the same period last year. Net income includes expense for employee stock options of $1.5 million in 2007, and $1.2 million in 2006.

Cash and short-term investments as of 30 June 2007 totalled $32.1 million, up from $27.1 million on 31 December 2006. Cash flow from operations for the first six months of 2007 was $6.9 million, up from $4.3 million in the first half of fiscal year 2006. As previously disclosed, during the second quarter of 2007 the company acquired certain intangible and other assets of the professional services division of Alliance Systems Ltd and paid $853 000.

To further reinforce its existing customer relationships through quality education and information, Interactive Intelligence hosted a record number of attendees at its 8th Annual User Forum in May. The event attracted many of its more than 2 500 blue chip customers, including Abbott Labs, AIG, Ceridian, Eli Lilly and Company, Finish Line, Harrah's, Hydro-Qu'ebec, John Deere, Kohl's, Nautilus, Research In Motion, University of California, Berkeley and Walgreens.

Additional business and product highlights during the quarter included the release of an upgraded version of the company's SIP-based Interaction Gateway; an expanded "software as a service" offering for both the contact centre and enterprise; and the introduction of additional applications designed to complement Microsoft Exchange 2007 Unified Messaging.

In June, Interactive Intelligence added a new board member, Eli Lilly CIO Michael Heim, and also announced plans for the expansion of its headquarters facility in Indianapolis.

Interactive Intelligence will host a conference call today, 30 July, at 4.30pm EDT, featuring Dr Brown and the company's CFO, Stephen R Head. There will be a live Q&A session following opening remarks.

To access the teleconference, please dial 1 800.289.0485 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: "Interactive Intelligence second quarter earnings call."

The teleconference will also be broadcast live on Interactive Intelligence's investor relations' page at http://www.inin.com/investors. An archive of the teleconference will be posted following the call.