Go BackInteractive Intelligence reports record fourth quarter 2007 and fiscal year operating results
Interactive Intelligence Inc. (Nasdaq: ININ), a global provider of unified IP business communications solutions, reported record financial results for its fourth quarter and fiscal year ended Dec. 31, 2007. Revenues for the 2007 fiscal year totaled $109.9 million, up 32 percent from $83.0 million in 2006. Fourth quarter revenues were $29.3 million, a 23 percent increase from $23.9 million in the same quarter last year.
"Our growth was largely driven by the significant value proposition offered by our unique all-in-one communications software suite for contact centers and enterprises," said Interactive Intelligence CEO, Dr. Donald E. Brown. "We exceeded our original growth targets for the year, gained market share by growing faster than the overall market, and achieved a significant milestone by breaking through the $100 million revenue mark.
"Our results demonstrate that we continue to deliver great value to our customers as they make the transition to voice over IP. We added 93 new customers in the fourth quarter and 325 new customers for the year. We also gained increased recognition for our innovative technology as reflected in our positioning in the "Leaders Quadrant" of Gartner's 2007 Contact Center Infrastructure report."
Net income for the 2007 fourth quarter was $10.3 million, with diluted earnings per share (EPS) of $0.53. These results include $840,000 of expense related to employee stock options, as well as a tax benefit of $8.1 million recorded to reduce the valuation allowance for deferred tax assets. Net income for the fourth quarter of 2006 was $1.6 million with EPS of $0.08, including stock option expense of $539,000.
For the 2007 fourth quarter, non-GAAP (generally accepted accounting principles) net income was $3.1 million, or EPS of $0.16, compared to non-GAAP net income of $2.1 million, or EPS of $0.11, in the same quarter last year. The non-GAAP differences were due to exclusion of the non-cash income tax benefit recorded in the fourth quarter of 2007 and stock-based compensation expense recorded in both years.
Net income for the 2007 fiscal year was $17.5 million with EPS of $0.91, up from 2006 fiscal year net income of $10.2 million with EPS of $0.56. Net income for 2007 included expense for employee stock options of $3.1 million, as well as the tax benefit of $8.1 million recorded in the fourth quarter. Net income for 2006 included expense for employee stock options of $2.1 million, as well as a tax benefit of $5.0 million recorded in the third quarter to reduce the valuation allowance for deferred tax assets related to tax operating loss carry-forwards.
Non-GAAP net income for the 2007 fiscal year was $12.5 million, or EPS of $0.65, compared to non-GAAP net income of $7.4 million, or EPS of $0.40, in the 2006 fiscal year. The non-GAAP differences were due to exclusion of the non-cash income tax benefit and stock-based compensation expense recorded in both years.
Cash and short-term investments as of Dec. 31, 2007 totaled $46.3 million, up from $27.1 million on Dec. 31, 2006. Cash flow from operating activities for fiscal year 2007 was $20.2 million.
"We believe migration to VoIP continues to fuel our company's strong and steady growth," Brown said. "The latest version of our software, released in the fourth quarter of 2007, takes full advantage of this trend with additional IP-related enhancements in the areas of security, ease-of-deployment, integration, and mobility.
"While cautious about 2008 given the current economic environment, we believe our competitive advantages will continue to drive revenue growth and are targeting an increase in revenues in 2008 of between 20 and 25 percent, along with operating margins, excluding stock option expenses, of between 10 and 11 percent."
Interactive Intelligence will host a conference call Wednesday, Jan. 30 at 4:30 p.m. Eastern time (EST), 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 1 877.548.7911 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.
The non-GAAP measures shown in this release exclude non-cash stock-based compensation expense for stock options and non-cash income tax benefits. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included after the financial information included in this press release. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. 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 historical periods because certain historical periods did not include stock-based compensation expense for stock options or the non-cash income tax benefits related to the reduction in the valuation allowance for the deferred tax assets. Interactive Intelligence's management uses these non-GAAP results to compare its performance to its competitors in the software industry. Because stock-based compensation expense and non-cash tax benefits can vary significantly between companies, it is useful to compare results without these amounts. Management also uses financial statements that do not include stock-based compensation expense related for stock options or non-cash income tax benefits for its internal budgets.
About Interactive Intelligence
Interactive Intelligence Inc. (Nasdaq: ININ) is a global provider of unified IP business communications solutions for contact center automation, enterprise telephony, and enterprise messaging. The company was founded in 1994 and has more than 3,000 customers worldwide. Interactive Intelligence is among the top 500 global software and services suppliers, and is ranked among the top 200 North American networking vendors. The company employs more than 550 people and is headquartered in Indianapolis, Indiana. It has six global corporate offices, with additional sales offices throughout North America, Europe and Asia Pacific. Interactive Intelligence can be reached at +1 317.872.3000 or info@inin.com; on the Net: http://www.inin.com.
Date - 01/02/2008
