IP business communications solutions provider, Interactive Intelligence Group Inc. announced preliminary results for its second quarter, which ended June 30, 2012. Despite the still-lagging economy, the company reported growth in total orders for the quarter, though not quite as high as expected because of deferred orders. All in all, however, the company expects it will achieve growth goals for the year.
The company said it expects to report total revenue for the second quarter of 2012 in the range of $54.0 million to $55.0 million, up approximately four to six percent year-over-year. This is below the company's guidance of $58.0 million to $61.0 million, and the company attributes this to a number of second quarter product orders that will be recognized as revenue in future quarters. More than $7 million in product orders were not recognized as revenue in the second quarter for a number of reasons, especially extended payment terms on a multimillion dollar order that is part of a major systems deployment; deferral of certain other orders until product components are delivered, which is expected to occur later this year; and a high percentage of prepaid multi-year product maintenance that was bundled with certain product orders, which is recognized over the related support period.
Growth in total orders for the second quarter of 2012 was 26 percent compared to the second quarter of 2011. Cloud-based orders increased 88 percent over the prior year's second quarter and represented 24 percent of total orders received in the quarter.
“Our business showed strong growth in the quarter, as evidenced by a 26 percent increase in total orders year-over-year,” said Interactive Intelligence founder and CEO, Dr. Donald Brown in a press release. “However, certain product orders received during the quarter had revenue recognition deferred to future quarters, which impacted our reported revenue and profitability. We are pleased that our cloud-based orders increased at such a robust rate as we continued to gain share at the high end of the contact center market. Given our strong and growing pipeline of opportunities worldwide, we expect to achieve our total order growth rate target of 20 percent for the year.”
The company plans to issue its final 2012 second-quarter results July 31, 2012 at 4 p.m. Eastern time (EDT) and will host a conference call that day at 4:30 p.m. EDT to review the company's financial results, provide guidance for the third quarter, and give updated guidance for the full year of 2012.
Interactive Intelligence is a Platinum sponsor of ITEXPO West 2012. To be held Oct. 2-5 at the Austin Convention Center in Austin, TX, ITEXPO is the world’s premier IP communications event. For more information on IEXPO West 2012 click here.